The topline metrics of Zenith Bank Plc saw a three-digit increase for the third quarter that ended in September 2023, thanks to both interest and non-interest income.
The PUNCH reported that the lender’s unaudited third-quarter financial statements, which were submitted to the Nigerian Exchange Limited, disclosed this.
The financial group’s Q3 statistics show that Zenith Bank’s earnings before taxes increased by 149%, from N202.5 billion in Q3, 2022 to N505 billion in Q3, 2023.
During the same time frame, profit after taxes increased by 149%, from N174.3 billion to N434.2 billion.
Interest income increased by 72% to N670.9bn in the current period from N390.8bn in Q3, 2022, despite the difficult macroeconomic climate, while non-interest income increased by 186% from N212bn to N670.9bn.
As per the group’s statement that accompanied the financial statements, interest income rose due to the rise in risk assets and their effective pricing.
The revaluation benefit from the year’s exchange rate unification is a major contributor to the growth in non-interest income. Currently, the cost-to-income ratio decreased from 55.8% in Q3 2022 to 37.8%.
Zenith Bank’s total assets increased by 48% to N18.2 trillion in the first nine months of 2023 from N12.3 trillion at the end of December 2022.
Client deposits increased from N8.98 trillion in December 2022 to N13.38 trillion in September 2023, a 49 percent increase. The increase in client deposits spans across both corporate and retail segments with the savings portfolio (all currencies) growing from N2.7tn in December 2022 to N4.6tn in September 2023.
A combination of the expansion in local currency loans to strategic and prospering sectors of the economy and the revaluation of loans denominated in foreign currencies resulted in a 48 percent increase in gross loans from N4.1tn in December 2022 to N6.1tn in September 2023.
For the quarter ending September 30, 2023, the non-performing loan ratio decreased to 3.8 percent, which is far within prudential standards. A lower yield on government securities caused the net interest margin to print at 5.6 percent, down from 6.2 percent reported in September 2022.
