Zenith Bank : Q1 - Presentation

Agenda

Overview of Operating Environment	Pages 04 - 09
Group Results	Pages 10 - 24
Risk Management	Pages 25 - 30
Business Segments Performance & Subsidiary Review	Pages 31 - 36
Strategy, Outlook & Guidance	Pages 37 - 40

© 2023 ZENITH BANK PLC | First Quarter 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.

© 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts| Page 3

Overview of

Operating

Environment

© 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Inve

Nigerian Economy and Key Developments in the Banking Sector

Real GDP Growth:

• Nigeria's real GDP grew by 2.31% y/y in Q1 2023.
• The oil sector contracted by 4.31% y/y and contributed 6.21% to total real GDP in Q1 2023 while the non-oil sector expanded by 2.77% and contributed the balance of 93.79%. The expansion in non-oil sector was driven mainly by Information and Communication (Telecommunication); Financial and Insurance (Financial Institutions); Trade; Manufacturing (Food, Beverage & Tobacco); and Construction.

Headline Inflation:

• Headline inflation increased to 22.04% y/y in Mar'23 from 21.91% y/y recorded in Feb'23.
• Food inflation rose by 10 bps to 24.45% y/y while core inflation decreased by 126 bps to 19.63% y/y over the same period.

Oil Production & Price:

• OPEC average monthly basket price fell by 1.5% QoQ to $78.5/bbl in Q1 2023. This rose to $85.1/bbl in April 2023; while the average daily basket price currently stands at $75.2/bbl as at 22nd May 2023.
• Nigeria recorded an average daily oil production of 1.51 mbpd in Q1 2023, a marginal increase from 1.34 mbpd recorded in Q4 2022.

Foreign Reserves:

• Nigerian foreign reserves declined by 4.3% QoQ from $37.1bn recorded at the end of Q4 2022 to $35.5bn recorded at the end of Q1 2023.

GDP Growth Rate

	3.98%		3.54%
		3.11%		3.52%
4.03%						2.31%
				2.25%
Q3 '21	Q4 '21	Q1 '22	Q2 '22	Q3 '22	Q4 '22	Q1 '23
Inflation Rate
20.77%	21.09%	21.47%	21.34%	21.82%	21.91%	22.04%

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

Mar-23

Exchange Rate:

• In Q1 2023, the local currency (NGN) depreciated by 0.04% against the USD. NAFEX (I&E) window exchange rate (NGN/USD) as at Q1 2023 - 461.30 (Q4 2022 NAFEX - 461.1) .

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

• The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) voted to increase the MPR from 17.5% to 18% while keeping all other parameters constant during the MPC meeting held in March 2023. Cash Reserve Ratio (CRR) - 32.5%; Monetary Policy Rate (MPR) - 18.0%; and Liquidity Ratio - 30%.

Foreign Reserves / Oil Price

95.3	93.2	89.7	81.6	81.9
		79.7	78.5

38.3	37.4	37.1	37.1	36.9	36.7	35.5
Sep-22	Oct-22	Nov-22	Dec-22	Jan-23	Feb-23	Mar-23

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

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

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