Zenith Bank Plc has announced an extraordinary triple-digit growth of 139 percent in gross earnings for the half year ending June 30, 2023, up from N404.8 billion in the first half of 2022 to N967.3 billion.

This achievement underscores the financial institution’s resilience and robust market position despite facing a challenging macroeconomic environment and ongoing challenges.

According to the bank’s audited half-year financial results, presented at the Nigerian Exchange (NGX) recently, the triple-digit growth in gross earnings also translated into a substantial boost in the bottom line.

The Group’s profit before tax surged by an impressive 169 percent year-on-year, surging from N130 billion in H1 2022 to N350.4 billion in H1 2023.

Furthermore, Zenith Bank’s profit after tax witnessed an outstanding triple-digit growth, soaring by 162 percent from N111.4 billion to N291.7 billion in the same period. The surge in gross earnings was driven by both interest income and non-interest income.

Interest income experienced a robust 72 percent growth, rising from N241.7 billion in H1 2022 to N415.4 billion in H1 2023, while non-interest income skyrocketed by 246 percent, increasing from N149 billion to N515.7 billion.

The growth in interest income can be attributed to the impact of both the growth and repricing of risk assets. The liberalization of the foreign exchange market during the period played a significant role in boosting non-interest income through substantial revaluation gains.

In terms of efficiency, Zenith Bank’s cost-to-income ratio improved significantly, declining from 58 percent to 38.5 percent in the current period, bolstered by a strengthened income line.

However, the liberalization of the foreign exchange market, combined with the heightened risk environment, led to an increase in the cost of risk from 1.4 percent to 8.8 percent, along with a year-on-year rise in the cost of funding, which climbed from 1.4 percent in H1 2022 to 2.6 percent in H1 2023, primarily due to higher interest rates during this period. Interest expenses grew from N57 billion in H1 2022 to N153.6 billion in H1 2023.

Additionally, Zenith Bank’s total assets experienced substantial growth of 31 percent, increasing from N12.3 trillion to N16 trillion as of December 2022, primarily driven by an increase in customer deposits and the devaluation of the local currency.

Customer deposits grew by 30 percent, from N9 trillion in December 2022 to N11.6 trillion in June 2023. Loans and advances also saw significant growth, rising by 32 percent, from N4.12 trillion in December 2022 to N5.38 trillion in June 2023, partly due to the revaluation of foreign currency-denominated loans as well as growth in local currency loans.

Despite the challenging macroeconomic environment and heightened risk factors, the non-performing loans ratio improved from 4.3 percent to 3.9 percent in December 2022, driven by the currency mix of risk assets.

Furthermore, the capital adequacy ratio improved from 19.8 percent to 22 percent, while the liquidity ratio decreased from 75 percent to 61 percent in the current period. Both prudential ratios remained comfortably above regulatory thresholds.

Zenith Bank’s ongoing transformation into a holding company structure continues, as the Group expands into new business verticals and ventures into new markets. The Group remains committed to adaptability, continually responding to changes in the fiscal and monetary environments to sustain growth across all its business segments and markets.

Zenith Bank’s consistent track record of outstanding performance has earned the brand numerous prestigious awards, including recognition 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.

It has also received accolades such as 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, and Best Bank in Nigeria for three consecutive years from 2020 to 2022 in the Global Finance World’s Best Banks Awards.

Additionally, it has been recognized as the Most Sustainable Bank, Nigeria in the International Banker 2023 Banking Awards, and has received awards for Best Commercial Bank, Nigeria, and Best Innovation in Retail Banking, Nigeria in the International Banker 2022 Banking Awards.

Zenith Bank was also named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, and it earned the title of Retail Bank of the Year for three consecutive years from 2020 to 2022 at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

Furthermore, Zenith Bank was honored as the 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 Organization in Africa 2021 by SERAS Awards.