Zenith Bank Plc grew its gross earnings by 24 per cent from N765.6n as of the end of 2021 financial period to N945.5bn in the corresponding period of 2022.
The bank disclosed this in a statement on Tuesday on its audited results for the year ending December 31, 2022, titled ‘Zenith Bank grows gross earnings by 24 per cent to N945.5bn in 2022’.
As part of its commitment to shareholders, the bank also announced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share.
Despite the persistent challenging macroeconomic environment and headwinds, the statement said the bank achieved double-digit growth.
It stated that “According to the audited financial results for the 2022 financial year presented to the Nigerian Exchange, the double-digit growth in gross earnings was driven by a 26 per cent year-on-year growth in interest income from N427.6bn to N540.2bn and a 23 per cent year-on-year growth in non-interest income from N309bn to N381bn.
“Profit before tax also grew by two per cent from N280.4bn to N284.7bn in the current year. The increase in profit before tax was due to the significant growth in all the income lines.”
According to the bank, impairments grew by 107 per cent from N59.9bn to N124.2bn, while interest expense grew by 63 per cent YoY from N106.8bn to N173.5bn respectively.
Customer deposits increased by 39 per cent, growing from N6.47tn in the previous year to N8.98tn in the current year.
The growth in customer deposits came from all products and deposit segments (corporate and retail), consolidating the bank’s market leadership and indicating customers’ trust.
The continued elevated yield environment positively impacted the bank’s net-interest margin, which grew from 6.7 per cent to 7.2 per cent, due to an effective repricing of interest-bearing assets.
Operating expenses grew by 17 per cent YoY, but growth remained below the inflation rate.
According to the bank, its total assets increased by 30 per cent, growing from N9.45tn in 2021 to N12.29tn, mainly driven by growth in customer deposits.
With the steady and continued recovery in economic activities, the Group grew its gross loans by 20 per cent, from N3.5tn in 2021 to N4.1tn in 2022, which increased the non-performing loan ratio modestly from 4.2 per cent to 4.3 per cent YoY.
The capital adequacy ratio decreased from 21 per cent to 19 per cent, while the liquidity ratio improved from 71.2 per cent to 75 per cent. Both prudential ratios were 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,” the statement said.