Zenith Bank Plc's financial performance in 2024 showcases remarkable growth across various metrics, underscoring its resilience and strategic prowess in a challenging macroeconomic environment.
Profitability and Earnings:
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Gross Earnings: The bank reported gross earnings of N2.9 trillion for the third quarter of 2024, marking a 118% increase from N1.33 trillion in the same period of 2023. This substantial rise highlights the bank's ability to enhance its revenue streams effectively.
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Profit Before Tax (PBT): PBT nearly doubled, reaching N1.0 trillion in Q3 2024, up from N505 billion in Q3 2023, reflecting a 99% year-on-year growth.
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Profit After Tax (PAT): PAT increased by 91% to N827 billion in Q3 2024, compared to N434.2 billion in the corresponding period of the previous year.
Revenue Composition:
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Interest Income: The bank experienced a 190% surge in interest income, amounting to N1.95 trillion. This growth is attributed to a high-yield environment and effective pricing of risk assets.
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Non-Interest Income: Non-interest income rose by 41% to N856 billion, driven by significant increases in fees and commissions. This underscores the strength of Zenith Bank’s retail operations and the robust performance of its digital channels.
Balance Sheet Highlights:
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Total Assets: The bank's total assets expanded by 49% to N30.4 trillion, largely supported by a 42% increase in customer deposits, which reached N21.6 trillion. This growth reflects deepening customer loyalty across both corporate and retail segments.
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Gross Loans: Gross loans grew by 46% to N10.3 trillion, demonstrating the bank's commitment to supporting strategic sectors within the economy.
Operational Efficiency and Risk Management:
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Capital Adequacy Ratio: The bank maintained a strong capital adequacy ratio of 21.9%, well above regulatory requirements, indicating a solid buffer to absorb potential risks.
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Return on Average Equity (ROAE): ROAE improved to 37.8%, up from 35.1%, reflecting enhanced profitability relative to shareholder equity.
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Non-Performing Loan (NPL) Ratio: The NPL ratio stood at 4.5%, within regulatory limits, with a high coverage ratio of 198.4%. This underscores the bank’s disciplined approach to risk management and its resilience amid market volatility.
Strategic Initiatives:
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Capital Raise Program: In August 2024, Zenith Bank launched a successful capital raise program, comprising a combined Rights Issue and Public Offer. This initiative was in response to the Central Bank of Nigeria's recapitalization directive issued in March 2024 and reflects strong investor confidence in the bank's brand.
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International Expansion: The bank received regulatory approval in September 2024 to establish a branch in Paris, France. This fully operational branch enhances Zenith Bank’s product offerings in international markets and aligns with its global expansion strategy.
Overall, Zenith Bank's 2024 financial results highlight its robust growth trajectory, operational efficiency, and strategic initiatives aimed at sustaining its market leadership and delivering value to stakeholders.