The profit before tax of Zenith Bank surged by 67 per cent to N1.3tn at the end of the 2024 financial year from N796bn in 2023.
This was indicated in the audited financial report filed with the Nigerian Exchange Limited on Wednesday.
According to the annual report, Zenith Bank’s profit before tax increased by 67 per cent on the back of effective management and pricing of its risk assets, as well as an optimised treasury portfolio.
Its gross earnings increased by 86 per cent to N3.97tn in 2024 from N2.13tn in 2023, driven by a 138 per cent increase in interest income, supported by investment in high-yield government securities and growth in the bank’s loan book.
Net interest income increased by 135 per cent from N736bn in 2023 to N1.7tn, reinforcing the bank’s strong core banking performance and ability to grow earnings despite macroeconomic headwinds. Non-interest income also grew by 20 per cent from N919bn to N1.1tn.
The bank’s total assets grew by 47 per cent from N20tn in 2023 to N30tn in 2024, underpinned by a strong liquidity position and effective balance sheet management. Customer deposits rose by 45 per cent from N15tn to N22tn in 2024, reflecting a historically strong corporate deposits portfolio and a sustained increase in retail deposits. The increase in retail deposits was driven by customer acquisition and the bank’s strategic focus on low-cost funding.
The bank indicated that return on average equity declined to 32.5 per cent on the back of the injection of new capital, while return on average assets remained unchanged at 4.1 per cent. The bank’s cost-to-income increased slightly from 36.1 per cent to 38.9 per cent, despite inflationary pressures. Its non-performing loan ratio stood at 4.7 per cent, with a coverage ratio of 223 per cent, underscoring the bank’s prudent risk management and commitment to maintaining a resilient loan book, ensuring stability and confidence in the bank’s operations.
Given the good earnings performance, the bank has proposed a final dividend of N4.00 per share, which brings the total dividend for the year to N5.00 per ordinary share.
In a statement accompanying the annual results, the Group Managing Director/Chief Executive Officer, Dr Adaora Umeoji, said, “This year’s performance underscores our unwavering commitment to innovation and customer-centric solutions. We will also remain focused on deepening financial inclusion, enhancing service delivery, and creating value for our customers and stakeholders.”
In a significant milestone, Zenith Bank successfully raised N350bn in capital through a rights issue and public offer, with a subscription rate of 160 per cent, demonstrating strong investor confidence in the bank’s growth trajectory. The proceeds from this 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 said that it 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,” part of the statement read.
Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, including being 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.