Event

Zenith Bank (“the Group”) audited FY 2023 financial results revealed a robust performance. Gross earnings grew by 125% to N2.13trn on the wheels of increased interest and non-interest income. For context, interest income climbed 112% to N1.14trn while non-interest income grew significantly by 143% to N987.08bn.

On the flip side, operating expenses surged 32% to N449.47bn owing to rising personnel, regulatory and energy costs. Recall in FY 2022, profit before tax only grew marginally by 2% while profit after tax declined by 8% amid huge impairment charges recognised which was related to Ghana debt securities. However, in 2023, bottom-line performance took a different turn following the impact of the FX revaluation policy implemented during the period. Profit before tax jumped by 180% to N795.96bn while profit after tax grew by 167% to N676.91bn.

Q1 2024 Financial Performance

The Group reported an impressive financial performance according to their Q1 2024 results. Our findings revealed that gross earnings grew by 182% year-on-year. The strong performance was supported by a 155% year-on-year growth in interest income and a 273% jump in non-interest income.

Outlook

We expect sustained expansion in loan growth and consequently, increased interest income. We highlight that the increased loan drive might compel higher loan loss provisions and may further impair asset quality.

Please follow the link “Zenith Bank FY 2023 & Q1 2024 – Higher Yield and Trading Gain Drives Overall Performance” to view the whole report.

Thank you.