Customer confidence boosts Zenith Bank’s 2023 performance as assets hit GHS13bn, profit passes GHS1bn

Zenith Bank Ghana capped off a stellar year in 2023, with total assets surging by nearly 44 per cent to reach GHS13.86 billion as profit before tax moved to GHS1.02 billion.

This represented a 284.35 per cent reversal from the GHS554.6 million loss recorded in 2022 as a result of the Domestic Debt Exchange Programme (DDEP).

A driving force behind the performance was high customer confidence in the Bank as deposits grew by GHS3.32 billion, to reach GHS11.7 billion for the period.

Similarly, the Bank expanded its loan book to GHS2.25 billion, GHS390.7 million higher than in the previous year.

Mr Henry C. Onwuzurigbo, Managing Director/Chief Executive Officer of Zenith Bank Ghana, said, ‘We are glad to see the trust our customers have placed in the bank’s stability and financial strength. This deposit mobilisation strengthened our liquidity position, allowing us to continue providing essential financial services to our clientele.’

‘Again, the upswing in lending activity is a positive indicator for Ghana’s e
conomy. It indicates growing confidence in businesses and a potential increase in economic productivity,’ he added.

Consequently, interest income – a vital indicator of a bank’s lending and investment activities – surged by GHS317 million to GHS1.38 billion, highlighting the success of its strategies in loan origination and managing investment portfolios.

Additionally, fee and commission income grew by GHS49 million.

But the real highlight of the year was the exceptional performance in trading. Net trading income more than doubled from GHS156.7 million to GHS332.6 million, potentially fueled by favourable market conditions or strategic trading decisions by the Bank.

The Bank had to steer through some challenges which impacted its net profit in 2023 such as the GHS109 million impairment loss on financial assets, which impacted the bottom line.

This, however, was a tenth of the GHS1.19 billion recognised in 2022.

Operating income appreciated by GHS546 million to GHS1.6 billion, highlighting the underlying
strength of the bank’s core business activities in generating healthy and consistent revenue.

The bank’s shareholders’ funds also improved significantly by 68 per cent from GHS982million post-DDEP to GHS1.66 billion due to its exceptional performance in 2023.

Market watchers believe that by tackling the impairment losses and implementing cost optimisation strategies, growing its risk assets as well as investment portfolio, Zenith Bank Ghana is well-positioned to translate its impressive revenue growth into long-term financial success, especially as the bank’s focus on customer satisfaction and strategic revenue generation sets a strong foundation for a prosperous future.

The Bank’s 2023 performance positions it for continued success in the years to come.

Source: Ghana News Agency