Zenith Bank Plc, a leading financial institution in Nigeria, has unveiled its audited results for the year ending December 31, 2023. The bank achieved remarkable triple-digit growth across key financial metrics, solidifying its position as a market leader.
Profit Before Tax (PBT) Soars
- 180% Increase in PBT: The bank’s Profit Before Tax surged from NGN284.7 billion in 2022 to an impressive NGN796 billion in 2023. This remarkable growth reflects the bank’s strategic focus and effective management.
Profit After Tax (PAT) Hits New Heights
- 202% PAT Growth: Zenith Bank’s Profit After Tax witnessed an astounding 202% increase, reaching NGN676.9 billion in 2023, up from NGN223.9 billion the previous year. This substantial growth underscores the bank’s resilience and adaptability.
Driving Forces Behind the Growth
- Interest Income Surge:
- Zenith Bank’s interest income skyrocketed by 112%, climbing from NGN540 billion in 2022 to an impressive NGN1.1 trillion in 2023.
- Factors contributing to this surge include the expansion of risk assets and effective repricing strategies.
- Additionally, favorable yields on other interest-bearing instruments played a crucial role.
- Non-Interest Income Boost:
- Non-interest income surged by an impressive 141%, reaching NGN918.9 billion in 2023, up from NGN381 billion.
- Trading gains and gains from foreign currency revaluation were key drivers of this growth.
Managing Costs and Efficiency
- Cost of Funds and Interest Expense:
- The cost of funds increased from 1.9% in 2022 to 3.0% in 2023 due to prevailing high interest rates.
- Interest expense surged by 135%, rising from NGN173.5 billion to NGN408.5 billion.
- Improved Cost-to-Income Ratio:
- Despite a 32% increase in operating expenses, Zenith Bank’s cost-to-income ratio improved significantly.
- In 2023, the ratio stood at 36.1%, a substantial improvement from 54.4% in 2022.
Delivering Shareholder Value
- Return on Average Equity (ROAE):
- Zenith Bank achieved a remarkable 118% increase in ROAE, rising from 16.8% in 2022 to 36.6% in 2023.
- This growth reflects the bank’s commitment to enhancing shareholder returns.
- Return on Average Assets (ROAA):
- ROAA also witnessed robust growth, increasing by 95%, from 2.1% to 4.1%.
Expanding Customer Deposits
- Market Leadership in Deposits:
- Zenith Bank continued to deepen its market leadership in corporate and retail deposit segments.
- Customer deposits surged by 69%, reaching NGN15.2 trillion in 2023, up from NGN9.0 trillion.
Zenith Bank’s stellar performance in 2023 underscores its resilience, strategic vision, and unwavering commitment to delivering value to shareholders and customers alike.
Source: Nairametrics