Zenith Bank’s bottom line booms as net profits jump 52% to N1trn
- Offers N4 final dividend to shareholders
Onome Amuge
Adaora Umeoji, group managing director/CEO of Zenith Bank
Zenith Bank Plc, has announced exceptional growth across all its key performance indicators for the year ended December 31, 2024, with its net profit soaring 52 percent from N676.909 billion reported in the previous year to N1.033 trillion.
According to analysts, Zenith Bank Plc’s outstanding performance for the year ended December 31, 2024, is a testament to the bank’s effective risk management strategies and efficient treasury portfolio optimisation, reaffirming its dominance in Nigeria’s banking industry.
Building on its strong earnings performance, Zenith Bank Plc announced a proposed final dividend of N4.00 per share, bringing the total dividend to N5.00 per ordinary share.
The Tier-1 bank’s financial results for the 2024 financial year, recently filed with the Nigerian Exchange (NGX), revealed year-on-year growths across its key performance metrics, with a notable 86 percent increase in gross earnings from N2.13 trillion in 2023 to N3.97 trillion in 2024.
The growth was primarily attributed to the bank’s strategic focus on interest-bearing assets, including high-yielding government securities and an expansion of its loan book, resulting in a 138 percent growth in interest income.
Riding on the back of its robust top-line growth, Zenith Bank Plc recorded a 67 percent increase in its profit before tax (PBT), surging from N796 billion in 2023 to N1.3 trillion in 2024.
Despite a backdrop of challenging macroeconomic conditions, Zenith Bank Plc’s net interest income registered a 135 percent year-on-year growth, increasing from N736 billion in 2023 to N1.7 trillion in 2024.
Zenith Bank’s total assets swelled 47 percent in 2024, reaching N30 trillion compared to N20 trillion recorded in the preceding year. This appreciation was driven by the bank’s strong liquidity position and effective balance sheet management.
In the year under review, Zenith Bank experienced a 45 percent surge in customer deposits, expanding from N15 trillion in 2023 to N22 trillion. This growth was primarily driven by the bank’s continued focus on building its already robust corporate deposits portfolio, combined with a sustained increase in retail deposits, underpinned by the bank’s strategic approach to acquiring new customers and leveraging low-cost funding sources.
While the Bank’s Return on Average Equity (ROAE) slipped slightly to 32.5 percent in 2024 due to capital injection, its Return on Average Assets (ROAA) remained steady at 4.1 percent.
Despite inflationary pressures, the bank’s cost-to-income ratio increased marginally to 38.9 percent.
Zenith Bank also maintained a low Non-Performing Loan (NPL) ratio of 4.7 percent, while simultaneously demonstrating a strong coverage ratio of 223 percent.
Zenith Bank also accomplished a milestone in its capital raising efforts by successfully securing N350 billion through a rights issue and public offer, as it witnessed a subscription rate of 160 percent.
According to the bank, the proceeds from the capital raise will be strategically deployed to enhance technology infrastructure, strengthen liquidity, and support the bank’s expansion into key African markets, unlocking new growth opportunities.
“The bank remains focused on delivering sustainable growth, enhancing shareholder value, and driving financial inclusion through innovative banking solutions. With its solid capital base and innovative product offerings, the Bank is well-positioned to navigate evolving market conditions while continuing to strengthen its leadership in the Nigerian financial landscape,” it stated.
Commenting on the financials, Adaora Umeoji, group managing director/CEO of Zenith Bank, stated that the 224 performance underscores the bank’s unwavering commitment to innovation and customer-centric solutions.
Umeoji also assured that the bank will also remain focused on deepening financial inclusion, enhancing service delivery, and creating value for its customers and stakeholders.