#1ZENITH BANK ZZ 000 A NEURAL COMCLOU ARTIFICIAL INTELLIGENCE FIRST QUARTER 2023 REPORT Presentation to Investors & Analysts ZENITH N#2Overview of Operating Environment Group Results Agenda Risk Management Business Segments Performance & Subsidiary Review Strategy, Outlook & Guidance Pages 04-09 Pages 10-24 Pages 25 - 30 Pages 31 - 36 Pages 37-40 © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts#3Disclaimer 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#4Overview of Operating Environment mology that defies imitat Wicht Ich POOPING P © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Inve#5Nigerian Economy and Key Developments in the Banking Sector Real GDP Growth: ■ Nigeria's real GDP grew by 2.31% y/y in Q1 2023. GDP Growth Rate ■ 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); 4.03% 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. 3.98% 3.54% 3.11% 2.25% 3.52% 2.31% Q3 '21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 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. Inflation Rate 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 $35.5bn recorded at the end of Q1 2023. Exchange Rate: In Q1 2023, the local currency (NGN) depreciated by 0.04% against the USD. NAFEX (I&E) window exchange rate (NGN/USD) as at Q1 2023 - 461.30 (Q4 2022 NAFEX - 461.1). Cash Reserve Ratio (CRR) & Monetary Policy Rate (MPR): The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) voted to increase the MPR from 17.5% to 18% while keeping all other parameters constant during the MPC meeting held in March 2023. Cash Reserve Ratio (CRR) - 32.5%; Monetary Policy Rate (MPR) - 18.0%; and Liquidity Ratio - 30%. 20.77% 21.09% 21.47% 21.34% 21.82% 21.91% 22.04% Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Foreign Reserves / Oil Price 95.3 93.2 89.7 79.7 81.6 81.9 78.5 38.3 37.4 35.5 37.1 37.1 36.9 36.7 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Av Monthly Basket Price of Crude (US$/bbl) Source: National Bureau of Statistics, Central Bank of Nigeria, OPEC © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 5#6Our Investment Proposition Corporate and retail space market dominance, solid and liquid capital base, strengthened ERM practices, good returns on investment and excellent customer service. A dominant player in the Nigerian Banking Industry: ■ Controls a significant share of the high-end corporate clients in all sectors of the Nigerian economy. ■ The bank uses its strong balance sheet and liquidity as well as efficient trade finance processes and services, to continuously grow and support its customers. Formidable achievements in the retail and digital space: ■ Continues to attract and grow its share of retail business in the market. ☐ ■ Deployment of state of the art technology for improved customer experience. Prioritization of Risk Management: ■ NPL ratio came in at 4.3% with a coverage ratio of 117.0%. ■ The Group will continue to implement robust risk management practices, thereby sustaining high quality of its risk assets. Credit Rating: Constrained by Sovereign Ratings ■ Standard and Poor's ratings for Zenith Bank are: B-/Stable/B (Issuer Credit Rating). ■ Fitch ratings are: 1) Long-term foreign currency IDR: 'B-' - stable outlook; 2)Short-term foreign currency IDR: 'B'; 3) National Long-term rating: 'AA-(nga)'; 4) National Short-term rating: 'F1+(nga)'. ■ Moody's ratings: 1) Long Term CRR - Caa1; 2) Long-term Debt - Caa1 Stable Outlook Consistently improving Dividend Payout: Good and consistent dividend payout to its investors. N/share 3.5% CAGR 3.10 3.20 2.70 2.80 3.00 2.80 2017 2018 2019 2020 2021 2022 © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 6#7QR Banking ZENITH QR BANKING 回 N ZENITH SCAN ME Account Opening | Mobile Banking | Virtual Card | Scan to Pay | BVN Update | eToken Zenith Intelligent Virtual Assistant (ZIVA) | Account Reactivation | Dispense Error Resolution (ATM, POS & Web) Hardware Token Unlock/Reset | Zenith Trade Portal | NXP Processing (CBN) | Form M Processing (CBN) © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 7#8Non-financial Highlights Number of Customers Number of Cards Issued Number of active POS Terminals Agents Number of ATM Terminals CO Q1 2023 Q1 2022 GROWTH ON-BOARDING CHANNELS ZIVA 30,437,437 21,429,485 42% USSD (*966*0*#) 22,914,281 16,564,082 38% Zenith Mobile App www.zenithbank.com 270,015 178,512 51% Zenith Bank ATMs Zenith Bank Branches 95,327 84,042 13% Zenith Bank Agents 2,109 2,090 1% Number of Branches 446 443 1% SOCIAL MEDIA OE Å SHARE HOLDINGS Number of Shareholders 645,352 PRODUCT INNOVATIONS QR Solutions Virtual Debit Card ZIVA on WhatsApp (07040004422) FOLLOWING f 6,547,411 (0) 587,000 1,563,431 Emergency USSD Code (+966*911#) Biometric ATM operations in 231,691 32,232,393 (views) осос © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 8#9Non-financial Highlights Social Impact/CSR Relief Fund for Borno State Monday Market Fire Outbreak 2023 Financial Literacy Drive across Nigeria Donation to various Religious and Entertainment Activities Sponsorship of CFA Institute Research Challenge • Awards Number One Bank in Nigeria by Tier-1 Capital 2022 - The Banker. • Best Bank in Nigeria 2022 - Global Finance. • Bank of the Year, Nigeria 2022 - The Banker • • • • Best Commercial Bank, Nigeria 2022 - World Finance. Best Corporate Governance, Nigeria 2022 - World Finance. Best Corporate Governance 'Financial Services' Africa 2023 Ethical Boardroom. Best Commercial Bank, Nigeria 2022 - International Banker. Best Innovation in Retail Banking, Nigeria 2022 - International Banker. Retail Bank of the Year 2022 - Businessday Awards. • Donation to the Global Compact • Network Nigeria War Against Addictions Tour Donation to various Charity Organizations Various Support for the Education Sector • Best Company in Technology for Development - SERAS • Best Company in Workplace Practice - SERAS © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 9#10Group Results 228 80.80S 8A.C+ sa.epa. BE SS+ ec.248,25 88.8Sese ਹਰ ਰ ГА.С ea spe εε.805 stas zar 80.8 8. SO.88S 82.208 HAS P 88.0 Z ZENITH ar.ept 08.ES © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts#11Financial Highlights - Q1 2023 Income Statement Gross earnings: Balance Sheet N270.0Bn +41% YoY Customers' deposits: N9.14n +2% YtD Net-interest income: N120.8Bn +20% YoY Gross loans: №4.15Tn +1% YtD Non-interest income: N72.8Bn +27% YoY Total assets: N13.36Tn +9% YtD Profit before tax: N86.6Bn +27% YoY Total shareholders' funds: 1.44Tn +5% YtD Profit after tax: N66.0Bn +13% YoY © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 11#12Financial Highlights – Q1 2023 Contd. Key Ratios 31-Mar-23 31-Mar-22 % change Earnings per share (EPS) N2.10 N1.85 14% Return on average equity (ROAE) 18.7% 17.8% 5% Return on average assets (ROAA) 2.1% 2.4% (13%) Net interest margin - NIM 6.9% 7.3% (6%) Cost of funds 2.7% 1.3% (110%) Cost of risk 0.7% 0.8% 7% Cost-to-income ratio 53.4% 55.0% 3% 31-Mar-23 31-Dec-22 Liquidity ratio (Group) 72.0% 75.0% (4%) Liquidity ratio (Bank) 54.6% 67.0% (19%) Loan-to-deposit ratio (Group) 45.4% 45.9% (1%) Loan-to-deposit ratio (Bank) 48.8% 51.6% (5%) Capital adequacy ratio (CAR) 19.5% 19.8% (2%) Non-performing loan ratio (NPL) Coverage ratio 4.30% 4.3% 0% 117.0% 115.9% 1% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 12#13Profit or Loss Statement Strong bottom line, enhanced by impressive double digit growth in interest income. Group Group (N'million) Gross earnings 3M 23 3M 22 YOY Change 269,994 191,523 41% Interest and similar income 191,632 126,384 52% Interest and similar expense (70,843) (25,845) 174% Net Interest Income 120,789 100,539 20% Impairment charge (7,730) (6,759) 14% Net interest income after impairment charge 113,059 93,780 21% Net fees and commission income 34,148 33,486 2% Trading income 33,891 32,598 4% Other income/(loss) 4,713 (8,854) 153% Amortisation of intangible assets (1,468) (827) 78% Depreciation of property and equipment (6,422) (6,370) 1% Personnel expenses (23,168) (21,539) 8% Operating expenses (68,148) (54,283) 26% Profit before tax Income tax expense Profit after tax 86,605 67,991 27% (20,593) (9,793) 110% 66,012 58,198 13% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 13#14Consolidating Earnings and Profitability Zenith Group continues to deliver attractive earnings profile, supported by diversified revenue base. Gross earnings (N'Bn) ■ Gross earnings grew by 41% YoY from N192 billion in Q1 2022 to N270 billion on Q1 2023. ■ PBT increased by 27% YoY from N68 billion in Q1 2022 to N87 billion in Q1 2023. 270 192 158 167 157 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 PBT (N'Bn) 68 99 61 57 59 80 87 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 14#15Consolidating Earnings and Profitability Contd. ■ Net Interest Margin - NIM declined from 7.3% in Q1 2022 to 6.9% in Q1 2023 due to increase in interest rate on deposits. Cost of Funds & Net Interest Margin 8.9% ■ Cost of Funds rose to 2.7% in Q1 2023 due to the rise in interest rates. ■ Cost-to-Income Ratio improved by 3% to 53.5% recorded in Q1 2023 as the group strives to improve on its level of operating efficiency. 7.7% 6.9% 7.3% 6.0% JJJJJ 3.0% 2.6% 2.7% 1.1% 1.3% Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Cost to Income Ratio 52.7% 50.9% 53.2% 55.0% 53.5% .... Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 15#16Evolution of Revenue Base Contribution of interest income to total revenue grew from 66.0% in Q1 2022 to 71.0% in Q1 2023. N'million Interest income Q1 2023 % to Total Revenue Q1 2022 % to Total Revenue YOY 191,632 71.0% 126,384 66.0% 51.6% Trading income 33,891 12.6% 32,598 17.0% 4.0% Fees and commissions income 39,758 14.7% 41,395 21.6% (4.0%) Other operating Income Non Interest Income 4,713 1.7% (8,854) (4.6%) 153.2% 78,362 29.0% 65,139 34.0% 20.3% Total Revenue 269,994 100.0% 191,523 100.0% 41.0% N'Bn 192 123 114 101 126 34 6664b 34 8 13 24 19 21 16 10 33 41 40 10 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 -9 Interest Income Trading income Fees & Commission Income Other operating income 5 © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 16#17Revenue Base: Interest Income Lines Interest income grew by 52% YoY on the back of the significant loan growth resulting in increased interest income from loans. Interest Income Q1 2023 Q1 2022 N'million Q1 2023 Q1 2022 YOY Others Others 6.5% Loans and advances 123,873 87,784 41% 0.4% Government Government and other and other Treasury bills 14,869 11,277 32% bonds bonds 21.1% 21.2% Government and other bonds 40,403 26,760 51% Others Treasury bills 7.8% Loans and advances Total 64.6% 12,487 563 191,632 126,384 52% Treasury bills 8.9% Loans and advances 69.5% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 17#18Revenue Base: Non-Interest Income (NII) Diversification Net non-interest income grew by 27% YoY on the strength of remarkable growth in volume of transactions. N'million Q1 2023 Q1 2023 Credit related fees 4,712 Q1 2022 5,188 (9%) YOY Q1 2022 Credit related Account maintenance Account maintenance fees 10,191 9,270 10% Credit related Account maintenance fees 6.0% fees Other 13.0% Fees on electronic products Asset management fee fees 12,079 14,784 (18%) fees 8% 14.2% 2,099 2,061 2% operating Fees on Agency & collection services 2,894 2,286 27% income 6.0% electronic products Financial guarantee 2,227 2,385 (7%) Other operating income Fees on electronic -13.6% 15.4% Foreign withdrawal charges 4,380 2,593 69% products 22.7% FX Transaction