Zenith Bank Plc has released its unaudited financial results for the third quarter ending on September 30, 2023, showcasing an impressive 114% increase in total revenue, soaring from N620.6 billion in Q3 2022 to N1.33 trillion in Q3 2023. This remarkable performance underscores the Group’s resilience and substantial market share, even in the face of a challenging macroeconomic landscape.

According to the bank’s unaudited third-quarter financial report presented to the Nigerian Exchange (NGX), this impressive revenue growth has had a positive impact on the bottom line. The Group has achieved a significant 149% year-on-year (YoY) increase in pre-tax profit, surging from N202.5 billion in Q3 2022 to N505 billion in Q3 2023. Furthermore, post-tax profits also saw a corresponding 149% growth, climbing from N174.3 billion to N434.2 billion during the same period.

The substantial revenue growth can be attributed to both interest income and non-interest income. Interest income saw a robust 72% increase in the current period, rising from N390.8 billion in Q3 2022 to N670.9 billion. Non-interest income also showed remarkable growth, surging by 186% from N212 billion to N607.2 billion.

The boost in profits is primarily a result of the positive impact from both interest and non-interest income. Interest income expanded due to the growth in risk assets and effective pricing. Non-interest income growth is largely driven by revaluation gains resulting from the year’s unification of exchange rates.

The bank’s cost-to-income ratio decreased from 55.8% in Q3 2022 to 37.8% in the current period. However, impairment levels increased due to incremental provisions, a response to the conservative approach to managing the heightened risk environment and the creation of a counter-cyclical buffer to handle potential exchange rate volatility.

Consequently, the cost of risk deteriorated from 1.3% in Q3 2022 to 5.5% in Q3 2023, but this represents an improvement compared to Q2 2023, where the cost of risk was at 8.8% due to prudent risk asset management.

Total assets witnessed a robust 48% growth, increasing from N12.3 trillion to N18.2 trillion by the end of September 30, 2023, primarily driven by the growth in customers’ deposits. Customers’ deposits grew by 49%, jumping from N8.98 trillion in December 2022 to N13.38 trillion in September 2023.

This deposit growth spanned both corporate and retail segments, with the savings portfolio in all currencies growing from N2.7 trillion in December 2022 to N4.6 trillion in September 2023.

Gross loans also saw a 48% increase, growing from N4.1 trillion in December 2022 to N6.1 trillion in September 2023. This growth was due to the revaluation of foreign currency-denominated loans and an expansion in local currency loans to strategic and thriving sectors of the economy. The non-performing loan ratio improved, standing at 3.8% by September 30, 2023, well below prudential limits.

The net interest margin (NIM) decreased to 5.6% from 6.2% reported in September 2022, primarily due to the lower yields in government securities.