Connect with us


Zenith Bank surpasses N2trn earnings milestone



Zenith Bank surpasses N2trn earnings milestone
Spread The News

Zenith Bank Plc has unveiled its audited results for the year ending December 31, 2023, achieving an impressive triple-digit growth of 125% in gross earnings, soaring from NGN945.6 billion in 2022 to NGN2.132 trillion in 2023.

The audited financial results for the 2023 financial year, presented to the Nigerian Exchange (NGX), showcased a remarkable Year-on-Year (YoY) surge of 180% in Profit Before Tax (PBT), climbing from NGN284.7 billion in 2022 to NGN796 billion in 2023.

Profit After Tax (PAT) also saw a triple-digit growth of 202%, leaping from NGN223.9 billion to NGN676.9 billion by the end of December 31, 2023.

The surge in gross earnings has been attributed to the growth in interest and non-interest income. Interest income surged by 112% from NGN540 billion in 2022 to NGN1.1 trillion in 2023, while non-interest income saw a 141% increase from NGN381 billion to NGN918.9 billion during the same period.

The rise in interest income was fueled by the expansion in the size of risk assets and their effective repricing, coupled with the increase in the yield of other interest-bearing instruments throughout the year.

The growth in non-interest income was driven by substantial trading gains and an uptick in gains from the revaluation of foreign currencies.

Despite the high interest rate environment leading to a rise in the cost of funds from 1.9% in 2022 to 3.0% in 2023, interest expense surged by 135% from NGN173.5 billion in 2022 to NGN408.5 billion in 2023.

However, the Group’s cost-to-income ratio improved significantly from 54.4% in 2022 to 36.1% in 2023, despite a 32% growth in operating expenses, owing to enhanced top-line performance.

Return on Average Equity (ROAE) witnessed a surge of 118% from 16.8% in 2022 to 36.6% in 2023, supported by improved gross earnings as the Group aimed to deliver superior shareholder returns. Return on Average Assets (ROAA) also grew by 95% from 2.1% to 4.1% during the same period.

READ ALSO: Again, Zenith Bank emerges Nigeria’s best Bank at Global Finance Awards

Zenith Bank has continued to strengthen its market leadership in key corporate and retail deposit segments, with customer deposits escalating by 69% from NGN9.0 trillion to NGN15.2 trillion in 2023.

The bank’s retail drive has yielded positive results, with retail deposits now constituting 46% of total deposits (up from 44% in 2022) and growing by 77% from NGN3.97 trillion in 2022 to NGN7.04 trillion in 2023, reinforcing increased customer trust in the Zenith brand.


Total assets surged by 66% from NGN12.3 trillion in 2022 to NGN20.4 trillion in 2023, primarily driven by the growth in total deposits and the revaluation of foreign currency deposits.

Gross loans also grew by 71% from NGN4.1 trillion in 2022 to NGN7.1 trillion in 2023, attributed to the revaluation of foreign currency loans and the expansion in local currency risk assets.

Despite the challenging operating environment, the disciplined approach to risk assets creation and management ensured that the Non-Performing Loans (NPL) ratio only marginally increased from 4.3% to 4.4%.

In a bid to reward shareholders, the bank has proposed a final dividend payout of NGN3.50 per share, bringing the total dividend to NGN4.00 per share.

Looking ahead to 2024, the Group is set to complete the transition to a holding company structure, positioning itself strategically to explore emerging opportunities in the Fintech space and bolster its digital and retail banking initiatives.

The bank has also been recognized for its digital solutions, corporate governance, and sustainability efforts, solidifying its position as a leading financial institution in Nigeria and beyond.