….Proposes N4.00 Final Dividend
Thank you for reading this post, don't forget to subscribe!Zenith Bank Plc has announced its audited financial results for the year ended December 31, 2024, posting significant growth across key performance metrics. The Bank’s robust performance underscores its strategic asset management, optimized treasury operations, and commitment to reinforcing its leadership in Nigeria’s banking sector.
According to its audited financial statements submitted to the Nigerian Exchange (NGX), Zenith Bank achieved an 86% year-on-year (YoY) growth in gross earnings, rising from N2.13 trillion in 2023 to N3.97 trillion in 2024. This surge was primarily driven by a 138% increase in interest income, supported by investments in high-yield government securities and the expansion of its loan book.
Commenting on the results, Dame Dr. Adaora Umeoji, OON, Group Managing Director/CEO of Zenith Bank, stated:
“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.”
Strong Financial Performance
Zenith Bank’s profit before tax (PBT) rose by 67% to N1.3 trillion, up from N796 billion in 2023, reflecting a combination of strong revenue growth and efficient treasury portfolio management.
Net interest income surged 135% from N736 billion in 2023 to N1.7 trillion, reinforcing the Bank’s ability to drive earnings despite macroeconomic challenges. Similarly, non-interest income grew by 20%, reaching N1.1 trillion in 2024.
The Bank’s total assets expanded by 47%, increasing from N20 trillion in 2023 to N30 trillion in 2024, reflecting strong liquidity and effective balance sheet management. Customer deposits also recorded a 45% growth, rising from N15 trillion to N22 trillion, fueled by corporate and retail deposit growth. The increase in retail deposits was largely driven by customer acquisition efforts and the Bank’s focus on low-cost funding.
Despite the expansion, Return on Average Equity (ROAE) declined to 32.5%, impacted by the injection of new capital, while Return on Average Assets (ROAA) remained steady at 4.1%. The Bank’s cost-to-income ratio increased slightly from 36.1% to 38.9%, reflecting inflationary pressures. Its Non-Performing Loan (NPL) ratio stood at 4.7%, with a coverage ratio of 223%, demonstrating the Bank’s prudent risk management strategy.
Dividend and Capital Raising
Following its strong financial performance, Zenith Bank has proposed a final dividend of N4.00 per share, bringing total dividends for the year to N5.00 per share.
In a strategic move to strengthen its capital base, Zenith Bank successfully raised N350 billion through a rights issue and public offer, which was oversubscribed by 160%. The proceeds from this capital raise will be deployed to enhance technology infrastructure, strengthen liquidity, and expand into key African markets, creating new growth opportunities.
Industry Recognition and Future Outlook
Zenith Bank continues to receive industry accolades, solidifying its position as a top financial institution in Nigeria and beyond. The Bank has been recognized as Nigeria’s Number One Bank by Tier-1 Capital for the 15th consecutive year in The Banker Magazine’s Top 1000 World Banks Ranking.
Other notable awards include:
• Bank of the Year (Nigeria) – The Banker’s Bank of the Year Awards (2020, 2022, 2024).
• Best Bank in Nigeria – Global Finance World’s Best Banks Awards (2020-2022, 2024).
• Best Commercial Bank, Nigeria – World Finance Banking Awards (2021-2024).
• Most Sustainable Bank, Nigeria – International Banker Awards (2023, 2024).
• Best Corporate Governance Bank, Nigeria – World Finance Corporate Governance Awards (2022-2024).
• Most Responsible Organisation in Africa & Best Company in Transparency and Reporting – SERAS CSR Awards Africa 2024.
Zenith Bank’s commitment to excellence has also earned it the titles of Bank of the Year 2024 from ThisDay Newspaper and New Telegraph Newspaper.
Looking ahead, Zenith Bank remains focused on delivering sustainable growth, enhancing shareholder value, and driving financial inclusion through innovative banking solutions. With a strong capital base and strategic expansion plans, the Bank is well-positioned to navigate evolving market conditions and strengthen its leadership in Nigeria’s financial landscape.
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