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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.