Business

Zenith Bank consolidates gains, increases profits by 8.55%

Published

2 years ago

October 27, 2022

Spread The News

Zenith Bank Plc interim consolidated and separate financial report for the period that ended September 30, 2022 shows that the bank grew its profit by 8.55% in nine months to N174.331 billion from N160.594 billion during the comparable period last year.

The bank accomplished this despite soaring inflation. Nigeria’s inflation rate hit a new 17-year high of 20.77% in September 2022, up from 20.52% in August.

During the same period, the bank increased interest and similar income by 26.52% to stand at N390.7 billion as against N308.8 billion in the same period in 2021 as investment securities in treasury bills, bonds and others rose.

The interest and similar expenses were valued at N107.8 billion in the third quarter of 2022 from N74.098 billion in the third quarter of 2021 representing a growth of 45.54, percent net interest income rose by 20.51% from N234.746 billion to N282.907 billion in 2022.

Net fee and commission income grew to N100.057 billion in the third quarter of 2022 from N78.296 billion in 2021 on the back of a rise in credit-related fees and income, electronic banking income, and trade transaction income amongst others.

Electronic banking income stood at N36.069 billion from N23.993 billion in 2021, accounting for 50% growth and contributing 36.04% of the net fees and commission income which was N100.057 billion.

Also, Electronic banking income represents income taken on transactions processed via electronic channels such as ATM, POS, and mobile banking as well as credit and debit card transactions.

Its profit before tax grew by 12.64% to N202.549 billion in 2022 from N179.810 billion in 2021, impairment charges grew by 28.81% to N37.096 billion in 2022 from N28.798 billion in 2021 while operating expenses grew by 25.34% to N171.666 billion in 2022 from N136.954 billion in 2021.

Income tax expense grew by 46.84% to N28.218 billion from N19.216 billion the previous year