Zenith Bank Plc stated that its gross earnings increased 20 per cent in the third quarter of 2022 to N620.6bn from N518.7bn in the third quarter of 2021, indicating macroeconomic stability.
According to The PUNCH, it was disclosed in its non-validated results for the third quarter statement highlighted ‘Zenith Bank surmounts macroeconomic headwinds with double-digit growth in gross earnings in q3 2022’
Nigerian exchange received this statement and it can be reported that the heightened performance resulted from non-interest and interest economic growth aiding top lines.
It was reported that the interest income grew by 27% from N308.8bn to N390.8bn, propelled mainly by growth in pricing and risk assets, also strengthening earnings per share by nine per cent to N5.55.
As stated in the Punch, the bottom line was not left out, as the Group also recorded a 13% year-on-year increase in profit before tax, growing from N179.8bn in Q3, 2021 to N202.5bn in Q3, 2022.
In the same period, Profit tax also increased from N160.6bn to N174.3bn and the estimation of the asset side led to NIM expectation for increased growth.
Non-interest income growth was propelled by the Group’s retail strategy, with persistent substantial customer acquisition driving transactions, deposit growth and growth in electronic banking income.
However, Operating costs reduced by 17% as a result of inflationary pressure and the rising cost of doing business. This was 20% below the growth gross earnings, thereby facilitating the computed growth in the bottom line.
Zenith Bank also revealed the cost of funding which increased from 1.4% to 1.7 per cent in the current period, and net interest margin was affected due to the immediate implementation of higher yields on interest-bearing liabilities.
Likewise, market confidence contributed to total assets growing by 20% from N9.45tn to N11.34tn in 2022, and customer deposits which grew by 24% from N6.47tn in December 2021 to N8.04tn in September 2022.
It was also stated that loans and advances also grew by 16% from N3.5tn in December 2021 to N4.06tn in September 2022, boosting the Group’s interest income and displaying the Group’s strong desire for the productive establishment of risk assets.