As a reflection of its strength, Zenith Bank Plc was recently ranked as the number one bank in Nigeria by tier-1 capital in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine.
In the award which was for the 13th consecutive year, the
bank retained its position as the number one tier-1 bank in Nigeria with a
tier-1 capital of $2.75 billion, emerging as the 460th bank globally.
In a clear demonstration of its industry leadership and consistency in providing superior financial returns, Zenith Bank Plc has announced its audited results for the half-year ended 30 June 2022, recording an astounding double-digit growth of 17 per cent in gross earnings, from N346 billion reported in H1 2021 to N405 billion in H1 2022.
This was in spite of a very challenging macroeconomic
environment.
According to the bank’s audited half-year financial results
presented to the Nigerian Exchange (NGX) yesterday, the growth was underpinned
by a 19 per cent year-on-year (YoY) growth in interest income from N204 billion
to N242 billion and an 18 per cent 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 attested to the Group’s success in its income
diversification strategy.
Also, Zenith Bank’s profit before tax (PBT) grew by 11 per
cent YoY, from N117 billion to N130 billion. Earnings per share (EPS) also grew
from N3.38 to N3.55 over same six-month period.
The Group also recorded an 11 per cent year-to-date (YtD)
increase in total customer deposits to close the period at N7.15 trillion. The
retail strategy of the Group continued to deliver outstanding results as retail
deposits grew by 17 per cent 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 per cent YoY, from N17 billion to N25
billion.
Despite the elevated yield environment, Zenith Bank’s cost
of funds increased only marginally from 1.3 per cent in June 2021, to 1.4 per
cent 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 per cent, from 6.4 per cent in June 2021.
Zenith 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 grew by five per cent YtD, from N3.5 trillion to N3.7 trillion.
This was achieved at a moderate non-performing loan (NPL)
ratio of 4.4 per cent (FYE 2021: 4.2%) and cost of risk of 1.4 per cent (June
2021: 1.3%). Its prudential ratios such as liquidity and capital adequacy also
remained stable and well-above regulatory thresholds at 60.5 per cent and 21
per cent respectively.
The Group disclosed that it remains 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 bank stated.
Zenith Bank’s track record of excellent performance has
continued to earn the brand numerous awards, including being recognised as
Number One Bank in Nigeria by Tier-1 Capital, for the 13th consecutive year, in
the 2022 Top 1000 World Banks Ranking published by The Banker Magazine; Best
Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global
Finance World’s Best Banks Awards; Best Commercial Bank, Nigeria 2021 and 2022
in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in
the World Finance Corporate Governance Awards 2022; Best in Corporate Governance
‘Financial Services’ Africa, for three consecutive years from 2020 to 2022, by
the Ethical Boardroom; Best Commercial Bank, Nigeria and Best Innovation In
Retail Banking, Nigeria in the International Banker 2022 Banking Awards.
Also, the Bank emerged as the Most Valuable Banking Brand in
Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Bank of
the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and Retail Bank
of the year at the BusinessDay Banks and Other Financial Institutions (BOFI)
Awards 2020 and 2021.
Similarly, Zenith Bank was honoured as Bank of the Decade
(People’s Choice) at the THISDAY Awards 2020 and emerged winner in four
categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards
2021, carting home the awards for “Best Company in Reporting and Transparency”,
“Best Company in Infrastructure Development”, “Best Company in Gender Equality
and Women Empowerment”, and the coveted “Most Responsible Organisation in
Africa.
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