Zenith Bank Plc has reported its audited results for the half-year ending June 30, 2024, showcasing a remarkable 117% growth in gross earnings, from N967.3 billion in H1 2023 to N2.1 trillion in H1 2024. This impressive performance was achieved despite the challenging macroeconomic environment faced by the Nigerian banking industry.
Thank you for reading this post, don't forget to subscribe!According to the bank’s audited half-year financial results presented to the Nigerian Exchange (NGX) on August 30, 2024, the substantial growth in gross earnings also drove a 108% year-on-year (YoY) increase in profit before tax (PBT), rising from N350 billion in H1 2023 to N727 billion in H1 2024. Additionally, profit after tax (PAT) grew by 98%, from N292 billion to N578 billion during the same period, leading to a 98% increase in earnings per share (EPS) from N9.29 in H1 2023 to N18.41 in H1 2024.
The bank’s growth in gross earnings was driven by both interest income and non-interest income. Interest income surged by 177%, surpassing the N1 trillion mark—a half-year record—growing from N415.4 billion in H1 2023 to N1.1 trillion in H1 2024. Non-interest income also saw a significant increase of 74%, rising from N515.7 billion to N899.3 billion.
Zenith Bank’s focus on operational efficiency led to a marginal increase in its cost-to-income ratio YoY, from 38.5% to 39.4%. However, the challenging risk environment resulted in higher impairment levels, slightly raising the cost of risk from 8.8% to 9.7%. The cost of funds also increased YoY, from 2.6% to 4.4%, due to the high-interest rate environment, leading to a growth in interest expense from N153.6 billion in H1 2023 to N434.4 billion in H1 2024. Despite these challenges, net interest margin improved by 49%, from 5.9% in H1 2023 to 8.8% in H1 2024, reflecting the bank’s efficient pricing of interest-earning assets and interest-accruing liabilities.
Zenith Bank’s total assets grew by 35%, from N20.4 trillion in December 2023 to N27.6 trillion in June 2024, while customer deposits increased by 29%, from N15.2 trillion in December 2023 to N19.6 trillion in June 2024. Gross loans also grew by 44%, from N7.1 trillion in December 2023 to N10.2 trillion in June 2024, supported by loan disbursements to customers and the translation effect of foreign currency-denominated loans. The bank’s stringent risk acceptance criteria ensured that the non-performing loan ratio remained relatively stable, rising modestly from 4.4% in December 2023 to 4.5% in June 2024. Additionally, the capital adequacy ratio improved from 21.7% in December 2023 to 23% in June 2024, while the loan-to-deposit ratio increased by 11%, from 46.5% to 51.7%. The liquidity ratio, however, decreased from 71% to 59% during the period, but all prudential ratios remain well above regulatory thresholds.
To maximize value for its shareholders, Zenith Bank has declared an interim dividend of N1.00 per share—the highest half-year dividend payout in its history and the highest interim dividend in the Nigerian banking sector to date.
The bank’s strong brand equity and excellent service quality position it to explore new business opportunities in strategic sectors of the economy, both in existing and new geographies. Zenith Bank has received regulatory approval for the establishment of a third-country branch in Paris, France, which, when fully operational, will enhance its product offerings in international markets.
Zenith Bank remains committed to investing in its digital banking capabilities and is expediting the completion of its technology infrastructure upgrade. The bank’s successful track record in capital raises places it on a solid footing to meet the new minimum capital requirements for commercial banks with international authorization, well ahead of the deadline set by the Central Bank of Nigeria (CBN). The bank is on track for a record year in financial performance and will continue to deliver maximum value to its shareholders while maintaining a strong corporate governance culture.
Zenith Bank’s consistent excellence has earned it numerous accolades, including being recognized 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. The bank has also received several other awards, including Best Bank in Nigeria and Most Sustainable Bank in various prestigious award platforms.
This robust performance and recognition underscore Zenith Bank’s commitment to excellence, innovation, and shareholder value creation.
