Zenith Bank Plc grew its gross earnings by 24% from N765.6bn as of the end of the 2021 financial period to N945.5bn in the corresponding period of 2022.
This information was disclosed in its annual financial statement report for 2022, seen by RateCaptain.
As part of its commitment to shareholders, the bank also announced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share.
Despite the persistent challenging macroeconomic environment and headwinds, the statement said the bank achieved double-digit growth.
It stated that, “According to the audited financial results for the 2022 financial year presented to the Nigerian Exchange, the double-digit growth in gross earnings was driven by a 26% year-on-year growth in interest income from N427.6bn to N540.2bn and a 23% year-on-year growth in non-interest income from N309bn to N381bn.”
“Profit before tax also grew by 2%, from N280.4bn to N284.7bn, in the current year. The increase in profit before tax was due to the significant growth in all the income lines.”
According to the bank, impairments grew by 107% from N59.9bn to N124.2bn, while interest expense grew by 63% YoY from N106.8bn to N173.5bn.
The impairment growth, which also resulted in an increase in the cost of risk (from 1.9 percent in 2021 to 3.3 percent in the current year), was due to the impact of Ghana’s sovereign debt restructuring program, the bank explained.
It added that the growth in interest expense increased the cost of funds from 1.5% in 2021 to 1.9% in 2022, due to hikes in interest rates globally.
The capital adequacy ratio decreased from 21% to 19%, while the liquidity ratio improved from 71.2% to 75%; both prudential ratios were above regulatory thresholds.
“In 2023, the Group intends to expand its frontiers as it also reorganizes into a holding company structure, adding new verticals to its businesses and growing in all of its chosen markets, both locally and internationally,” the statement said.
