Zenith Bank Plc has announced its audited financial results for the year ending December 31, 2024, showing impressive growth across key financial metrics. The bank’s gross earnings surged by 86%, rising from N2.12 trillion in 2023 to N3.97 trillion in 2024.
According to the financial report filed with the Nigerian Exchange (NGX), this remarkable performance was primarily driven by a 138% increase in interest income, fueled by strategic investments in high-yield government securities and an expanded loan portfolio.
Strong Profit Growth and Revenue Expansion
Zenith Bank’s profit before tax (PBT) climbed by 67% to N1.3 trillion in 2024, up from N796 billion the previous year. This growth was attributed to robust revenue expansion and effective treasury management.
Net interest income rose sharply by 135%, reaching N1.7 trillion in 2024 compared to N736 billion in 2023, reflecting the bank’s solid core banking performance. Additionally, non-interest income grew by 20%, moving from N919 billion to N1.1 trillion, further reinforcing its diversified revenue base.
Strengthened Balance Sheet and Liquidity Position
Total assets grew significantly by 47%, increasing from N20 trillion in 2023 to N30 trillion in 2024. This expansion was supported by strong liquidity management and strategic balance sheet optimization. Customer deposits also saw a notable rise, growing by 45% from N15 trillion to N22 trillion. This increase was driven by the bank’s ability to attract more corporate and retail deposits, with a strong focus on low-cost funding sources.
Despite the capital injection, Return on Average Equity (ROAE) declined to 32.5%, while Return on Average Assets (ROAA) remained steady at 4.1%. The bank’s cost-to-income ratio saw a slight increase from 36.1% to 38.9%, reflecting inflationary pressures. Meanwhile, its Non-Performing Loan (NPL) ratio stood at 4.7%, backed by a 223% coverage ratio, highlighting Zenith Bank’s commitment to sound risk management and a resilient loan portfolio.
Dividend Announcement and Strategic Growth Plans
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.
Commenting on the financial performance, Group Managing Director/CEO Dame Dr. Adaora Umeoji stated:
“This year’s results reaffirm our dedication to innovation and customer-focused solutions. We remain committed to deepening financial inclusion, enhancing service delivery, and driving value for our customers and stakeholders.”
Earlier in the year, the bank successfully raised N350 billion through a rights issue and public offer, with an impressive 160% subscription rate. The funds raised will be strategically deployed to enhance technology infrastructure, strengthen liquidity, and support the bank’s expansion into key African markets.
With a solid capital base and a focus on sustainable growth, Zenith Bank is well-positioned to navigate evolving market dynamics while reinforcing its leadership in the Nigerian financial sector.
Leave a Reply