Zenith bank posts N1TRN Profit Before Tax in Third Quarter of the year
Zenith Bank Plc has reported its unaudited third-quarter results for the period ending September 30, 2024, showing an impressive 118 percent surge in revenue from N1.33 trillion in Q3 2023 to N2.9 trillion in Q3 2024. This exceptional growth underscores the Bank’s resilience and market leadership amid economic challenges.
The Bank’s robust topline growth led to a 99 percent year-on-year (YoY) increase in profit before tax, rising from N505 billion in Q3 2023 to N1 trillion in Q3 2024. Profit after tax also grew by 91 percent to N827 billion. The results, submitted to the Nigerian Exchange (NGX), highlight significant gains across both interest and non-interest income streams. Interest income surged by 190 percent to N1.95 trillion, driven by high-yield market conditions, while non-interest income rose 41 percent to N856 billion, fueled by growth in fees and commissions, reflecting Zenith Bank’s focus on retail expansion and digital initiatives. Earnings per share (EPS) nearly doubled to N26.34, reaffirming the Bank’s dedication to creating value for shareholders.
The Bank’s balance sheet grew substantially, with total assets up by 49 percent to N30.4 trillion, supported by a 42 percent increase in customer deposits to N21.6 trillion. This broad-based deposit growth across corporate and retail segments highlights Zenith Bank’s deepening customer loyalty. Gross loans climbed by 46 percent to N10.3 trillion, reflecting the Bank’s commitment to supporting key sectors of the economy. Zenith Bank’s capital adequacy ratio improved to 21.9 percent, well above regulatory standards, with return on average equity (ROAE) rising to 37.8 percent and return on average assets (ROAA) at 4.3 percent, optimizing asset performance. The cost of funds rose to 4.3 percent in line with market conditions, while the cost of risk remained steady at 7.3 percent, demonstrating the Bank’s disciplined approach to risk management. Investments in technology and capacity development yielded a cost-to-income ratio of 39.5 percent, signaling Zenith’s forward-thinking growth strategy. The Bank’s asset quality remained strong, with a non-performing loan (NPL) ratio of 4.5 percent and a coverage ratio of 198.4 percent, underscoring its prudent risk management.
In alignment with the Central Bank of Nigeria’s recapitalization directive, Zenith launched a capital raise initiative on August 1, 2024, via a successful Rights Issue and Public Offer, reflecting high investor confidence. This capital boost will support Zenith’s expansion into new sectors, strengthen lending to the real sector, and drive its ambitions across Africa and globally. In September 2024, Zenith also obtained regulatory approval to open a new branch in Paris, France, extending its international footprint. With an enhanced capital base, Zenith Bank is well-positioned to navigate evolving economic conditions, with sustainability as a core priority. The Bank remains committed to maximizing stakeholder value through sound governance and a strong compliance culture, reinforcing its leadership in Nigeria’s financial sector and establishing a solid foundation for sustained, long-term growth.
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