Zenith Bank
Zenith Bank Plc has once again demonstrated its market leadership and resilience, delivering a triple-digit 118% growth in gross earnings from N1.33 trillion in Q3 2023 to N2.9 trillion in Q3 2024. This exceptional performance reaffirms its position as one of Nigeria’s most profitable banks, despite a challenging macroeconomic environment.
According to the unaudited financial results submitted to the Nigerian Exchange (NGX), Zenith Bank’s strong topline growth led to a 99% Year-on-Year (YoY) increase in profit before tax (PBT) from N505 billion in Q3 2023 to N1.0 trillion in Q3 2024. Likewise, profit after tax (PAT) surged 91%, rising from N434.2 billion to N827 billion within the same period.
Key Drivers of Growth
- Interest Income: Increased by 190% to N1.95 trillion, driven by a high-yield market environment.
- Non-Interest Income: Grew 41% to N856 billion, fueled by robust growth in fees and commissions from digital channels and retail expansion.
- Earnings Per Share (EPS): Almost doubled, jumping from N13.82 to N26.34, reinforcing strong shareholder value creation.
Zenith Bank’s total assets increased by 49% to N30.4 trillion, supported by:
- Customer deposits, which rose 42% to N21.6 trillion, demonstrating strong customer confidence and loyalty.
- Gross loans, which expanded 46% to N10.3 trillion, highlighting commitment to supporting Nigeria’s economy.
Read also: Zenith Bank’s Profit Soars to ₦727 Billion in H1 2024
Operational Efficiency and Risk Management
- Capital Adequacy Ratio: Improved to 21.9%, exceeding regulatory benchmarks.
- Return on Average Equity (ROAE): Climbed to 37.8% from 35.1%, reflecting enhanced shareholder value.
- Return on Average Assets (ROAA): Rose to 4.3%, showcasing effective asset utilization.
- Non-Performing Loan (NPL) Ratio: Maintained at 4.5%, well within regulatory limits.
- Coverage Ratio: A strong 198.4%, emphasizing proactive credit risk management.
While the cost of funds rose to 4.3%, reflecting broader interest rate trends, Zenith Bank maintained a cost-to-income ratio of 39.5%, underscoring its investment in technology and capacity-building for long-term growth.
Strategic Capital Raise and Expansion Plans
In alignment with the CBN’s recapitalization directive, Zenith Bank launched a capital raise program on August 1, 2024, consisting of:
- Rights Issue & Public Offer, successfully completed, reinforcing investor confidence.
- Expansion into International Markets: In September 2024, Zenith Bank received regulatory approval to open a branch in Paris, France, strengthening its global footprint.
Zenith Bank: Pioneering Growth and Market Expansion
As Zenith Bank continues to deliver outstanding financial results, its strategic investments in technology, risk management, and global expansion position it as a key player in Nigeria’s banking industry. With a commitment to shareholder value, customer service, and sustainable growth, Zenith Bank remains one of Africa’s leading financial institutions.
