ZENITH BANK : QUARTER 5 - FINANCIAL STATEMENT FOR 2022

ZENITH BANK PLC

DIRECTORS, OFFICERS AND PROFESSIONAL ADVISERS

DIRECTORS

*Appointed to the Board effective 12 April 2022 **Retired from the Board effective 1 July 2022 ***Retired from the Board effective 28 December 2022 **** Retired from the Board effective 24 February 2023

COMPANY SECRETARY

REGISTERED OFFICE

AUDITORSREGISTRAR AND TRANSFER OFFICEJim Ovia, CFR.

Prof. Chukuka Enwemeka** Mr.Jeffrey Efeyini**

Mr. Chuks Emma Okoh* Mr.Gabriel Ukpeh

Engr. Mustafa Bello

Dr. Al-Mujtaba Abubakar,MON

Dr. Omobola Ibidapo-Obe Ogunfowora Dr. Peter Olatunde Bamkole* Mr.Ebenezer Onyeagwu

Dr. Adaora Umeoji,OON **** Mr. Umar Shuaib Ahmed*** Dr. Temitope Fasoranti

Mr. Dennis Olisa*** Mr. Henry Oroh Mrs Adobi Nwapa*

Mr. Akindele Ogunranti*

Michael Osilama Otu Esq.

Zenith Bank Plc

Zenith Heights

Plot 84/87, Ajose Adeogun Street Victoria Island, Lagos

Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director/Independent Non-Executive Director Non-Executive Director/Independent Non-Executive Director/Independent Non-Executive Director/Independent Group Managing Director/CEO Deputy Managing Director Executive Director Executive Director Executive Director Executive Director Executive Director Executive Director

PricewaterhouseCoopers (PwC) Professional Services Landmark Towers, 5B Water Corporation Road Victoria Island

Lagos

Veritas Registrars Limited (formerly Zenith Registrars Limited)

Plot 89 A, Ajose Adeogun Street

Victoria Island

Lagos

1

Zenith Bank Plc Annual Report - 31 December 2022

ZENITH BANK PLC

Index

Note

Page Note

Page

Directors' Report for the Year Ended 31 December 2022

Statement of Corporate Responsibility for the Financial

Statements for the Year Ended 31 December 2022

Corporate Governance Report for the Year Ended 31

December 2022

Statement of Directors' Responsibilities in Relation to the

Financial Statement for the Year Ended 31 December 2022

Report of the Audit Committee for the Year Ended 31

December 2022

Independent Auditor's Report

Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 2022

Consolidated and Separate Statements of Financial Position as at 31 December 2022

Consolidated and Separate Statements of Changes in Equity for the Year Ended 31 December 2022

Consolidated and Separate Statements of Cash Flows for the Year Ended 31 December 2022

Notes to the Consolidated and Separate Financial Statements

• 1 General information

• 2.0a Changes in accounting policies

• 2.0b Significant accounting policies

• 2.1 Basis of preparation

• 2.2 Basis of Consolidation

• 2.3 Translation of foreign currencies

• 2.4 Cash and cash equivalents

• 2.5 Financial instruments

• 2.6 Derivative instruments

• 2.7 Impairment

• 2.8 Reclassification of financial instruments

• 2.9 Restructuring of financial instruments

• 2.10 Collateral

• 2.11 Property and equipment

• 2.12 Intangible assets

• 2.13 Impairment of non-financial assets

• 2.14 Leases

• 2.15 Provisions

• 2.16 Employee benefits

• 2.17 Share capital and reserves

• 2.18 Recognition of interest income and expense

• 2.19 Fees, commission and other income

• 2.20 Net trading gains

• 2.21 Operating expenses

• 2.22 Current and deferred income tax

• 2.23 Earnings per share

• 2.24 Segment reporting

• 2.25 Fiduciary activities

4 12 13 29 30 31 36

• 7 Interest and similar expense

• 8 Impairment charge on financial and non-financial instruments

• 9 Net income on fee and commission

• 10 Other operating income

• 11 Trading gains

• 12 Operating expenses

• 13 Taxation

  37 38 40 41

• 14 Earnings per share (EPS)

