The board of Zenith Bank Plc, on Thursday, presented its unaudited financials for the nine months ended September 30, 2022, with which the bank confirmed its leadership of the industry, as demonstrated through the top and bottom-lines.
High points of the results included the gross earnings income of N620.574bn during the period, up by N101.901bn or 19.64% from N528.673bn in the corresponding period of last year; while profit after tax improved by a sluggish N13.737bn or 8.55% from N160.594bn to N174.331bn, after interest expense soared by 45.5% year-on-year, just as interest costs on borrowings rose by 42.9%. The net profit represented Earnings Per Share of N5.55, up from N5.11 each. The bulk of the revenue and net profit, amounting to N563.312bn and N167.37bn were derived from Nigeria, while the African and European subsidiaries contributed N47.609bn and N10.85bn, as well as N25.017bn and N11.892bn respectively. In the same period of 2021, total revenue and profit from Nigeria stood at N462.842bn and N159.055bn; Africa yielded N57.919bn and N16.169bn; while Europe contributed N14.433bn and N3.067bn.
Details of the result showed that interest and similar income rose to N390.755bn from N308.844bn, of which income from customer loans and advances amounted to N261.253bn from N206.861bn; followed by the N86.43bn from government and other bonds, compared to the previous N61.861bn. Interest expense increased from N74.098bn to N107.848bn, driven mainly by the N44.607bn paid on borrowed funds, an increase from the previous N31.21bn; followed by time deposits’ N31.281bn, an increase from N24.2bn; while interest on savings accounts increased to N18.112bn from N11.884bn; and current accounts from N8.744bn to N11.595bn. This left a net interest income of N282.907bn, compared to the previous N234.746bn.
Impairment charge increased from N28.798bn to N37.096bn, with charges on impaired loans and advances jumping from N21.987bn to N37.532bn; while N2.901bn was written back on investment securities. This resulted to net interest income after impairment charge of N245.811bn, compared to the previous N205.948bn.
Net fee and commission income stood at N100.057bn from N78.296bn, of which fees and electronic products stood at N36.069bn from N23.993bn; followed by account maintenance fee which rose from N24.189bn to N28.147bn; just as credit related fees dropped from N9.652bn to N8.017bn; among others. Trading gains rose marginally to N91.441bn from N90.662bn, boosted by the N78.337bn from gains on treasury bills, up, down slightly from N78.533bn.
Other income dropped to N20.474bn from N23.811bn; helped by N11.141bn from foreign currency revaluation gain, which fell from N15.422bn; while loan recovery dropped from N5.514bn to N3.629bn. Depreciation of property and equipment rose marginally also from N18.893bn to N19.886bn. Amortisation of intangible assets was flat at N2.218bn from N2.753bn; personnel expenses increased slightly to N61.464bn from N60.307bn. Operating expenses, however rose from N136.954bn to N171.666bn, with AMCON levy gulping N44.01bn, up from N37.92bn; followed by information technology expenses of N22.218bn, from N16.97bn; just as fuel and maintenance accounted for N22.927bn, from N13.568bn.
Profit before tax, therefore, stood at N202.549bn, against the previous N179.81bn; income expense increased from N19.216bn to N28.218bn.
On the balance sheet, total assets soared to N11.341tr in the first nine months of this year, compared to N8.751tr at the end of December 31, 2021, with customer loans and advances accounting for the lion’s share of N3.88tr, up from N3.02tr; while total liabilities grew from N7.564tr to N10.033tr, lifted by customer deposits amounting to N8.042tr, up from N6.04tr. The bank’s total shareholders’ equity (funds) stood at N1.308tr, up from N1.187tr at the end of last financial year.