Zenith Bank Plc has announced its unaudited financial results for the third quarter ended 30 September 2023, showcasing an impressive triple-digit growth of 114% from N620.6 billion reported in Q3 2022 to N1.33 trillion in Q3 2023.
The results underscore the Group’s resilience and sustained market share, even in the face of a challenging macroeconomic environment.
According to the unaudited third-quarter financial results presented to the Nigerian Exchange (NGX), the significant growth in the topline also contributed to a substantial increase in the bottom line. The Group witnessed a 149% Year-on-Year (YoY) surge in profit before tax, rising from N202.5 billion in Q3 2022 to N505 billion in Q3 2023. Profit after tax also expanded by 149% from N174.3 billion to N434.2 billion in the same period.
The bank attributed the stellar performance to a surge in both interest income and non-interest income. Interest income experienced a 72% increase to N670.9 billion from N390.8 billion in Q3 2022, while non-interest income soared by 186% from N212 billion to N607.2 billion. The management highlighted that the growth in profit was largely driven by an improvement in interest and non-interest income, reflecting effective pricing strategies and the revaluation gain due to the unification of exchange rates during the year.
While the cost-to-income ratio reduced from 55.8% in Q3 2022 to 37.8% in the current period, the bank acknowledged an increase in impairment levels due to conservative provisioning and risk management measures in response to the heightened risk environment. The cost of risk deteriorated from 1.3% in Q3 2022 to 5.5% in Q3 2023, representing an improvement from Q2 2023.
Zenith Bank’s total assets surged by 48% from N12.3 trillion to N18.2 trillion, driven by substantial growth in customers’ deposits, which climbed by 49% from N8.98 trillion in December 2022 to N13.38 trillion in September 2023. The bank also witnessed a significant increase in gross loans, which rose by 48% from N4.1 trillion to N6.1 trillion during the same period.
The non-performing loan ratio improved to 3.8% in the period ended 30 September 2023, which is well below prudential limits. Net interest margin (NIM) printed at 5.6% from 6.2% reported in September 2022 due to low yield in government securities. Capital adequacy ratio improved marginally to 20.1% from 19.8% while liquidity ratio declined from 75% to 68%. However, all our prudential ratios remain above regulatory thresholds.
The Group is optimistic of finishing the year 2023 strong, with focus on sustainable quick wins that would boost growth across all business segments and enhance stakeholder value.
Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1 Capital, for the 14th consecutive year, in the 2023 Top 1000 World Banks Ranking published by The Banker Magazine; Best Commercial Bank, Nigeria, for three consecutive years from 2021 to 2023, in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022 and 2023; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022; Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best in Corporate Governance’ Financial Services’ Africa, for four successive years from 2020 to 2023, by the Ethical Boardroom; Most Sustainable Bank, Nigeria in the International Banker 2023 Banking Awards; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards.
Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021; Bank of the Year 2023 and Retail Bank of the Year, for three consecutive years from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards. Similarly, Zenith Bank was named Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, and Most Responsible Organisation in Africa 2021 by SERAS Awards.
Quadri Olaitan is a journalist and contributor to Freelanews.com, covering news, public affairs, and human-interest stories.
