Zenith Bank Plc has announced its unaudited results for the third quarter ended 30
September 2023, recording a remarkable triple-digit growth of 114% from N620.6 billion
reported in Q3 2022 to N1.33 trillion in Q3 2023. This performance demonstrates the
Group’s resilience and strong market share despite a very challenging macroeconomic
environment.
According to the bank’s unaudited third quarter financial results presented to the Nigerian
Exchange (NGX), the triple-digit growth in the topline also enhanced the bottom line, as the
Group recorded a 149% Year on Year (YoY) increase in profit before tax, growing from
N202.5 billion in Q3 2022 to N505 billion in Q3 2023. Profit after tax also grew by 149%
from N174.3 billion to N434.2 billion in the same period.
The growth in the topline arose from both interest income and non-interest income. Interest
income grew in the current period by 72% to N670.9 billion from N390.8 billion in Q3 2022,
while non-interest income grew by 186% from N212 billion to N607.2 billion. The growth in
profit is similarly attributable to the twin effects of the improvement in interest and non-
interest income. Interest income increased because of the growth in risk assets as well as
the effective pricing thereon. The non-interest income growth is largely driven by the
revaluation gain due to the unification of exchange rates during the year. The cost-to-
income ratio reduced from 55.8% in Q3 2022 to 37.8% in the current period. Impairment
levels increased due to the deliberate incremental provisions necessitated by the
conservative approach towards the heightened risk environment and the creation of a
counter-cyclical buffer needed to deal with any impending volatility of exchange rates. This
caused the cost of risk to deteriorate from 1.3% in Q3 2022 to 5.5% in Q3 2023, however
this is an improvement from Q2 2023 where cost of risk printed at 8.8% because of prudent
management of risk assets.
Total assets grew by 48% from N12.3 trillion to N18.2 trillion in the period ended 30
September 2023, mainly driven by growth in customers’ deposits. Customers’ deposits grew
by 49% from N8.98 trillion in December 2022 to N13.38 trillion in September 2023. The
growth in customers’ deposits cuts across both corporate and retail segments with the
savings portfolio (all currencies) growing from N2.7 trillion in December 2022 to N4.6 trillion
in September 2023.
Gross loans increased by 48% from N4.1 trillion in December 2022 to N6.1 trillion in
September 2023 due to the revaluation of foreign currency denominated loans as well as
the growth in local currency loans to strategic and thriving sectors of the economy. The non-
performing loan ratio improved to 3.8% in the period ended 30 September 2023, which is
well below prudential limits. Net interest margin (NIM) printed at 5.6% from 6.2% reported in
September 2022 due to low yield in government securities. Capital adequacy ratio
improved marginally to 20.1% from 19.8% while liquidity ratio declined from 75% to 68%.
However, all our prudential ratios remain above regulatory thresholds.
The Group is optimistic of finishing the year 2023 strong, with focus on sustainable quick
wins that would boost growth across all business segments and enhance stakeholder value.
Zenith Bank’s track record of excellent performance has continued to earn the brand
numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1
Capital, for the 14th consecutive year, in the 2023 Top 1000 World Banks Ranking
published by The Banker Magazine; Best Commercial Bank, Nigeria, for three consecutive
years from 2021 to 2023, in the World Finance Banking Awards; Best Corporate
Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022 and
2023; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022;
Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance
World’s Best Banks Awards; Best in Corporate Governance’ Financial Services’ Africa, for
four successive years from 2020 to 2023, by the Ethical Boardroom; Most Sustainable
Bank, Nigeria in the International Banker 2023 Banking Awards; Best Commercial Bank,
Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022
Banking Awards.
Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker
Magazine Top 500 Banking Brands 2020 and 2021; Bank of the Year 2023 and Retail Bank
of the Year, for three consecutive years from 2020 to 2022, at the BusinessDay Banks and
Other Financial Institutions (BAFI) Awards. Similarly, Zenith Bank was named Bank of the
Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by
Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, and Most
Responsible Organisation in Africa 2021 by SERAS Awards.
