… Proposes N2.90 final dividend payout per share
Zenith Bank Plc has announced its audited results for the year ending December 31, 2022, achieving an impressive double-digit growth of 24per cent in gross earnings from N765.6 billion reported in the previous year to N945.5 billion in 2022.
This is despite the persistent challenging macroeconomic environment and headwinds.
As a testament to its commitment to shareholders, the bank also announced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share.
According to the audited financial results for the 2022 financial year presented to the Nigerian Exchange (NGX), the double-digit growth in gross earnings was driven by a 26 per cent Year-on-Year (YoY) growth in interest income from N427.6 billion to N540.2 billion and a 23per cent YoY growth in non-interest income from NGN309 billion to NGN381 billion.
Profit before tax also grew by 2per cent from N280.4 billion to N284.7 billion in the current year.
The increase in profit before tax was due to the significant growth in all the income lines.
Impairments grew by 107 per cent from N59.9 billion to N124.2 billion, while interest expense grew 63 per cent YoY from N106.8 billion to N173.5 billion, respectively.
The impairment growth, which also resulted in an increase in the cost of risk (from 1.9 per cent in 2021 to 3.3per cent in the current year), was due to the impact of Ghana’s sovereign debt restructuring programme.
The growth in interest expense increased the cost of funds from 1.5 per cent in 2021 to 1.9per cent in 2022 due to hikes in interest rates globally.
Customer deposits increased by 39per cent, growing from N6.47 trillion in the previous year to N8.98 trillion in the current year.
The growth in customer deposits came from all products and deposit segments (corporate and retail), thus consolidating the bank’s market leadership and indicating customers’ trust.
The continued elevated yield environment positively impacted the bank’s Net-Interest-Margin (NIM), which grew from 6.7per cent to 7.2 per cent due to an effective repricing of interest-bearing assets.
Operating expenses grew by 17 per cent YoY, but growth remains below the inflation rate.
Total assets increased by 30per cent, growing from N9.45 trillion in 2021 to N12.29 trillion, mainly driven by growth in customer deposits.
With the steady and continued recovery in economic activities, the Group prudently grew its gross loans by 20per cent, from N3.5 trillion in 2021 to N4.1 trillion in 2022, which increased the Non-Performing Loan (NPL) ratio modestly from 4.2 per cent to 4.3per cent YoY.
The capital adequacy ratio decreased from 21per.cent to 19per cent, while the liquidity ratio improved from 71.2per cent to 75per cent.
Both prudential ratios are well above regulatory thresholds.
In 2023, the Group intends to expand its frontiers as it also reorganises into a holding company structure, adding new verticals to its businesses and growing in all its chosen markets, both locally and internationally.
