Zenith Bank rises on strong earnings in Q1

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Zenith Bank also reported earnings per share of N1.85, a 9.62 per cent growth from the N1.69 reported a year earlier in Q1 2021.

By Eugene Onyeji

Zenith Bank Plc has released its unaudited results for Q1 2022, which revealed a growth of 21.75 per cent in Gross Earnings from N157.3bn reported in Q1 2021 to N191.5bn in Q1 2022.

The strong double-digit growth in the topline climaxed in an impressive increase in the bottom line, as all key parameters charted upwards.

According to the financial statement presented to the Nigerian Exchange (NGX) yesterday, the group recorded an 11.42 per cent significant increase in profit before tax, growing from N61.02bn in Q1 2021 to N67.99bn in Q1 2022.

The bank’s profit after tax also grew by 9.68 per cent, from N53.06bn to N58.19bn over the same period. The growth in the topline was largely driven by remarkable growth in both interest income and non-interest income. Interest income grew by 24.91 per cent, from N101.1bn in Q1 2021 to N126.3bn in Q1 2022, while non-interest income grew by 12 per cent, from N51.20 billion to N57.23 billion.

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Zenith Bank’s growth in interest income and non-interest income arose from the combined effects of an improvement in interest income on loans and advances and an improvement in non-interest income as the Bank continues to deploy its retail strategy, thereby acquiring more customers and expanding its electronic banking income from the increased volume of transactions across all its channels.

Zenith Bank also reported earnings per share of N1.85, a 9.62 per cent growth from the N1.69 reported a year earlier in Q1 2021.

Total assets grew by 18.9 per cent when compared with N8.68tn Q1 2021 to N10.32tn in Q1 2022, mainly driven by growth in customers’ deposits. Customer deposits grew by 27.83 per cent, from N5.67tn in Q1 2021 to N7.25tn in Q1 2022.

Loans and advances also grew by 25.03 per cent, when compared with N2.84tn in Q1 2021 to N3.55tn in Q1 2022, boosting the group’s interest income and displaying the group’s appetite for high-yielding risk assets creation.

Looking forward, Zenith Bank will continue to focus on sustainable growth across all its business segments to deliver enhanced returns to its stakeholders.

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