Zenith Bank Plc has released its audited financial statements for the year ending December 31, 2024, showcasing remarkable growth across key financial metrics and reinforcing its leadership position in Nigeria’s banking sector.
Financial Performance Highlights:
- Gross Earnings (Revenue): The bank reported gross earnings of ₦2.9 trillion for the nine-month period ending September 30, 2024, marking a 118% increase from ₦1.33 trillion in the same period of 2023.
- Profit Before Tax (PBT): PBT nearly doubled to ₦1.0 trillion, a 99% year-on-year growth from ₦505 billion.
- Profit After Tax (PAT): PAT rose by 91% to ₦827 billion, up from ₦434.2 billion in the corresponding period of the previous year.
Key Financial Ratios:
- Return on Average Equity (ROAE): Improved to 37.8% from 35.1% in the prior year.
- Return on Average Assets (ROAA): Increased to 4.3%, reflecting efficient asset utilization.
- Net Interest Margin (NIM): Expanded to 8.8% in H1 2024, up from 5.9% in H1 2023, indicating improved profitability from interest-earning assets.
- Cost-to-Income Ratio: Maintained at 39.5%, demonstrating operational efficiency despite strategic investments.
- Cost of Risk: Held steady at 7.3%, underscoring prudent risk management practices.
- Non-Performing Loan (NPL) Ratio: Slightly increased to 4.5% from 4.4% in December 2023, remaining within regulatory limits.
- Coverage Ratio: Stood at 198.4%, highlighting the bank’s commitment to credit risk provisioning.
Balance Sheet Strength:
- Total Assets: Surged by 49% to ₦30.4 trillion, driven by significant growth in customer deposits.
- Customer Deposits: Increased by 42% to ₦21.6 trillion, reflecting enhanced customer confidence and market penetration.
- Gross Loans: Expanded by 46% to ₦10.3 trillion, indicating the bank’s commitment to supporting economic sectors.
- Capital Adequacy Ratio: Strengthened to 21.9%, well above regulatory requirements, ensuring a solid buffer against potential risks.
Industry Comparison:
While specific industry averages for 2024 are not provided, Zenith Bank’s financial ratios indicate a strong performance relative to typical industry standards. The bank’s ROAE of 37.8% and ROAA of 4.3% suggest superior profitability and asset utilization. Additionally, a cost-to-income ratio of 39.5% reflects commendable operational efficiency, and an NPL ratio of 4.5% indicates robust asset quality management.
Strategic Initiatives and Outlook:
In August 2024, Zenith Bank launched a successful capital raise program, comprising a Rights Issue and Public Offer, in response to the Central Bank of Nigeria’s recapitalization directive. The additional capital is set to enhance the bank’s ability to expand product offerings, increase lending to the real sector, and pursue both African and global expansion plans. Notably, the bank received regulatory approval in September 2024 to establish a branch in Paris, France, which is now fully operational, broadening its international footprint.
