Zenith Bank's Profit Surges to N1.3 Trillion in 2024

Zenith Bank's profit before tax (PBT) experienced a substantial increase of 67%, reaching N1.3 trillion at the close of the 2024 financial year, up from N796 billion in 2023. This information was detailed in the audited financial report that the bank filed with the Nigerian Exchange Limited on Wednesday. The surge in PBT is attributed to effective management and pricing of risk assets, alongside an optimized treasury portfolio.

The bank's gross earnings also saw significant growth, increasing by 86% to N3.97 trillion in 2024 from N2.13 trillion in 2023. This growth was fueled by a 138% rise in interest income, supported by investments in high-yield government securities and an expansion of the bank's loan portfolio. Net interest income also played a key role, increasing by 135% from N736 billion in 2023 to N1.7 trillion. Non-interest income also experienced growth, rising by 20% from N919 billion to N1.1 trillion.

Zenith Bank's total assets grew by 47%, from N20 trillion in 2023 to N30 trillion in 2024, bolstered by a strong liquidity position and effective balance sheet management. Customer deposits also increased, rising by 45% from N15 trillion to N22 trillion in 2024, driven by a strong corporate deposits portfolio and a sustained increase in retail deposits, resulting from customer acquisition and the bank’s strategic focus on low-cost funding.

The bank's return on average equity decreased to 32.5% due to the injection of new capital, while the return on average assets remained steady at 4.1%. The cost-to-income ratio saw a slight increase from 36.1% to 38.9%, despite inflationary pressures. The non-performing loan ratio stood at 4.7%, with a coverage ratio of 223%, demonstrating the bank's commitment to prudent risk management and maintaining a resilient loan book.

Zenith Bank has proposed a final dividend of N4.00 per share, bringing the total dividend for the year to N5.00 per ordinary share.

Dr Adaora Umeoji, Group Managing Director/Chief Executive Officer, stated, "This year’s performance underscores our unwavering commitment to innovation and customer-centric solutions. We will also remain focused on deepening financial inclusion, enhancing service delivery, and creating value for our customers and stakeholders.”

Zenith Bank successfully raised N350 billion in capital through a rights issue and public offer, with a subscription rate of 160%. The proceeds will be used to enhance technology infrastructure, strengthen liquidity, and support the bank’s expansion into key African markets.

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