Zenith Bank Plc has announced its audited results for the year ending Dec. 31, 2022, achieving a growth of 24 per cent in gross earnings from N765.6 billion reported in 2021 to N945.5 billion in 2022.
This is despite the persistent challenging macroeconomic environment and headwinds.
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According to the audited financial results for the 2022 financial year presented to the Nigerian Exchange Ltd., NGX, the double-digit growth in gross earnings was driven by a 26 per cent year-on-year, YoY, growth in interest and non-interest income.
The interest income grew 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 also grew 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.
Impairments grew 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 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 centin 2021 to 1.9 per cent in 2022 due to hikes in interest rates globally.
Customer deposits increased by 39 per cent, growing from N6.47 trillion in the previous year to N8.98 trillion in the current year.
