Olufemi Adeyemi 


Zenith Bank Plc has released its audited financial results for the half-year period ending 30 June 2024, showcasing a remarkable triple-digit growth of 117% in gross earnings, rising from N967.3 billion in H1 2023 to N2.1 trillion in H1 2024. This outstanding achievement comes amidst a challenging macroeconomic landscape for the Nigerian banking sector.

As detailed in the bank’s audited half-year financial results submitted to the Nigerian Exchange (NGX) on Friday, 30th August 2024, the significant increase in gross earnings also positively impacted the bottom line, with the Group reporting a 108% Year on Year (YoY) rise in profit before tax, escalating from N350 billion in H1 2023 to N727 billion in H1 2024.

Profit after tax experienced a substantial growth of 98%, increasing from N292 billion to N578 billion during the same timeframe. Consequently, earnings per share (EPS) rose by 98%, from N9.29 in H1 2023 to N18.41 in the reviewed period. The surge in gross earnings was primarily fueled by a notable increase in both interest income and non-interest income.

Driven by the expansion of risk assets and effective pricing strategies, interest income exceeded N1 trillion, marking a record for the half-year period. It surged by 177%, increasing from N415.4 billion in H1 2023 to N1.1 trillion in H1 2024, while non-interest income rose by 74%, from N515.7 billion to N899.3 billion.

The Group maintained its focus on operational efficiency, leading to a slight rise in the cost-to-income ratio Year on Year (YoY) from 38.5% to 39.4%. The challenging risk landscape has contributed to an increase in impairment levels, resulting in a modest rise in the cost of risk from 8.8% to 9.7%.

Additionally, the cost of funds increased Year on Year (YoY) from 2.6% to 4.4% due to the prevailing high-interest rate environment. This led to a rise in interest expenses from N153.6 billion in H1 2023 to N434.4 billion in H1 2024. Nevertheless, the net interest margin improved by 49%, climbing from 5.9% in H1 2023 to 8.8% in H1 2024, highlighting the effective repricing of interest-earning assets and liabilities.

Total assets increased by 35%, rising from N20.4 trillion in December 2023 to N27.6 trillion in June 2024. Customer deposits also saw a significant rise of 29%, moving from N15.2 trillion in December 2023 to N19.6 trillion in June 2024.

Additionally, gross loans surged by 44%, climbing from N7.1 trillion in December 2023 to N10.2 trillion in June 2024, driven by customer loan disbursements and the impact of foreign currency-denominated loans.

The Group's rigorous risk acceptance criteria have contributed to a modest increase in the non-performing loan ratio, which rose from 4.4% in December 2023 to 4.5% in June 2024, despite a challenging macroeconomic landscape.

The capital adequacy ratio improved from 21.7% in December 2023 to 23% in June 2024, while the loan-to-deposit ratio increased by 11%, from 46.5% to 51.7%.

Conversely, the liquidity ratio decreased from 71% to 59% during this period, with all prudential ratios remaining well above regulatory requirements.

To enhance shareholder value, the Group has declared an interim dividend of N1.00 per share, marking the highest half-year dividend payout in its history and the largest interim dividend in the Nigerian banking sector to date.

The Group's strong brand equity and commitment to service excellence position it to capitalize on new business opportunities across strategic sectors, both in existing markets and new regions under exploration.

In line with its expansion strategy, the Group has obtained regulatory approval to establish a third-country branch in Paris, France, which will broaden its product offerings in international markets once operational.

The Group is also focused on enhancing its digital banking capabilities and is accelerating the upgrade of its technology infrastructure. Its proven track record in successful capital raises positions it favorably to meet the new minimum capital requirements for commercial banks with international authorization well ahead of the established deadline.

The Group is firmly positioned to achieve a record year in financial performance, committed to maximizing shareholder value while fostering a robust culture of corporate governance.

Zenith Bank's history of outstanding performance has consistently garnered numerous accolades, including being named the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking, as published by The Banker Magazine.

The Bank has also received the Bank of the Year (Nigeria) award in The Banker’s Bank of the Year Awards for both 2020 and 2022, along with the title of Most Sustainable Bank, Nigeria, in the International Banker 2024 Banking Awards.

Additional honors include being recognized as the Best Bank in Nigeria for three consecutive years from 2020 to 2022 and again in 2024 in the Global Finance World’s Best Banks Awards, as well as the Best Commercial Bank, Nigeria, for four consecutive years from 2021 to 2024 in the World Finance Banking Awards.

Furthermore, Zenith Bank has been distinguished as the Best Corporate Governance Bank, Nigeria, in the World Finance Corporate Governance Awards for three consecutive years from 2022 to 2024, and recognized as ‘Best in Corporate Governance’ in Financial Services Africa for four consecutive years from 2020 to 2023 by the Ethical Boardroom.

The Bank's dedication to excellence has earned it the title of Most Valuable Banking Brand in Nigeria, as recognized by the Banker Magazine's Top 500 Banking Brands for both 2020 and 2021. Additionally, it was honored as the Retail Bank of the Year for three consecutive years, from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

Furthermore, the Bank was recognized as the Most Sustainable Bank in Nigeria at the International Banker 2023 Banking Awards, and it received accolades for Best Commercial Bank and Best Innovation in Retail Banking in Nigeria at the International Banker 2022 Banking Awards. Zenith Bank was also distinguished as the Bank of the Decade (People’s Choice) at the ThisDay Awards in 2020, named Bank of the Year 2021 by Champion Newspaper, and Bank of the Year 2022 by New Telegraph Newspaper.

Additionally, it was recognized as the Most Responsible Organisation in Africa in 2021 by the SERAS Awards.