fees 1,023 2,731 (63%) Trading Other fees & commissions 153 97 58% Trading Income 43.2% Asset management Total fees & commission Income 39,758 41,395 (4%) income 50.0% fee Asset management fee 2.7% Fees and commission (5,610) (7,909) (29%) 3.2% expense Other fees & Net fee & commission Agency & 34,148 33,486 2% Other fees & commissions 0.2% collection income commissions services Trading Income 33,891 32,598 4% 0.2% FX 3.7% Other operating income 4,713 (8,854) 153% Transaction fees 1.3% Foreign withdrawal charges 5.6% Financial guarantee Net non-interest income 72,752 57,230 27% FX Transaction fees 4.2% Agency & collection services 3.5% 2.8% Foreign Financial withdrawal guarantee charges 4.0% 3.7% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 18#19Interest Expense lines Interest Expenses Q1 2023 Current Borrowed accounts funds 35.4% • 14.7% Savings Q1 2022 Borrowed funds 32.0% Time deposits 29.1% Time deposits 33.5% Current accounts 16.8% accounts 20.7% Interest expense rose by 174% YoY as a result of improvement in the yield environment. N'million Q1 2023 Q1 2022 YOY Current accounts 10,449 4,330 141% Savings accounts 14,658 4,585 220% Time deposits 20,650 8,657 139% Savings accounts 17.7% Borrowed funds 25,086 8,273 203% Total 70,843 25,845 174% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 19#20Continuous Efforts Towards Cost Optimisation. Total operating expenses grew by 19% YoY. Main drivers of operating expenses include high energy cost, increase in regulatory costs and inflationary pressures. Total Operating Expenses Q1 2023 Depreciation & armortisation Personnel expenses 23.2% Other expenses 11.9% Outsourcing services 4.9% Travel & hotel 0.9% 7.9% Security & cash handling 1.8% Q1 2022 N'million Personnel expenses Q1 2023 Q1 2022 23,168 YOY 21,539 8% NDIC Depreciation & armortisation 8.7% Depreciation & Premium 6.6% 7,890 7,197 10% armortisation AMCON premium NDIC Premium 6,558 28.8% AMCON premium 28,692 4,972 32% 21,399 34% Personnel expenses 25.9% NDIC Premium 6.0% AMCON premium 25.8% Training & development 300 Information technology 2,217 239 26% 4,354 -49% Other expenses 14.0% Training & development Advertisement & 4,107 3,081 33% promotions 0.3% Outsourcin Fuel & maintenance 7,395 Information 3,420 116% g services 4.0% technology 2.2% Security & cash handling Travel & hotel 1,281 851 Advertisement & Outsourcing services 4,915 1,227 4% 686 24% 3,322 48% Travel & hotel 0.8% promotions 4.1% Other expenses 11,832 Total 99,206 11,583 2% 83,019 19% Security & cash handling Fuel & 1.5% maintenance 7.4% Training & development 0.3% Information technology 5.2% Advertisement & promotions 3.7% Fuel & maintenance 4.1% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 20#21• Balance Sheet - Assets Robust balance sheet - well positioned to take on growth opportunities as the economy continues to recover. Group Group (N'million) Mar-23 Dec-22 YTD Change Group Mar-22 Cash and balances with central banks 2,520,926 2,201,744 14% 1,919,775 Treasury bills 2,355,775 2,246,538 5% 1,895,054 Assets pledged as collateral 203,673 254,663 (20%) 339,753 Due from other banks 1,398,193 1,302,811 7% 819,190 Derivative assets Loans and advances Investment securities Deferred tax assets Other assets Property and equipment 58,985 49,874 18% 19,270 4,029,850 4,013,705 0% 3,552,623 1,651,484 1,728,334 (4%) 1,298,901 16,652 18,343 (9%) 0 870,102 213,523 307% 254,255 229,019 230,843 (1%) 201,144 Intangible assets Total assets 24,557 25,251 (3%) 24,304 13,359,216 12,285,629 9% 10,324,269 © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 21#22Balance Sheet - Liabilities & Equity Assets are largely funded by deposits with a strong capital base providing buffer for further growth. (N'million) Group Group Liabilities Mar-23 Dec-22 YTD Change Group Mar-22 Customers deposits 9,136,259 