Zenith Bank Plc ended the third quarter of 2022 on a good note, as the bank recorded a 20% growth in gross earnings. This was announced in the unaudited results for the third quarter, which ended on September 20, 2022.
According to the report, the company earned N620.6 billion as of September 30, 2022, compared to the N518.7 billion recorded in the same period of 2021. The growth was accounted for by interest and non-interest income.
The bank generated N390.8 billion in interest income. It increased by 27% compared to N308.8 billion in 2021. This was driven by the increase in risk assets and improved pricing. The surge increased the earnings per share by 9% to N5.55.
Also, the highest recorded growth saw the company generate N202.5 billion (13%) year-on-year (Y-o-Y) returns before tax deduction. This is more than the N179.8 billion generated in the same period in 2021. After the tax deduction, Zenith Bank recorded a N174.3 billion (9%) growth, which was more than the N160.6 billion in 2021.
The growth in non-interest income was driven by the group’s retail strategy, substantial customer acquisitions driving transactions; deposit growth; and growth in electronic banking income. However, the cost of operations increased by 17% due to inflation and the rising cost of doing business. Despite the increase, it was still below the 20% gross earnings level.
Total assets rose by 20% from N9.45 trillion to N11.34 trillion in 2022. This was driven by customers’ deposits. The deposits grew by 24% from N6.47 trillion in December 2021 to N8.04 trillion in September 2022.
Facts about Zenith Bank
Though not one of the premier banks in Nigeria, it is the largest in terms of market capitalisation. As of October 27, 2022, it has a market cap of N631.1 billion with a share value of N20.10. With this growth, it can be said that the bank had an eventful 2022.
In the first half of 2022, Zenith Bank Group recorded 11% year-on-year (YoY) growth in profit before tax deduction, from NGN117 billion to NGN130 billion. Also, the earnings per share increased from NGN3.38 to NGN3.55 over the same 6-month period.
The company’s gross profit grew by 17% Y-o-Y, from NGN346 billion to NGN405 billion. This was driven by a 19% YoY growth in interest income from NGN204 billion to NGN242 billion and an 18% YoY growth in non-interest revenue from NGN127 billion to NGN149 billion.
With the report of the first half and third quarter of 2022, the bank plans on finishing the year strong. The report says, “In the year’s final quarter, management is determined to sustain the strong performance trajectory while adapting to changes in the regulatory environment and focusing on creative initiatives to mitigate inflationary trends, foreign exchange pressures, and the growing competitive environment”.
Nigeria’s Afrobeat singer Oladapo Oyebanji with the stage name D’Banj has been arrested an…