Zenith Bank Posts 118% Revenue Surge, Strengthens Market Lead

Zenith Bank Plc has posted impressive third-quarter results for the period ending September 30, 2024, recording a remarkable 118% increase in revenue to N2.9 trillion, up from N1.33 trillion in Q3 2023. 

This exceptional growth underscores Zenith’s resilience and confirms its position as a leader in Nigeria’s banking industry, despite a challenging economic environment.

The Bank’s unaudited financials presented to the Nigerian Exchange (NGX) reveal significant growth across key performance metrics. Profit before tax soared by 99% year-on-year (YoY), rising from N505 billion in Q3 2023 to N1.0 trillion in Q3 2024, while profit after tax increased by 91%, reaching N827 billion.

Zenith Bank attributes this growth to a substantial rise in both interest income and non-interest income, with interest income surging 190% to N1.95 trillion due to high yields in the current economic landscape. 

Non-interest income also saw a 41% increase, driven by strong gains in fees and commissions, reflecting Zenith’s expanded retail reach and the robust performance of its digital channels. Shareholders’ value also appreciated significantly, as earnings per share (EPS) nearly doubled from N13.82 in Q3 2023 to N26.34.

In terms of balance sheet strength, Zenith Bank’s total assets rose 49% to N30.4 trillion, with customer deposits growing by 42% to N21.6 trillion, a testament to the Bank’s strong customer base and loyalty. Additionally, gross loans increased by 46% to N10.3 trillion, demonstrating the Bank’s commitment to supporting strategic sectors.

Capital adequacy improved to 21.9%, well above regulatory benchmarks, while return on average equity (ROAE) and return on average assets (ROAA) stood at 37.8% and 4.3%, respectively. These robust indicators highlight Zenith Bank’s solid operational foundation and prudent risk management, with a cost-to-income ratio of 39.5%, a reflection of its strategic investment in technology and capacity building. The Bank’s non-performing loan (NPL) ratio is maintained at 4.5%, demonstrating strong asset quality and a high coverage ratio of 198.4%.

In line with its growth agenda, Zenith Bank launched a capital raise program on August 1, 2024, driven by the Central Bank of Nigeria’s recapitalization mandate. The Rights Issue and Public Offer, which saw positive investor response, will empower the Bank to deepen lending in the real sector and drive its African and global expansion. Notably, Zenith Bank recently established a branch in Paris, France, positioning it to serve clients in international markets.

With a fortified capital base, Zenith Bank is well-equipped to navigate economic shifts, committed to sustainable growth, corporate governance, and stakeholder value creation as it solidifies its market leadership within Nigeria and beyond.

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By LekanOlofinsusi