ZENITH BANK : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

ZENITH BANK PLC

Consolidated and Separate Interim Financial Statements for the period ended 30 September 2023

Index

	Page
Certification pursuant to section 60(2) of Investment and Securities Act No.29 of 2007	2
Statements of profit or loss and other comprehensive Income	3 - 4
Statements of financial position	5 - 6
Statements of changes in equity	7 - 8
Statements of cash flows	9 - 10
Notes to the interim consolidated and separate financial statements	11-34

1

ZENITH BANK PLC

Consolidated and Separate Interim Financial Statements for the period ended 30 September 2023

Certification pursuant to section 60(2) of Investment and Securities Act No.29 of 2007

We the undersigned hereby certify the following with regards to our financial report for the period ended 30 September 2023 that:

1. We have reviewed the report;
2. To the best of our knowledge, the report does not contain:
3. 1. Any untrue statement of a material fact, or
   2. Omission of material fact, which would make the statements misleading in the light of the circumstances under which such statements were made;
4. To the best of our knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operation of the bank as of, and the periods presented in the report.
5. We:
6. 1. Are responsible for establishing and maintaining internal controls;
   2. Have designed such internal controls to ensure that material information relating to the bank and its consolidated subsidiaries is made known to such officers by others within those entities particularly during the period in which the periodic reports are being prepared;
   3. Have evaluated the effectiveness of the bank's internal controls as of date within 90 days prior to the reports;
   4. Have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that date;
7. We have disclosed to the auditors of the bank and audit committee:
8. 1. All significant deficiencies in the design or operation of internal controls which would adversely affect the bank's ability to record, process, summarize and report financial data and have identified for the bank's auditors any material weakness in internal controls, and
   2. Any fraud, whether or not material, that involve management or other employees who have significant role in the bank's internal controls;
9. We have identified in the report whether or not there were significant changes in the internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regards to significant deficiencies and material weaknesses .

Jim Ovia, CFR.

Chairman

FRC/2013/CIBN/0000000002406

Dr. Ebenezer Onyeagwu

Group Managing Director/CEO

FRC/2013/ICAN/00000003788

2

ZENITH BANK PLC

Consolidated and Separate Interim Financial Statements for the period ended 30 September 2023

Statements of profit or loss and other comprehensive income for the period ended 30 September 2023

				Group					Bank
In millions of Naira	Note		3 Months	9 Months	9 Months	12 Months	3 Months	9 Months	9 Months	12 Months
			30 September	30 September	30 September	31 December	30 September	30 September	30 September	31 December
		2023	2023	2022	2022			2023	2023	2022	2022
Gross earnings		361,813	1,329,075	620,574	945,554		289,363	1,185,973	554,596	833,087
Interest and similar income	13	255,507	670,932	390,755	540,166			194,006	545,050	333,391	448,174
Interest and similar expense	14	(102,140)	(255,704)	(107,848)	(173,539)		(80,799)	(220,767)	(93,461)	(153,019)
Net interest income		153,367	415,228	282,907	366,627			113,207	324,283	239,930	295,155
Impairment charge	15	(2,074)	(209,999)	(37,096)	(123,252)		(1,175)	(208,071)	(35,801)	(61,896)
Net interest income after impairment charge		151,293	205,229	245,811	243,375			112,032	116,212	204,129	233,259
Net fee and commission income	16	35,415	79,339	100,057	132,795			27,745	58,650	81,410	110,098
Trading income	18	24,350	127,375	91,441	212,678			19,488	113,889	87,277	201,645
Other income	17	31,696	400,441	20,474	35,494			33,878	418,561	35,404	49,790
Depreciation of property and equipment	32	(5,896)	(19,247)	(19,886)	(26,630)		(4,781)	(17,070)	(18,092)	(24,519)
Amortisation of intangible assets	33	(534)	(2,199)	(2,218)	(3,678)		(553)	(1,886)	(1,907)	(3,045)
Personnel expenses		(32,175)	(88,425)	(61,464)	(86,412)		(23,877)	(68,951)	(48,054)	(68,475)
Other operating expenses	19	(49,474)	(197,477)	(171,666)	(222,972)		(43,329)	(180,123)	(159,112)	(204,703)
Profit before tax		154,675	505,036	202,549	284,650			120,603	439,282	181,055	294,050
Income tax expense	20a	(12,235)	(70,864)	(28,218)	(60,739)		(6,448)	(50,564)	(18,406)	(59,457)
Profit after tax		142,440	434,172	174,331	223,911			114,155	388,718	162,649	234,593
Other comprehensive income:
Items that will never be reclassified to profit or loss
Fair value movements on equity instruments at FVOCI		4,130	73,880	8,274	8,109			4,130	73,880	8,274	8,109
Items that are or may be reclassified to profit or loss:
Foreign currency translation differences		5,305	136,577	(44,729)	(28,768)		-	-	-	-
Fair value movement on debt securities at FVOCI		1,768	3,107	(11,502)	(6,602)		-	-	-	-
Other comprehensive income/(loss) for the period/year		11,203	213,564	(47,957)	(27,261)			4,130	73,880	8,274	8,109
Total comprehensive income for the period/year		153,643	647,736	126,374	196,650			118,285	462,598	170,923	242,702

