Zenith Bank Plc has reported an impressive financial performance in its unaudited results for the third quarter ended September 30, 2024.
Despite a challenging macroeconomic environment, the bank demonstrated resilience, achieving a triple-digit growth rate of 118 percent in revenue, climbing from N1.33 trillion in Q3 2023 to N2.9 trillion in Q3 2024. This growth underscores Zenith Bank’s strong market position and adaptability.
According to the financial results presented to the Nigerian Exchange (NGX), the significant rise in the bank’s topline was accompanied by a 99 percent increase in profit before tax (PBT), which grew from N505 billion in Q3 2023 to N1 trillion in Q3 2024. Profit after tax also surged, increasing by 91 percent from N434.2 billion to N827 billion over the same period.
The growth in revenue was driven by increases in both interest and non-interest income. Interest income surged by 190 percent to N1.95 trillion, benefiting from the high-yield environment. Meanwhile, non-interest income rose from 41 percent to N856 billion, supported by significant growth in fees and commissions. This robust performance highlights Zenith Bank’s retail expansion and the strong results from its digital channels.
The bank’s profitability was further strengthened by its focus on operational efficiency and rigorous risk management practices. Earnings per share (EPS) nearly doubled, rising from N13.82 in Q3 2023 to N26.34, reflecting substantial value creation for shareholders.
Zenith Bank’s balance sheet also saw substantial growth, with total assets increasing by 49 percent to N30.4 trillion. This growth was largely driven by customer deposits, which rose 42 percent to N21.6 trillion, demonstrating strong customer loyalty across both corporate and retail segments. Gross loans expanded by 46 percent to N10.3 trillion, showcasing Zenith Bank’s commitment to supporting critical sectors of the economy.
The bank’s capital adequacy ratio remained robust at 21.9 percent, well above regulatory requirements. Return on average equity (ROAE) improved to 37.8 percent, up from 35.1 percent, while return on average assets (ROAA) reached 4.3 percent. Though cost of funds increased to 4.3 percent amid rising interest rates, the bank maintained its cost of risk at 7.3 percent, reflecting a proactive approach to credit risk management.
Zenith Bank’s asset quality continues to be a strength, with a non-performing loan (NPL) ratio of 4.5 percent, within regulatory limits, and a high coverage ratio of 198.4 percent, underscoring disciplined risk management.
In line with its commitment to sustainable growth, Zenith Bank launched a capital raise program on August 1, 2024, to meet the Central Bank of Nigeria’s recapitalization directive. The successful fundraising, which included a Rights Issue and Public Offer, will enable the bank to expand product offerings, increase lending to strategic sectors, and pursue its African and global growth objectives. Additionally, Zenith Bank’s recent regulatory approval for a branch in Paris, France, marks an important step in its international expansion.
With a bolstered capital base, Zenith Bank is well-positioned to navigate Nigeria’s evolving economic landscape, prioritize sustainable practices, and pursue initiatives that create long-term value for stakeholders. The bank’s commitment to strong corporate governance and compliance will continue to drive its leadership within Nigeria’s financial sector.
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