ZENITH BANK : QUARTER 1 - FINANCIAL STATEMENT FOR 2024

ZENITH BANK PLC	z
RC: 150224
HEAD OFFICE
Zenith Heights, Plot 84/87 Ajose Adeogun Street,	ZENITH
11-,;[: P. 0. Box 75315, Victoria Island, Lagos.
� Tel: [phone]
www.zenithbank.com I SWIFT: ZEIBNGLA

CONSOLIDATED AND SEPARATE INTEIRIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

THE BOARD:

Chairman: Jim Ovia, CFR. I Group Managing Director/CEO: Dr. Ebenezer Onyeagwu I Deputy Managing Director: Dame (Dr.) Adaora Umeoji, OON.

Executive Directors: Henry Oroh I Adobi Nwapa I Akindele Ogunranti

Non-Executives: I Engr. Mustafa Bello I Dr. AI-Mujtaba Abubakar MFR. I Omobola lbidapo-Obe Ogunfowora (Ph.D)

Peter Olatunde Bamkole (Ph.D) I Mr. Chuks Emma Okoh I Dr. Juliet Ehimuan

ZENITH BANK PLC

Consolidated and Separate Unaudited Financial Statements for the period ended 31 March 2024

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 Unaudited Financial Statements for the period ended 31 March 2024

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 31 March 2024 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 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 Unaudited Financial Statements for the period ended 31 March 2024

Statements of profit or loss and other comprehensive income for the period ended 31 March 2024

				Group					Bank
In millions of Naira	Note		3 Months	3 Months	12 Months	3 Months	3 Months	12 Months
			31 March 2024	31 March 2023	31 December	31 March 2024	31 March 2023	31 December
					2023					2023
Gross earnings		780,617	269,994	2,131,750	639,373	238,756	1,869,753
Interest and similar income	13	488,546	191,632	1,144,674			372,209	162,436	926,232
Interest and similar expense	14	(182,096)	(70,843)	(408,492)		(140,551)	(64,412)	(355,228)
Net interest income		306,450	120,789	736,182			231,658	98,024	571,004
Impairment charge	15	(55,972)	(7,730)	(409,616)		(56,833)	(7,833)	(398,412)
Net interest income after impairment charge		250,478	113,059	326,566			174,825	90,191	172,592
Net fee and commission income	16	57,711	34,148	109,307			43,361	27,786	71,080
Trading income	18	210,685	33,891	566,973			196,573	30,831	538,286
Other operating income	17	3,171	4,713	242,588			7,726	12,353	264,063
Depreciation of property and equipment	32	(8,773)	(6,422)	(29,857)		(6,755)	(5,881)	(26,090)
Amortisation of intangible assets	33	(1,041)	(1,468)	(3,469)		(747)	(1,384)	(2,447)
Personnel expenses		(42,851)	(23,168)	(124,415)		(25,939)	(18,337)	(88,083)
Other operating expenses	19	(149,186)	(68,148)	(291,731)		(133,981)	(63,385)	(261,686)
Profit before tax		320,194	86,605	795,962			255,063	72,174	667,715
Income tax expense	20a	(61,853)	(20,593)	(119,053)		(52,799)	(17,675)	(72,114)
Profit after tax		258,341	66,012	676,909			202,264	54,499	595,601
Other comprehensive income:
Items that will never be reclassified to profit or loss
Fair value movements on equity instruments at FVOCI		77,339	505	122,252			77,339	505	122,252
Impact of adopting IAS 29 on 1 January 2023		-	-	81,408			-	-	-
Total items that will not be reclassified to profit or loss		77,339	505	203,660			77,339	505	122,252
Items that are or may be reclassified to profit or loss:
Foreign currency translation differences		186,711	(5,979)	162,942			-	-	-
Fair value movement on debt securities at FVOCI		1,755	2,079	10,280			-	-	-
Income tax relating to FV on debt securities at FVOCI		-	-	(2,603)		-	-	-
Other comprehensive income/(loss) for the period/year		265,805	(3,395)	374,279			77,339	505	122,252
Total comprehensive income for the period/year		524,146	62,617	1,051,188			279,603	55,004	717,853

