Zenith Bank PAT soars above N1trn, proposes N4/share final dividend

ZENITH Bank Plc has announced its audited financial results for the year ended December 31, 2024, delivering significant growth across key performance indicators.

The Bank’s impressive performance reflects effective management and pricing of its risk assets, as well as an optimised treasury portfolio, reinforcing its position as a leader in Nigeria’s banking industry.

According to the audited financial results for the 2024 financial year presented to the Nigerian Exchange (NGX), the Bank recorded a double-digit year-on-year (YoY) growth of 86 percent in gross earnings, increasing from N2.13 trillion in 2023 to N3.97 trillion in 2024.

This growth was driven by a 138 percent increase in interest income, supported by investment in high-yield government securities, and growth in the Bank’s loan book.

Commenting on the results, Dame Dr Adaora Umeoji OON, Group Managing Director/CEO, stated “This year’s performance underscores our unwavering commitment to innovation and customer-centric solutions. We will also remain focused on deepening financial inclusion, enhancing service delivery, and creating value for our customers and stakeholders.

Zenith Bank’s profit before tax (PBT) rose by 67 percent, reaching N1.3 trillion in 2024 from N796 billion in 2023, driven by a combination of top-line expansion and efficient treasury portfolio management. Net interest income increased by 135 percent from N736 billion in 2023 to N1.7 trillion, reinforcing the Bank’s strong core banking performance and ability to grow earnings despite macroeconomic headwinds. Non-interest income also grew by 20 percent from N919 billion to N1.1 trillion.

The Bank’s total assets grew by 47 percent from N20 trillion in 2023 to N30 trillion in 2024, underpinned by a strong liquidity position and effective balance sheet management. Customer deposits surged by 45 percent from N15 trillion to N22 trillion in 2024, reflecting a historically strong corporate deposits portfolio and a sustained increase in retail deposits. The increase in retail deposits was driven by customer acquisition and the Bank’s strategic focus on low-cost funding.

Return on Average Equity (ROAE) declined to 32.5 percent on the back of the injection of new capital, while Return on Average Assets (ROAA) remained unchanged at 4.1 percent. The Bank’s cost-to-income increased slightly from 36.1 percent to 38.9 percent, despite inflationary pressures. Its Non-Performing Loan (NPL) ratio stood at 4.7 percent, with a coverage ratio of 223 percent, underscoring the Bank’s prudent risk management and commitment to maintaining a resilient loan book, ensuring stability and confidence in the Bank’s operations.

Given the good earnings performance, the Bank has proposed a final dividend of N4.00 per share, which brings the total dividend for the year to N5.00 per ordinary share.

In a significant milestone, Zenith Bank successfully raised N350 billion in capital through a rights issue and public offer, with a subscription rate of 160 percent, demonstrating strong investor confidence in the Bank’s growth trajectory. The proceeds from this capital raise will be deployed to enhance technology infrastructure, strengthen liquidity, and support the Bank’s expansion into key African markets, unlocking new growth opportunities.

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