Amid harsh operating environment, Zenith Bank Plc has achieved a profit before tax (PBT) of N130 billion in its half-year operations against N117 billion recorded in the corresponding period in 2021.
Specifically, the bank’s audited results for the half-year ended 30 June 2022, showed 11 per cent rise in PBT from NGN117 billion to NGN130 billion while gross earnings also increased to N405 billion from N346 billion posted during the same period in 2021 representing 17 per cent growth.
According to the bank, the improved performance was underpinned by 19 per cent growth in interest income from N204 billion to N242 billion and 18 per cent increase in non-interest income from N127 billion to N149 billion. Its earnings per share (EPS) also grew from N3.38 to N3.55.
The bank explained that the growth in interest income was driven by the modest increase in the loan book and improved interest margins, adding that the non-interest income growth attests to the Group’s success in its income diversification strategy.
In addition, the Group also recorded an 11 per cent increase in total customer deposits to close the period at N7.15 trillion while retail deposits grew by 17 per cent from N1.82 trillion to N2.13 trillion.
The bank said its retail activities also supported the growth recorded in fees on electronic products, which grew by 45 per cent from N17 billion to N25 billion. It also noted that the cost of funds increased only marginally from 1.3 per cent to 1.4 per cent despite the elevated yield environment.
“The increase in the cost of funds was lower than the increase in yields on interest-generating assets, giving rise to an improved Net Interest Margin (NIM) of 7.1 per cent from 6.4 per cent per cent in June 2021. Total assets rose to N10.12 trillion at the end of June 2022 from N9.45 trillion at the end of December 2021.
