Business

Zenith Bank’s profit after tax soars to N1.033 trillion in 2024

Share on
0
In the 2024 financial year, Zenith Bank reported a profit after tax of N1.033 trillionThe profit after tax of Nigeria’s Tier-1 bank, Zenith Bank, surged to N1.033 trillion in 2024
  • Zenith Bank’s profit after tax soared to N1.033 trillion in 2024 from the N676.9 billion reported in 2023
  • It recorded a 66.6 per cent increase in profit before tax to N1.32 trillion
  • The bank said the 2024 financial year results show its commitment to innovation and customer-centric solutions

Zenith Bank Plc recorded a 52.5 per cent year-on-year increase in profit after tax to N1.033 trillion from the N676.9 billion reported in 2023.

This is according to the bank’s audited financial results for the 2024 financial results for the 2024 financial year presented to the Nigerian Exchange (NGX).

The result also showed that the banks reported a 66.6 per cent increase year-on-year in profit before tax of N1.32 trillion, which is also a record for the bank.

The bank’s gross earnings also recorded a double-digit year-on-year increase, increasing by 86.28 per cent from N2.13 trillion in 2023 to N3.971 trillion in 2024.

The growth in gross earnings was driven by a 137.74 per cent increase in interest income to N2.721 trillion supported by investment in high-yield government securities and growth in the bank’s loan book.

Key highlights of Zenith Bank’s 2024 financial results

Further analysis of Zenith Bank’s 2024 financial year results showed that interest expense increased by 142.96 per cent year-on-year to N992.474 billion.

Its net interest income increased by 135 per cent from N736 billion in 2023 to N1.7 trillion, while non-interest income 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, and customer deposits increased by 45 per cent from N15 trillion to N22 trillion in 2024.

Return on Average Equity (ROAE) dropped to 32.5 per cent following the injection of new capital, while Return on Average Assets (ROAA) remained unchanged at 4.1 per cent.

Despite inflationary pressures, the bank’s cost-to-income saw a marginal increase from 36.1 per cent to 38.9 per cent, and its Non-Performing Loan (NPL) ratio stood at 4.7 per cent, with a coverage ratio of 223 per cent.

Share capital and share premium increased by 127.02 per cent year-on-year to N614.648 billion; retained earnings grew to N2.016 trillion, a 70.89 per cent increase year-on-year; and shareholders’ fund increased by 73.42 per cent year-on-year to N4.029 trillion.

Most of the bank’s income was generated within Nigeria, accounting for N3.5 trillion out of the N3.97 trillion in net consolidated revenue. Income from its African and European operations increased to N510 billion, up from N281.1 billion in 2023.

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.

‘Results show commitment to innovation, customer-centric solutions’

In her comments on the results, the Group Managing Director/Chief Executive Officer (GMD/CEO) of Zenith Bank, Dame Dr Adaora Umeoji, said the bank’s 2024 financial year results are evidence of its commitment to innovation and developing solutions that resonate with its customers.

“This year’s performance underscores our unwavering commitment to innovation and customer-centric solutions.
“We will also remain focused on deepening financial inclusion, enhancing service delivery, and creating value for our customers and stakeholders,” Umeoji said.

9 out of 25 Nigerian banks among Africa’s largest lenders by Tier 1 capital, total assets

Meanwhile, TheRadar earlier reported that Zenith Bank was among the nine out of 25 Nigerian banks on the list of Africa’s largest lenders by Tier 1 capital and total assets.

This was revealed by The Banker’s 2024 Top 100 African Banks, indicating that only 36 per cent of Nigerian banks have enough capital to be classified as tier 1 banks in Africa.

Share on
avatar
Nchetachi Chukwuajah Admin

Nchetachi Chukwuajah is a multimedia journalist with over five years of experience covering business, economy, climate change, environment, gender and social issues. She has worked as a Television Reporter and Presenter; one of the Nigerian correspondents for Youth Journalism International (YJI), Maine, USA, and a Senior Reporter with the Nigerian Tribune. Nchetachi is skilled in information management and copy editing. She is a Freelance Writer with TheRadar

Comments ()

Share your thoughts on this post

Loading...

Similar Posts

Never get outdated, subscribe now.

By subscribing, you will get daily, insightful updates of what you need to know in the news, as regarding politics, lifestyle, entertainment and cryptocurrency. You can always cancel it whenever you wish.

Social:

Subscribe now.

Category