NEWS
Zenith Bank Attains Triple-digit Growth, Records N1.33trn Income in Q3, 2023
By Tony Obiechina, Abuja
Zenith Bank Plc has announced its unaudited results for the third quarter ended 30 September 2023, recording a remarkable triple-digit growth of 114% from N620.6 billion reported in Q3 2022 to N1.33 trillion in Q3 2023. This performance demonstrates the Group’s resilience and strong market share despite a very challenging macroeconomic environment.
According to the bank’s unaudited third quarter financial results presented to the Nigerian Exchange (NGX), the triple-digit growth in the topline also enhanced the bottom line, as the Group recorded a 149% Year on Year (YoY) increase in profit before tax, growing from N202.
5 billion in Q3 2022 to N505 billion in Q3 2023. Profit after tax also grew by 149% from N174.3 billion to N434.2 billion in the same period.The growth in the topline arose from both interest income and non-interest income. Interest income grew in the current period by 72% to N670.9 billion from N390.8 billion in Q3 2022, while non-interest income grew by 186% from N212 billion to N607.2 billion. The growth in profit is similarly attributable to the twin effects of the improvement in interest and non-interest income. Interest income increased because of the growth in risk assets as well as the effective pricing thereon. The non-interest income growth is largely driven by the revaluation gain due to the unification of exchange rates during the year. The cost-to-income ratio reduced from 55.8% in Q3 2022 to 37.8% in the current period. Impairment levels increased due to the deliberate incremental provisions necessitated by the conservative approach towards the heightened risk environment and the creation of a counter-cyclical buffer needed to deal with any impending volatility of exchange rates. This caused the cost of risk to deteriorate from 1.3% in Q3 2022 to 5.5% in Q3 2023, however this is an improvement from Q2 2023 where cost of risk printed at 8.8% because of prudent management of risk assets.
Total assets grew by 48% from N12.3 trillion to N18.2 trillion in the period ended 30 September 2023, mainly driven by growth in customers’ deposits. Customers’ deposits grew by 49% from N8.98 trillion in December 2022 to N13.38 trillion in September 2023. The growth in customers’ deposits cuts across both corporate and retail segments with the savings portfolio (all currencies) growing from N2.7 trillion in December 2022 to N4.6 trillion in September 2023.
Gross loans increased by 48% from N4.1 trillion in December 2022 to N6.1 trillion in September 2023 due to the revaluation of foreign currency denominated loans as well as the growth in local currency loans to strategic and thriving sectors of the economy. The non-performing loan ratio improved to 3.8% in the period ended 30 September 2023, which is well below prudential limits. Net interest margin (NIM) printed at 5.6% from 6.2% reported in September 2022 due to low yield in government securities. Capital adequacy ratio improved marginally to 20.1% from 19.8% while liquidity ratio declined from 75% to 68%. However, all our prudential ratios remain above regulatory thresholds.
The Group is optimistic of finishing the year 2023 strong, with focus on sustainable quick wins that would boost growth across all business segments and enhance stakeholder value.
Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1 Capital, for the 14th consecutive year, in the 2023 Top 1000 World Banks Ranking published by The Banker Magazine; Best Commercial Bank, Nigeria, for three consecutive years from 2021 to 2023, in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022 and 2023; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022; Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best in Corporate Governance’ Financial Services’ Africa, for four successive years from 2020 to 2023, by the Ethical Boardroom; Most Sustainable Bank, Nigeria in the International Banker 2023 Banking Awards; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards.
Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021; Bank of the Year 2023 and Retail Bank of the Year, for three consecutive years from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards. Similarly, Zenith Bank was named Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, and Most Responsible Organisation in Africa 2021 by SERAS Awards.
The Defence Headquarters (DHQ) has dismissed the allegation suggesting that internal sabotage within the Nigerian military contributed to the tragic events in Yelwata, Benue.The Director of Defence Information, Brig.-Gen. Tukur Gusau, in a statement on Tuesday, said the claims were unfounded and not supported by credible evidence.
Gusau said the Nigerian military had consistently denied any involvement in the massacre. According to him, the Chief of Defence Staff (CDS), Gen. Christopher Musa, has publicly stated that the military was not responsible for the killings in Yelwata.“Furthermore, the Nigerian Military has emphasized its commitment to protecting civilians and upholding the rule of law.“There is no credible evidence to substantiate claims of internal sabotage within the military related to the Yelwata incident.“Investigations by independent bodies, including human rights organizations, have not found any links between the military and the perpetrators of the massacre.“The violence in Yelwata is part of a broader pattern of intercommunal clashes in Nigeria’s Middle Belt region, primarily between farmers and herders.“These conflicts are driven by longstanding disputes over land and grazing rights, ethnic tensions, and competition for resources,” he said.Gusau said that while the military had been deployed to maintain peace, the root causes of the violence lied in complex socio-economic and political factors.He added that attributing the Yelwata massacre to internal sabotage within the Nigerian military was misleading and detracts from the real issues at play.According to him, it is essential to focus on addressing the underlying causes of intercommunal violence and to support efforts aimed at fostering dialogue, reconciliation, and sustainable peace in the affected regions.“The CDS has only called for a holistic approach and the need for the cummunities and the security agencies to work closer to address the issue.“He also call on the communities not to hide criminals and also assure them the military ans other security agencies are there to protect lives and properties of law abiding citizens,” he added. (NAN)
As part of sustained efforts to restore peace and stability across the North Central region, the Nigerian Air Force (NAF) has deployed additional air assets under Operation Whirl Stroke (OPWS).This is contained in a statement by the Director, Public Relations and Information, NAF, Air Commodore Ehimen Ejodame, on Tuesday in Abuja.
