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Zenith Bank records 17% growth in gross earnings in H1’22

Zenith Bank Plc, has announced double-digit growth of 17% in gross earnings to N405 billion for the half-year ended 30th June 2022, (H1’22), from N346 billion recorded in the corresponding period H1’21.

The bank’s audited half-year financial results presented to the Nigerian Exchange, yesterday, said the growth was underpinned by a 19% year-on-year (YoY) growth in interest income to N242 billion from N204 billion and an 18% YoY growth in non-interest income to N149 billion from N127 billion.

The bank explained that the growth in interest income was driven by a modest increase in the loan book and improved interest margins. The increase in non-interest income was driven by the Group’s success in its income diversification strategy.

Other highlights of the financials according to bank’s statement showed:

  • Profit before tax (PBT) grew 11% YoY to N130 billion from N117 billion;
  • Earnings per share (EPS) also grew to N3.55 from N3.38 over the same 6-month period;
  • Total customer deposits recorded 11% increase year-to-date (YtD) to close at N7.15 trillion;
  • Retail deposits grew 17% YtD to N2.13 trillion from N1.82 trillion; and,
  • Fees on electronic products grew by 45% YoY to NGN25 billion from N17 billion.

Combined with the Group’s industry leadership, we expect this to drive improved performance and deliver enhanced returns to stakeholders.

The statement also showed a marginal increase of 1.4% in cost of funds from 1.3% YoY despite the elevated yield environment. 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% YoY.

Similarly, the bank’s 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 rose 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 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%, respectively.

The Group said it is focused on advancing its digital banking strategy anchored on a strong technology base, and intends to consolidate on the gains achieved in prior years across all business segments.

“Combined with the Group’s industry leadership, we expect this to drive improved performance and deliver enhanced returns to stakeholders,” the statement said.

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