Zenith Bank Plc reports N434bn profit for nine months 2023

Zenith Bank Plc (NGX: ZENITHBANK) has reported a profit after tax of N434.17bn for the nine months period ended 30 September, 2023.

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The interim financial statement of the company shows that the banking group booked foreign currency revaluation gain of N378.12 billion (nine months 2022: N11.14 billion)

The Foreign currency revaluation gain represents net gain on the revaluation of foreign currency-denominated assets and liabilities held in the group’s nontrading books. This also includes the effective portion of the gains on the derivatives designated in the fair value hedge of the foreign currency risk.

Review of the Financial Statements

Income Statement:

Gross earnings rose to N1.33 trillion in nine months 2023 from N620.57 billion in nine months 2022
Net interest income rose to N415.23 billion in 2023 from N282.91 billion in 2022
Net income on fees and commission declined to N79.34 billion in 2023 from N100.06 billion in 2022
Trading income increased to N127.38 billion in 2022 from N91.44 billion in 2022.
Personnel and operating expenses amounted to N88.43 billion and N197.47 billion respectively in 2023. In 2022, personnel and operating expenses stood at N61.46 billion and N171.67 billion respectively.
Profit before tax increased to N505.04 billion in 2023 from N202.55 billion in 2022.
Zenith Bank Plc reported an income tax expense of N70.86 billion in 2023, up from N28.3 billion recorded in 2022.
Profit for the period after tax jumped to N434.17 billion in 2023, from N174.33 billion in 2022.
Earnings per share dropped slightly to N13.82 in 2023 from N7.78 in 2022.

Balance Sheet:

Total Assets: The Banking Group’s total asset grew to N18.16 trillion as at 30^th September 2023 from N12.29 trillion as at 31^st December 2022. Loans and advances to customers amounting to N5.78tn (31 Dec. 2022: N4.01tn) was the biggest component of the Group’s asset, followed by cash & bank balances with N3.14tn (31 Dec. 2022: N2.20tn).
Total Liabilities: The total liabilities increased to N16.24 trillion from N10.90tn in 2022. Deposits from customers constituted a bulk of the liabilities, accounting for N13.38tn (31 Dec. 2022: N8.97tn).
Shareholders’ Fund: The shareholders’ fund went up to N1.92 trillion from N1.38 trillion. The retained earnings, the biggest component of shareholders’ fund accounted for N893.90bn (31st Dec. 2021: N625.00bn).

Cashflow:

Operating activities: N1.17tn was generated from operating activities, as against N1.20tn generated in nine months 2022.
Investing activities: N988.42bn was used in investing activities (nine months 2022: N520.34bn used).
Financing activities: N301.82bn was used in financing activities, against N69.26bn generated from the same activity in nine months 2022.
Cash and cash equivalents: As at 30 September 2023, Zenith Bank Plc had cash and cash equivalent of N2.70tn (30 September 2022: N1.91bn).

About the Company

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 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 adress 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.