Zenith Bank (Ghana) Limited has celebrated its excellent, resilience and exceptional performance in the first half of the year 2023, despite the turbulent macroeconomic operating environment that the country is facing.
The Bank’s unaudited financial statements for the period ended June 30, 2023, painted a compelling picture of its unwavering strength and astute risk management, navigating the choppy waters with finesse and achieving stellar results. “The steady sailing Zenith Bank’s voyage through the first half of 2023 witnessed exceptional achievements, driven by strategic initiatives,” the bank said.
The Bank’s interest income surged to GH¢591.6 million, representing a remarkable increase from GH¢439.9 million in the same period last year. This impressive growth can be attributed to the bank’s effective lending strategy and diversified investment approach that captured lucrative opportunities in the ever-changing financial landscape. This also reflected the bank’s ability to optimize its earning assets and interest-incurring liabilities mix and interest rate spreads.
The Bank’s fee and commission income also soared to GH¢111.8 million during the first half of 2023, a testament to the bank’s successful efforts in expanding its transactions-based services and fostering lasting relationships with its clientele. The net fee and commission income amounted to GH¢98.1 million, showcasing an impressive growth of 47.3 per cent from the previous year’s figure of GH¢66.6 million.
Also, the Bank exhibited its mettle in trading activities, with net trading income reaching GH¢204.1 million. This substantial increase from GH¢41.4 million in the same period last year demonstrates Bank’s agility in capitalizing on market opportunities and being adept at trading in financial instruments.
Robust Profitability and Growth
Towards New Horizons Zenith Bank’s journey in the first half of 2023 culminated in a flourishing destination of profitability and growth. The Bank’s profit before income tax surged to an impressive GH¢493.7 million, showcasing a remarkable growth from GH¢246.4 million in the same period of 2022.
This significant accomplishment is attributed to the bank’s strategic foresight, agile decision-making, and commitment to meeting the diverse needs of its cherished customers.
After accounting for income tax expense, Zenith Bank’s profit after tax attributable to equity holders soared to GH¢434.3 million, more than doubling the previous year’s figure of GH¢190.3 million. This remarkable feat reflects the bank’s unyielding dedication to driving shareholder value and creating sustainable long-term growth.
The Bank’s earnings per share also exhibited impressive growth, reaching GH¢0.11 compared to GH¢0.05 in the first half of 2022, making it a rewarding investment for shareholders.
Anchored in Strength, Zenith Bank’s unaudited statement of financial position as of June 30, 2023, bears testimony to the Bank’s robust financial standing. Total assets surged to an impressive GH¢11.5 billion, indicating remarkable growth from GH¢9.1 billion in the same period last year. This substantial increase is primarily driven by growth in investment securities demonstrating the bank’s ability to seize diverse opportunities in the financial markets.
Despite the challenging operating environment, Zenith Bank was able to maintain and further mobilize more customer deposits within the period. Customer deposits grew by 38 per cent from GH¢7.1 billion in the first half of 2022 to GH¢9.8 billion. This was mainly due to an enhanced deposit mobilisation strategy and increased confidence in the bank by its customers.
Continued Commitment to Regulatory Compliance
Sailing with Steadfast Integrity, Zenith Bank remains steadfast in its commitment to adhere to regulatory standards and uphold its reputation for integrity.
The bank’s robust capital adequacy ratio of 26.10 per cent compared to the banking industry average of 14.3 per cent and current regulatory limit of 10 per cent reflects its dedication to meeting and exceeding regulatory requirements on capital adequacy.
Mr Henry Onwuzurigbo, the Managing Director and Chief Executive Officer of Zenith Bank Ghana, said, “The results of the first half of 2023 reaffirm our position as one of the leading financial institutions in Ghana and we are excited about the possibilities that lie ahead.”
The MD attributed the half year performance to the Bank’s employees, stating that the Bank prioritised staff well-being and development and fostered a culture of inclusivity and learning, empowering its workforce to excel even in adverse circumstances.
He said as a result, a motivated and engaged staff provided top-notch services to customers, contributing to the bank’s success.
The Managing Director noted that the Bank is well positioned to partner with its customers and other stakeholders to create mutually beneficial opportunities in the second half of the year and beyond.
Though the first half of 2023 was not without its challenges – a turbulent global economy, coupled with fluctuating markets, in the face of these headwinds, Zenith Bank not only weathered the storm but thrived.
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