Zenith Bank Drives Financial System Resilience with N191.5b Gross Earning Q1

 

Nigeria’s financial system remains resilient and continues to provide significant support for the domestic recovery, according to Aisha Ahmad, deputy governor of the Central Bank of Nigeria (CBN) in charge of financial services stability.

Data provided by the CBN staff showed stability in broad financial soundness indicators and sustained improvement in asset quality, alongside growing credit to the private sector.

Consequently, Capital Adequacy Ratio (CAR) as at February 2022 was robust at 14.40 per cent. Industry liquidity was also strong at 43.5 per cent over the same period while the non-performing loans ratio declined further to 4.8 per cent in February 2022, from 4.94 per cent in December 2021. This reflects the case-by-case review of regulatory forbearance, effects of the Global Standing Instruction (GSI) policy, and sound industry risk management practices.

Zenith Bank alone is a proof of Nigeria’s financial institutions’ soundness as the bank ended its March 31, 2022 financial year in strong growth.

However, going into the remainder of 2022, the Group said it 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.

Zenith Bank Plc was incorporated in Nigeria under the Companies and Allied Matters Act as a private limited liability company on May 30, 1990. It was granted a banking licence in June 1990, to carry on the business of commercial banking and commenced business on June 16, 1990. The Bank was converted into a Public Limited Liability Company on May 20, 2004. The Bank’s shares were listed on October 21, 2004 on the Nigerian Stock Exchange, and in August 2015, the Bank was admitted into the Premium Board of the Nigerian Stock Exchange.

The principal activity of the Bank is the provision of banking and other financial services to corporate and individual customers. Such services include granting of loans and advances, corporate finance and money market activities.

The Bank has six subsidiary companies namely, Zenith Bank (Ghana) Limited, Zenith Pensions Custodian Limited, Zenith Bank (UK) Limited, Zenith Bank (Sierra Leone) Limited, Zenith Bank (Gambia) Limited and Zenith Nominees Limited. The results of the bank’s subsidiaries have been consolidated in its three months period financial statements.

In its unaudited results for the first quarter (Q1) 2022, the bank recorded 22 percent growth in gross earnings, from N157.3 billion reported in Q1 2021 to N191.5 billion in Q1 2022.

The Group recorded an 11 per cent year-on-year (YoY) increase in profit before tax to N67.99 billion in Q1 2022, from N61.02 billion in Q1 2021.

In terms of profitability, its profit after tax also grew by 10 per cent, from N53.06 billion in Q1 2021 to N58.19 billion in Q1 2022. The growth in the top line arose from both interest income and non-interest income.

The Group’s interest income rose by 25 per cent, to N126.38 billion in Q1 2022, from N101.12 billion in Q1 2021 while non-interest income grew by 12 per cent, from N51.20 billion in Q1, 2021 to N57.23 billion Q1, 2022.