Zenith Bank Plc has announced a rather important financial performance for the 2024 fiscal year, posting a record profit after tax of N1.03 trillion. This figure represents a 52.5% increase from the N676.9 billion reported in the previous year, underscoring the bank’s robust growth even amid challenging economic conditions. The bank also achieved a record pre-tax profit of N1.32 trillion – a 66.6% year-on-year increase – setting a new milestone in its financial history cite60†.
The bank’s earnings report reveals that gross earnings reached N3.971 trillion, an 86.28% increase compared to the prior year. A major contributor to this impressive growth was the surge in interest income, which jumped from N1.14 trillion to N2.721 trillion, reflecting a 137.74% increase. This boost was driven by an expanding loan book and significant gains from investments in government securities, such as treasury bills, as Nigerian banks continue to benefit from the prevailing high-interest-rate environment. At the same time, interest expenses also rose by nearly 143% to N992.474 billion, a reflection of the increased cost of funds in tighter monetary conditions. Despite these higher costs, Zenith’s net interest income climbed to N1.73 trillion, marking an increase of 134.85% year-on-year cite60†.
In addition to interest revenue, the bank recorded substantial contributions from non-interest sources. Net fees and commission income grew to N206.867 billion, while trading gains reached an all-time high of N1.1 trillion – almost double the N566.9 billion recorded in the previous year. These figures highlight the bank’s successful diversification of income streams. A significant portion of its earnings, approximately N3.5 trillion of the consolidated N3.97 trillion, was generated within Nigeria, with its African and European operations contributing an additional N510 billion cite60†.
Zenith Bank’s operational efficiency also improved in 2024. The cost-to-income ratio increased modestly from 27% to about 30%, primarily due to inflation-driven rises in personnel and operating expenses. The bank’s balance sheet remains exceptionally strong, with total assets growing by 47.08% to N29.958 trillion and customer deposits increasing by 44.78% to N21.959 trillion. Its shareholders’ funds expanded to N4.029 trillion, bolstered by a 127.02% rise in share capital and share premium, and a 70.89% increase in retained earnings. Notably, to comply with new minimum capital requirements set by the Central Bank of Nigeria, Zenith Bank successfully conducted a hybrid capital raise through rights and public offers that generated N343 billion. This oversubscribed offer – by 160% – increased its share capital to N614.6 billion, providing the bank with a solid foundation for future growth cite60†.
The bank’s performance is not only a result of favorable market conditions but also of strategic investments in technology and risk management. By focusing on deepening its financial inclusion and enhancing digital banking capabilities, Zenith Bank has positioned itself to capture new segments of the market. The management’s ability to reprice risk assets effectively – as seen in the impressive growth in both loan-related and treasury bill income – has reinforced the bank’s leadership status in Nigeria’s competitive banking sector.
In summary, Zenith Bank’s record-breaking 2024 results – with a profit after tax of N1.03 trillion and a pre-tax profit of N1.32 trillion – are a testament to its sound financial strategy, robust revenue diversification, and effective cost management. These achievements have cemented the bank’s reputation as one of Nigeria’s largest and most dynamic financial institutions, capable of delivering superior shareholder value even in a high-interest-rate, inflationary environment
