Zenith Bank Grows Profit To N827bn In Q3

Zenith Bank Plc has announced a Profit after tax of N827 billion in nine months, growing by 91 per cent from N434.2 billion in the same period of last year.

The profit growth contained in its unaudited results for the third quarter ended 30 September 2024, is made possible by the tN2.9 trillion earnings in the third quarter of 2024, a growth of 118 per cent over the N1.33 trillion reported in Q3 2023, underscoring the Group’s resilience and market leadership despite the challenging macroeconomic environment.

According to the Bank’s unaudited third-quarter financial results presented to the Nigerian Exchange (NGX), the Group recorded a 99 per cent Year on Year (YoY) increase in profit before tax, growing from N505 billion in Q3 2023 to N1.0 trillion in Q3 2024.

The growth in the topline was driven by the 190 per cent rise in Interest income, bringing it to N1.95 trillion, attributed to the high-yield environment. Non-interest income rose by 41 per cent to N856 billion, bolstered by substantial growth in fees and commissions, highlighting the strength of Zenith Bank’s retail growth and the robust performance of its digital channels during the reporting period. The robust increase in profitability reflects the Bank’s focus on operational efficiency and strong risk management practices. Earnings per share (EPS) nearly doubled, rising to N26.34 from N13.82 in Q3 2023, underscoring Zenith Bank’s strong value creation for shareholders.

The Bank’s balance sheet grew significantly, with total assets growing by 49 per cent to N30.4 trillion, largely supported by customer deposits, which rose by 42 per cent to N21.6 trillion. This was broad-based across corporate and retail segments, highlighting the Bank’s deepening reach and customer loyalty. Gross loans increased by 46 per cent to N10.3 trillion, underscoring the commitment to supporting strategic sectors in the economy.

The capital adequacy ratio remained strong, improving to 21.9 per cent, well above regulatory requirements. The return on average equity (ROAE) stood at 37.8 per cent, up from 35.1 per cent, while the return on average assets (ROAA) also improved to 4.3 per cent as Zenith Bank maximised its asset base. The cost of funds increased to 4.3 per cent, reflecting the broader market trend of rising interest rates, while the credit risk was maintained at 7.3 per cent, underscoring the Bank’s proactive approach in provisioning for credit risk.

The Bank’s cost-to-income ratio rose to 39.5 per cent, reflecting the impact of strategic investments in technology and capacity building for long-term growth, and for greater operational efficiency.

Zenith Bank’s asset quality remains a cornerstone of its strength, following a non-performing loan (NPL) ratio of 4.5 per cent, within regulatory limits. A high coverage ratio of 198.4 per cent underscores the Bank’s disciplined approach to risk management, positioning it for resilience in the face of market volatility while supporting stable loan growth.

Zenith Bank remains steadfast in its commitment to sustainable growth and value creation. The Bank launched a capital raise program on August 1, 2024, consisting of a combined Rights Issue and Public Offer. This capital raise was driven by the Central Bank of Nigeria (CBN)’s recapitalisation directive for commercial banks issued in March 2024. The Bank awaits the final capital verification approvals of the successful fundraising exercise reflecting strong confidence in Zenith Bank’s brand.

The additional capital will enhance the Bank’s ability to expand its product offerings, deepen its penetration in strategic sectors, boost lending to the real sector and pursue its African and global expansion plan.  In furtherance of this, the Bank in September 2024 received regulatory approval for the establishment of a Zenith Bank branch in Paris, France, which is fully operational and will enhance the Bank’s product offerings in international markets.