Audio By Carbonatix
Continuing on its upward trajectory for the year, leading financial services provider, Zenith Bank (Ghana) Ltd. has posted an outstanding financial performance for the period ending September 30, 2023.
The results, the bank says, serve as a demonstration of its unwavering commitment to excellence as well as the confidence reposed in the bank by its loyal customers, especially in light of economic challenges in the preceding fiscal year.
The bank witnessed a noteworthy resurgence in income growth, with net interest income, a cornerstone of its operations, soaring to ¢735.3 million at the close of the period under consideration. This represents a substantial 40.83% increase from the ¢522.1 million recorded in the previous year. The development was attributed to Zenith Bank’s steadfast dedication to optimising its lending portfolio and delivering exceptional financial services to its diverse range of clients.
In an interview with the Managing Director / Chief Executive Officer (MD/CEO), Henry Onwuzurigbo, the MD/CEO stated, “Our Bank's strategy has always emphasized the diversification of income streams.”
He pointed to the mammoth 254.69% rise in net trading and other income from ¢74.77 million to ¢265.2 million on a year-on-year (YoY) basis as a clear indicator and added, “This not only highlights the bank’s capability to meet a wide spectrum of financial needs but also signifies our commitment to providing holistic financial solutions.’’
These combined to push Zenith Bank's operating income and pre-tax profit to ¢1.14 billion and ¢734.6 million respectively – 61.34% and 82.22% above the previous year’s ¢707.7 million and ¢403.2 million.
During the period, Zenith Bank’s total assets grew to ¢12.03 billion –14.57% higher than the ¢10.5 billion recorded during the comparable period of 2022. This was largely driven majorly by investment securities which increased by ¢634.9 million to ¢5.6 billion representing a 12.8% growth.
The bank's liabilities surged by 19.8% in the third quarter of the latest financial year, primarily driven by growth in deposits from customers, which amounted to ¢10.2 billion, from September 2022 figure of ¢8.4 billion. This surge in customer deposits, a 21.42% growth, demonstrates the trust and confidence the Bank's clientele has in its financial stability and excellent customer service.
Furthermore, the liquid ratio, which reflects a bank's ability to meet its short-term obligations, improved from 76% in 2022 to 85% in 2023. The Bank’s Capital Adequacy Ratio (CAR) of 23.28% is higher than the regulatory limit of 10% and industry average of 14.2% and signals the bank’s strength in withstanding shocks. The Non-Performing Loan to Gross Loan Ratio of 4.64% is far lower than the industry average of 20 percent and demonstrates the quality of the bank’s credit portfolio.
Undeniably, Zenith Bank is a strong and stable financial institution with a very enviable financial track record. Its financial performance and achievements over the past 18 years are an assurance to stakeholders that the Bank is well positioned to further enhance its financial performance and deliver even more outstanding results in 2023 and beyond.
Zenith Bank Ghana is a subsidiary of Zenith Bank Plc, head quartered in Nigeria with presence in other West Africa countries, the Middle East, Asia and Europe. It is a member of the Ghana Deposit Protection Scheme.
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