Zenith Bank Nigeria Plc continues to deliver an attractive earnings profile, supported by a diversified earnings base while a solid capital base indicates the lender has the buffer to withstand macroeconomic shocks.
The largest lender by profit in Africa’s most nation that has won numerous awards for excellence posted gross earnings of N620.57 billion in September 2022, which is 16.43 percent higher than 2021’s N518.67 billion.
Net income, that is profit after tax (PAT), was up 8.55 percent to N174.33 billion in the period under review from N160.59 billion as at September 2021.
The growth in earnings and profitability was driven by a 26.52 percent year on year(YOY) growth in interest income to N390.75 billion and a 9.96 percent YoY growth in non-interest income to N211.97 billion.
Zenith Bank’s net interest income, NII, the money it earns on loans minus what it pays out for deposits, was up 20.51 percent to N282.90 billion in September 2022, thanks to a hike in the interest rate by the central bank.
To mitigate the impact of inflation, the Central Bank of Nigeria (CBN) has raised its benchmark interest rate to a 20-year-high of 15.5 per cent.
The consumer price index (CPI), which measures the rate of change in prices of goods and services, surged to 20.77 percent in September 2022, up from 20.52 percent in the previous month.