Zenith Bank Plc has reported its audited financial results for the half-year ending 30 June 2024, showing a remarkable 117% growth in gross earnings, which jumped from N967.3 billion in H1 2023 to N2.1 trillion in H1 2024. This impressive performance comes despite the challenging macroeconomic conditions facing Nigeria’s banking sector.

According to the bank’s audited financial statement presented to the Nigerian Exchange (NGX) on Friday, 30 August 2024, the substantial rise in revenue also boosted profitability. The Group recorded a 108% year-on-year increase in profit before tax (PBT), soaring from N350 billion in H1 2023 to N727 billion in H1 2024. Profit after tax (PAT) followed a similar trajectory, growing by 98% from N292 billion to N578 billion over the same period. This increase resulted in earnings per share (EPS) rising by 98%, from N9.29 in H1 2023 to N18.41 in H1 2024.

The surge in gross earnings was driven by robust growth in both interest and non-interest income streams. Interest income, bolstered by the growth and effective pricing of risk assets, crossed the N1 trillion threshold, marking a 177% increase from N415.4 billion in H1 2023 to N1.1 trillion in H1 2024. Non-interest income also saw a significant rise, increasing by 74% from N515.7 billion to N899.3 billion.

The Group maintained its focus on operational efficiency, resulting in only a slight rise in the cost-to-income ratio, which edged up from 38.5% to 39.4% year-on-year. However, the higher risk environment led to an increase in impairment costs, pushing the cost of risk slightly from 8.8% to 9.7%. The cost of funds rose year-on-year from 2.6% to 4.4%, driven by the prevailing high-interest rate environment, which also caused interest expenses to increase from N153.6 billion in H1 2023 to N434.4 billion in H1 2024. Despite this, the net interest margin grew by 49%, from 5.9% in H1 2023 to 8.8% in H1 2024, underscoring the bank’s ability to reprice interest-bearing assets and liabilities effectively.

Total assets rose by 35% from N20.4 trillion in December 2023 to N27.6 trillion in June 2024, while customer deposits grew by 29%, climbing from N15.2 trillion in December 2023 to N19.6 trillion in June 2024. Gross loans increased by 44%, from N7.1 trillion in December 2023 to N10.2 trillion in June 2024, supported by increased loan disbursements and the effect of foreign currency-denominated loans. Thanks to the Group’s stringent risk management, the non-performing loan (NPL) ratio saw only a marginal increase, rising from 4.4% in December 2023 to 4.5% in June 2024, despite the difficult economic conditions. Capital adequacy improved from 21.7% in December 2023 to 23% in June 2024, while the loan-to-deposit ratio rose from 46.5% to 51.7%. The liquidity ratio, meanwhile, decreased from 71% to 59%, though it remains well above regulatory requirements.

In a move to maximise shareholder value, the Group has declared an interim dividend of N1.00 per share, its highest half-year dividend payout to date and the largest interim dividend in Nigeria’s banking sector.

Zenith Bank’s strong brand and quality of service continue to create new business opportunities in key economic sectors and across its geographical presence. As part of its expansion strategy, the Group has received regulatory approval to open a branch in Paris, France, which will further enhance its international operations.

The bank is also committed to advancing its digital banking capabilities and fast-tracking the completion of its technological infrastructure upgrade. Its solid history of capital raising ensures that Zenith Bank is well-positioned to meet the new minimum capital requirements for commercial banks with international licences, as mandated by the Central Bank of Nigeria (CBN).

Zenith Bank’s consistent outstanding performance has earned it numerous accolades, including being named the Number One Bank in Nigeria by Tier-1 Capital for the 15th consecutive year in The Banker magazine’s 2024 Top 1000 World Banks Ranking. Other honours include being named Bank of the Year (Nigeria) in The Banker’s 2020 and 2022 awards, and Most Sustainable Bank, Nigeria in the 2024 International Banker Awards. The bank has also been recognised as Best Bank in Nigeria for three consecutive years (2020-2022 and in 2024) in Global Finance magazine’s World’s Best Banks Awards.

In recognition of its commitment to corporate governance, Zenith Bank was named Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards for three years running (2022-2024) and Best in Corporate Governance, Financial Services, Africa for four consecutive years (2020-2023) by Ethical Boardroom.

Zenith Bank’s leadership in the Nigerian banking sector is further cemented by its recognition as the Most Valuable Banking Brand in Nigeria by The Banker magazine in its Top 500 Banking Brands list for 2020 and 2021, and Retail Bank of the Year for three years (2020-2022) at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards. Additional accolades include Best Innovation in Retail Banking, Nigeria in the International Banker 2022 Awards, and Bank of the Decade (People’s Choice) at the 2020 ThisDay Awards.