In the third quarter of 2024, Zenith Bank reported an impressive profit before tax of N1 trillion, marking a staggering 99% increase from N505 billion during the same period in the previous year. This exceptional growth comes alongside a significant surge in gross earnings, which rose by 118% to N2.9 trillion, as outlined in their unaudited results submitted to the Nigerian Exchange Limited. Despite facing a challenging operating environment in Nigeria, the bank’s results reflect robust financial health and strategic execution. The surge in profitability demonstrates not just resilient performance but also a well-managed approach to navigating economic pressures.
The growth was notable in both top-line categories of income: interest and non-interest earnings. Zenith Bank saw its interest income increase dramatically by 190% to N1.95 trillion, driven primarily by a high-yield interest rate environment that has been supportive of banks in Nigeria. Meanwhile, non-interest income also showed significant improvement with a 41% rise to N856 billion, spurred by a marked increase in fees and commissions. Profit after tax also saw a solid increase of 91% to N827 billion, reinforcing the institution’s commitment to delivering substantial returns to its shareholders.
Highlighting the bank’s operational efficiency and risk management, earnings per share nearly doubled, climbing to N26.34 from N13.82. Additionally, Zenith Bank’s balance sheet demonstrated substantial growth, with total assets escalating by 49% to N30.4 trillion. This growth is largely attributed to an increase in customer deposits, which rose by 42% to N21.6 trillion. The deposit growth was broad-based, encompassing both corporate and retail segments, indicating a deepening customer relationship and loyalty that bodes well for the bank’s future prospects. Furthermore, gross loans issued by the bank increased by 46% to N10.3 trillion, reflecting its commitment to supporting vital sectors of the Nigerian economy.
In response to regulatory directives, Zenith Bank initiated a capital-raising program on August 1, 2024, involving both a rights issue and a public offer. This move was driven by the Central Bank of Nigeria’s notice regarding the need for commercial banks to recapitalize, issued in March 2024. While the bank awaits final verification of this capital raise from regulatory authorities, initial signs of successful fundraising indicate strong market confidence in the Zenith Bank brand and its operational practices.
The additional capital generated from the amassing efforts is set to significantly enhance the bank’s ability to broaden its product offerings and deepen engagement in strategic economic sectors. Moreover, this capital injection is anticipated to enable Zenith Bank to increase its lending capabilities, especially within the real sector, further supporting its ambitious expansion plans both within Africa and globally. In September 2024, the bank achieved another milestone as it received regulatory approval for a new branch in Paris, France, which is now fully operational, thereby enhancing its services and product offerings within the international marketplace.
Overall, Zenith Bank’s remarkable Q3 performance not only underscores its robust financial health but also sets the stage for aggressive growth strategies and expanded operations in both local and international markets. As the bank continues to build on its strong momentum and capitalize on emerging opportunities, it is poised to enhance its presence and remain a dominant player in the banking sector.
