Zenith Bank Plc has recorded an astounding triple-digit growth of 139% in gross earnings from N404.8 billion reported in H1 2022 to N967.3 billion in H1 2023.

The triple-digit growth in the top line also spurred the bottom line as the Group recorded a 169% Year-on-Year (YoY) increase in profit before tax, growing from N130 billion in H1 2022 to N350.4 billion in H1 2023.

Profit after tax also grew by triple digits, growing by 162% from N111.4 billion to N291.7 billion in the same period.

According to the bank’s audited results for the half-year ended 30 June 2023 presented to the Nigerian Exchange (NGX) on Monday, 11th September 2023, the growth in gross earnings arose from both interest income and non-interest income.

Interest income grew by 72% from N241.7 billion in H1 2022 to N415.4 billion in H1 2023, while non-interest income grew by 246% from N149 billion to N515.7 billion.

The growth in interest income is attributed to the impact of both the growth and repricing of risk assets. The liberalization of the foreign exchange market during the period spurred the growth in non-interest income as revaluations gains improved significantly.

In terms of efficiency, cost-to-income ratio improved from 58% to 38.5% in the current period on the back of an enhanced income line.

The liberalization of the foreign exchange market coupled with the heightened risk environment resulted in cost of risk growing from 1.4% to 8.8%. Cost of funding also grew YoY from 1.4% in H1 2022 to 2.6% in H1 2023 because of the spike in interest rates between both periods as interest expense grew from N57 billion in H1 2022 to N153.6 billion in H1 2023.

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Total assets grew by 31% from N12.3 trillion in December 2022 to N16.0 trillion in June 2023, mainly driven by growth in customers’ deposits and the devaluation of the local currency. Customers’ deposits grew by 30% from N9.0 trillion in December 2022 to N11.6 trillion in June 2023.

Loans and advances also grew by 32% from N4.12 trillion in December 2022 to N5.38 trillion in June 2023 partly due to the revaluation of the foreign currency denominated loans as well as growth in local currency loans.

Non-performing loans ratio improved from 4.3% to 3.9% in December 2022 despite the deterioration of the macros and heightened risk environment because of the currency mix of risk assets.

Capital adequacy ratio improved from 19.8% to 22.0%, while liquidity ratio reduced from 75% to 61% in the current period.  Both prudential ratios are still well above regulatory thresholds.

The reorganisation into a holding company structure has advanced, as the Group adds new verticals to its businesses and expand into new frontiers.

The Star