{"id":75916,"date":"2023-09-11T17:09:06","date_gmt":"2023-09-11T16:09:06","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=75916"},"modified":"2023-09-11T17:09:06","modified_gmt":"2023-09-11T16:09:06","slug":"h1-23-zenith-bank-pat-grew-by-161-8-y-y-to-n291-73-billion","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/h1-23-zenith-bank-pat-grew-by-161-8-y-y-to-n291-73-billion\/","title":{"rendered":"H1-23: Zenith Bank PAT Grew By 161.8% y\/y To N291.73 billion"},"content":{"rendered":"

… Propose a 50kobo interim dividend<\/p>\n

Zenith Bank Plc has announced its H1-23 interim financial results on Monday, recording a 161.7% y\/y expansion in EPS to NGN9.29 (H1-22: NGN3.55).<\/p>\n

The significant growth in the bank\u2019s earnings was supported by the broad-based expansion across its funded (+71.9% y\/y) and non-funded (+246.1% y\/y) income lines.<\/p>\n

Management proposed an interim dividend of NGN0.50\/share (H1-22; NGN0.30\/share), translating to a dividend yield of 1.4% based on the last closing price of NGN36.95\/share (11 September).<\/p>\n

The bank recorded a 71.9% y\/y growth in funded income to NGN415.43 billion, driven by (1) higher yields in the fixed income market and (2) growth in its earning assets (+22.5% YTD to NGN12.25 trillion).<\/p>\n

Across the contributory lines, the bank generated higher income from loans and advances to banks (+457.8% y\/y to NGN21.54\u00a0billion), loans and advances to customers (+55.4% y\/y to NGN253.95 billion), and investment securities (+88.0% y\/y to NGN139.94 billion) in the review period.<\/p>\n

Interest expense advanced by 169.5% y\/y to NGN153.56 billion, as the elevated interest rate pushed the bank’s funding costs higher.<\/p>\n

For clarity, the bank incurred higher costs on its customers\u2019 deposits (+236.1% y\/y to NGN120.29 billion) as its CASA mix deteriorated to 82.4% (2023FY: 84.6%).<\/p>\n

In the same vein, the bank\u2019s cost of borrowing increased by 69.4% to NGN32.70 billion following the increase in interest-bearing borrowings (+28.3% YTD to NGN1.63 trillion).<\/p>

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Advertisement<\/div>\r\n\t\t\t\t\t\t\t<\/a>\r\n \r\n\t\t\t\t\t\t\t<\/div>\n

After accounting for credit impairment charges (+727.7% y\/y to NGN207.93 billion), net interest income (ex-LLE) settled lower by 66.2% y\/y to NGN53.94 billion.<\/p>\n

Expectedly, non-interest income (NII) surged by 246.1% y\/y to NGN515.69 billion, as the naira devaluation drove the significant gains generated from foreign exchange revaluation of NGN355.59 billion (vs. the NGN6.25 billion loss recorded in H1-22). In addition, the FX revaluation gains and income from trading investment securities were sufficient to offset the lower income from net fees and commission (-31.8% y\/y to NGN43.92 billion) in H1-23.<\/p>\n

Consequently, the impressive NII expansion, alongside the growth in net interest income (+41.7% y\/y), led to an 84.6% y\/y increase in operating income to NGN568.63 billion.<\/p>\n

Operating expenses expanded by 22.8% y\/y to NGN219.27 billion, triggered by the increased costs incurred on personnel expenses (+41.6% y\/y to NGN56.25 billion) and NDIC insurance premium (+38.8% y\/y to NGN13.58 billion) in the review period. Consequent to the faster growth in operating income relative to OPEX, the cost-to-income ratio (ex-LLE) improved, settling at 38.5% (relative to 57.9% in HY-22).<\/p>\n

Overall, profitability came in significantly higher, as the profit-before-tax grew by 169.5% y\/y to NGN350.36 billion. Likewise, PAT grew by 161.8% y\/y to NGN291.73 billion despite the higher income tax expense (+215.3% y\/y to NGN58.63 billion).<\/p>\n

According to Cordros Securities, ZENITHBANK\u2019s H1-23 results aligns with its expectations, with the group\u2019s earnings positively impacted by revaluation gains following the FX devaluation in the period.<\/p>\n

“We expect the bank to close the year positively, driven by the underlying impact of higher interest rates and revaluation gains in the period.\u00a0Our estimates are under review”, it added.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Zenith Bank Plc has announced its H1-23 interim financial results on Monday, recording a 161.7% y\/y expansion in EPS to NGN9.29 (H1-22: NGN3.55).<\/p>\n","protected":false},"author":6,"featured_media":25930,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,17],"tags":[627],"coauthors":[2391],"class_list":["post-75916","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-news","tag-zenith-bank"],"yoast_head":"\nH1-23: Zenith Bank PAT Grew By 161.8% y\/y To N291.73 billion - National Wire<\/title>\n<meta name=\"description\" content=\"Zenith Bank Plc has announced its H1-23 interim financial results on Monday, recording a 161.7% y\/y expansion in EPS to NGN9\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/h1-23-zenith-bank-pat-grew-by-161-8-y-y-to-n291-73-billion\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"H1-23: Zenith Bank PAT Grew By 161.8% y\/y To N291.73 billion - 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