Zenith Bank Plc has unveiled its audited results for the year ended December 31, 2023, showcasing a phenomenal triple-digit growth of 125% in gross earnings. The bank’s gross earnings soared from NGN945.6 billion reported in 2022 to an impressive NGN2.132 trillion in 2023.
This significant surge in gross earnings propelled a remarkable Year-on-Year (YoY) increase of 180% in Profit Before Tax (PBT), climbing from NGN284.7 billion in 2022 to NGN796 billion in 2023. Furthermore, Profit After Tax (PAT) recorded triple-digit growth of 202%, escalating from NGN223.9 billion to NGN676.9 billion in the period ended December 31, 2023.
The surge in gross earnings can be attributed to substantial growth in both interest and non-interest income. Interest income surged by 112% from NGN540 billion in 2022 to NGN1.1 trillion in 2023, while non-interest income grew by 141% from NGN381 billion to NGN918.9 billion in the same period. The bank’s improved top-line performance was supported by effective repricing of risk assets and a rise in the yield of interest-bearing instruments.
Despite the challenging high-interest rate environment, the bank reported an increase in the cost of funds, from 1.9% in 2022 to 3.0% in 2023. Interest expense also surged by 135% from NGN173.5 billion in 2022 to NGN408.5 billion in 2023. However, the Group’s cost-to-income ratio improved significantly from 54.4% in 2022 to 36.1% in 2023, propelled by the robust top-line performance.
The Group’s commitment to delivering better shareholder returns was evident, as evidenced by the improvement in Return on Average Equity (ROAE) by 118%, reaching 36.6% in 2023. Similarly, Return on Average Assets (ROAA) grew by 95% from 2.1% to 4.1% in the same period.
Zenith Bank continued to deepen its market leadership, with customer deposits increasing by 69% from NGN9.0 trillion to NGN15.2 trillion in 2023. Retail deposits constituted 46% of total deposits, reinforcing increased customer confidence in the Zenith brand.
Total assets surged by 66% from NGN12.3 trillion in 2022 to NGN20.4 trillion in 2023, largely driven by growth in total deposits and the revaluation of foreign currency deposits. Additionally, gross loans grew by 71% from NGN4.1 trillion in 2022 to NGN7.1 trillion in 2023.
The bank’s prudential ratios remained within regulatory thresholds, with the Capital Adequacy Ratio (CAR) and liquidity ratio at 21.7% and 71.0%, respectively, as of the close of 2023.
In line with its commitment to shareholders, Zenith Bank announced a proposed final dividend payout of NGN3.50 per share, bringing the total dividend to NGN4.00 per share.
Looking ahead, the Group is set to complete its transition to a holding company structure in 2024, positioning it to explore emerging opportunities in the Fintech space while enhancing its digital and retail banking initiatives. Additionally, the Group is undertaking urgent actions to meet the new minimum NGN500 billion equity capital requirement stipulated by the Central Bank of Nigeria (CBN), strengthening its presence in key markets and positioning for sustainable growth and value addition for stakeholders.
