Zenith Bank Plc has released its audited 2024 financial year results, posting a historic N1.03 trillion profit after tax, a 52.5% surge from N676.9 billion reported in 2023. This milestone cements Zenith Bank’s position as one of Nigeria’s most profitable financial institutions.
The Group also reported a pre-tax profit of N1.32 trillion, marking a 66.6% year-on-year (YoY) increase, driven by solid growth in interest and trading income.
In addition, Zenith Bank declared a final dividend of N4.00 per share, bringing the total dividend for 2024 to N5.00 per share, up from N4.00 in 2023.
Zenith Bank Financial Highlights (YoY Comparison)
| Indicator | 2024 | YoY Change |
|---|---|---|
| Gross Earnings | N3.971 trillion | +86.28% |
| Interest Income | N2.721 trillion | +137.74% |
| Interest Expense | N992.474 billion | +142.96% |
| Net Interest Income | N1.729 trillion | +134.85% |
| Impairment Charges | N658.805 billion | +60.83% |
| Net Interest Income After Impairment | N1.070 trillion | +227.68% |
| Net Fees and Commission Income | N206.867 billion | +89.25% |
| Trading Gains | N1.100 trillion | +94.01% |
| Profit After Tax | N1.033 trillion | +52.59% |
| Basic EPS | N32.87 | +32.87% |
| Total Assets | N29.958 trillion | +47.08% |
| Customer Deposits | N21.959 trillion | +44.78% |
| Shareholders’ Fund | N4.029 trillion | +73.42% |
What Drove Zenith Bank’s Record Profitability?
Strong Interest Income Boost
Zenith Bank capitalized on Nigeria’s high-interest-rate environment, with interest income surging to N2.72 trillion, up from N1.14 trillion in 2023. This was mainly driven by:
- Interest from loans and advances: N1.52 trillion (+126% YoY)
- Income from treasury bills: N579.92 billion (+224% YoY)
Robust Non-Interest Income
- Trading Gains: N1.1 trillion (+94% YoY), the highest contributor to non-interest income.
- Net Fees and Commission: N206.87 billion (+89% YoY), supported by:
- Electronic banking fees: N80 billion
- Account maintenance charges: N73 billion
- Foreign withdrawal charges: N79 billion
Geographic Contribution
- Nigeria operations contributed N3.5 trillion to gross earnings.
- African and European subsidiaries contributed N510 billion, growing from N281.1 billion last year.
Rising Costs but Healthy Margins
Despite the record earnings, Zenith’s cost-to-income ratio rose to approximately 30% in 2024, up from 27% in 2023, driven by:
- Inflation-led increases in personnel expenses (+64.5%)
- Higher operating expenses (+100%)
Zenith Bank’s 2024 Balance Sheet Overview
Zenith Bank closed the year with total assets of N29.96 trillion, positioning itself among Nigeria’s top banks alongside Access Holdings and UBA.
Key Balance Sheet Metrics:
- Customer Deposits: N21.96 trillion (+44.78% YoY)
- Shareholders’ Fund: N4.03 trillion (+73.42% YoY)
- Retained Earnings: N2.02 trillion (+70.89% YoY)
To strengthen its capital base in line with the CBN’s new minimum capital requirements, Zenith Bank successfully raised N343 billion through a hybrid capital raise (rights and public offer), which was 160% oversubscribed, boosting its share capital to N614.65 billion.
Final Thoughts
Zenith Bank’s impressive 2024 performance showcases its resilience and ability to thrive amid Nigeria’s challenging economic landscape. Backed by solid interest and non-interest income streams and a strengthened capital base, the bank is well-positioned for continued growth in the coming years.
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