Zenith Bank Plc posts N111.41 billion profit for H1 2022

Zenith Bank Plc (NGX: ZENITHBANK) reported a 17.1% growth in gross earnings for the first half of the year ended June, 30, 2022 and a 5% increase in profit after tax for the period.

Income statement

Gross earnings rose to N404.76 billion in June 2022 from N345.56 billion in June 2021.
Net interest income rose to N241.73 billion in June 2022 from N203.93 billion in June 2021.
Net income on fees and commission rose to N64.45 billion in June 2022 from N47.66 billion in June 2022
Trading gains increased to N85.19 billion in June 2022 from N59.28 billion in June 2021.
Personnel and operating expenses amounted to N39.74 billion and N123.78 billion respectively in June 2022. In June 2021, personnel and operating expenses stood at N37.58 billion and N97.59 billion respectively.
Profit before tax increased to N130.01 billion in June 2022 from N117.06 billion in June 2021.
Zenith Bank Plc reported an income tax expense of N18.59 billion in June 2022, up from N10.94 billion recorded in June 2022.
Profit for the period after tax rose to N111.41 billion in June 2022, from N106.12 billion in June 2021.
Earnings per share rose slightly to N3.55 in June 2022 from N3.38 in June 2021.

The Board of Directors, of the bank proposed an interim dividend of N0.30 per share (2021: Interim dividend of N0.30 per share) from the retained earnings account as at 30 June, 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.

Balance sheet

Zenith Bank Plc total assets rose to N10.12 trillion as at June 30, 2022 from N9.45 trillion as at December 31, 2021.

Major components of the assets:

Loans and advances: N3.5 trillion (N3.36 trillion in 2021)
Treasury Bills: N2.08 trillion (N1.76 trillion in 2021)
Cash and balances with central banks: N1.63 trillion (N1.49 trillion in 2021)
Investment securities: N1.48 trillion (N1.30 trillion in 2021).

Total liabilities rose to N8.84 trillion as at June 30, 2022 from N8.17 trillion as at December 31, 2021, mainly due to increase in customers’ deposits.

Major components of the liabilities:

Customers’ deposits: N7.152 trillion (N6.47 trillion in 2021)
Borrowings: N729.82 billion (N750.47 billion in 2021)

Total shareholders’ equity slightly decreased to N1.27 trillion as at June 30, 2022 from N1.28 trillion in 2021, due to decrease in retained earnings to N592.21 billion from N607.20 billion in 2021.

Cash flow:

Net cash flows generated from operations dipped to N423.24 billion in June 2022 from N952.26 billion in June 2021.
Net cash used in investing activities rose to N403.42 billion in June 2022 from N388.04 billion in June 2021.
Net cash used in financing activities dropped to N170.43 billion in June 2021 from N309.86 billion in June 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.