Zenith Bank Plc has unveiled its unaudited results for the third quarter ended September 30, 2024, posting a remarkable 118 percent increase in revenue, from N1.33 trillion in Q3 2023 to N2.9 trillion in Q3 2024. The stellar performance highlights Zenith Bank’s resilience and market leadership amid a challenging economic climate.
The Bank’s topline growth fueled a robust 99 percent year-on-year (YoY) increase in profit before tax, which rose from N505 billion in Q3 2023 to N1.0 trillion in Q3 2024. Profit after tax also climbed by 91 percent, reaching N827 billion. Zenith Bank’s results, presented to the Nigerian Exchange (NGX), reflect significant progress across both interest and non-interest income streams. Interest income surged by 190 percent to N1.95 trillion, capitalizing on a high-yield environment, while non-interest income grew 41 percent to N856 billion, driven by strong gains in fees and commissions—a testament to the Bank’s retail growth and digital expansion. Earnings per share (EPS) nearly doubled to N26.34, highlighting Zenith’s commitment to value creation for shareholders.
The Bank’s balance sheet expanded significantly, with total assets growing by 49 percent to N30.4 trillion, buoyed by a 42 percent increase in customer deposits to N21.6 trillion. This broad-based deposit growth across corporate and retail segments reflects deepening customer loyalty. Gross loans rose by 46 percent to N10.3 trillion, underscoring the Bank’s dedication to supporting vital economic sectors.Zenith Bank’s capital adequacy ratio strengthened to 21.9 percent, well above regulatory benchmarks, with return on average equity (ROAE) up to 37.8 percent and return on average assets (ROAA) at 4.3 percent, maximizing asset performance. The cost of funds rose to 4.3 percent, in line with higher market rates, while the cost of risk remained steady at 7.3 percent, showing the Bank’s commitment to proactive risk provisioning. Strategic investments in technology and capacity building resulted in a cost-to-income ratio of 39.5 percent, signaling Zenith’s forward-looking growth initiatives.
Zenith’s asset quality remains a hallmark of its stability, with a non-performing loan (NPL) ratio of 4.5 percent and a coverage ratio of 198.4 percent, reinforcing disciplined risk management.
In line with the Central Bank of Nigeria’s recapitalisation directive, Zenith launched a capital raise on August 1, 2024, through a successful Rights Issue and Public Offer, reflecting strong investor confidence. This capital infusion will support Zenith’s expansion into new sectors, enhance lending to the real sector, and fuel its broader African and global ambitions. Further solidifying its international presence, Zenith received regulatory approval in September 2024 for a new branch in Paris, France, expanding its footprint in global markets.
With a fortified capital base, Zenith Bank stands poised to navigate evolving economic landscapes, maintaining sustainability as a core business tenet. The Bank remains dedicated to enhancing stakeholder value through sound governance and a strong compliance culture, cementing its leadership in Nigeria’s financial sector and setting a foundation for sustained, long-term growth.
Zenith Bank Plc’s unaudited results for the third quarter (Q3 2024) reveal a standout performance, with profit before tax (PBT) soaring by 99 percent to N1 trillion, up from N505 billion in Q3 2023. Profit after tax rose by 91 percent to N827 billion.
Total revenue surged by 118 percent, climbing from N1.33 trillion in Q3 2023 to an impressive N2.9 trillion in Q3 2024, accentuating the bank’s resilience and market leadership amid economic challenges.
Interest income drove top line growth, increasing by 190 percent to N1.95 trillion, largely due to high-yield opportunities. Non-interest income also rose by 41 percent to N856 billion, powered by robust retail and digital channel performances and significant growth in fees and commissions. Earnings per share (EPS) nearly doubled to N26.34, reinforcing Zenith Bank’s strong value creation for shareholders.
The Bank’s balance sheet expanded by 49 percent to N30.4 trillion, supported by a 42 percent increase in customer deposits, reaching N21.6 trillion. Gross loans grew by 46 percent to N10.3 trillion, underscoring Zenith’s commitment to fueling strategic sectors in the economy. Capital adequacy rose to 21.9 percent, exceeding regulatory requirements, while return on average equity (ROAE) climbed to 37.8 percent, and return on average assets (ROAA) to 4.3 percent.
Despite a rising cost of funds at 4.3 percent, the Bank maintained disciplined risk management with a cost of risk at 7.3 percent. Strategic investments raised its cost-to-income ratio to 39.5 percent, reflecting Zenith’s commitment to technology and capacity-building initiatives.
Zenith Bank’s asset quality remains robust, with a non-performing loan (NPL) ratio of 4.5 percent and a coverage ratio of 198.4 percent, underscoring its disciplined risk management.
Following the Central Bank of Nigeria’s recapitalisation directive, Zenith launched a capital raise programme on August 1, 2024, through a successful Rights Issue and Public Offer.
Awaiting final regulatory approvals, the additional capital will support the Bank’s expansion into new markets, bolster lending to the real sector, and fuel its African and global growth strategy. In September, Zenith also secured regulatory approval for a new branch in Paris, France, enhancing its international reach.
With a strengthened capital base, Zenith Bank is poised for sustainable growth, prioritising stakeholder value, robust governance, and best-practice sustainability standards. As it navigates a dynamic economic landscape, the Bank remains committed to reinforcing its leadership in Nigeria’s financial sector while driving long-term growth.
THE SUN NEWSPAPER
