Zenith Bank doubles profit to N1tn

Zenith Bank’s profit before tax ballooned by 99 per cent to N1tn at the end of the third quarter of 2024 from N505bn in the prior period of last year.

In its Q3 2024 unaudited results ended September 30, 2024, filed with the Nigerian Exchange Limited, the financial institution reported a triple-digit growth of 118 per cent in gross earnings to N2.9tn from N1.33tn in Q3 2023.

This financial performance was achieved amid a challenging operating environment in the country.

During the period under review, profit after tax grew by 91 per cent to N827bn from N434.2bn in Q3 2023.

According to a statement issued by the lender on Thursday, the growth in the topline was driven by the expansion of both interest income and non-interest income.

Interest income saw a 190 per cent rise to N1.95tn, attributed to the high-yield environment. Non-interest income rose by 41 per cent to N856bn driven by substantial growth in fees and commissions.

“The robust increase in profitability reflects the bank’s focus on operational efficiency and strong risk management practices. Earnings per share nearly doubled, rising to N26.34 from N13.82 in Q3 2023, underscoring Zenith Bank’s strong value creation for shareholders.

“The bank’s balance sheet grew significantly, with total assets growing by 49 per cent to N30.4tn, largely supported by customer deposits, which rose by 42 per cent to N21.6tn. This growth in deposits was broad-based across corporate and retail segments, highlighting the Bank’s deepening reach and customer loyalty. Gross loans increased by 46 per cent to N10.3 trillion, underscoring the commitment to supporting strategic sectors in the economy,” part of the statement read.

On its capital-raising efforts, the bank said it was awaiting verification of its capital by regulatory authorities, saying, “The bank launched a capital-raising programme on August 1, 2024, consisting of a combined rights issue and public offer.

This capital raise was driven by the Central Bank of Nigeria’s recapitalisation directive for commercial banks issued in March 2024.

While the bank awaits final capital verification approvals from authorities, the fundraising exercise was successful, reflecting strong confidence in Zenith Bank’s brand.”

According to the lender, the additional capital will enhance its ability to expand its product offerings, deepen its penetration in strategic sectors, boost lending to the real sector and pursue its African and global expansion plan.

“In furtherance of this, the Bank in September 2024 received regulatory approval for the establishment of a Zenith Bank branch in Paris, France, which is fully operational and will enhance the Bank’s product offerings in international markets,” it noted.