Zenith Bank Plc reports profit of N679.9 billion in 2023

April 9, 2024.

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Azonuchechi Chukwu.

Zenith Bank Plc, one of Nigeria’s largest banks, published its audited accounts for the fiscal year 2023, showcasing gross earnings of N2.13 trillion.

This represents a growth of 125.4% year on year and is the highest gross earnings ever reported in the company’s history.

The bank also reported a net interest income of approximately N736.18 billion, more than double what was reported in the previous year.

Profit after tax for the period under review rose by 202% to N679.9 billion, setting another significant record for the company.

Furthermore, the group accrued an FX revaluation gain of N228.98 billion, marking a substantial appreciation from the N25.2 billion gain accrued in 2022.

Key Highlights (FY 2023 vs FY 2022)

Gross Earnings: N2.13 trillion, +125.4% YoY

Net Interest Income: N736.18 billion, +100.8% YoY

Net Income on Fees and Commission: N109.31 billion, -17.7% YoY

Trading Gains: N566.97 billion, +166.6% YoY

Profit Before Tax: N795.96 billion, +179.6% YoY

Profit After Tax: N676.91 billion, +202.3% YoY

Earnings per share: N21.55, +201.8% YoY

Loans and Advances: N6.57 trillion, +63.4% YoY

Total Assets: N20.37 trillion, +65.8% YoY

Total Shareholders’ Equity: N2.32 trillion, +68.5% YoY

Retained Earnings: N1,179,390 vs N625,005

Proposed Dividends: N3.50 per share (Total for the year N4 per share).

Zenith Bank’s exceptional performance can largely be attributed to a significant surge in its interest income, where it amassed a staggering N1.1 trillion.

However, the bank allocated a substantial provision of about N409.6 billion, reducing its Net Interest Income after provisioning to N326.5 billion.

This considerable provision may be linked to the bank’s challenges in utilizing its vast retained earnings for dividend payments, especially after the central bank’s recent decision to exclude retained earnings from its calculation of a bank’s share capital.

Moreover, Zenith Bank significantly benefited from the foreign exchange rate, garnering an estimated N228.9 billion from forex revaluation gains.(www.naija247news.com).