ZENITH BANK DELIVERS STRONG Q1 2023 RESULTS WITH 41% TOPLINEGROWTH
Zenith Bank Plc has announced its unaudited results for the first quarter ending 31st Marc
2023, with an exceptional double-digit growth of 41% in Gross Earnings, increasing from
₦191.5 billion in Q1 2022 to ₦270 billion in Q1 2023.
The unaudited statement of account submitted to the Nigerian Exchange (NGX) on Friday, 28th
April 2023, indicated that the significant double-digit growth in the topline also boosted the
bottom line, with the Group experiencing an impressive 27% year-on-year (YoY) increase in
Profit Before Tax (PBT), rising from ₦68 billion in Q1 2022 to ₦86.6 billion in Q1 2023. Profit
After Tax (PAT) also grew by 13% from ₦58.2 billion to ₦66 billion during the same period.
The growth in the topline was propelled by substantial increases in both interest income and
non-interest income. Interest income surged by 52% from ₦126.4 billion in Q1 2022 to ₦191.6
billion in Q1 2023, while non-interest income expanded by 27% from ₦57.2 billion to ₦72.8
billion. The growth in interest income can be attributed to the impact of risk asset repricing,
while the increase in non-interest income primarily resulted from loan recoveries and foreign
currency revaluation gains.
Regarding efficiency, the cost-to-income ratio improved from 55% to 53.4% in the current
period, supported by a bolstered income line. The cost of risk also moderated from 0.8% to
0.7% during the same period due to an enlarged loan book. However, the cost of funding
doubled YoY from 1.3% in Q1 2022 to 2.7% in Q1 2023, owing to a considerable spike in
interest rates between both periods as interest expense grew from ₦25.8 billion in Q1 2022 to
₦70.8 billion in Q1 2023. This impacted the net interest margin (NIM), which reduced from
7.3% to 6.9% over the same period.
Total assets expanded by 9% from ₦12.29 trillion in December 2022 to ₦13.36 trillion in March
2023, primarily driven by growth in customer deposits and other funding sources, such as
borrowings. Customer deposits increased by 2% from ₦8.98 trillion in December 2022 to
₦9.14 trillion in March 2023.
Loans and advances also experienced marginal growth of 1% from ₦4.12 trillion in December
2022 to ₦4.15 trillion in March 2023 as customers continued to adjust to the full impact of
higher rates on risk assets. Both the capital adequacy and liquidity ratios remained robust at
19.5% and 72%, respectively, with both prudential ratios comfortably exceeding regulatory
In 2023, the Group will maintain its focus on sustainable growth across all business segments
as it restructures into a holding company, introduces new verticals to its businesses, and
expands into new frontiers.
Zenith Bank’s consistent record of outstanding performance has garnered numerous accolades
for the brand, including being acknowledged as the Number One Bank in Nigeria by Tier-1
Capital for the 13th consecutive year in the 2022 Top 1000 World Banks Ranking published by
The Banker Magazine. The bank has also received the Bank of the Year (Nigeria) title in The
Banker’s Bank of the Year Awards 2020 and 2022, as well as the Best Bank in Nigeria award
for three consecutive years, from 2020 to 2022, in the Global Finance World’s Best Banks