Zenith Bank Reports N1.032trn Profit, Declares Dividend

Zenith Bank Plc has announced a 52.58 percent surge in profit after tax, reaching N1.032 trillion in 2024, up from N676.909 billion in the previous year.

The latest bank’s audited financial results, filed with the Nigerian Exchange (NGX), reflect a strong performance driven by significant growth in interest income, strategic asset management, and a substantial increase in customer deposits.

Gross earnings rose by 86 percent to N3.97 trillion from N2.13 trillion in 2023, fueled by a remarkable 138 percent increase in interest income. This growth was largely attributed to investments in high-yield government securities and an expanded loan book. Profit before tax increased by 67 percent to N1.3 trillion from N796 billion, reflecting both top-line growth and efficient treasury portfolio management. Net interest income saw a significant rise of 135 percent to N1.7 trillion, up from N736 billion, highlighting the bank’s ability to generate strong core banking revenue despite economic headwinds. Non-interest income also grew, reaching N1.1 trillion, a 20 percent increase from N919 billion.

Total assets climbed to N30 trillion, marking a 47 percent rise, reflecting effective balance sheet management and strong liquidity. Customer deposits increased by 45 percent to N22 trillion, driven by both corporate deposits and the bank’s focus on expanding its retail banking portfolio. The increase in retail deposits was fueled by customer acquisition efforts and a strategic emphasis on low-cost funding. Despite these impressive figures, Return on Average Equity declined to 32.5 percent due to capital injection, while Return on Average Assets remained stable at 4.1 percent. The cost-to-income ratio rose slightly from 36.1 percent to 38.9 percent, largely due to inflationary pressures. The bank’s Non-performing Loan ratio stood at 4.7 percent, with a coverage ratio of 223 percent, reflecting a strong risk management framework and a resilient loan book.

To reward shareholders, Zenith Bank has proposed a final dividend of N4.00 per share, bringing the total dividend for the year to N5.00 per share. In a move that further underscores investor confidence, the bank successfully raised N350 billion in capital through a rights issue and public offer, which was oversubscribed by 160 percent. The proceeds from this capital raise will be used to enhance technology infrastructure, strengthen liquidity, and support expansion into key African markets.

Speaking on the results, Group Managing Director and CEO, Dame Dr. Adaora Umeoji, OON, highlighted the bank’s unwavering commitment to innovation, financial inclusion, and customer-centric solutions. She noted that the impressive performance reflects Zenith Bank’s ability to navigate market challenges while delivering value to customers and stakeholders.

Zenith Bank’s consistent growth and financial strength have earned it numerous accolades, reinforcing its position as Nigeria’s leading financial institution. The bank was recognised as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking published by The Banker Magazine. Other awards include Bank of the Year, Nigeria, by The Banker’s Bank of the Year Awards in 2020, 2022, and 2024, as well as Best Bank in Nigeria multiple times in Global Finance World’s Best Banks Awards. The bank was also named Most Sustainable Bank in Nigeria in the International Banker 2023 and 2024 Banking Awards, and Best in Corporate Governance, Financial Services, Africa, for four consecutive years by Ethical Boardroom.

With a solid capital base, growing customer deposits, and an ambitious expansion strategy, Zenith Bank remains well-positioned to navigate evolving market conditions and sustain its leadership in the Nigerian banking sector. In leveraging technology, strong risk management, and innovative financial solutions, the bank is set to continue delivering long-term value to shareholders and customers.