Zenith Bank grows earnings by 125% N2.13 trillion

ZENITH Bank Plc has announced a rem arkable 125 per cent growth in its gross earnings in its 2023 operations, from N945.6 billion reported in 2022 to N2.13 trillion.

According to the audited financial results for the 2023 financial year presented to the Nigerian Exchange ( NGX), the impressive tripledigit growth in gross earnings resulted in 180 per cent growth in profit before tax ( PBT), from N284.7 billion in 2022 to N796 billion.

Profit after tax ( PA T) also recorded triple- digit growth of 202 per cent, from N223.9 billion to N676.9 billion.

The increase in gross earnings, the bank said, was primarily due to growth in interest and non- interest income. Interest income increased by 112 per cent from N540 billion in 2022 to N1.1 trillion in 2023 while non- interest income grew by 141 per cent from N381 billion to N918.9 billion in the same period.

The increase in interest income is attributed to the growth in the size of risk assets and their effective repricing, alongside the rise in the yield of other interestbearing instruments over the year.

Growth in non- interest income was driven by significant trading gains and an increase in gains from the revaluation of foreign currencies.

The cost of funds grew from 1.9 per cent in 2022 to three per cent in 2023 due to the high interest rate en vironment while interest expense increased by 135 per cent from N173.5 billion in 2022 to N408.5 billion in 2023. Notwithstanding the 32 per cent growth in operating expenses in 2023, the Group’s cost- to- income ratio improved significantly from 54.4 per cent in 2022 to 36.1 per cent in 2023 due to improved top- line performance.

Return on a verage equity ( ROAE) increased by 118 per cent from 16.8 per cent in 2022 to 36.6 per cent in 2023, underpinned by improved gross earnings, as the Group sought to deliver better shareholder returns. Return on average assets ( ROAA) also grew by 95 per cent from 2.1 per cent to 4.1 per cent in the same period.