Zenith Bank annouces it’s impressive audited result for 2022

ZENITH BANK CAPS THE YEAR 2022 WITH IMPRESSIVE 24% GROWTH IN GROSS
EARNINGS
Zenith Bank Plc has announced its audited results for the year ending December 31, 2022,
achieving an impressive double-digit growth of 24% in gross earnings from NGN765.6
billion reported in the previous year to NGN945.5 billion in 2022. This is despite the
persistent challenging macroeconomic environment and headwinds.
According to the audited financial results for the 2022 financial year presented to the
Nigerian Exchange (NGX), the double-digit growth in gross earnings was driven by a 26%
year-on-year (YoY) growth in interest income from NGN427.6 billion to N540.2 billion and a
23% year-on-year (YoY) growth in non-interest income from NGN309 billion to NGN381
billion. Profit before tax also grew by 2% from NGN280.4 billion to NGN284.7 billion in the
current year. The increase in profit before tax was due to the significant growth in all the
income lines.
Impairments grew by 107% from NGN59.9 billion to NGN124.2 billion, while interest
expense grew 63% YoY from N106.8 billion to N173.5 billion, respectively. The impairment
growth, which also resulted in an increase in the cost of risk (from 1.9% in 2021 to 3.3% in
the current year), was due to the impact of Ghana’s sovereign debt restructuring
programme. The growth in interest expense increased the cost of funds from 1.5% in 2021
to 1.9% in 2022 due to hikes in interest rates globally.
Customer deposits increased by 39%, growing from NGN6.47 trillion in the previous year to
NGN8.98 trillion in the current year. The growth in customer deposits came from all
products and deposit segments (corporate and retail), thus consolidating the bank’s market
leadership and indicating customers’ trust.
The continued elevated yield environment positively impacted the bank’s Net-Interest-
Margin (NIM), which grew from 6.7% to 7.2% due to an effective repricing of interest-
bearing assets. Operating expenses grew by 17% YoY, but growth remains below the
inflation rate. Total assets increased by 30%, growing from NGN9.45 trillion in 2021 to
NGN12.29 trillion, mainly driven by growth in customer deposits. With the steady and
continued recovery in economic activities, the Group prudently grew its gross loans by 20%,
from NGN3.5 trillion in 2021 to NGN4.1 trillion in 2022, which increased the Non-Performing
Loan (NPL) ratio modestly from 4.2% to 4.3% YoY. The capital adequacy ratio decreased
from 21% to 19%, while the liquidity ratio improved from 71.2% to 75%. Both prudential
ratios are well above regulatory thresholds.
In 2023, the Group intends to expand its frontiers as it also reorganises into a holding
company structure, adding new verticals to its businesses and growing in all its chosen
markets, both locally and internationally.
As a testament to its commitment to shareholders, the bank has announced a proposed
final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share.