Zenith Bank Plc has announced its unaudited financial results for the third quarter ending September 30, 2024, showcasing a remarkable 118% increase in revenue, which surged from N1.33 trillion in Q3 2023 to N2.9 trillion in Q3 2024. This strong performance underscores Zenith Bank’s resilience and leadership in a challenging economic landscape.
The bank’s impressive topline growth led to a 99% year-on-year increase in profit before tax, rising from N505 billion in Q3 2023 to N1 trillion in Q3 2024. Profit after tax also saw a significant boost, climbing by 91% to N827 billion. The results, presented to the Nigerian Exchange (NGX), reflect substantial progress in both interest and non-interest income streams. Interest income skyrocketed by 190% to N1.95 trillion, benefiting from a high-yield environment, while non-interest income increased by 41% to N856 billion, driven by strong performance in fees and commissions that highlight the bank’s retail growth and digital expansion. Earnings per share nearly doubled to N26.34, reinforcing Zenith’s commitment to shareholder value.
Zenith Bank’s balance sheet expanded significantly, with total assets growing by 49% to N30.4 trillion. Customer deposits rose by 42% to N21.6 trillion, indicating deepening customer loyalty across corporate and retail segments. Gross loans increased by 46% to N10.3 trillion, reflecting the bank’s dedication to supporting essential economic sectors. The capital adequacy ratio strengthened to 21.9%, exceeding regulatory requirements, while return on average equity (ROAE) rose to 37.8%, and return on average assets (ROAA) stood at 4.3%, maximizing asset performance. Although the cost of funds increased to 4.3% in line with higher market rates, the cost of risk remained steady at 7.3%, showcasing the bank’s commitment to proactive risk management. Strategic investments in technology and capacity building led to a cost-to-income ratio of 39.5%, signaling Zenith’s forward-looking growth initiatives.
Zenith Bank’s asset quality remains a cornerstone of its stability, with a non-performing loan (NPL) ratio of 4.5% and a coverage ratio of 198.4%, reinforcing disciplined risk management practices.
In response to the Central Bank of Nigeria’s recapitalization directive, Zenith Bank launched a capital raise on August 1, 2024, through a successful Rights Issue and Public Offer, reflecting strong investor confidence. This capital infusion is expected to support the bank’s expansion into new sectors, enhance lending to the real sector, and fuel its broader ambitions across Africa and globally. Additionally, Zenith received regulatory approval in September 2024 for a new branch in Paris, France, further solidifying its international presence.
With a strengthened capital base, Zenith Bank is well-positioned to navigate evolving economic landscapes, maintaining sustainability as a core tenet of its business strategy. The bank remains dedicated to enhancing stakeholder value through sound governance and a robust compliance culture, solidifying its leadership in Nigeria’s financial sector and laying the groundwork for sustained, long-term growth.
