Zenith Bank Net Profits Rises Above N1trn, Proposes N4 Final Dividend

Zenith Bank Plc has posted significant growth across its key performance indicators for the year ended December 31, 2024

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

The Bank posted a net profit of N1.033 trillion from N676.909 billion posted in the year ending December 2023.

Also, 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.

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

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

Speaking on the result, Group managing director/CEO of Zenith Bank, Dr Adaora Umeoji 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 per cent, 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 per cent 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 per cent from N919 billion to N1.1 trillion.

The Bank’s total assets grew by 47 per cent 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 per cent 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 per cent on the back of the injection of new capital, while Return on Average Assets (ROAA) remained unchanged at 4.1 per cent . The Bank’s cost-to-income increased slightly from 36.1 per cent to 38.9 per cent, despite inflationary pressures.

Its Non-Performing Loan (NPL) ratio stood at 4.7 per cent, with a coverage ratio of 223 per cent, underscoring the Bank’s prudent risk management and commitment to maintaining a resilient loan book, ensuring stability and confidence in the Bank’s operations.

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 per cent, demonstrating strong investor confidence in the Bank’s growth trajectory.

Zenith Bank said “the proceeds from this capital raise will be strategically deployed to enhance technology infrastructure, strengthen liquidity, and support the Bank’s expansion into key African markets, unlocking new growth opportunities.

“The bank remains focused on delivering sustainable growth, enhancing shareholder value, and driving financial inclusion through innovative banking solutions. With its solid capital base and innovative product offerings, the Bank is well-positioned to navigate evolving market conditions while continuing to strengthen its leadership in the Nigerian financial landscape.”