Zenith Bank reported its 2023 third-quarter results showing pre-tax profits grew by 113.20% year on year, reaching N154.675 billion.
This took nine-month pre-tax profit to N505.036 billion versus N202.549 billion in the same period last year.
Key highlights Q3 2023 vs. Q3 2022:
Gross earnings: N361.813 billion +67.65% YoY
Interest Income: N255.507 billion +71.45% YoY
Interest Expense; N102.140 billion +100.81% YoY
Net interest income; N153.367 billion +56.24% YoY
Impairment charge: N2.074 billion -82.68% YoY
Net interest income after impairment charge: N151.293 billion +75.54% YoY
Net fees and commission income: N35.415 billion -0.54% YoY.
Trading gains: N24.350 billion +289.66% YoY
Foreign exchange revaluation gain: N22.534 billion +29.61% YoY
Profit for the period N142.440 billion +126.37% YoY.
Earnings per share N3.29 +54.50% YoY
Loans and advances to customers N5.781 trillion +48.99%.
Cash and Cash equivalents N3.142 trillion +67.84%
Total Assets N18.161 trillion +60.12%.
Customers’ deposits N13.384 trillion +66.42%.
Insights: The substantial growth in pre-tax profit can be attributed to the significant growth in gross earnings, driven by growth in interest income.
It is noteworthy that, unlike in Q2, where foreign exchange gains made a substantial contribution to the bank’s gross earnings, the third quarter saw a more modest figure of N22.534 billion in foreign exchange gains. This has had the effect of moderating the total foreign exchange gains for the nine-month period to N378.122 billion.
The bank’s interest expense continued to be elevated due to interest paid on deposits, especially savings deposits probably due to the surge in interest rates