Zenith Bank’s Growth Accelerates with 22% Rise in Gross Earnings in Q1

Kayode Tokede

Zenith Bank Plc has announced its unaudited results for the first quarter (Q1) ended 31st March 2022, with an impeccable growth of 22 per cent in gross earnings, from N157.3 billion reported in Q1 2021 to N191.5 billion in Q1 2022.  
From the unaudited statement of account presented to the Nigerian Exchange Limited (NGX) yesterday, the strong double-digit growth in the topline culminated in an increase in the bottom line, as the Group recorded an 11 per cent year-on-year (YoY) increase in profit before tax, growing from N61.02 billion in Q1 2021 to N67.99 billion in Q1 2022.  
Its profit after tax also grew by 10 per cent, from N53.06 billion to N58.19 billion over the same period. The growth in the topline arose from both interest income and non-interest income.
Interest income grew by 25 per cent, from N101.12 billion in Q1 2021 to N126.38 billion in Q1 2022, while non-interest income grew by 12 per cent, from N51.20 billion to N57.23 billion.
The growth in interest income and non-interest income arose from the combined effects of an improvement in interest income on loans and advances (as risk assets continue to grow and pricing is gradually improving) and an improvement in non-interest income as the bank continued 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.  
Its total assets grew by nine per cent, from N9.45 trillion to N10.32 trillion in 2022, mainly driven by growth in customers’ deposits. Customer deposits grew by 12 per cent, from N6.47 trillion in December 2021, to N7.25 trillion in March 2022. Savings account balance, which is solely retail grew by over N68 billion and was a validation of the robust customer acquisition strategy and versatile electronic platforms and digital channels.
Loans and advances also grew by six per cent, from N3.5 trillion in December 2021, to N3.7 trillion in March 2022, boosting the Group’s interest income and displaying the Group’s appetite for high-yielding risk assets creation.
This development also helped to boost the net interest margin (NIM), as it improved from six per cent in March 2021, to 7.3 per cent in the current period, while the capital adequacy ratio improved slightly from 21.1 per cent to 22.1 per cent.
“Going into the remainder of 2022, the Group would continue to focus on sustainable growth across all its business segments and deploy technology platforms and digital assets intuitively to serve its various customers’ needs to deliver enhanced returns to its stakeholders,” the bank stated.
Zenith Bank’s track record of excellent performance has earned the brand numerous awards, including being voted as Best Bank in Nigeria in the Global Finance World’s Best Banks Awards, for three consecutive years from 2020 to 2022, Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, and Best in Corporate Governance’ Financial Services’ Africa 2020 and 2021 by the Ethical Boardroom. Also, the Bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Number One Bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks” Ranking by The Banker Magazine and the Retail Bank of the year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021.
Similarly, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020 and emerged winner in four categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, carting home the awards for “Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women Empowerment”, and the coveted “Most Responsible Organisation in Africa.