8,975,653 2% 7,253,795 Derivative liabilities 12,949 6,325 105% 12,354 Current income tax payable 80,680 64,856 24% 26,779 Deferred tax liabilities 19,799 16,654 19% 6,893 Other liabilities 1,283,889 568,559 126% 636,462 On-lending facilities 301,304 311,192 (3%) 360,507 Borrowings 1,082,779 963,450 12% 651,309 Debt securities Issued 0 0 45,773 Total liabilities 11,917,659 10,906,689 9% 8,993,872 Equities and reserves Share capital Share premium Retained earnings Other reserves Non-controlling interest Total Shareholders' equity 15,698 15,698 0% 15,698 255,047 255,047 0% 255,047 682,776 625,005 9% 657,665 487,187 482,377 1% 400,810 849 813 4% 1,177 1,441,557 1,378,940 5% 1,330,397 © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 22#23N'bn Sustained Assets & Liabilities Match • Customers' deposits grew by 2% in Q1 2023, while gross loans grew by 1%.. Gross Loans Loans & Advances Q1 2023 4,059 4,124 4,147 3,705 3,662 On-lending facilities 17.7% Overdrafts 11.9% FYE 2022 N'bn Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Term loans 70.4% On-lending facilities 16.7% Overdrafts 10.9% Deposits Deposit Mix Q1 2023 FYE 2022 8,976 9,130 8,042 7,254 7,153 Domicilliary 20.8% Domicilliary 19.4% Term Demand 7.7% Term 54.4% 7.0% Savings Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 17.2% Savings 19.1% Term loans 72.3% Demand 54.6% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 23#24Continued Market Dominance - Strong Liquid Asset Base & Funding Mix High quality balance sheet with diversified funding sources. Liquid Assets Q1 2023 Debt securities 27.9% FYE 2022 N'million Q1 2023 Due from other banks 25.0% Cash Operating accounts with CBN Treasury bills Debt securities Treasury. bills Cash Due from other banks 1.1% Total 42.1% FYE 2022 59,531 85,437 (30%) 218,989 366,699 (40%) 2,355,775 2,246,538 5% 1,557,096 1,634,451 (5%) 1,398,193 1,302,811 7% 5,589,584 5,635,936 (1%) YTD Debt securities 29.0% Due from other banks 23.1% Cash Operating accounts with CBN Treasury bills Operating 39.9% 1.5% Total CRR balance: N2.24 Trillion (Dec. 2022: N1.75 Trillion) 3.9% accounts with CBN 6.5% Funding Mix Q1 2023 Debt Securities Issued Equity 12.1% N'million Customers' deposits 0.0% FYE 2022 Debt Securities On-lending facilities Borrowings Borrowings Q1 2023 9,136,259 301,304 1,082,779 FYE 2022 YTD 8,975,653 311,192 (3%) 2% Issued 0.0% Equity 11.9% Borrowings 8.3% 963,450 12% On-. 9.1% Debt Securities Issued Equity 0% lending facilities 1,441,557 1,378,940 5% On-lending facilities 2.5% Customers' deposits 76.4% 2.7% Total 11,961,899 11,629,235 3% Customers' deposits 77.2% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 24#25Risk Management N ZENITH 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts#26Healthy Risk Assets Portfolio NPL Coverage Ratio 128.5% 122.3% 115.9% 117.0% 97.3% Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 NPL Ratio 4.4% 4.4% 4.2% 4.3% 4.3% IL Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Our Risk Management Strategy ■ The Group adopts a holistic and integrated approach to risk management and therefore, brings all risks together under one or a limited number of oversight functions. ▪ Risk management is practiced as a shared responsibility; thus the Group aims to build a shared perspective on risks that is grounded in consensus. ■ The process is governed by well defined policies that are subjected to continuous review and are clearly communicated across the Group. ■ Risk related issues are taken into consideration in all business decisions. The Group ensures that there is clear segregation of duties between market-facing business units and risk management functions ■ Risk culture is continuously being entrenched through appropriate training and acculturation. © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 26#27Focused Risk Management via Portfolio Diversification Well diversified loan portfolio across sectors supports asset quality. Loans by Sector – Q1 2023 - Flour Mills Finance and Insurance 1.9% 3.2% Government. 