• 15 Cash and balances with central banks

• 16 Treasury bills

• 17 Assets pledged as collateral

• 18 Due From Other Banks

  42

• 19 Derivative assets

  42

• 20 Loans and advances

  43

• 21 Investment Securities

  46

• 22a Investment in subsidiaries

  46

• 22b Condensed results of consolidated entities

47

• 23 Investments in associates

  48

• 24 Deferred tax balances

  48

• 25 Other assets

  52

• 26 Property and equipment

  53

• 27 Intangible assets

  55

• 28 Customers' deposits

  55

• 29 Other liabilities

  55

• 30 On-lending facilities

  55

  149 149

  150

  150

  150

  152 153

  154

  155

  155

  155

  157

  157

  158

  159

  160

  161

  165

  166

  168

  170

  177

  177

  178

  179

  56 58 58 59 59 59 60

• 31 Borrowings

• 32 Debt Securities issued

• 33 Derivative liabilities

• 34 Share capital

• 35 Share premium, retained earnings and other reserves

• 36 Pension contribution

• 37 Personnel expenses

• 38 Group subidiaries and related party transactions

• 39 Contingent liabilities and commitments

  61 61 61 62 63 63 63

• 40 Dividend per share

• 41 Cash and cash equivalents

• 42 Compliance with banking regulations

• 43 Prudential Adjustments

• 44 Statement of cash flow workings

• 45 Comparatives

181 183 183 183 184 185 185 186 188 189 190 190 191 192 197

2

Zenith Bank Plc Annual Report - 31 December 2022

ZENITH BANK PLC

Index

2.26 Deposit for investment in AGSMEIS

• 3 Risk management

• 4 Critical accounting estimate and judgements

• 5 Segment Analysis

• 6 Interest and similar income

46 Events after the reporting period 197

63

64

Other National Disclosures 199

142

Value Added Statement 199

144

Five Year Financial Summary 201

149

3

Zenith Bank Plc Annual Report - 31 December 2022

ZENITH BANK PLC

Directors' Report for the Year Ended 31 December 2022

The directors present their report on the affairs of ZENITH BANK PLC ("the Bank"), together with the financial statements and the independendt auditor's report for the year ended 31 December 2022.

1. Legal form

The Bank was incorporated in Nigeria under the Companies and Allied Matters Act as a private limited liability company on 30 May,1990. It was granted a banking licence in June 1990, to carry on the business of commercial banking and commenced business on June 16, 1990. The Bank was converted into a Public Limited Liability Company on 20 May 2004. The Bank's shares were listed on the floor of the Nigerian Stock Exchange on 21 October 2004. In August 2015, the Bank was admitted into the premium Board of the Nigerian Stock Exchange. The Bank is also listed on the London Stock Exchange.

There have been no material changes to the nature of the Group's business from the previous year.

2. Principal activities and business review

The principal activity of the Bank is the provision of banking and other financial services to corporate and individual customers. Such services include obtaining deposits from the public, granting of loans and advances, corporate finance and money market activities.

The Bank has six subsidiary companies namely, Zenith Bank (Ghana) Limited, Zenith Pensions Custodian Limited, Zenith Bank (UK) Limited, Zenith Bank (Sierra Leone) Limited, Zenith Bank (The Gambia) Limited and Zenith Nominees Limited. During the year, the Bank opened three new branches and no branch was closed.

As at 31 December 2022 the Group had 446 branches, 166 cash centers; 2,108 ATM terminals; 233,024 POS terminals and 21,832,175 cards issued to its customers. (31 December 2021: 443 branches, 188 cash centers, 2,086 ATM terminals, 163,398 POS terminals and 14,743,191 cards issued).

3. Operating results

Gross earnings of the Group increased by 23.5% and profit before tax increased by 1.5% . Highlights of the Group's operating results for the period under review are as follows

4. Dividends

The Board of Directors, pursuant to the powers vested in it by the provisions of section 426 of the Companies and Allied Matters Act (CAMA 2020) of Nigeria, proposed a final dividend of N2.90 per share which in addition to the N0.30 per share as interim dividend amounts to N3.20 per share (2021: Interim dividend of N3.10 per share) from the retained earnings account as at 31 December 2022. This will be presented for ratification by the shareholders at the next Annual General Meeting.

Payment of dividends is subject to witholding tax rate of 10% in the hands of qualified recipients.

4

Zenith Bank Plc Annual Report - 31 December 2022

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