3

ZENITH BANK PLC

Consolidated and Separate Unaudited Financial Statements for the period ended 31 March 2024

Statements of profit or loss and other comprehensive income for the period ended 31 March 2024

			Group				Bank
	Notes	3 Months	3 Months	12 Months		3 Months	3 Months	12 Months
		31 March 2024	31 March 2023	31 December		31 March 2024	31 March 2023	31 December
				2023				2023
Profit attributable to:
Equity holders of the parent		258,124	65,946	676,569	202,264	54,499	595,601
Non-controlling interest		217	66	340	-	-	-
		258,341	66,012	676,909	202,264	54,499	595,601
Total comprehensive income attributable to:
Equity holders of the parent		523,054	62,581	1,050,373	279,603	55,004	717,853
Non-controlling interest		1,092	36	815	-	-	-
		524,146	62,617	1,051,188	279,603	55,004	717,853
Earnings per share
Basic and diluted (Naira)	21	8.22	2.10	21.55	6.44	1.74	18.97

4

ZENITH BANK PLC

Consolidated and Separate Unaudited Financial Statements for the period ended 31 March 2024

Statement of financial position as at 31 March 2024

			Group				Bank
In millions of Naira	Note(s)	31 March 2024	31 March 2023	31 December		31 March 2024	31 March 2023	31 December
				2023				2023
Assets
Cash and bank balances with central banks	22	4,197,351	2,520,926	4,253,374	3,860,597	2,443,673	3,965,386
Treasury bills	23	2,036,648	2,355,775	2,736,273	1,670,087	2,252,276	2,529,966
Assets pledged as collateral	24	733,868	203,673	308,638	648,434	203,673	255,061
Due from other banks	25	1,915,354	1,398,193	1,834,314	1,477,398	1,334,538	1,691,722
Derivative assets	26	934,663	58,985	534,739	932,378	58,557	507,942
Loans and advances	27	8,650,493	4,029,850	6,556,470	7,937,382	3,760,511	5,928,796
Investment securities	28	4,777,313	1,651,484	3,290,895	2,070,362	743,420	1,205,724
Investments in subsidiaries	29	-	-	-	34,625	34,625	34,625
Deferred tax asset	30	15,336	16,652	17,251	-	-	-
Other assets	31	642,230	870,102	474,976	512,048	858,492	417,419
Current tax receivable		21,989	-	18,975	-	-	-
Property and equipment	32	298,267	229,019	295,532	246,129	213,184	230,267
Intangible assets	33	57,265	24,557	47,018	54,285	23,377	44,185
Total assets		24,280,777	13,359,216	20,368,455	19,443,725	11,926,326	16,811,093
Equity and liabilities
Liabilities
Customers' deposits	34	16,784,228	9,136,259	15,167,740	12,760,624	7,933,719	12,154,824
Derivative liabilities	38	95,533	12,949	70,486	95,430	12,571	45,514
Current tax payable	20	83,501	80,680	33,877	77,777	76,093	28,080
Deferred tax liabilities	30	64,257	19,799	59,310	62,334	19,148	59,233
Other liabilities	35	1,875,157	1,283,889	1,039,712	1,801,651	1,264,400	1,003,947
On lending facilities	36	260,711	301,304	263,065	260,711	301,304	263,065
Borrowings	37	2,269,865	1,082,779	1,410,885	2,299,347	1,068,940	1,450,182
Total liabilities		21,433,252	11,917,659	18,045,075	17,357,874	10,676,175	15,004,845

5

ZENITH BANK PLC

Consolidated and Separate Unaudited Financial Statements for the period ended 31 March 2024

Statement of financial position as at 31 March 2024

			Group				Bank
In millions of Naira	Notes	31 March 2024	31 March 2023	31 December		31 March 2024	31 March 2023	31 December
				2023				2023
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 earnings		1,407,174	682,776	1,179,390	1,065,862	540,753	893,938
Other reserves		1,166,886	487,187	871,617	749,244	438,653	641,565
		2,844,805	1,440,708	2,321,752	2,085,851	1,250,151	1,806,248
Non-controlling interest		2,720	849	1,628	-	-	-
Total shareholders' equity		2,847,525	1,441,557	2,323,380	2,085,851	1,250,151	1,806,248
Total equity and liabilities		24,280,777	13,359,216	20,368,455	19,443,725	11,926,326	16,811,093

