Zenith Bank : H1 2022 - Presentation

		Overview of Operating Environment	Pages 04 - 07
Agenda		Group Results	Pages 10 - 24
	Risk Management	Pages 25 - 30
		Business Segments Performance & Subsidiary Review	Pages 31 - 36
		Strategy, Outlook & Guidance	Pages 37 - 39

© 2022 ZENITH BANK PLC | First Half 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 | First Half Group Results Presentation to Investors & Analysts| Page 3

Overview of

Operating

Environment

© 2022 ZENITH BANK PLC | First Half Group Results Presentation to Investors & Analysts

Nigerian Economy and Key Developments in the Banking Sector

Real GDP Growth:

• Nigeria's real GDP grew by 3.11% y/y in Q1 2022. While this is lower than the 3.98% GDP recorded in Q4 2021 by 0.87%, it however indicates the positive path of the economy for the sixth consecutive quarter since the recession in 2020.
• The oil sector contracted by 26.04% y/y and contributed 6.63% to total real GDP in Q1 2022 while the non-oil sector expanded by 6.08% and contributed the balance of 93.37%. The expansion in non-oil sector was driven mainly by the Information and Communication (Telecommunication) sector while other drivers include Trade, Financial and Insurance (Financial Institution), Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco).

Headline Inflation:

• Headline inflation increased to 19.64% y/y in Jul'22 from 18.60% y/y recorded in Jun'22.
• Over the same period, food inflation grew by 142 bps to close at 22.02% y/y while core inflation rose by 51 bps to close at 16.26% y/y.

Oil Production & Price:

• OPEC average monthly basket price increased by 3.7% in the 2nd quarter of 2022, from $113.5/bbl recorded in Mar'22 to $117.7/bbl recorded in Jun'22. The average daily basket price currently stands at $98.7/bbl as at 22nd Aug. 2022.
• Nigeria recorded an average daily oil production of 1.24 mbpd in Q2 2022, a decrease of 0.25 mbpd from 1.49 mbpd recorded in Q1 2022.

GDP Growth Rate

				4.03%	3.98%	3.11%
	0.11%	0.51%	5.01%
Q3 '20	Q4 '20	Q1 '21	Q2 '21	Q3 '21	Q4 '21	Q1 '22
-3.62%

Inflation Rate

				18.60%	19.64%
			16.82%	17.71%
15.60%	15.70%	15.92%

Jan-22

Feb-22

Mar-22

Apr-22

May-22

Jun-22

Jul-22

Foreign Reserves:

• Nigerian foreign reserves declined by 0.76% QoQ from $39.5bn recorded at the end of Q1 2022 to $39.2bn recorded at the end of Q2 2022. The foreign reserves currently stands at $38.9bn as at 18th Aug. 2022.

Exchange Rate:

• The local currency (NGN) appreciated by about 0.7% against the USD in H1 2022 at the NAFEX (I&E) window. Exchange rates (NGN/USD) as at end of June 2022: NAFEX - 421.29 (December 2021: NAFEX- 424.11)

Foreign Reserves / Oil Price

113.5	113.9	117.7
105.5		108.6

94.0

85.4

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

39.9

39.2

 The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) increased MPR

40.0

39.5

39.6

38.5

39.2

by 100bps from 13% to 14% at the meeting held in July 2022. This comes barely two months

after the rate was increased to 13% after almost two years of being held at 11.5%. All other

Jan-22

Feb-22

Mar-22

Apr-22

May-22

Jun-22

Jul-22

parameters remain unchanged. Cash Reserve Ratio (CRR) - 27.5%; Monetary Policy Rate

Av Monthly Basket Price of Crude (US$/bbl)

Foreign Reserves (US$)

(MPR) - 14%; and Liquidity Ratio - 30%.

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

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