{"id":76933,"date":"2023-10-31T13:21:14","date_gmt":"2023-10-31T12:21:14","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=76933"},"modified":"2023-10-31T13:21:14","modified_gmt":"2023-10-31T12:21:14","slug":"zenith-bank-sturdy-funded-non-funded-income-growth-boosts-earnings-in-q3","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/zenith-bank-sturdy-funded-non-funded-income-growth-boosts-earnings-in-q3\/","title":{"rendered":"Zenith Bank: Sturdy Funded, Non-Funded Income Growth Boosts Earnings In Q3"},"content":{"rendered":"

Zenith Bank Plc on Monday released its 9M-23\u00a0 unaudited\u00a0 financial statements, showing that the bank delivered a 149.0% y\/y rise in EPS for the period under review to NGN13.82 (vs 9M-22: NGN5.55).<\/p>\n

This impressive growth in the Holdco\u2019s earnings was driven by the expansion across its funded (+71.7% y\/y) and non-funded (+186.4% y\/y) income lines.<\/p>\n

\"\"
Zenith Bank MD\/CEO, Mr. Ebenezer Onyeagwu<\/figcaption><\/figure>\n

Interest income advanced by 71.7% y\/y to NGN607.93 billion in 9M-23, mirroring elevated interest rates in the debt market. According to the contributory lines (in nominal terms), the bank generated higher income from loans and advances to customers (+56.4% y\/y to NGN408.66 billion), investment securities (+76.1% y\/y to NGN216.49 billion), and loans and advances to banks (+600.6% y\/y to NGN45.79 million) in the review period.<\/p>\n

The bank\u2019s interest expense increased further by 137.1% y\/y to NGN255.70 billion, primarily driven by the higher cost expensed on customer deposits (+207.0% y\/y to NGN187.21 billion) amid the slight improvement in CASA mix (86.9% in 9M-23 | FY-22: 84.6%). Likewise, costs of borrowings (+51.6% y\/y to NGN67.62 billion) came in higher in the period under review, following the accretion in the group\u2019s interest-bearing borrowing (+68.6% YTD to NGN2.15 trillion).<\/p>\n

Accordingly, the bank recorded a 46.8% y\/y increase in net interest income. However, the net Interest income (ex-LLE) settled lower by 16.5% y\/y to 205.23 billion due to the higher loan impairments (+466.1% y\/y) charges taken in the period.<\/p>\n

Further in, the bank reported a 186.4% y\/y increase in its non-interest income to NGN607.16 billion, majorly driven by the FX revaluation gains recorded in Q2-23 (NGN355.59 billion) vs Q3-23 (NGN22.53 billion | 9M-23: NGN378.12 billion).<\/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

The preceding, coupled with the income generated from investment securities trading (+39.3% y\/y to NGN127.38 billion), offset the impact of the lower income from net fees and commission (-20.7% y\/y to NGN79.34 billion).<\/p>\n

Operating expenses increased by 20.4% y\/y to NGN307.35 billion, following the higher costs incurred on personnel expenses (+43.9% y\/y to NGN88.43 billion) and regulatory fees \u2013 deposit insurance premium (+39.7% y\/y to NGN20.49 billion) and AMCON levy (+30.4% y\/y to NGN57.38 billion) \u2013 in 9M-23. Given that operating income (+77.5% y\/y) grew faster than OPEX, the group\u2019s operational efficiency improved as its cost-to-income ratio (ex-LLE) settled at 37.8% (9M-22: 55.8%).<\/p>\n

Overall, the bank\u2019s profit before tax settled higher by 149.3% y\/y to NGN505.04 billion. Similarly, PAT grew by 149.1% y\/y to NGN434.17 billion after accounting for income tax expenses (NGN70.86 billion).<\/p>\n

According to Cordros Capital Limited, a leading investment and research firm, Zenith Bank’s 9M-23 numbers align with its expectations. “We like the bank\u2019s positive traction in growing its core banking activities. For 2023E, we expect the bank to close the year positively, driven by improved interest-earning assets, higher yields in the fixed-income market, and strong non-funded income growth.\u00a0Our estimates are under review”, it added.<\/p>\n

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

Zenith Bank Plc on Monday released its 9M-23\u00a0 unaudited\u00a0 financial statements, showing that the bank delivered a 149.0% y\/y rise in EPS for the period under review to NGN13.82<\/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":[5906],"coauthors":[2391],"class_list":["post-76933","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-news","tag-zenith-bank-plc"],"yoast_head":"\nZenith Bank: Sturdy Funded, Non-Funded Income Growth Boosts Earnings In Q3 - National Wire<\/title>\n<meta name=\"description\" content=\"Zenith Bank Plc on Monday released its 9M-23\u00a0 unaudited\u00a0 financial statements, showing that the bank delivered a 149.0% y\/y rise in\" \/>\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\/zenith-bank-sturdy-funded-non-funded-income-growth-boosts-earnings-in-q3\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zenith Bank: Sturdy Funded, Non-Funded Income Growth Boosts Earnings In Q3 - 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