13.1% Cement Manufacturing 7.5% Downstream Oil & Gas 4.8% Food and Agro- processing 1.8% Consumer Real Estate and Construction 3.4% Communication 0.8% Transportation 2.9% Power 1.3% Other Loans by Sector - FYE 2022 Finance and Flour Mills 3.4% Insurance. 1.8% Government. 12.9% Manufacturing 15.0% Upstreams Oil & Gas 17.9% Education 0.4% Agriculture 5.0% Cement Manufacturing. 7.6% Downstream. Oil & Gas 4.8% Food and Agro-. processing Credit General 5.0% Commerce 12.3% Beverages and Tobbaco 3.7% Gross Loans - N4.15 Trillion Communication 0.6% Real Estate and/ Construction/ 3.3% Transportation 2.8% Power 1.7% Consumer General. Credit Commerce 5.0% 12.2% 1.6% Other Manufacturing 15.8% Upstreams Oil & Gas 17.8% Education 0.4% LAgriculture 4.8% Beverages and Tobbaco 3.5% Gross Loans - N4.12 Trillion © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 27#28NPL by Sectors Q1 2023 General Education Commerce 0.20% Communication 0.06% 14.75% Agriculture 1.22% Transportation 5.24% Power 0.15% Government 0.26% FYE 2022 Communication 0.05% Education 0.25% General Commerce 14.71% Agriculture 1.20% Transportation 5.27% Power 0.11% Oil and Gas 43.57% Government 0.27% Consumer Credit 12.88% Finance Finance & Insurance & Insurance 0.40% Real Estate and Constructio n Manufacturing 12.80% Consumer Credit 12.85% 0.20% Real Estate and Construction Manufacturing 12.69% 7.99% 8.50% Total NPLs - N178.0 Billion NPL Ratio - 4.30% Total NPLs - N177.3 Billion NPL Ratio - 4.30% Oil and Gas 44.37% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 28#29Foreign Currency Loans & Restructured Loans Foreign Currency Loans Q1 2023 Cumulative Restructured Loans Q1 2023 USD loans by % to US$ % to Gross US$' m N'm sector loans loans Restructured Loans by sector % to Restructured % to Gross N'm loans loans Oil and gas 1,605 740,146 48.3% 17.9% Oil and gas 575,409 80.3% 13.5% Manufctg 5,014 0.7% 0.3% Manufctg 1,033 476,368 31.0% 11.5% Power 21,823 3.0% 0.4% Power 79 36,431 2.4% 0.9% Public 75,610 10.6% 1.5% Others 609 280,840 18.3% 6.8% Others 39,165 5.4% 1.3% Total US$ loans 3,326 1,533,785 100.0% 37.1% Total restructured loans 717,021 100.0% 17.0% FYE 2022 FYE 2022 USD loans by US$' m N'm sector % to US$ loans % to Gross loans Restructured Loans by sector N'm % to Restructured loans % to Gross loans Oil and gas 1,615 744,857 48.6% 18.1% Oil and gas 578,075 80.7% 14.0% Manufctg 5,401 0.8% 0.4% Manufctg 1,021 470,563 30.8% 11.4% Power 17,421 2.4% 0.1% Power 75 34,792 2.3% 0.8% Public 82,795 11.6% 2.0% Others 33,111 4.6% 0.8% Others 608 280,194 18.3% 6.8% Total restructured loans 716,802 100.0% 17.4% Total US$ loans 3,319 1,530,407 100.0% 37.1% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 29#30Strong Capitalisation • Solid and high-quality capital position provides room for further growth. Liquidity & Capital Adequacy 75.0% 70.2% 68.9% 72.0% 60.5% LLLLL 21.0% 22.1% 19.1% 19.8% 19.5% Mar-22 Jun-22 Sep-22 ■Liquidity Capital Adequacy Capital Mix Dec-22 Mar-23 93.9% 94.3% 92.0% 91.9% 94.0% LLLLL 2018 2019 □ Tier I 2020 Tier II 2021 2022 6.0% Capital and liquidity ratios - well above regulatory requirements of 30% for Liquidity and 15% for Capital Adequacy Ratio. - Capital base predominantly made up of Tier 1 (core capital) which consists of share capital and reserves. © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 30#31TIMELESS ZENITH ACCOUNT for Senior Citizens (55years and above) *966* EazyBanking aspire by ZENITH SMEGrow ZIVA my Biz SCAN toPAY Save 4Me Target Savings Account Z MONEY ZENITH Business Segments Performance & Subsidiary Review The Zenith Bank Mobile App ... making life simple ZINTERNET ZENITH