Zenith Bank reports ‘best ever’ profit of N679.9 billion in 2023 –
Zenith Bank Plc, one of Nigeria’s largest banks, published its audited accounts for the fiscal year 2023, showcasing gross earnings of N2.13 trillion.
This represents a growth of 125.4% year on year and is the highest gross earnings ever reported in the company’s history.
The bank also reported a net interest income of approximately N736.18 billion, more than double what was reported in the previous year.
Profit after tax for the period under review rose by 202% to N679.9 billion, setting another significant record for the company.
Furthermore, the group accrued an FX revaluation gain of N228.98 billion, marking a substantial appreciation from the N25.2 billion gain accrued in 2022.
Key Highlights (FY 2023 vs FY 2022)
Gross Earnings: N2.13 trillion, +125.4% YoY Net Interest Income: N736.18 billion, +100.8% YoY Net Income on Fees and Commission: N109.31 billion, -17.7% YoY Trading Gains: N566.97 billion, +166.6% YoY Profit Before Tax: N795.96 billion, +179.6% YoY Profit After Tax: N676.91 billion, +202.3% YoY Earnings per share: N21.55, +201.8% YoY Loans and Advances: N6.57 trillion, +63.4% YoY Total Assets: N20.37 trillion, +65.8% YoY Total Shareholders’ Equity: N2.32 trillion, +68.5% YoY Retained Earnings: N1,179,390 vs N625,005Proposed Dividends: N3.50 per share (Total for the year N4 per share)Commentary
Zenith Bank’s exceptional performance can largely be attributed to a significant surge in its interest income, where it amassed a staggering N1.1 trillion.
However, the bank allocated a substantial provision of about N409.6 billion, reducing its Net Interest Income after provisioning to N326.5 billion.This considerable provision may be linked to the bank’s challenges in utilizing its vast retained earnings for dividend payments, especially after the central bank’s recent decision to exclude retained earnings from its calculation of a bank’s share capital.Moreover, Zenith Bank significantly benefited from the foreign exchange rate, garnering an estimated N228.9 billion from forex revaluation gains.
The bank also reported N566.9 billion from trading gains. Interest income from treasury bills in 2023 soared to N179.0 billion, representing a 310.4% growth from the N43.6 billion recorded in 2022.
Additionally, interest income from government and other bonds reached N187.4 billion in 2023.A major contributor to fees and commission income for Zenith Bank during the fiscal year was electronic product fees, which amounted to N51.8 billion, marking a 13.3% increase from the N45.7 billion posted in 2022.In 2023, the group’s capital adequacy ratio climbed to 22%, up from 20% in 2022.
Full Story: https://citynewsng.com/2024/04/09/zenith-bank-reports-best-ever-profit-of-n679-9-billion-in-2023/
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