Zenith Bank Plc grew its gross profit by 17 percent from N346 billion in the first half of 2021 to N405 billion in the corresponding period of 2022.

The bank disclosed this in a statement on its audited results for the half-year ended June 30, 2022.

According to the financial results presented to the Nigerian stock exchange on Tuesday, growth was displaced by a 19 percent growth in interest income from N204 billion to N242 billion and an 18 percent growth in non-interest income from N127 billion to N149. billion.

The growth in interest income was driven by the modest increase in the loan portfolio and improved interest margins. The increase in non-interest income reflects the Group’s success in its income diversification strategy, it said.

Pre-tax profit grew 11 percent year-on-year from N117 billion to N130 billion. Earnings per share also grew from N3.38 to N3.55 over the same six-month period.

The Group also recorded an 11% year-to-date increase in total customer deposits to end the period at N7.15tn. The Group’s retail strategy continues to deliver excellent results as YtD retail deposits grew 17 percent from N1.82tn to N2.13tn.

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Retail activities also supported the growth recorded in fees on electronic products, which grew 45 percent yoy from N17 billion to N25 billion.

Despite the high yield environment, fund costs increased only marginally from 1.3 percent in June 2021 to 1.4 percent in June 2022.

The increase in fund costs was lower than the increase in returns on interest-generating assets, leading to an improved net interest margin of 7.1 percent from 6.4 percent in June 2021.

Total assets increased to N10.12tn at the end of June 2022 from N9.45tn at the end of December 2021.

Despite the headwinds brought by the business environment, the Group grew its risk assets as gross borrowings YtD grew by five percent, from N3.5tn to N3.7tn. This was achieved at a moderate NPL ratio of 4.4 percent (FYE 2021: 4.2 percent) and cost of risk of 1.4 percent (June 2021: 1.3 percent). Prudential ratios such as liquidity and capital adequacy also remained stable, well above the regulatory thresholds at 60.5 percent and 21.0 percent, respectively.

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