BANKING 00-1 11 Woman ZECA Zenith Children's Account TIMELESS Pension Advance plus GlobalPay Powered by Zenith Bank Ple © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts#32Performance - By Business Segments . Marginal increase in the contribution of most segments to the group's gross revenue YoY. 3 Months Ended March 2023 (million) Corporates Public Commercial/ SMEs Retail Consolidated Gross Revenue Q1 2023 Corporates 57.0% Public 10.0% Gross revenue Total expenses Profit before tax 153,897 (108,200) 45,697 26,999 58,599 (16,505) (45,847) 10,494 12,752 30,499 (12,837) 269,994 Commercial/ (183,389) Retail SMEs 17,662 86,605 11.3% 21.7% Q1 2022 3 Months Ended March 2022 (million) Corporates Public Commercial/ SMES Corporates 55.3% Public 9.7% Retail Consolidated Gross revenue 105,912 Total expenses (70,413) Profit before tax 35,499 18,578 (10,500) 8,078 40,794 (30,018) 10,776 26,239 191,523 (12,600) (123,532) Commercial/ SMEs 13,638 67,991 21.3% Retail 13.7% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 32#33• Loans & Deposits - By Business Segments Our intense retail drive continues to impact positively on both sides of the balance sheet. • The contribution of retail deposits to total deposits grew from 44.2% to 44.9% YTD Gross Loans Total Deposit Q1 2023 Gross Loans - N4.15 Trillion Commercial & SMEs 19.0% Q1 2023 Total Deposits - N9.14 Trillion Commercial & SMEs Corporates 21.2% Retail 5.0% Public 13.0% FYE 2022 Gross Loans - N4.12 Trillion Commercial & SMES 19.8% Retail 5.0% Public 12.9% Corporates 63.0% Corporates 62.3% 28.2% Retail 44.9% FYE 2022 Total Deposits - N8.98 Trillion Commercial & SMEs 27.1% Retail 44.2% Public 5.7% Corporates 18.2% Public 10.5% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 33#34Electronic Banking Products Performance by Channels. Value of Electronic Product Transactions Number of Electronic Product Transactions Q1 2023 Q1 2022 YOY Q1 2023 Q1 2022 YOY Total Transaction 25,750 24,403 6% Value (N'bn) Total Number of Transactions (million) 515 548 (6%) 12,759 10,728 9,837 1,668 387 437 985 1,432 118 239 473 11,087 10 114 189 30 49 49 114 96 21 21 208 164 ATM USSD Agency POS Internet Mobile Banking Banking Banking ATM USSD Agency POS Banking Internet Mobile Banking Banking Value (N'bn) - Jan. 2023 to Mar. 2023 Value (N'bn) - Jan. 2022 to Mar. 2022 Number (million) - Jan. 2023 to Mar. 2023 Number (million)- Jan. 2022 to Mar. 2022 ☐ The bank recorded growth in the value of electronic product transactions. © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 34#35Geographical Presence The Bank and its Subsidiaries Zenith Bank Plc. (Parent) Established: 1990 Branches: 396 2023 Q1 PBT: N72.2Bn Total deposits: N7,934Bn Total assets: N11,926Bn ROE: 18% Staff strength: 6,519 Gambia Established: 2009 Zenith ownership: 99.96% Branches: 7 2023 Q1 PBT: N521M Total deposits: N23Bn Total assets: N32Bn ROE: 24% Staff strength: 146 Zenith Pension Established: 2005 Branches: 2 Zenith ownership: 99% 2023 Q1 PBT: N2.4Bn Custody assets: N6,435Bn Total assets: N30Bn ROE: 27% Staff strength: 117 Ghana Established: 2005 Zenith ownership: 99.42% Branches: 30 2023 Q1 PBT: N8.3Bn Total deposits: N376Bn Total assets: N436Bn ROE: 71% Staff strength: 705 Zenith Nominee Established: 2018 Branches: 1 Zenith ownership: 99% 2023 Q1 PBT: N58M Custody assets: N464Bn Total assets: N2Bn ROE: 8% Staff strength: 7 тоб Sierra Leone Established: 2008 Zenith ownership: 99.99% Branches: 7 2023 Q1 PBT: N696M Total deposits: N22Bn Total assets: N29Bn ROE: 34% Staff strength: 182 United Kingdom Established 2007 Zenith ownership: 100% Branches: 2 2023 Q1 PBT: N10.6Bn Total deposits: N1,062Bn Total assets: N1,204Bn ROE: 26% Staff strength: 136 UAE Branch of Zenith UK Established 2016 1 branch China Representative Office Established 2011 Nigeria Gambia Ghana Sierra Leone