Zenith Bank Plc has recorded a triple-digit growth in gross earnings of 118% from N1.33 trillion reported in the third quarter (Q3) of 2023 to N2.9 trillion in Q3 2024.
The bank stated this in its unaudited results for the third quarter ended September 30, 2024.
According to the financial results presented to the Nigerian Exchange (NGX), the triple-digit growth in the topline also led to an increase in the bottom line, as the group recorded a 99% year on year (YoY) increase in profit before tax, growing from N505 billion in Q3 2023 to N1.0 trillion in Q3 2024. Profit after tax equally grew by 91% from N434.2 billion to N827 billion in the same period.
The growth in the topline was driven by the expansion of both interest income and non-interest income. Interest income saw a notable 190% rise to N1.95 trillion, attributed to the high-yield environment. Non-interest income rose by 41% to N856 billion, bolstered by substantial growth in fees and commissions. The bank said the robust increase in profitability reflects its focus on operational efficiency and strong risk management practices. Earnings per share (EPS) nearly doubled, rising to N26.34 from N13.82 in Q3 2023.
The bank’s balance sheet grew significantly, with total assets growing by 49% to N30.4 trillion, largely supported by customer deposits, which rose by 42% to N21.6 trillion. This growth in deposits was broad-based across corporate and retail segments. Gross loans increased by 46% to N10.3 trillion.
Capital adequacy ratio remained strong, improving to 21.9%, well above regulatory requirements. The return on average equity (ROAE) stood at 37.8%, up from 35.1%, while return on average assets (ROAA) also improved to 4.3% as Zenith Bank maximised its asset base. Cost of funds increased to 4.3%, reflecting the broader market trend of rising interest rates, while the cost of risk was maintained at 7.3%, underscoring the Bank’s proactive approach in provisioning for credit risk. The bank’s cost-to-income ratio rose to 39.5%, reflecting the impact of strategic investments in technology and capacity building aimed at supporting long-term growth, even as it continues to strive for greater operational efficiency.
Zenith Bank said its asset quality remains a cornerstone of its strength, with a non-performing loan (NPL) ratio of 4.5%, within regulatory limits. It also said a high coverage ratio of 198.4% underscores its disciplined approach to risk management, positioning it for resilience in the face of market volatility while supporting stable loan growth.
The bank launched a capital raise programme on August 1, 2024, consisting of a combined rights issue and public offer. This capital raise was driven by the Central Bank of Nigeria (CBN)’s recapitalisation directive for commercial banks issued in March 2024. While it awaits final capital verification approvals from authorities, the bank said the fundraising exercise was successful, reflecting strong confidence in its brand.
The additional capital, it added, will enhance its ability to expand its product offerings, deepen its penetration in strategic sectors, boost lending to the real sector and pursue its African and global expansion plan. In furtherance of this, the bank in September 2024 received regulatory approval for the establishment of a Zenith Bank branch in Paris, France, which is fully operational and will enhance the bank’s product offerings in international markets.
