Zenith Bank Plc has announced its audited results for the year ending December 31, 2022, posting a double-digit growth of 24 per cent in gross earnings from N765.6 billion reported in the previous year to N945.5 billion in the 2022 financial year. This is as it announced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share.
The double digit increase in earnings is despite the persistent challenging macroeconomic environment and headwinds. According to the audited financial results for the 2022 financial year presented to the Nigerian Exchange (NGX), the double-digit growth in gross earnings was driven by a 26 per cent year-on-year (YoY) growth in interest income from N427.6 billion to N540.2 billion and a 23 per cent year-on-year (YoY) growth in non-interest income from N309 billion to N381 billion.
Profit before tax grew marginally by two per cent from N280.4 billion to N284.7 billion in the current year. The increase in profit before tax was due to the significant growth in all the income lines.
The bank’s impairments on loan losses rose by 107 per cent from N59.9 billion to N124.2 billion, while interest expense grew 63 per cent YoY from N106.8 billion to N173.5 billion, respectively.
The impairment growth, which also resulted in an increase in the cost of risk (from 1.9 per cent in 2021 to 3.3 per cent in the current year), was due to the impact of Ghana’s sovereign debt restructuring programme. The growth in interest expense increased the cost of funds from 1.5 per cent in 2021 to 1.9 per cent in 2022 due to hikes in interest rates globally.
Customer deposits increased by 39 per cent from N6.47 trillion in the previous year to N8.98 trillion in the current year. The growth in customer deposits came from all products and deposit segments (corporate and retail), thus consolidating the bank’s market leadership and indicating customers’ trust.