Zenith Bank’s 2024 financial year concluded with a resounding success, marked by a remarkable surge in profitability and robust growth across key performance indicators. The bank’s profit before tax soared by an impressive 67%, reaching N1.3 trillion compared to N796 billion in 2023. This outstanding achievement was attributed to the bank’s astute management of risk assets, effective pricing strategies, and an optimized treasury portfolio. These strategic initiatives allowed Zenith Bank to capitalize on market opportunities and navigate economic challenges effectively, ultimately driving substantial profit growth. The bank’s gross earnings equally witnessed a significant upswing, increasing by 86% to N3.97 trillion, fueled primarily by a 138% surge in interest income. This remarkable growth in interest income was supported by strategic investments in high-yield government securities and a notable expansion of the bank’s loan book.
The bank’s core banking operations exhibited exceptional strength, as evidenced by a 135% increase in net interest income, reaching N1.7 trillion from N736 billion in the previous year. This robust performance demonstrated Zenith Bank’s ability to generate substantial earnings even amidst macroeconomic headwinds. Non-interest income also contributed to the overall positive financial performance, growing by 20% to reach N1.1 trillion. This diversification of income streams further solidified the bank’s financial stability and resilience. The combined growth in both interest and non-interest income underscores the effectiveness of Zenith Bank’s diversified business model and its ability to capitalize on various revenue-generating avenues.
Zenith Bank’s total assets experienced significant growth, expanding by 47% to reach N30 trillion, reflecting the bank’s prudent balance sheet management and strong liquidity position. Customer deposits also witnessed substantial growth, increasing by 45% to N22 trillion, driven by a historically robust corporate deposits portfolio and a sustained increase in retail deposits. This growth in retail deposits highlights the bank’s successful customer acquisition strategies and its strategic focus on low-cost funding. The bank’s robust liquidity position, coupled with the growth in customer deposits, provides a solid foundation for future expansion and investment opportunities.
Despite the injection of new capital, which impacted return on average equity, declining to 32.5%, return on average assets remained stable at 4.1%. The cost-to-income ratio increased slightly to 38.9% from 36.1%, primarily due to inflationary pressures. However, the bank maintained a healthy non-performing loan ratio of 4.7%, with a coverage ratio of 223%. This demonstrates Zenith Bank’s commitment to prudent risk management and maintaining a resilient loan book, ensuring stability and confidence in the bank’s operations.
In recognition of its strong financial performance, Zenith Bank proposed a final dividend of N4.00 per share, bringing the total dividend for the year to N5.00 per ordinary share. This generous dividend payout reflects the bank’s commitment to rewarding its shareholders and sharing the benefits of its success. Dr. Adaora Umeoji, the Group Managing Director/Chief Executive Officer, attributed the bank’s exceptional performance to its unwavering commitment to innovation and customer-centric solutions. She emphasized the bank’s continued focus on deepening financial inclusion, enhancing service delivery, and creating value for customers and stakeholders.
A significant milestone for Zenith Bank in 2024 was the successful capital raise of N350 billion through a rights issue and public offer, which was oversubscribed by 160%. This overwhelming response from investors demonstrates strong confidence in the bank’s growth trajectory and future prospects. The proceeds from this capital raise will be strategically deployed to enhance technology infrastructure, further strengthen liquidity, and support the bank’s expansion into key African markets, unlocking new growth opportunities. Zenith Bank’s consistent focus on innovation, coupled with its robust financial 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 2024 Top 1000 World Banks Ranking, published by The Banker Magazine. This prestigious recognition further solidifies Zenith Bank’s leading position in the Nigerian financial landscape.