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 Unaudited Financial Statements for the period ended 31 March 2024

Statements of changes in equity for the period ended 31 March 2024

	Note(s)	Share	Share	Foreign currency	Fair value	Statutory	SMIEIS	Credit risk	Retained	Total	Non-controlling	Total equity
		capital	premium	translation	reserve	reserve	reserve	reserve	earnings		interest
In millions of Naira				reserve
Group
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		-	-	-	-	-	-	-	65,946	65,946	66	66,013
Foreign currency translation differences		-	-	(5,949)	-	-	-	-	-	(5,949)	(30)	(5,979)
Fair value movements on equity instruments		-	-	-	505	-	-	-	-	505	-	505
Fair value movements on debt securities		-	-	-	2,079	-	-	-	-	2,079	-	2,079
Total comprehensive income for the period		-	-	(5,949)	2,584	-	-	-	65,946	62,582	36	62,618
Transfer between reserves		-	-	-	-	8,175	-	-	(8,175)	-	-	-
Balance at 31 March 2023		15,698	255,047	19,004	49,564	319,586	3,729	95,304	682,776	1,440,708	849	1,441,557
Balance at 1 January 2024		15,698	255,047	187,892	176,909	409,104	3,729	93,982	1,179,390	2,321,751	1,628	2,323,380
Profit for the period		-	-	-	-	-	-	-	258,124	258,124	217	258,341
Foreign currency translation differences		-	-	185,836	-	-	-	-	-	185,836	875	186,711
Fair value movements on equity instruments		-	-	-	77,339	-	-	-	-	77,339	-	77,339
Fair value movements on debt securities		-	-	-	1,755	-	-	-	-	1,755	-	1,755
Total comprehensive income for the period		-	-	185,836	79,094	-	-	-	258,124	523,054	1,092	524,146
Transfer between reserves	40	-	-	-	-	30,340	-	-	(30,340)	-	-	-
Dividends		-	-	-	-	-	-	-	-	-	-	-
Balance at 31 March 2024		15,698	255,047	373,728	256,003	439,444	3,729	93,982	1,407,174	2,844,805	2,720	2,847,525

7

ZENITH BANK PLC

Consolidated and Separate Unaudited Financial Statements for the period ended 31 March 2024

Statements of changes in equity for the period ended 31 March 2024

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 2023	15,698	255,047	53,731	278,602	3,729	93,911	494,429	1,195,147
Profit for the year	-	-	-	-	-	-	54,499	54,499
Fair value movements on equity instruments	-	-	505	-	-	-	-	505
Total comprehensive income for the period	-	-	505	-	-	-	54,499	55,004
Transfer between reserves	-	-	-	8,175	-	-	(8,175)	-
Balance at 31 March 2023	15,698	255,047	54,236	286,777	3,729	93,911	540,753	1,250,151
Balance at 1 January 2024	15,698	255,047	175,983	367,942	3,729	93,911	893,938	1,806,248
Profit for the year	-	-	-	-	-	-	202,264	202,264
Fair value movements on equity instruments	-	-	77,339	-	-	-	-	77,339
Total comprehensive income for the period	-	-	77,339	-	-	-	202,264	279,603
Transfer between reserves	-	-	-	30,340	-	-	(30,340)	-
Dividends	-	-	-	-	-	-	-	-
Balance at 31 March 2024	15,698	255,047	253,322	398,282	3,729	93,911	1,065,862	2,085,851
The accompanying notes are an integral part of these consolidated and separate financial statements.

