Zenith Bank Plc has released its audited results for the year ending December 31, 2023, achieving an impressive triple-digit growth of 125 per cent in gross earnings, increasing from N945.6 billion in 2022 to N2.132 trillion in 2023.
The audited financial results for the 2023 financial year, presented to the Nigerian Exchange (NGX), showcased a remarkable Year-on-Year (YoY) surge of 180 per cent in Profit Before Tax (PBT), climbing from N284.7 billion in 2022 to N796 billion in 2023.
Profit After Tax (PAT) also saw a triple-digit growth of 202 per cent, leaping from N223.9 billion to N676.9 billion by the end of December 31, 2023.
The surge in gross earnings has been attributed to the growth in interest and non-interest income. Interest income surged by 112 per cent from N540 billion in 2022 to N1.1 trillion in 2023, while non-interest income saw a 141 per cent increase from N381 billion to N918.9 billion during the same period.
The rise in interest income was fueled by the expansion in the size of risk assets and their effective re-pricing, coupled with the increase in the yield of other interest-bearing instruments throughout the year.
The growth in non-interest income was driven by substantial trading gains and an uptick in gains from the revaluation of foreign currencies.
Despite the high interest rate environment leading to a rise in the cost of funds from 1.9 per cent in 2022 to 3.0 per cent in 2023, interest expense surged by 135 per cent from N173.5 billion in 2022 to N408.5 billion in 2023.
However, the Group’s cost-to-income ratio improved significantly from 54.4 per cent in 2022 to 36.1 per cent in 2023, despite a 32 per cent growth in operating expenses, owing to enhanced top-line performance.
Return on Average Equity (ROAE) witnessed a surge of 118 per cent from 16.8 per cent in 2022 to 36.6 per cent in 2023, supported by improved gross earnings as the Group aimed to deliver superior shareholder returns. Return on Average Assets (ROAA) also grew by 95 per cent from 2.1per cent to 4.1 per cent during the same period.
Zenith Bank has continued to strengthen its market leadership in key corporate and retail deposit segments, with customer deposits escalating by 69 per cent from N9.0 trillion to N15.2 trillion in 2023.
The bank’s retail drive has yielded positive results, with retail deposits now constituting 46 per cent of total deposits (up from 44 per cent in 2022) and growing by 77 per cent from N3.97 trillion in 2022 to N7.04 trillion in 2023, reinforcing increased customer trust in the Zenith brand.
Total assets increased by 66 per cent from N12.3 trillion in 2022 to N20.4 trillion in 2023, primarily driven by the growth in total deposits and the revaluation of foreign currency deposits.
Gross loans also grew by 71 per cent from N4.1 trillion in 2022 to N7.1 trillion in 2023, attributed to the revaluation of foreign currency loans and the expansion in local currency risk assets.
Despite the challenging operating environment, the disciplined approach to risk assets creation and management ensured that the Non-Performing Loans (NPL) ratio only marginally increased from 4.3 per cent to 4.4 per cent.
The Capital Adequacy Ratio (CAR) and liquidity ratio remained within regulatory thresholds at 21.7 per cent and 71.0 per cent, respectively, by the end of 2023.
As part of efforts to reward shareholders, the bank proposed a final dividend payout of N3.50 per share, bringing the total dividend to N4.00 per share.
Looking ahead to 2024, the Group is set to complete the transition to a holding company structure, positioning itself strategically to explore emerging opportunities in the Fintech space and bolster its digital and retail banking initiatives.
Furthermore, the Group is taking necessary steps to meet the new minimum N500 billion capital base requirements within the stipulated timeframe by the Central Bank of Nigeria (CBN) to maintain its international authorisation.
This move, the bank said is aimed at strengthening its presence in key markets, positioning for sustainable growth and value addition for stakeholders.
Zenith Bank’s consistent outstanding performance has garnered numerous accolades, including being named Best Bank in Nigeria for the fourth time in five years from 2020 to 2022 and in 2024 in the Global Finance World’s Best Banks Awards.
Besides, the bank has also been recognised for its digital solutions, corporate governance, and sustainability efforts, solidifying its position as a leading financial institution in Nigeria and beyond.
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