Zenith Bank has released its annual report for the 2022 financial year with all key income streams recording reasonable increase and revenue closing in on the N1 trillion mark.
The lender’s audited annual report however indicate that the net profit of Nigeria’s biggest bank by market value failed to keep pace with that of revenue as record inflation levels in the country pushed costs steeply up.
Similarly, gross earnings for the year jumped by roughly one fourth to N945.6 billion.
Interest and similar income came to N540.2 billion compared to N427.6 billion a year earlier as the bank reaped big from cycles of interest rate hikes by the central bank, which is enabling lenders to charge more for loans.
That in turn caused net interest income, a financial metric accounting for the difference between how much lenders charge for loans and what they pay out to savers for keeping their deposits, to shoot 14.3 per cent to N366.6 billion.
The bank made an allowance of N123.3 billion in its revenue to make up for potential losses from loans, whose chances of getting repaid have been hampered by perpetual defaults. That amount was more than double what it set aside for the same purpose a year earlier.
At N132.8 billion, Zenith Bank earned 27.8 per cent more in net income on fees and commission, thanks to a surge in account maintenance fees and fees on electronic products.
Operating expenses rose to N223 billion from N180.7 billion, with fuel and maintenance as well as AMCON levy being the key pressure points.
Profit before tax was slightly up by 1.5 per cent at N284.7 billion, while after-tax profit declined to N223.9 billion from N244.6 billion.
Meanwhile, Zenith Bank announced in a separate document a proposal for a final dividend of N2.90 per share, taking its total for the year to N3.20 per unit compared to N3.10 for 2021.
The bank said this month it has received an approval-in-principle from the Central Bank of Nigeria to restructure into a holding company.
