News

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.

Advertisement

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.

Advertisement

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) 

Advertisement
  • 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 N625,005
  • Proposed 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.
citynews

Recent Posts

NEWSPAPER HEADLINES FOR FRIDAY 22ND NOVEMBER 2024

NEWSPAPER HEADLINES FOR FRIDAY 22ND NOVEMBER 2024. *PUNCH* Gombe begins N28bn Assembly, high court complexes…

40 minutes ago

My husband assaulted me, ruined my career – Olajumoke Onibread

Former bread seller turned model, Olajumoke Orisaguna, popularly known as Olajumoke Onibread, has opened up…

3 hours ago

“I did not punch Akpabio” – Senator Bamidele speaks on alleged fight with Senate President

Senate Majority Leader, Opeyemi Bamidele has denies reports that he was involved in a fight…

3 hours ago

Speaker Obasa Clarifies Negative Perceptions As Sanwo-Olu Presents 2025 Budget

– says lawmakers united to meet yearnings of Lagosians – accuses detractors of peddling news…

3 hours ago

2027: “No vacancy for non-indigenes in Alausa” – Lagos youths tell Seyi Tinubu

The Coalition of Lagos Indigenous Youths has rejected the recent endorsement of Mr Seyi Tinubu,…

4 hours ago

Biafra Activist Simon Ekpa Arrested in Finland Over Terrorism

Biafra activist Simon Ekpa has been arrested in Finland over terrorism. Newsone Nigeria reports that the self-acclaimed leader of…

4 hours ago