3

ZENITH BANK PLC

Consolidated and Separate Interim Financial Statements for the period ended 30 September 2023

Statements of profit or loss and other comprehensive income for the period ended 30 September 2023

			Group				Bank
	Notes	3 Months	9 Months	9 Months	12 Months	3 Months	9 Months	9 Months	12 Months
		30 September	30 September	30 September	31 December	30 September	30 September	30 September	31 December
		2023	2023	2022	2022		2023	2023	2022	2022
Profit attributable to:
Equity holders of the parent		103,337	433,943	174,229	224,050		114,155	388,718	162,649	234,593
Non-controlling interest		104	229	102	(139)		-	-	-	-
Total comprehensive income attributable to:
Equity holders of the parent		111,742	647,336	126,521	196,981		118,285	462,598	170,923	242,702
Non-controlling interest		102	400	(147)	(331)		-	-	-	-
Earnings per share
Basic and diluted (Naira)	21	3.29	13.82	5.55	7.14		3.64	12.38	5.18	7.47

4

ZENITH BANK PLC

Consolidated and Separate Interim Financial Statements for the period ended 30 September 2023

Statement of financial position as at 30 September 2023

			Group				Bank
In millions of Naira	Note(s)	30 September	30 September	31 December		30 September	30 September	31 December
		2023	2022	2022	2023	2022	2022
Assets
Cash and bank balances with central banks	22	3,141,577	1,871,726	2,201,744	2,958,306	1,805,386	2,102,394
Treasury bills	23	2,844,354	1,952,956	2,246,538	2,677,357	1,898,748	2,206,668
Assets Pledged as Collateral	24	348,013	387,669	254,663	296,506	387,658	254,565
Due From Other Banks	25	2,528,019	1,036,495	1,302,811	2,380,474	938,187	1,132,796
Derivative assets	26	483,739	47,446	49,874	481,048	49,171	48,851
Loans and advances	27	5,780,922	3,880,021	4,013,705	5,222,344	3,651,634	3,735,676
Investment securities	28	2,294,133	1,620,975	1,728,334	862,305	592,628	622,781
Investments in subsidiaries	29	-	-	-	34,625	34,625	34,625
Deferred tax asset	30	26,544	1,575	18,343	-	-	-
Other assets	31	431,492	294,956	213,523	399,434	287,827	193,792
Property and equipment	32	250,692	222,181	230,843	223,192	207,425	214,572
Intangible assets	33	31,329	25,979	25,251	29,723	24,594	23,958
Total Assets		18,160,814	11,341,979	12,285,629	15,565,314	9,877,883	10,570,678
Equity and Liabilities
Liabilities
Customer's deposits	34	13,383,577	8,042,101	8,975,653	11,191,249	6,755,183	7,434,806
Derivative liabilities	38	77,571	7,989	6,325	75,048	9,525	6,040
Current income tax	20	26,640	28,219	64,856	19,142	24,700	61,655
Deferred tax liabilities	30	51,935	12,470	16,654	50,853	12,470	15,911
Other liabilities	35	551,509	568,077	568,559	528,375	554,168	546,347
On Lending Facilities	36	285,405	320,336	311,192	285,405	320,336	311,192
Borrowings	37	1,864,242	1,054,140	963,450	1,864,242	1,078,131	999,580
Total liabilities		16,240,879	10,033,332	10,906,689	14,014,314	8,754,513	9,375,531

5

ZENITH BANK PLC

Consolidated and Separate Interim Financial Statements for the period ended 30 September 2023

Statement of financial position as at 30 September 2023

			Group				Bank
In millions of Naira	Notes	30 September	30 September	31 December		30 September	30 September	31 December
		2023	2022	2022	2023	2022	2022
Capital and reserves
Share capital	39	15,698	15,698	15,698	15,698	15,698	15,698
Share premium	40	255,047	255,047	255,047	255,047	255,047	255,047
Retained income		893,900	638,218	625,005	718,094	485,567	494,429
Reserves		754,077	398,687	482,377	562,161	367,058	429,973
		1,918,722	1,307,650	1,378,127	1,551,000	1,123,370	1,195,147
Non-controlling interest		1,213	997	813	-	-	-
Total shareholders' equity		1,919,935	1,308,647	1,378,940	1,551,000	1,123,370	1,195,147
Total Equity and Liabilities		18,160,814	11,341,979	12,285,629	15,565,314	9,877,883	10,570,678

