Zenith Bank demonstrates resilience with 82.22% growth in pre-tax profit in Q3 2023
Continuing on its upward trajectory for the year, leading financial services provider, Zenith Bank (Ghana) Ltd. has posted an outstanding financial performance for the period ending September 30, 2023. The results, the Bank says, serve as a demonstration of its unwavering commitment to excellence as well as the confidence reposed in the Bank by its loyal customers, especially in light of economic challenges in the preceding fiscal year.
The Bank witnessed a noteworthy resurgence in income growth, with net interest income, a cornerstone of its operations, soaring to GH¢735.3 million at the close of the period under consideration. This represents a substantial 40.83 percent increase from the GH¢522.1 million recorded in the previous year. The development was attributed to Zenith Bank’s steadfast dedication to optimising its lending portfolio and delivering exceptional financial services to its diverse range of clients.
In an interview with the Managing Director / Chief Executive Officer (MD/CEO) of the Bank, Mr. Henry Onwuzurigbo, the MD/CEO stated, “Our Bank’s strategy has always emphasized the diversification of income streams.”
He pointed to the mammoth 254.69 percent rise in net trading and other income from GH¢74.77 million to GH¢265.2 million on a year-on-year (YoY) basis as a clear indicator and added, “this not only highlights the Bank’s capability to meet a wide spectrum of financial needs but also signifies our commitment to providing holistic financial solutions.’’
These combined to push Zenith Bank’s operating income and pre-tax profit to GH¢1.14 billion and GH¢734.6 million respectively – 61.34 percent and 82.22 percent above the previous year’s GH¢707.7 million and GH¢403.2 million.
During the period, Zenith Bank’s total assets grew to GH¢12.03 billion –14.57 percent higher than the GH¢10.5 billion recorded during the comparable period of 2022. This was largely driven mainly by investment securities which increased by GH¢ 634.9 million to GH¢5.6 billion representing a 12.8 percent growth.
The Bank’s liabilities surged by 19.8 percent in the third quarter of the latest financial year, primarily driven by growth in deposits from customers, which amounted to GH¢ 10.2 billion, from September 2022 figure of GH¢8.4 billion. This surge in customer deposits, a 21.42 percent growth, demonstrates the trust and confidence the Bank’s clientele has in its financial stability and excellent customer service.
Furthermore, the Liquid Ratio, which reflects a Bank’s ability to meet its short-term obligations, improved from 76 percent in 2022 to 85 percent in 2023. The Bank’s Capital Adequacy Ratio (CAR) of 23.28 percent is higher than the regulatory limit of 10 percent and industry average of 14.2 percent and signals the Bank’s strength in withstanding shocks. The Non-Performing Loan to Gross Loan Ratio of 4.64 percent is far lower than the industry average of 20 percent and demonstrates the quality of the Bank’s credit portfolio.
Undeniably, Zenith Bank is a strong and stable financial institution with a very enviable financial track record. Its financial performance and achievements over the past 18 years are an assurance to stakeholders that the Bank is well-positioned to further enhance its financial performance and deliver even more outstanding results in 2023 and beyond.
Zenith Bank Ghana is a subsidiary of Zenith Bank Plc, headquartered in Nigeria with presence in other West Africa countries, the Middle East, Asia and Europe. It is a member of the Ghana Deposit Protection Scheme.
