Zenith Bank Plc has released its unaudited financial results for the third quarter ending September 30, 2024. The bank reported a significant increase in gross earnings, showing a 118% rise from N1.33 trillion in Q3 2023 to N2.9 trillion in Q3 2024. This performance highlights the bank's resilience and market leadership despite challenging economic conditions.
The financial results submitted to the Nigerian Exchange (NGX) reveal that profit before tax increased by 99% year-on-year, reaching N1.0 trillion compared to N505 billion in the previous year. Profit after tax also rose by 91%, from N434.2 billion to N827 billion during the same period.
Interest income experienced a notable growth of 190%, reaching N1.95 trillion due to high-yield conditions, while non-interest income grew by 41% to N856 billion, driven by fees and commissions growth. These figures reflect Zenith Bank’s retail expansion and strong digital channel performance during this period.
Earnings per share nearly doubled, increasing from N13.82 in Q3 2023 to N26.34, demonstrating strong value creation for shareholders.
The balance sheet showed significant growth with total assets rising by 49% to N30.4 trillion, supported mainly by customer deposits which increased by 42% to N21.6 trillion across corporate and retail segments.
Gross loans grew by 46% to reach N10.3 trillion as part of the bank's commitment to supporting strategic sectors of the economy.
Zenith Bank maintained a robust capital adequacy ratio at 21.9%, above regulatory requirements, with return on average equity at 37.8% and return on average assets improving to 4.3%. The cost of funds rose to 4.3%, reflecting higher interest rates in the market while maintaining a cost of risk at 7.3%.
The bank's asset quality remains solid with a non-performing loan ratio of 4.5%, within regulatory limits, and a coverage ratio of 198.4%.
In response to the Central Bank of Nigeria’s recapitalization directive issued in March, Zenith Bank launched a capital raise program on August 1, consisting of both Rights Issue and Public Offerings which were successful pending final approvals.
This additional capital will support product expansion and deepen penetration into strategic sectors as well as enhance lending capabilities towards real sector growth along with pursuing African and global expansion plans.
In September, Zenith Bank received approval for establishing an operational branch in Paris aimed at enhancing international market offerings.
With strengthened capital reserves, Zenith Bank aims to navigate economic changes effectively while prioritizing sustainability standards within its operations alongside maintaining compliance and corporate governance practices essential for long-term growth within Nigeria’s financial sector.
Alerts Sign-up