Zenith Bank Reports Record-Breaking H1 2024 Results: Gross Earnings Surge to N2.1 Trillion Amidst Economic Challenges

Zenith Bank Reports Record-Breaking H1 2024 Results: Gross Earnings Surge to N2.1 Trillion Amidst Economic Challenges

 This remarkable growth represents a 117% increase from the N967.3 billion reported during the same period in 2023. Despite the challenging macroeconomic environment in Nigeria, the bank has maintained its position as a top performer in the industry. The half-year results highlight Zenith Bank’s continued strength, with both its profit before tax and earnings per share reflecting substantial growth.

Impressive Growth in Gross Earnings and Profitability

Zenith Bank’s audited financial report for the half-year ending 30th June 2024 reveals a 108% increase in profit before tax, rising from N350 billion in H1 2023 to N727 billion in H1 2024. The bank’s profit after tax also experienced a significant leap, increasing by 98%, from N292 billion to N578 billion. These results reflect Zenith Bank’s strategic focus on operational efficiency and robust risk management practices.

The bank’s earnings per share (EPS) soared by 98% to N18.41 from N9.29, further underlining its impressive profitability during the first half of 2024. This triple-digit growth in gross earnings and profitability positions Zenith Bank among the top banks in the country, as it continues to navigate the volatile economic landscape successfully.

Revenue Growth Driven by Interest and Non-Interest Income

A key driver behind Zenith Bank’s impressive performance in H1 2024 has been the robust growth in both interest and non-interest income. Interest income, fueled by increased lending and improved risk asset pricing, surpassed the N1 trillion mark, growing by an astounding 177%. The bank recorded N1.1 trillion in interest income, up from N415.4 billion in H1 2023. Meanwhile, non-interest income also saw a significant rise, growing by 74% from N515.7 billion to N899.3 billion during the period.

Despite the challenging macroeconomic conditions, the bank continued to focus on managing costs, which resulted in only a marginal increase in its cost-to-income ratio from 38.5% to 39.4%. The rise in interest expense, from N153.6 billion in H1 2023 to N434.4 billion in H1 2024, was driven by the high-interest rate environment. However, Zenith Bank’s net interest margin improved by 49%, demonstrating the bank’s ability to effectively reprice its interest-earning assets and liabilities.

Steady Asset and Deposit Growth

Zenith Bank’s total assets grew by an impressive 35%, increasing from N20.4 trillion in December 2023 to N27.6 trillion by June 2024. The bank also witnessed a substantial growth in customer deposits, which rose by 29% from N15.2 trillion in December 2023 to N19.6 trillion in June 2024. This growth in deposits reflects Zenith Bank’s strong customer base and the trust placed in its financial services.

The bank’s loan portfolio also grew significantly, with gross loans increasing by 44% to N10.2 trillion as of June 2024. Despite the challenging economic climate, Zenith Bank’s non-performing loan ratio remained relatively stable, rising only slightly from 4.4% in December 2023 to 4.5% in June 2024. This is a testament to the bank’s stringent risk acceptance criteria, ensuring that it maintains the quality of its loan book.

Commitment to Shareholders and Expansion Plans

Zenith Bank remains committed to delivering value to its shareholders, and this is evident in its declaration of an interim dividend of N1.00 per share for the half-year. This payout marks the highest interim dividend in the bank’s history and sets a new record for the Nigerian banking sector.

The bank also continues to expand its international footprint, with the recent regulatory approval for the establishment of a new branch in Paris, France. This expansion into new geographies will enhance Zenith Bank’s product offerings in international markets, further strengthening its global presence.

Awards and Recognition

Zenith Bank’s track record of excellence has earned it numerous awards and recognitions, cementing its position as a leader in the Nigerian banking industry.

The bank has been named the Number One Bank in Nigeria by Tier-1 Capital for fifteen consecutive years by The Banker Magazine in its 2024 Top 1000 World Banks Ranking.

Other accolades include Best Bank in Nigeria in the Global Finance World’s Best Banks Awards for 2024 and Most Sustainable Bank, Nigeria in the International Banker 2024 Banking Awards.

In addition to these awards, Zenith Bank was also recognized for its commitment to good corporate governance, receiving the Best Corporate Governance Bank, Nigeria award for three consecutive years from 2022 to 2024 by the World Finance Corporate Governance Awards. These recognitions highlight the bank’s dedication to excellence in both its operations and governance.

Zenith Bank Plc’s H1 2024 financial performance underscores its resilience and capacity to deliver value to its shareholders, even in a challenging economic environment. With its strong growth in gross earnings, profitability, and assets, coupled with its ongoing expansion efforts and commitment to operational efficiency, the bank remains well-positioned for future success.