Zenith Bank Reports N1.3 Trillion Profit Before Tax for 2024, Leading the Industry
Zenith Bank Plc has announced a remarkable profit before tax (PBT) of N1.3 trillion for the full year ending December 31, 2024, according to its audited financial results.
This figure represents a substantial growth of 67% compared to N796 billion recorded during the same period in 2023.
This exceptional performance reinforces Zenith Bank’s leadership in the banking sector, driven by significant top-line growth and effective treasury management.
The bank’s gross earnings surged by 86% year-on-year, increasing from N2.13 trillion in 2023 to N3.97 trillion in 2024, primarily fueled by a 138% rise in interest income stemming from investments in high-yield government securities and an expansion in the bank’s loan portfolio.
The results demonstrate the bank’s adept management of risk assets and an optimized treasury portfolio, further establishing its strong position in Nigeria’s financial landscape.
In a statement regarding the results, Group Managing Director/CEO Adaora Umeoji emphasized, “This year’s performance underscores our unwavering commitment to innovation and customer-centric solutions. We will continue to focus on enhancing financial inclusion, improving service delivery, and creating value for our customers and stakeholders.”
Further analysis shows that net interest income increased by 135%, rising from N736 billion in 2023 to N1.7 trillion, showcasing the bank’s robust core banking performance amid challenging macroeconomic conditions. Additionally, non-interest income grew by 20%, from N919 billion to N1.1 trillion.
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Zenith Bank’s total assets climbed to N30 trillion, a 47% increase from N20 trillion in 2023, supported by a strong liquidity position and effective balance sheet management.
Customer deposits saw a 45% increase, from N15 trillion to N22 trillion, reflecting a resilient corporate deposit portfolio and a significant rise in retail deposits, driven by new customer acquisitions and a strategic emphasis on low-cost funding.
Despite an injection of new capital resulting in a decrease of Return on Average Equity (ROAE) to 32.5%, Return on Average Assets (ROAA) remained steady at 4.1%.
Zenith Bank plc has added that it’s cost-to-income ratio saw a slight increase from 36.1% to 38.9%, amidst ongoing inflationary pressures. The Non-Performing Loan (NPL) ratio was reported at 4.7%, with a strong coverage ratio of 223%, highlighting the bank’s prudent risk management practices and commitment to sustaining a resilient loan book.
In light of its strong earnings performance, Zenith Bank has proposed a final dividend of N4.00 per share.
This proposal brings the total dividend for the year to N5.00 per ordinary share.
In a remarkable achievement, Zenith Bank successfully raised N350 billion in capital through a rights issue and public offer, achieving a subscription rate of 160%.
This strong investor interest reflects considerable confidence in the bank’s growth prospects.
The funds raised will be strategically allocated to enhance the bank’s technological infrastructure, bolster liquidity, and facilitate its expansion into key African markets, thereby unlocking new growth opportunities.
