Zenith Bank Plc (NGX: ZENITHBANK) reported a 23.5% growth in gross earnings for the year ended December 31, 2022. However, the profit after tax for the period declined by 8.4% due to increased tax expenses.
Income statement
- Gross earnings rose to N945.55 billion in 2022 from N765.56 billion in 2021.
- Net interest income rose to N366.63 billion in 2022 from N320.80 billion in 2021.
- Net income on fees and commission rose to N132.80 billion in 2022 from N103.96 billion in 2022
- Trading gains increased to N212.68 billion in 2022 from N167.48 billion in 2021.
- Personnel and operating expenses amounted to N86.41 billion and N222.97 billion respectively in 2022. In 2021, personnel and operating expenses stood at N79.89 billion and N180.56 billion respectively.
- Profit before tax increased to N284.65 billion in 2022 from N280.37 billion in 2021.
- Zenith Bank Plc reported an income tax expense of N60.73 billion in 2022, up from N35.82 billion recorded in 2022.
- Profit for the period after tax declined to N223.91 billion in 2022, from N244.56 billion in 2021.
- Earnings per share dropped slightly to N7.14 in 2022 from N7.78 in 2021.
The Board of Directors, proposed a final dividend of N2.90 per share which in addition to the N0.30 per share as interim dividend amounts to N3.20
per share (2021: Interim dividend and final dividend of N3.10 per share was paid) from the retained earnings account as at 31 December 2022. This will be presented for ratification by the shareholders at the next Annual General Meeting.
Payment of dividends is subject to withholding tax rate of 10% in the hands of qualified recipients.
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Balance sheet
Zenith Bank Plc total assets rose to N12.29 trillion as at December 31, 22 from N9.45 trillion as at December 31, 2021.
Major components of the assets:
- Loans and advances: N4.01 trillion (N3.36 trillion in 2021)
- Treasury Bills: N2.25 trillion (N1.76 trillion in 2021)
- Cash and balances with central banks: N2.20 trillion (N1.49 trillion in 2021)
- Investment securities: N1.73 trillion (N1.30 trillion in 2021).
Total liabilities rose to N10.91 trillion as at December 31, 2022 from N8.17 trillion as at December 31, 2021, mainly due to increase in customers’ deposits.
Major components of the liabilities:
- Customers’ deposits: N8.98 trillion (N6.47 trillion in 2021)
- Borrowings: N963.45 billion (N750.47 billion in 2021)
Total shareholders’ equity increased to N1.38 trillion as at December 31, 2022 from N1.28 trillion in 2021, due to increase in retained earnings to N625.01 billion from N607.20 billion in 2021 and an increase in other reserves to N482.38 billion from N400.57 billion.
Cash flow:
- Net cash flows generated from operations dipped to N1.18 billion in 2022 from N386.19 billion in 2021.
- Net cash used in investing activities rose to N360.44 billion in 2022 from N239.88 billion in 2021.
- Net cash used in financing activities dropped to N97.09 billion in 2022 from N262.65 billion in 2021.
About Zenith Bank Plc
Zenith Bank Plc (the “Bank”) 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 is domiciled in Nigeria and 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. In August 2015, the Bank was admitted into the Premium Board of the Nigerian Stock Exchange.
The registered office address of the company is Plot 84/87 Ajose Adeogun street, Victoria Island, Lagos.
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 (The Gambia) Limited and Zenith Nominees Limited. The Bank also has a representative office in China in addition to operating a branch of Zenith Bank (UK) Limited in the United Arab Emirates.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
