Ways Nigerians Can Profitably Invest in the Financial Market (Legally)
By Dipo Olowookere
The investment community on Thursday rejoiced at the strong double-digit growth recorded by Zenith Bank in the first quarter of 2022 as revealed in its financial statements for the period.
In the unaudited account statement presented to the Nigerian Exchange (NGX) Limited yesterday, the senior lender maintained its growth trajectory in both revenue and earnings.
The company, according to the results, reported gross profit of N191.5 billion in the first three months of this year, 22% higher than the N157.3 billion reported in the first quarter of 2021.
Revenue growth was observed to come from both interest and non-interest income, with the former increasing by 25% to N126.4 billion from N101.1 billion. naira, while the latter appreciated by 12% to reach 57.2 billion naira. billion N51.2 billion.
The analysis showed that the growth in interest income and non-interest income resulted from the combined effects of improved interest income on loans and advances (as risk assets continue to grow and that pricing gradually improves) and an improvement in non-interest income the bank is continuing to deploy its retail strategy, thus acquiring more customers and developing its electronic payment revenues thanks to the increase in the volume of transactions on all of its channels.
As previously reported, this impressive performance helped the lender to remain highly profitable, with pre-tax profit expanding by 11% to N68.0 billion from N61.0 billion, while net profit increased by 10% to N58.2 billion. billion N53.1 billion.
During the reporting period, Zenith Bank increased its total assets by 9% from N9.5 trillion to N10.3 trillion, with loans and advances increasing by 6% from N3.5 trillion in December 2021 to 3.7 trillion naira in December 2021. March 2022, boosting the group’s interest income and displaying its appetite for creating high-yielding risky assets.
This development also contributed to boosting the net interest margin (NIM), which increased from 6.0% in March 2021 to 7.3% in the current period, while the capital adequacy ratio improved slightly from 21.1% to 22.1%.
Additionally, Zenith Bank has improved customer deposits by 12% year-to-date, from 6.5 trillion naira in December 2021 to 7.3 trillion naira in March 2022.
The savings account balance, which is retail only, increased by more than N68 billion, validating the strong customer acquisition strategy and versatile electronic platforms and digital channels.
Until the rest of 2022, the Group will continue to focus on sustainable growth in all its business segments and to intuitively deploy technological platforms and digital assets to meet the needs of its various customers in order to offer better returns to its stakeholders.
Zenith Bank’s track record of excellent performance has earned the brand numerous awards, including being voted the Best Bank in Nigeria in the Global Finance World’s Best Banks Awards, for three consecutive years from 2020 to 2022, Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, and Best in Corporate Governance’ Financial Services‘ Africa 2020 and 2021 by the Ethical Boardroom.
In addition, the financial institution appeared as the most valuable banking brand in Nigeria in Banker magazine’s Top 500 Banking Brands 2020 and 2021, the number one bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks” ranking. by The Banker Magazine and Retail Bank of the Year at the BusinessDay Banks and Other Financial Institutions Awards (BOFI) Awards 2020 and 2021.
Likewise, Zenith Bank was honored as Bank of the Decade (People’s Choice) at the 2020 ThisDay Awards and emerged winners in four categories at the 2021 SERAS (Sustainability, Enterprise, and Responsibility) Awards, winning the ” Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women’s Empowerment”, and the coveted “Most Responsible Organization for Africa”.