Ejodame said the strategic move had reinforced the NAF’s commitment to enhancing security, supporting ground operations, and reassuring communities affected by banditry, kidnapping, and communal unrest. He said the Chief of the Air Staff (CAS), Air Marshal Hasan Abubakar, conducted a firsthand evaluation of air operations under OPWS, to assess the effectiveness of these expanded efforts.According to him, the visit included a high-level strategic engagement held on Tuesday, at the Headquarters Tactical Air Command, Makurdi.Ejodame said the Chief of Army Staff, Lt.-Gen. Olufemi Oluyede; a representative of the Chief of the Naval Staff, Rear Adm. Olusegun Ferreira; the Commander of OPWS; and the Maritime and Air Component Commanders, alongside other key stakeholders, were part of the meeting.According to Ejodame, critical updates were provided on the current tempo of joint operations aimed at restoring lasting peace across the region.In his remarks, the CAS revealed that the newly deployed air assets had been successfully integrated into ongoing operations, delivering real-time intelligence and precision targeting support.He stated NAF aircraft had continued to conduct surveillance, armed reconnaissance, close air support, and precision strike missions with remarkable success.Abubakar noted that the current deployment aligns with the Federal Government’s overarching mission to stabilise the Middle Belt region.He highlighted the impact of recent coordinated air and ground operations across Benue, Nasarawa, and Taraba States, which have led to the dismantling of several militia camps, bandit enclaves, and criminal hideouts.“These outcomes reinforce our unwavering commitment to protecting innocent lives and supporting national peace-building initiatives.“As long as peace is threatened, our resolve remains unshaken.“The NAF will continue to deliver timely, decisive air support in synergy with sister services, ensuring the protection of lives and properties while advancing our mission of restoring peace to the Middle Belt and beyond,” he said.The Service Chiefs jointly emphasised the importance of synergy among the armed forces and other security agencies, noting that jointness remains a cornerstone for operational success under Operation Whirl Stroke.They reiterated that the ongoing operations are part of a broader goal to create a secure environment where residents can live and conduct their legitimate activities without fear. (NAN)
President Bola Tinubu, on Tuesday restated the determination of his administration to fast-track approvals for viable infrastructural projects in the country.Tinubu, represented by Vice President Kashim Shettima, made this known at the 2025 Nigeria Public-Private Partnership (PPP) Summit on Tuesday in Abuja.
The president therefore urged private sector partner to be focused and more committed. According to him, what matters to the average Nigerian is the availability of basic infrastructure such as power, roads, health facilities and quality schools. He called for a more strengthened public-private sector partnership that emphasises innovation, efficiency, commitment and integrity above mere capital and investments.” We need more than investment. We need innovation, we need efficiency, and above all, we need integrity.” I urge you to look beyond the risks and recognise the immense opportunity to shape a nation that is not just rising, but ready.“The projects that emerge from this summit must not gather dust on paper or linger in bureaucratic limbo.” We will fast-track approvals for viable projects. We will ensure coordination across Ministries, Departments, and Agencies to enable swift implementation.“We do this because we know that what matters to the average Nigerian is not promises, but power in their homes, roads to their farms, access to clean water, modern hospitals, and quality schools. We must build.” We must deliver. And we must do it together,” he said.He observed that a 21st-century economy cannot be built on 20th-century infrastructure, pointing out that the “old model of public-only infrastructure funding is no longer sustainable.“Our national aspirations far exceed what public budgets alone can deliver. That is why we must innovate, and why we must work together.” We are not looking for investors to carry burdens. We are offering opportunities to create value.” We seek long-term partners who are ready to help us bridge our infrastructure gap with purpose and precision,” he added.Tinubu recalled that his administration, on assumption of office two years ago, was quite aware “that a functional relationship between the public and private sectors would be the magic wand of transformation.”He reaffirmed that the administration was still fully committed to that very public-private partnership that is passionate about delivering sustainable and inclusive infrastructure.” We have strengthened the Infrastructure Concession Regulatory Commission and enhanced its capacity to regulate, superintend, and de-risk PPP transactions.” We are determined to deliver infrastructure that is both sustainable and inclusive. Our economic reforms have laid a stable foundation.” From the removal of unsustainable subsidies to the liberalisation of the foreign exchange regime and the optimisation of government revenues, we have acted boldly and responsibly.“We are streamlining bureaucratic bottlenecks and improving transparency in our project pipelines.” We have aligned our processes with global best practices and investor expectations.”The President urged participants to ensure the event is “remembered not for fine speeches, but for bankable projects, signed deals, and enduring progress.”The Minister of Interior, Mr Tunji Ojo, commended the ICRC for championing game-changing projects across diverse sectors.Ojo noted that with President Tinubu and Vice-President Shettima in the saddle, Nigeria is taking its rightful place in the comity of nations.The Regional Director, Central Africa and Anglophone West Africa, IFC, Dahlia Khalifa, applauded the ongoing reform in Nigeria’s PPP framework.Khalifa acknowledged IFC’s collaboration with authorities across key sectors to achieve the country’s overall objectives and strengthening the existing relationship between the organisation and Nigeria.She added that Nigeria under President Tinubu has demonstrated strong commitments to timely and transparent resolution of disputes arising from PPP projects.Solomon Quaynor, the Vice President for Private Sector, Infrastructure and Industrialisation at the African Development Bank, said the theme of the summit implies that partnerships are not just optional but are essential.He said the infrastructure deficits “demand that the government and the private sector work together in commercially viable PPPs.”Quaynor added that the bank was working with other partners on the Lagos-Abidjan highway project to boost regional economic integration in West Africa.“PPPs are complex long-term projects. They need to be designed properly and designed to survive different political administrations because by their very nature, they are long-term,” he stated. (NAN)
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