Zenith Bank’s nine-month net profit hits N827 billion, as interest income almost triples

Zenith Bank Plc has reported a Profit After Tax (PAT) of N827 billion for the nine months ending September 30, 2024 (9M 2024), reflecting a 91 per cent year-on-year increase from the N434.2 billion recorded in the same period of 2023.

The bank’s N2.9 trillion gross earnings during 9M 2024 marked a 118 per cent YoY growth from the N1.3 trillion gross earnings posted in 9M 2023. It also marks the highest revenue generated by any Nigerian business during the nine-month period.

Zenith Bank’s earnings were helped by a record high interest rate as the group’s interest income during the period under review was N1.9 trillion, representing a 190 per cent YoY growth from the N670.9 billion recorded in 9M 2023.

The group posted a net interest income of N1.3 trillion, marking a 208 per cent YoY improvement from the N415.2 billion posted in 9M 2023. Zenith Bank’s interest income from loans and advances during the nine months was N1.07 trillion, which was 163 per cent YoY higher than the N408.7 billion posted in 9M 2023.

After provisioning about N477.8 billion as expected credit losses, the group’s net interest income hit N802.9 billion, representing a 291 per cent YoY increase from the N205.2 billion recorded in 9M 2023.

The substantial rise in interest income from customer loans underscores the surge in interest rates, with the group’s lending increasing by 63 per cent year-over-year—reaching N9.4 trillion by the end of 9M 2024, up from N5.8 trillion in the corresponding period of 2023.

In 9M 2024, the bank’s pre-tax profit was N1 trillion, boosted by its N686.3 billion trading gains, which appreciated by 439 per cent YoY from N127.4 billion as of 9M 2023.

The group’s total assets hit N30.4 trillion at the end of the period, marking a 49 per cent growth year-to-date from the N20.4 trillion recorded at the start of the year. During the period, the bank’s placement with central banks hit N5.4 trillion, marking a 26 per cent increase from the N4.3 trillion at the start of the year.

However, its placement with other banks in Nigeria and outside Nigeria hit N5.6 trillion, marking a whopping 206 per cent growth from N1.8 trillion as of the start of 2024.

Zenith Bank’s placements in foreign banks during the nine months hit N2.3 trillion, up 127 per cent from N997.7 billion at the start of the year.

Customers’ deposits at the end of 9M 2024 was N21.6 trillion, marking a 42 per cent appreciation from N15.2 trillion at the start of the year.

The group’s shareholders fund also appreciated by 51 per cent year-to-date to hit N3.5 trillion, from N2.3 trillion at the start of the year. As the group’s retained earnings appreciated by 54 per cent during the year to hit N1.8 trillion, from N1.2 trillion at the start of 2024.