Zenith Bank Plc has posted its unaudited financial results for the third quarter ending September 30, 2024, demonstrating an impressive 118% growth in revenue.
The bank’s earnings soared from N1.33 trillion in the same period last year to N2.9 trillion, a feat that underscores its resilience and leadership in Nigeria’s financial landscape despite macroeconomic challenges.
The detailed financial report, submitted to the Nigerian Exchange (NGX), revealed that the bank’s profit before tax surged by 99% year-on-year, rising from N505 billion in Q3 2023 to N1 trillion in Q3 2024. Similarly, profit after tax climbed 91%, moving from N434.2 billion to N827 billion.
Zenith Bank’s topline growth was driven by a significant increase in both interest and non-interest income.
Interest income experienced a robust 190% increase, reaching N1.95 trillion, benefiting from a high-yield environment. Non-interest income grew by 41% to N856 billion, propelled by gains in fees and commissions, which were attributed to the bank’s strong retail growth and the performance of its digital channels.
The growth in earnings per share (EPS) was equally notable, almost doubling from N13.82 in Q3 2023 to N26.34.
The bank’s balance sheet also showed substantial growth. Total assets rose by 49% to N30.4 trillion, primarily driven by a 42% increase in customer deposits, which reached N21.6 trillion.
This increase spanned corporate and retail sectors, showcasing the bank’s extensive market reach. Gross loans grew by 46% to N10.3 trillion, aligning with Zenith Bank’s dedication to supporting key sectors of the economy.
Operationally, the bank maintained a strong capital adequacy ratio of 21.9%, exceeding regulatory requirements. Return on average equity (ROAE) increased from 35.1% to 37.8%, while return on average assets (ROAA) climbed to 4.3%.
Despite a rise in the cost of funds to 4.3% due to prevailing market conditions, Zenith Bank sustained a cost-to-income ratio of 39.5%, reflective of investments in technology and strategic growth initiatives. The cost of risk remained steady at 7.3%.
Zenith Bank’s asset quality continues to be robust, with a non-performing loan (NPL) ratio of 4.5%, well within regulatory thresholds.
A coverage ratio of 198.4% emphasizes the bank’s stringent risk management and preparedness to handle market volatility.
As part of its forward-looking strategy, the bank initiated a capital raise on August 1, 2024, comprising a Rights Issue and Public Offer in response to the Central Bank of Nigeria’s (CBN) recapitalization mandate issued earlier in the year.
“The fundraising exercise was successful, reflecting strong confidence in Zenith Bank’s brand,” the bank stated. Final verification approvals from regulatory authorities are pending, but the proceeds are expected to support business expansion and strategic initiatives.
Zenith Bank has already laid foundations for further growth. In September 2024, it obtained regulatory clearance to open a branch in Paris, France.
This new location will facilitate international business operations and enhance its service offerings.
Looking ahead, Zenith Bank remains committed to sustainable value creation, guided by rigorous corporate governance and risk management standards.
With a strengthened capital base, the bank aims to extend its influence within the financial sector and continue delivering exceptional returns to its stakeholders while pursuing growth opportunities in key markets.
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