8

ZENITH BANK PLC

Consolidated and Separate Unaudited Financial Statements for the period ended 31 March 2024

Statements of cash flows for the period ended 31 March 2024

				Group					Bank
In millions of Naira	Note(s)	31 March 2024 31 March 2023	31 December	31 March 2024	31 March 2023	31 December
					2023					2023
Cash flows from operating activities
Profit before tax for the year		320,194	86,605	795,962		255,063	72,174	667,715
Adjustments for:
Net impairment loss on financial and non-		55,972	7,730	409,616		56,833	7,833	398,412
financial instuments
Unrealised fair value change in trading bond, bills	(70,192)	(23,669)	(495,592)	(100,102)	(24,357)	(493,766)
and derivatives
Depreciation of property and equipment		8,773	6,422	29,857		6,755	5,881	26,090
Amortisation of intangible assets		1,041	1,468	3,469		747	1,384	2,447
Dividend income		-	-	(5,661)	-	8,119	(19,777)
Foreign exchange revaluation gain		(3,359)	(1,213)	358,103		(4,843)	(852)	308,353
Interest income		(488,546)	(191,632)	(1,144,674)	(372,209)	(162,436)	(926,232)
Interest expense		182,096	70,843	408,492		140,551	64,412	355,228
Gain on sale of property and equipment		(391)	63	(189)	(387)	67	(186)
Gain on lease derecognition		-	-	(14)	-	-	2
Net monetary loss arising from hyperinflationary	3,102	-	13,225		-	-	-
economy
		8,690	(43,383)	372,594		(17,592)	(44,013)	318,286
Changes in operating assets and liabilities:
Net(increase) in loans and advances		(1,138,863)	22,941	(3,001,963)	(770,868)	7,940	(2,623,642)
Net (increase)/decrease in other assets		(127,642)	(253,124)	(258,868)	(352,600)	(582,588)	(222,544)
Net decrease/(increase) in treasury bills (FVTPL)	181,801	665,676	439,491		161,702	726,488	439,491
including bills pledged
Net (increase)/decrease in investment securities	(191,872)	(3,028)	(11,967)	(105,111)	(4,054)	(6,666)
including bonds pledged (FVTPL and FVOCI)
Net (increase)/decrease in restricted balances		(814,200)	(492,798)	(2,233,798)	(927,493)	(511,316)	(2,144,031)
(cash reserves)
Net decrease in due from banks with maturity		73,164	(628,804)	37,147		72,054	(659,376)	106,055
greater than three months and restricted cash
Net increase in customer deposits		989,014	197,403	6,367,081		304,144	542,179	4,713,058
Net increase/(decrease) in Other liabilities		316,196	716,812	470,641		313,006	718,249	454,569
Net increase/(decrease) in derivatives		374,877	-	43,549		283,492	-	42,811
Interest received from operating activities		401,258	101,179	2,223,907		364,725	99,925	1,077,387
	42,112	-	803,645		32,748	-	711,069
Interest paid		(128,649)	(120,804)	(413,961)	(40,120)	(103,438)	(347,349)
Tax paid		(8,381)	(1,285)	(107,535)	-	-	(62,367)
Net cash flows generated from operations		(22,495)	160,785	2,506,056		(681,913)	189,996	1,378,740
Cash flows from investing activities
Purchase of property, plant and equipment		(26,626)	(4,933)	(50,281)	(26,398)	(4,835)	(40,584)
Proceeds from Sale of property, plant and		378	70	1,382		298	70	1,341
equipment
Purchase of intangible assets		(11,302)	(957)	(24,035)	(10,847)	(803)	(22,674)
Additions to treasury bills		(2,326,658)	(1,033,335)	(4,547,984)	(1,611,547)	(782,171)	(2,824,475)
Disposal of treasury bills		1,698,588	1,049,595	3,543,236		1,689,621	1,037,418	2,031,575
Interest received from treasury bills and		124,078	20,349	390,383		112,047	19,989	288,634
investment securities
Acquisition of Right of Use Asset		(314)	-	(859)	(277)	-	(810)
Additions to other Investment securities		(567,848)	(178,564)	(2,378,357)	(557,782)	(176,077)	(539,842)
Disposal of other Investment securities		117,180	252,997	980,761		114,845	42,121	82,885
Dividends received		-	-	5,661		-	8,119	19,777
Net cash from investing activities		(992,524)	105,222	(2,080,093)		(290,040)	143,831	(1,004,173)

9