Zenith Bank Plc has released its financial results for the 2024 fiscal year, posting a record profit after tax of N1.03 trillion, marking a 52.5% increase from N676.9 billion recorded in 2023. The bank also reported a pre-tax profit of N1.32 trillion, a 66.6% year-on-year growth, solidifying its position as one of Nigeria’s most profitable financial institutions.
Strong Revenue Growth and Dividend Announcement
The bank’s gross earnings soared to N4 trillion, with interest income and trading income serving as major revenue drivers. As part of its earnings announcement, Zenith Bank proposed a final dividend of N4.00 per share, bringing the total dividend payout for 2024 to N5.00 per share, compared to N4.00 per share in 2023.
Key Financial Highlights (2024 vs. 2023)
- Gross earnings: N3.971 trillion (+86.28% YoY)
- Interest income: N2.721 trillion (+137.74% YoY)
- Interest expense: N992.474 billion (+142.96% YoY)
- Net interest income: N1.729 trillion (+134.85% YoY)
- Impairment charges: N658.805 billion (+60.83% YoY)
- Net interest income after impairment: N1.070 trillion (+227.68% YoY)
- Net fees and commission income: N206.867 billion (+89.25% YoY)
- Trading gains: N1.100 trillion (+94.01% YoY)
- Profit after tax: N1.033 trillion (+52.59% YoY)
- Basic EPS: N32.87 (+32.87% YoY)
- Total assets: N29.958 trillion (+47.08% YoY)
- Customer deposits: N21.959 trillion (+44.78% YoY)
- Shareholders’ fund: N4.029 trillion (+73.42% YoY)
How Zenith Bank Achieved Record Profitability
Income Breakdown
Zenith Bank’s gross earnings of N4 trillion represented an 86% increase from N2.39 trillion in the previous year, primarily driven by a surge in interest income, which jumped to N2.7 trillion from N1.14 trillion.
- Interest income from loans and advances to customers grew 126% YoY to N1.52 trillion.
- Interest income from treasury bills surged 224% YoY to N579.92 billion.
- Interest expenses rose 142.96% YoY to N992.47 billion, reflecting higher funding costs due to tighter monetary conditions.
The bank also recorded N206.8 billion in net fees and commission income, mainly from:
- Electronic banking fees: N80 billion
- Account maintenance charges: N73 billion
- Foreign withdrawal charges: N79 billion
Zenith Bank’s trading gains were a standout, nearly doubling to N1.1 trillion, up from N566.9 billion in 2023.
Regional Performance
- Nigeria contributed N3.5 trillion to the bank’s consolidated revenue.
- African and European operations generated N510 billion, up from N281.1 billion in 2023.
Despite these gains, operating expenses surged due to inflation, pushing the cost-to-income ratio to 30% in 2024, up from 27% in 2023.
Balance Sheet Strength and Capitalization
Zenith Bank’s total assets grew 47% YoY to N29.96 trillion, reinforcing its position as one of Nigeria’s largest banks.
- Customer deposits reached N21.96 trillion, a 44.78% YoY increase.
- Total shareholders’ funds climbed to N4.03 trillion, comprising:
- Retained earnings: N2.02 trillion
- Share capital: N20.54 billion
- Share premium: N594.11 billion
Capital Raise and Oversubscription
In response to the Central Bank of Nigeria’s (CBN) new minimum capital requirements, Zenith Bank executed a hybrid capital raise, securing N343 billion through a combination of rights and public offers. This offer was oversubscribed by 160%, increasing the bank’s share capital to N614.6 billion.
Conclusion
Zenith Bank’s record-breaking performance highlights its ability to navigate Nigeria’s high-interest-rate environment while capitalizing on strong lending, trading, and fee-based income. With a robust balance sheet, increased capital base, and a higher dividend payout, the bank remains well-positioned for sustained growth and market leadership in Nigeria’s financial sector.
