Zenith Bank Plc

Group Audited Results for Year ended 31 December 2022

ZENITH BANK PLC RELEASES FINANCIAL YEAR-END 2022 RESULTS

LAGOS, NIGERIA – 28 March 2023 – Zenith Bank Plc, (Bloomberg: ZENITHBA NL) (“Zenith” or the “Bank”),
the Nigerian bank headquartered in Lagos, announces its audited results for the year ended 31 December
2022.
Financial Highlights
Income statement
In millions of Naira 31-Dec-22 31-Dec-21 % Change
Gross earnings 945,554 765,558 24%
Interest and similar income 540,166 427,597 26%
Interest and similar expense (173,539) (106,793) 63%
Net interest income 366,627 320,804 14%
Impairment charge (123,252) (59,932) 106%
Non-interest income 380,967 309,035 23%
Operating expenses (339,692) (289,533) 17%
Profit before tax 284,650 280,374 2%
Profit after tax 223,911 244,558 -8%
Earnings per share (NGN) 7.14 7.78 -8%
Balance sheet
In millions of Naira 31-Dec-22 31-Dec-21 % Change
Gross loans 4,123,966 3,501,878 18%
Customers' deposits 8,975,653 6,472,054 39%
Total assets 12,285,629 9,447,843 30%
Shareholders' fund 1,378,940 1,279,662 8%
Key ratios 31-Dec-22 31-Dec-21 % Change
Return on average equity (ROAE) 16.8% 20.4% -18%
Return on average assets (ROAA) 2.1% 2.7% -22%
Net interest margin (NIM) 7.3% 6.7% 9%
Cost of funds 1.9% 1.5% 27%
Cost of risk 3.2% 1.9% 68%
Cost to income 54.4% 50.8% 7%
Liquidity ratio - Group 75.0% 71.6% 5%
Liquidity ratio - Bank 67.0% 61.9% 8%
Loan to deposit ratio - Group 45.9% 54.1% -15%
Loan to deposit ratio - Bank 51.6% 62.6% -18%
Capital adequacy ratio (CAR) 19.8% 21.0% -6%
Non-performing loan 4.3% 4.2% 3%
Coverage ratio 115.9% 114.4% 1%
The Zenith Bank Group achieved a year-on-year (YoY) growth in gross earnings of 24% from
NGN765.6 billion reported in the previous year to NGN945.5 billion in 2022. This was driven by
a 26% YoY growth in interest income from NGN427.6 billion to NGN540.2 billion and a 23% YoY
growth in non-interest income from NGN309 billion to NGN381 billion.

The debt restructuring programme in Ghana resulted in a very significant impairment expense
for our Ghana subsidiary. Consequently, impairments grew by 106% from NGN59.9 billion to
NGN123.4 billion, which also resulted in an increase in the cost of risk from 1.9% in 2021 to
3.2% in the current year. Interest expense increased by 63% YoY from NGN106.8 billion to
NGN173.5 billion. This affected the cost of funds which grew from 1.5% in 2021 to 1.9% in 2022
because of interest rate hikes globally. The above notwithstanding, the group profit before tax
recorded a 2% YoY growth from N280.4 billion in 2021 to N284.7 billion in 2022.

Customer deposits increased by 39%, growing from NGN6.47 trillion in the previous year to
NGN8.98 trillion in 2022. The growth in customer deposits cuts across all products and deposit
segments (corporate and retail), consolidating our market leadership and the confidence
customers have in us.

The continued elevated yield environment positively impacted on our net-interest-margin

(NIM), which grew from 6.7% to 7.3% due to an effective repricing of our interest-bearing assets.
Operating expenses grew by 17% YoY, but cost growth was controlled and remains below the
inflation rate. The Group’s profit after tax (PAT) decreased by 8% from NGN244.6 billion to
NGN223.9 billion because of the increase in the Group’s effective tax rate from 12.7% in 2021
to 21.3% in 2022. This increase is because of the effective implementation of the Finance Act.
This significant increase is a one-off and is not expected to recur in subsequent years. This
affected return on equity which reduced from 20.4% to 16.8%. Return on assets decreased from
2.7% to 2.1% due to the significant growth in the balance sheet.

Total assets increased by 30%, growing from NGN9.45 trillion in 2021 to NGN12.29 trillion mainly
as a result of the rapid growth in customer deposits. With the steady and continued recovery
in economic activities, the Group prudently grew its gross loans by 18%, from NGN3.5 trillion in
2021 to NGN4.1 trillion in 2022, leading to a marginal increase in the non-performing loan (NPL)
ratio from 4.2% to 4.3% YoY. The capital adequacy ratio decreased from 21% to 19.8% while the
liquidity ratio improved from 71.6% to 75%. Both prudential ratios are well above regulatory
thresholds.

In 2023, the Group intends to expand its frontiers as it also reorganises into a holding company
structure adding new verticals to its businesses and growing in all its markets, both locally and
internationally.

- ENDS –
Teleconference Call Details:

Zenith Bank Plc (Bloomberg: ZENITHBA : NL) will have a teleconference call on
Friday, 31 March 2023, at 3pm Lagos time (3pm London/4pm Johannesburg/9am New York)
with its senior management to announce Zenith Bank Plc's audited financial results for the
full-year ended 31 December 2022. At the end of the call, there will be an opportunity for
management to take questions from investors and analysts.

Please see attached the full-year 31 December 2022 Group Financial Results.

The presentation to investors and analysts will be posted to Zenith Bank’s website before the
conference call.

The teleconference call facility can be accessed via the internet only. Kindly register at
https://tinyurl.com/2cmpe5s3. Please note that you will only receive dial-in details
after registration.

Name: Zenith Bank PLC FY 2022 Financial Results Conference

Date: Friday 31 March 2023

Time: 3pm Lagos time

Registration link: https://tinyurl.com/2cmpe5s3

If you have any queries, please do not hesitate to contact the below:

Zenith Bank Plc

Nsikan Umoren – Financial Control & Strategic Planning +234 7040000703

Eugene Ewubor – Financial Control & Strategic Planning +234 8037206996

Folashade Keleko – Investor Relations +234 7040001913

Africa Practice (Investor Relations advisers)

Abdulmumin Usman +234 8050909877

 Notes to editors:

About Zenith Bank Plc

Zenith Bank Plc offers its clients a wide range of corporate, investment, business and
personal banking products and solutions. It is one of the biggest and most profitable
banks in Nigeria. The bank was established in May 1990 and started operations in July
same year as a commercial bank. It became a public limited company on 17 September,
2004 and was listed on the Nigerian Stock Exchange on 21 October, 2004 following a
highly successful Initial Public Offering (IPO). Zenith Bank listed on the London Stock
Exchange via a non-capital raising GDR on 21 March, 2013. The bank presently has a
shareholder base of over half a million, an indication of the strength of the Zenith brand.

It is headquartered in Lagos, Nigeria. With over five hundred (500) branches and business
offices nationwide Zenith Bank has presence in all the state capitals, the Federal Capital
Territory (FCT) and major towns and metropolitan centres in Nigeria. The bank's
expansion is not limited to Nigeria as Zenith became the first Nigerian bank in 25 years
to be licensed by the Financial Services Authority (FSA) in the UK for the commencement
of banking operations by Zenith Bank (UK) Limited in April, 2007. This is in addition to
its presence in Ghana, Zenith Bank (Ghana) Limited, Sierra Leone, Zenith Bank (Sierra
Leone) Limited, Gambia, Zenith Bank (Gambia) Limited and a representative office in
Beijing, China and Dubai branch of Zenith Bank UK.

More information can be found at www.zenithbank.com.