The unaudited financial statements were approved by the board of directors for issue on 25th October 2023 and signed on its behalf by:

Jim Ovia, CFR.	Dr. Ebenezer Onyeagwu	Mukhtar Adam, PhD
Chairman	Group Managing Director/CEO	Chief Financial Officer
FRC/2013/CIBN/00000002406	FRC/2013/ICAN/00000003788	FRC/2013/MULTI/00000003196

The accompanying notes are an integral part of these financial statements.

6

ZENITH BANK PLC

Consolidated and Separate Interim Financial Statements for the period ended 30 September 2023

Statements of changes in equity for the period ended 30 September 2023

	Note(s)	Share capital	Share	Foreign currency	Fair value	Statutory	SMIEIS	Credit risk	Retained	Total	Non-controlling	Total equity
			premium	translation	reserve	reserve	reserve	reserve	earnings		interest
In millions of Naira				reserve
Group
Balance at 1 January 2022		15,698	255,047	53,529	45,473	275,993	3,729	21,846	607,203	1,278,518	1,144	1,279,662
Profit for the period		-	-	-	-	-	-	-	174,229	174,229	102	174,331
Foreign currency translation differences		-	-	(44,480)	-	-	-	-	-	(44,480)	(249)	(44,729)
Fair value movements on equity instruments		-	-	-	8,274	-	-	-	-	8,274	-	8,274
Fair value movements on debt securities		-	-	-	(11,502)	-	-	-	-	(11,502)	-	(11,502)
Total comprehensive income for the period		-	-	(44,480)	(3,228)	-	-	-	174,229	126,521	(147)	126,374
Transfer between reserves		-	-	-	-	26,790	-	19,035	(45,825)	-	-	-
Dividends	40	-	-	-	-	-	-	-	(97,389)	(97,389)	-	(97,389)
Balance at 30 September 2022		15,698	255,047	9,049	42,245	302,783	3,729	40,881	638,218	1,307,650	997	1,308,647
Balance at 1 January 2023		15,698	255,047	24,953	46,980	311,411	3,729	95,304	625,005	1,378,127	813	1,378,940
Profit for the period		-	-	-	-	-	-	-	433,943	433,943	229	434,172
Foreign currency translation differences		-	-	136,406	-	-	-	-	-	136,406	171	136,577
Fair value movements on equity instruments		-	-	-	73,880	-	-	-	-	73,880	-	73,880
Fair value movements on debt securities		-	-	-	3,107	-	-	-	-	3,107	-	3,107
Total comprehensive income for the period		-	-	136,406	76,987	-	-	-	433,943	647,336	400	647,736
Transfer between reserves	40	-	-	-	-	58,308	-	-	(58,308)	-	-	-
Dividends		-	-	-	-	-	-	-	(106,748)	(106,748)	-	(106,748)
Balance at 30 September 2023		15,698	255,047	161,359	123,967	369,719	3,729	95,304	893,900	1,918,723	1,213	1,919,935

7

ZENITH BANK PLC

Consolidated and Separate Interim Financial Statements for the period ended 30 September 2023

Statements of changes in equity for the period ended 30 September 2023

Note(s)	Share capital	Share	Fair value	Statutory	SMIEIS	Credit risk	Retained	Total equity
In millions of Naira		premium	reserve	reserve	reserve	reserve	earnings
Bank
Balance at 1 January 2022	15,698	255,047	45,622	243,414	3,729	20,016	466,249	1,049,775
Profit for the period	-	-	-	-	-	-	162,649	162,649
Fair value movements on equity instruments	-	-	8,274	-	-	-	-	8,274
Total comprehensive income for the period	-	-	8,274	-	-	-	162,649	170,923
Transfer between reserves	-	-	-	24,397	-	21,606	(46,003)	-
Dividends	-	-	-	-	-	-	(97,327)	(97,327)
Balance at 30 September 2022	15,698	255,047	53,896	267,811	3,729	41,622	485,567	1,123,370
Balance at 1 January 2023	15,698	255,047	53,731	278,602	3,729	93,911	494,429	1,195,147
Profit for the period	-	-	-	-	-	-	388,718	388,718
Fair value movements on equity instruments	-	-	73,880	-	-	-	-	73,880
Total comprehensive income for the period	-	-	73,880	-	-	-	388,718	462,598
Transfer between reserves	-	-	-	58,308	-	-	(58,308)	-
Dividends	-	-	-	-	-	-	(106,748)	(106,748)
Balance at 30 September 2023	15,698	255,047	127,611	336,910	3,729	93,911	718,094	1,551,000
The accompanying notes are an integral part of these consolidated and separate financial statements.

