Nigerian banking tycoon Jim Ovia’s Zenith Bank posts $264 million in profit in H1 2022

Zenith Bank Plc, a financial services group led by Nigerian banking tycoon Jim Ovia, announced that its profit in the first half of 2022 surpassed N111.4 billion ($264 million). The improved figures come as the bank continues to create value through its income diversification strategy after reporting a profit of N58.2 billion ($140.1 million) in the first quarter of 2022.

Zenith Bank, Nigeria’s most successful bank, stated in a recently published financial statement that its profit after tax in the first half of 2022 increased by five percent to N111.41 billion ($264.5 million) from N106.1 billion ($252 million).

The rise in the bank’s profit in the first half of 2022 can be attributed to a 17-percent increase in its gross earnings, which rose from N345.56 billion ($820.4 million) to N404.76 billion ($961 million) on the basis of higher interest and non-interest revenues.

The bank stated that the increase in interest income was due to a slight increase in its loan book and higher interest margins, while the increase in non-interest income was due to the group’s success in its income diversification plan.

During the period under review, Zenith Bank, which led by Ovia, who owns a 16.2-percent stake worth over N112 billion ($265.9 million) in the company, recorded an 11-percent year-to-date rise in total customer deposits to close at N7.15 trillion ($17 billion).

The increase in client deposits may be credited to the group’s retail strategy, which continues to provide strong results, as retail deposits climbed by 17 percent from N1.82 trillion ($4.32 billion) to N2.13 trillion ($5.05 billion).

Zenith Bank is Nigeria’s most valuable financial services firm, with a market valuation of N691 billion ($1.64 billion). Its total assets climbed by seven percent, from N9.45 trillion ($22.4 billion) to N10.17 trillion ($24.14 billion) during the period under review.

As a result of the sound financial performance, the board of directors suggested an interim dividend of N0.30 ($0.000712) per share, which will be paid from the group’s retained earnings of N592.2 billion ($1.41 billion) as of June 30.