United Kingdom Dubai China Subsidiaries Rep Offices © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 35#36Performance by Geography 3 Months Ended March 2023 (N'million) Nigeria Rest of Africa Europe Eliminations Consolidated Total Revenue Nigeria Q1 2023 86.4% Total revenue 240,400 19,064 18,649 (8,119) Total expense (167,416) (9,501) (8,081) 1,609 269,994 (183,389) Profit before tax 72,984 9,563 10,568 (6,510) 86,605 Tax (18,353) (230) (2,010) (20,593) Profit after tax 54,631 9,333 8,558 (6,510) 66,012 Europe 6.7% Rest of Africa 6.9% 3 Months Ended March 2022 (N'million) Total Revenue Q1 2022 Nigeria 84.5% Nigeria Rest of Africa Europe Eliminations Consolidated Total revenue 168,752 23,712 7,316 (8,257) 191,523 Total expense (109,687) (11,004) (2,957) 116 (123,532) T Profit before tax 59,065 12,708 4,359 (8,141) 67,991 Tax (7,077) (2,031) (685) (9,793) Europe. 3.7% Rest of Africa Profit after tax 51,988 10,677 3,674 (8,141) 58,198 11.9% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 36#37M+ M- MRC GT CE Strategy & Outlook % 小 N ZENITH © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts#38Strategies for Driving our Vision 1 Compete aggressively for market share while focusing on high quality assets and adopting cost reduction strategies Attracting cost effective deposits from the retail end of the market for deployment in the corporate segment with emphasis on emerging sectors. 2 Deliver superior service experience to all our clients and customers ■ Adopting efficient digital channels. ■ Attracting talented people and investing in training. ■ Employing cutting edge technology. ■ Enhancing the experience of customers with excellent service. 3 Effective Risk Management Entrenching robust risk management and corporate governance practices. ■ Value preservation is absolutely important. 4 Treasury Management ☐ Taking advantage of our liquidity in Naira and foreign currencies to optimize yields in the FX and money markets 5 Develop specific solutions for each segment of our customers base Leveraging our capabilities and brand strength to consistently meet our clients' needs. ■ Developing a robust platform to serve as an integrated financial solutions provider to our diverse customers. 6 ◉ Retail and Digital Footprint ■ Official launch of the Zenith Bank Intelligent Virtual Assistant (ZIVA) Deepening retail market penetration using our digital platforms. Increasing the volume of transactions processed on our digital platforms. © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 38#39Our Key Growth Target Sectors Driving Profitability with our Competitive Advantages Identified Growth Sectors ■ Retail/SMEs Agriculture ■ Healthcare/Pharmaceuticals Infrastructure ■ Manufacturing ■ Petrochemicals ■ Real Estate and Construction ■Service Industry ■ Telecoms ■ Transportation and General Commerce Competitive Advantage ■ Strong capital and liquidity ■ Strong brand ■ Robust risk management framework ■ Extensive branch network ■ Robust ICT and digital channels ■ Well motivated staff force ■ Excellent customer services © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 39#40Guidance for FYE 2023 Q1 2023 Achieved FYE 2023 Guidance FYE 2022 Achieved PBT Effective Tax Rate PAT ROAE N86.6Bn 23.8% N330Bn N285Bn 22% 21% N66.0Bn N257Bn N224Bn 18.7% 20.0% 16.8% ROAA 2.1% 2.5% 2.1% NIM 6.9% 8.0% 7.3% Cost of Funds 2.7% 2.2% 1.9% Cost of Risk 0.7% 2.0% 3.2% Cost to Income 53.4% 50.0% 54.4% Deposit Growth 1.8% 20.0% 38.6% Loan Growth 0.6% 10.0% 17.8% Loan to Deposit (Group) 45.4% 60.0% 45.9% Loan to Deposit (Bank) 48.8% 65.0% 51.6% Capital Adequacy 19.5% 20.0% 19.8% Liquidity Ratio NPL NPL Coverage 72.0% 60.0% 75.0% 4.3% 4.5% 4.3% 117.0% 120.0% 115.9% © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 40#41Thank You © 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts