Zenith Bank gross N405bn in H1 2022

Zenith Bank Plc has announced its audited results for the half-year ended June 30, recording an astounding double-digit growth of 17% in gross earnings from N346 billion reported in H1 2021 to N405 billion in H1 2022. 

According to the bank’s audited half-year financial results presented to the Nigerian Exchange (NGX), the growth was underpinned by a 19% YoY growth in interest income from N204 billion to N242 billion and an 18% YoY growth in non-interest income from N127 billion to N149 billion. The growth in interest income was driven by the modest increase in the loan book and improved interest margins. The increase in non-interest income attests to the group’s success in its income diversification strategy.

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Profit before tax (PBT) grew 11% year-on-year (YoY) from N117 billion to N130 billion. Earnings per share (EPS) also grew from N3.38 to N3.55 over the same 6-month period.

The group also recorded an 11% year-to-date (YtD) increase in total customer deposits to close the period at N7.15 trillion. The retail strategy of the group continues to deliver outstanding results as retail deposits grew by 17% YtD from N1.82 trillion to N2.13 trillion. Retail activities also supported the growth recorded in fees on electronic products, which grew by 45% YoY from N17 billion to N25 billion.

Despite the elevated yield environment, the cost of funds increased only marginally from 1.3% in June 2021 to 1.4% in June 2022. The increase in the cost of funds was lower than the increase in yields on interest-generating assets, giving rise to an improved Net Interest Margin (NIM) of 7.1% from 6.4% in June 2021.

Total assets rose to N10.12 trillion at the end of June 2022 from N9.45 trillion at the end of December 2021. Despite the headwinds imposed by the operating environment, the group grew its risk assets as gross loans grew by 5% YtD, from N3.5 trillion to N3.7 trillion. This was achieved at a moderate NPL ratio of 4.4% (FYE 2021: 4.2%) and a cost of risk of 1.4% (June 2021: 1.3%). Prudential ratios such as liquidity and capital adequacy also remained stable and well-above regulatory thresholds at 60.5% and 21.0% respectively.