Nigeria’s elitist bank, Zenith Bank Plc continues to maintain its lead in the nation’s financial sector with a huge profit margin for the year 2024
Zenith Bank Plc is viewed as the best bank in the country in regards to its sterling services and profit margins year-in-year-out. The bank has recently announced and audited financial results for the year ended December 31, 2024, delivering a significant growth across key performance indicators.
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 per cent in gross earnings, increasing from N2.13 trillion in 2023 to N3.97 trillion in 2024. 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.
Commenting on the results, the Group Managing Director/Chief Executive Officer (MD/CEO), of Zenith Bank, Dr Adaora Umeoji, said: “This year’s performance underscores our unwavering commitment to innovation and customer-centric solutions. We 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 in 2024, 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.
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 per cent, demonstrating strong investor confidence in the Bank’s growth trajectory. The bank said that proceeds from this capital raise would be strategically deployed to enhance technology infrastructure, strengthen liquidity, and support the Bank’s expansion into key African markets, unlocking new growth opportunities.
Zenith Bank said it remained 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 also well-positioned to navigate evolving market conditions while continuing to strengthen its leadership in the Nigerian financial landscape.
Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking, published by The Banker Magazine.
