Zenith Bank Plc has revealed its audited financial outcomes for the year ending on December 31, 2024, showcasing remarkable growth in essential performance metrics.
Gatekeepers News reports that the bank, according to the audited financial report for the 2024 fiscal year submitted to the Nigerian Exchange (NGX), posted an impressive 86% year-on-year (YoY) increase in gross earnings, rising from N2.13 trillion in 2023 to N3.97 trillion in 2024.
This surge was fueled by a 138% rise in interest income, bolstered by investments in high-yield government securities and an expansion of the Bank’s loan portfolio.
Dr. Adaora Umeoji, the Group Managing Director/CEO, commented on the results, stating: “This year’s performance highlights our steadfast dedication to innovation and customer-focused solutions. We continue to prioritize enhancing financial inclusion, improving service delivery, and delivering value to our customers and stakeholders.”
The bank’s profit before tax (PBT) increased by 67%, climbing to N1.3 trillion in 2024 from N796 billion in 2023, propelled by a blend of revenue growth and effective treasury portfolio management. Net interest income surged by 135% from N736 billion in 2023 to N1.7 trillion, reinforcing the Bank’s robust core banking performance and capability to grow earnings amid challenging macroeconomic conditions. Meanwhile, non-interest income rose by 20% from N919 billion to N1.1 trillion.
Total assets of the Bank expanded by 47% from N20 trillion in 2023 to N30 trillion in 2024, supported by a robust liquidity position and sound balance sheet management. Customer deposits increased by 45% from N15 trillion to N22 trillion in 2024, showcasing a historically strong corporate deposits portfolio and a consistent rise in retail deposits. The growth in retail deposits was driven by customer acquisition strategies and the Bank’s focus on low-cost funding.
Return on Average Equity (ROAE) decreased to 32.5% due to the infusion of new capital, while Return on Average Assets (ROAA) remained stable at 4.1%. The Bank’s cost-to-income ratio inched up from 36.1% to 38.9%, despite the challenges posed by inflation. The Non-Performing Loan (NPL) ratio was recorded at 4.7%, with a coverage ratio of 223%, reflecting the Bank’s cautious risk management approach and its commitment to maintaining a resilient loan portfolio, ensuring operational stability and confidence.
Given the positive earnings performance, the Bank has proposed a final dividend of N4.00 per share, bringing the total dividend for the year to N5.00 per ordinary share.
In an important achievement, Zenith Bank successfully secured N350 billion in capital through a rights issue and public offer, achieving a subscription rate of 160%, which reflects strong investor confidence in the Bank’s growth path. The funds from this capital raise will be strategically invested to enhance technology infrastructure, improve liquidity, and support the Bank’s expansion into key markets in Africa, thus unlocking new growth avenues.
