Zenith Bank : 2022 FYE Presentation

Agenda

Operating Environment & Non-financial Highlights	Pages 04 - 09
Group Results	Pages 10 - 23
Risk Management	Pages 24 - 29
Business Segments Performance & Subsidiary Review	Pages 30 - 35
Strategy, Outlook & Guidance	Pages 36 - 38

© 2022 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts

Disclaimer

This presentation is based on the consolidated financial statements of Zenith Bank Plc, a company incorporated in Nigeria on 30 May 1990, and its subsidiaries (hereinafter collectively referred to as "the Group"). The financial statements are prepared in accordance with the International Financial Reporting Standard (IFRS), and the going concern principle under the historical cost convention as modified by the measurement of certain financial instruments held at fair value.

The preparation of financial statements in accordance with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosures at the date of the financial statements. Although these estimates are based on the Directors' best knowledge of current events and actions, actual results may differ from those estimates.

© 2022 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts| Page 3

Operating Environment & Non- financial Highlights

© 2022 ZENITH BANK PLC | Full Year Group Results Presentation to Investors &

Nigerian Economy and Key Developments in the Banking Sector

Real GDP Growth:

• Nigeria's real GDP grew by 3.52% y/y in Q4 2022. This was driven mainly by the Services sector which recorded a growth of 5.69% thereby contributing 56.27% to the aggregate GDP.
• Headline Inflation:
• 2022 YE inflation rate of 21.34% was higher than that of 2021 by 5.72%.
• Headline inflation rose to 21.82% y/y in Jan'23 from 21.34% y/y recorded in Dec'22.
• Over the same period, food inflation rose by 0.57% to close at 24.32% y/y while core inflation rose to 19.16% y/y.

Oil Production & Price:

• OPEC average monthly basket price fell by 16.4% QoQ to $79.7/bbl in Q4 2022. This rose to $81.6/bbl in Jan'23 while the current daily price stands at $77.6/bbl as at 28th March 2022.
• Nigeria recorded an average daily oil production of 1.34 mbpd in Q4 2022, an increase of 0.14 mbpd from 1.20 mbpd recorded in Q3 2022. Oil production for Feb 2023 stood at 1.31 mbpd..

Foreign Reserves:

• Nigerian foreign reserves decreased by 3.1% QoQ from $38.3bn recorded at the end of Q3 2022 to $37.1bn recorded in Q4 2022. The foreign reserves currently stands at $36.7bn as at 28th March 2022.

Exchange Rate:

• As at 2022 FYE, the local currency (NGN) had depreciated by about 9% YoY against the USD. NAFEX (I&E) window exchange rate (NGN/USD) as at 2022 FYE- 461.1 (2021 FYE NAFEX - 424.1) .

Cash Reserve Ratio (CRR) & Monetary Policy Rate (MPR):

• The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) moved the MPR upward four times during the year. MPR presently stands at 18% as at last MPC meeting held 21st March 2023.
• At FYE 2022, Cash Reserve Ratio (CRR) - 32.5%; Monetary Policy Rate (MPR) - 16.5%; and Liquidity Ratio - 30%.

GDP Growth Rate

5.01%	3.54%	3.52%
3.11%
4.03%	3.98%	2.25%

Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22

Inflation Rate

21.09% 21.47% 21.34% 21.82% 21.91%

20.52%	20.77%

Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23

Foreign Reserves / Oil Price

101.9	95.3	93.2
	89.7
			81.6
			79.7	81.9

39.0	38.3	37.4	37.1	37.1		36.9	36.7
Aug-22	Sep-22	Oct-22	Nov-22	Dec-22	Jan-23	Feb-23
		Av Monthly Basket Price of Crude (US$/bbl)				Foreign Reserves (US$Bn)

Source: National Bureau of Statistics , Central Bank of Nigeria, OPEC

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