8

ZENITH BANK PLC

Consolidated and Separate Interim Financial Statements for the period ended 30 September 2023

Statements of cash flows for the period ended 30 September 2023

				Group					Bank
In millions of Naira	Note(s)	30 September 30 September	31 December	30 September	30 September	31 December
		2023	2022	2022			2023	2022	2022
Cash flows from operating activities
Profit before tax for the period		505,036	202,549	284,650		439,282	181,055	294,050
Adjustments for:
Net impairment loss on financial and non-		209,999	37,096	123,252		208,071	35,801	61,896
financial instuments
Unrealised fair value change in trading bond, bills	(486,452)	(38,574)	(90,046)	(384,171)	(37,970)	(88,394)
and derivatives
Depreciation of property and equipment		19,247	19,886	26,630		17,070	18,092	24,519
Amortisation of intangible assets		2,199	2,218	3,679		1,886	1,907	3,045
Dividend income		(5,151)	(2,526)	(2,223)	(24,823)	-	(17,148)
Foreign exchange revaluation gain		(223,523)	(11,141)	(25,201)	(273,482)	(18,572)	(25,320)
Write-off of Intangible		-	-	-		-	(10,353)	-
Interest income		(670,932)	(390,755)	(540,166)	(545,050)	(333,391)	(448,174)
Interest expense		255,704	107,848	173,539		220,767	93,461	153,019
Gain on sale of property and equipment		(125)	(2,517)	(2,563)	(124)	(2,408)	(2,451)
Gain on lease derecognition		-	-	(2,028)	-	-	(2,025)
		(393,998)	(75,916)	(50,477)	(340,575)	(72,378)	(46,983)
Changes in operating assets and liabilities:
Net(increase) in loans and advances		(1,350,803)	(490,785)	(543,005)	(1,093,572)	(514,145)	(502,442)
Net (increase)/decrease in other assets		(427,642)	(119,905)	(59,586)	(352,600)	(127,554)	(55,735)
Net decrease/(increase) in treasury bills (FVTPL)	701,245	429,619	(76,101)	694,241	427,288	(78,553)
including bills pledged
Net (increase)/decrease in investment securities	98,906	572,341	(254,630)	3,386	(352)	138
including bonds pledged (FVTPL and FVOCI)
Net (increase)/decrease in restricted balances		(814,200)	(363,635)	(418,711)	(927,493)	(375,924)	(419,705)
(cash reserves)
Net decrease in due from banks with maturity		(73,164)	(454,527)	(15,661)	(72,054)	(182,367)	(21,065)
greater than three months and restricted cash
Net Increase customer deposits		2,989,014	1,465,839	2,362,290		2,804,144	1,530,545	2,153,832
Net increase/(decrease) in Other liabilities		316,196	87,949	48,387		313,006	130,989	84,480
Interest received from operating activities		401,258	238,635	354,722		364,725	215,823	302,324
Interest paid		(198,932)	(75,163)	(143,859)	(178,554)	(63,211)	(128,805)
Tax paid		(82,000)	(15,779)	(24,247)	(58,135)	(7,073)	(7,728)
Net cash flows generated from operations		1,165,880	1,198,673	1,179,122		1,156,519	961,641	1,279,758
Cash flows from investing activities
Purchase of property, plant and equipment		(31,255)	(53,628)	(67,245)	(28,121)	(52,945)	(64,357)
Proceeds from Sale of property, plant and		378	9,486	3,207		298	9,058	2,671
equipment
Purchase of intangible assets		(7,724)	(3,259)	(4,130)	(7,651)	(2,959)	(3,461)
Additions to treasury bills		(2,326,658)	(1,757,226)	(3,060,163)	(2,111,547)	(1,701,671)	(2,968,565)
Disposal of treasury bills		1,698,588	2,021,414	2,833,003		1,689,621	1,888,343	2,679,567
Interest received from treasury bills and		124,078	86,890	88,416		112,047	52,338	71,700
investment securities
Acquisition of Right of Use Asset		(314)	(856)	(2,281)	(277)	(696)	(2,031)
Additions to other Investment securities		(567,848)	(900,814)	(559,328)	(557,782)	(130,449)	(206,285)
Disposal of other Investment securities		117,180	75,126	403,066		114,845	51,793	65,448
Dividends received		5,151	2,527	2,223		24,823	18,573	17,148
Net cash from investing activities		(988,424)	(520,340)	(363,232)		(763,744)	131,385	(408,165)

9