A final dividend of N4 per share has been proposed by the board of Zenith Bank Plc for the 2024 financial year, a statement from the lender has revealed.
The cash reward, which reached N5 per share for the year because of an interim dividend of N1 paid earlier in the year, is coming after the company improved its post-tax profit to N1.03 trillion from N676.9 billion as the profit before tax (PBT) increased to N1.32 trillion in 2024 from N796.0 billion in 2023, driven by a combination of top-line expansion and efficient treasury portfolio management.
As for the top-line of the results analysed by Business Post, the financial institution grew its gross earnings by 86 per cent on a year-on-year basis to N3.97 trillion from N2.13 trillion in the previous accounting year, driven by a 138 per cent rise in interest income, supported by investment in high-yield government securities, and growth in its loan book.
It was observed that net interest income jumped by 135 per cent to N1.7 trillion from N736 billion in 2023, reinforcing the bank’s strong core banking performance and ability to grow earnings despite macroeconomic headwinds.
Also, non-interest income grew by 20 per cent to N1.1 trillion from N919 billion, with total assets expanding by 47 per cent to N30 trillion in the period under review from N20 trillion a year earlier, supported by a strong liquidity position and effective balance sheet management.
In addition, customer deposits surged by 45 per cent to N22 trillion from N15 trillion, reflecting a historically strong corporate deposits portfolio and a sustained increase in retail deposits.
The increase in retail deposits was buoyed by customer acquisition and the company’s strategic focus on low-cost funding.
In the year, Return on Average Equity (ROAE) declined to 32.5 per cent on the back of the injection of new capital, while Return on Average Assets (ROAA) remained unchanged at 4.1 per cent.
Zenith Bank’s cost-to-income increased slightly to 38.9 per cent from 36.1 per cent despite inflationary pressures, while the Non-Performing Loan (NPL) 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 its operations.
“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,” the chief executive of Zenith Bank, Ms Adaora Umeoji, stated.