By Isapa Toromoyan
Zenith Bank Plc has presented its audited financial results for the half-year ended June 30, 2024, showcasing a stellar performance with a remarkable triple-digit growth of 117 per cent in gross earnings.
The bank’s earnings surged from N967.3 billion in H1 2023 to an astounding N2.1 trillion in H1 2024. This exceptional performance underscores Zenith Bank’s resilience and leadership in a challenging macroeconomic environment.
The audited results, presented to the Nigerian Exchange (NGX) on August 30, 2024, reveal that the impressive growth in gross earnings translated into substantial increases in profitability. The Group’s profit before tax (PBT) soared by 108 per cent year-on-year (YoY), rising from N350 billion in H1 2023 to N727 billion in H1 2024. Similarly, profit after tax (PAT) experienced a 98 per cent increase, climbing from N292 billion to N578 billion, resulting in a 98 per cent growth in earnings per share (EPS), which rose from N9.29 to N18.41.
The significant growth in gross earnings was fueled by both interest and non-interest income. Zenith Bank achieved a record half-year interest income of over N1 trillion, marking a 177 per cent increase from N415.4 billion in H1 2023. Non-interest income also saw substantial growth, rising by 74 per cent from N515.7 billion to N899.3 billion.
Despite a challenging risk environment, Zenith Bank demonstrated operational efficiency with a marginal increase in its cost-to-income ratio from 38.5 per cent to 39.4 per cent. The heightened risk landscape led to a slight increase in the cost of risk from 8.8 per cent to 9.7 per cent, while the cost of funds grew from 2.6 per cent to 4.4 per cent. This resulted in an increase in interest expense from N153.6 billion in H1 2023 to N434.4 billion in H1 2024.
Nevertheless, the bank’s net interest margin improved by 49 per cent, rising from 5.9 per cent to 8.8 per cent, highlighting its effective management of interest-earning assets and liabilities.
Zenith Bank’s total assets grew by 35 per cent from N20.4 trillion in December 2023 to N27.6 trillion in June 2024. Customer deposits also increased by 29 per cent, reaching N19.6 trillion, up from N15.2 trillion. Gross loans expanded by 44 per cent, rising from N7.1 trillion to N10.2 trillion, supported by both customer loan disbursements and the impact of foreign currency-denominated loans.
The Group maintained a modest increase in the non-performing loan ratio, which grew from 4.4 per cent to 4.5 per cent.
The capital adequacy ratio improved from 21.7 per cent to 23 per cent, the loan-to-deposit ratio increased by 11 per cent from 46.5 per cent to 51.7 per cent, while the liquidity ratio decreased from 71 per cent to 59 per cent. All prudential ratios remain well above regulatory thresholds.
In recognition of its strong performance and commitment to shareholder value, Zenith Bank declared an interim dividend of N1.00 per share, marking the highest half-year dividend payout in the bank’s history and setting a new standard in the Nigerian banking sector.
The bank’s continued success and strong brand equity position it to explore new business opportunities in key economic sectors, both in existing markets and new geographies. Zenith Bank has recently received regulatory approval to establish a third-country branch in Paris, France, which will enhance its international product offerings.
Zenith Bank remains dedicated to enhancing its digital banking capabilities and completing its technology infrastructure upgrade. With a solid track record in capital raises, the bank is well-prepared to meet new minimum capital requirements for international commercial banks, well ahead of the Central Bank of Nigeria’s deadline.
The bank is on track for a record-breaking financial year and is committed to delivering exceptional value to its shareholders while upholding strong corporate governance standards.
Zenith Bank’s exemplary performance has garnered numerous accolades, including being recognized as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in The Banker Magazine’s 2024 Top 1000 World Banks Ranking. The bank has also been honored with titles such as Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020 and 2022, and Most Sustainable Bank, Nigeria in the International Banker 2024 Banking Awards. Other notable recognitions include Best Bank in Nigeria from 2020 to 2022 and in 2024 in the Global Finance World’s Best Banks Awards, and Best Commercial Bank, Nigeria from 2021 to 2024 in the World Finance Banking Awards.
