Zenith Bank Plc has announced its unaudited results for the first quarter ended 31st March 2024, showcasing impressive financial growth amid challenging market conditions. According to Zenith Bank, the submitted unaudited statement of account to the Nigerian Exchange (NGX) on May 3, 2024, highlighted significant progress in both the top and bottom lines.
Interest income played a crucial role in the bank's success, with Zenith Bank noting a substantial 155% growth from the previous year. This growth in interest income, reaching ₦489 billion in Q1 2024, was attributed to various factors, including the repricing of risk assets in response to the central bank's Monetary Policy Rate adjustments.
Additionally, Zenith Bank reported a notable increase in impairment charges for Q1 2024 compared to the previous year, with an amount of ₦56 billion recorded. This rise was primarily driven by the revaluation of USD loans, leading to additional impairments on foreign currency-denominated loans.
Despite facing a high-interest rate environment that impacted the cost of funds, Zenith Bank managed to maintain a healthy net interest margin and saw growth in key financial metrics. The bank's gross loans grew by 30% to ₦9.2 trillion, supported by a 11% increase in customer deposits to ₦16.8 trillion, reflecting continued customer trust in the Zenith brand.
Zenith Bank emphasized its commitment to financial prudence, highlighting that all prudential ratios remained well above regulatory requirements. The Capital Adequacy Ratio (CAR) and Liquidity Ratio stood at 20% and 67%, respectively, underscoring the bank's strong and liquid balance sheet.
Looking ahead, Zenith Bank expressed optimism about meeting the new minimum capital requirements set by the Central Bank of Nigeria (CBN) and is actively working on a capital raise to support future growth. The bank's ongoing transition to a holding company structure and focus on technology advancements position it to create value for its stakeholders in the future.
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