Zenith Bank Plc has announced a triple-digit growth of 118% from N1.33 trillion reported in Q3 2023 to N2.9 trillion in the third quarter of 2024.
Zenith Bank announced this in its unaudited results for the third quarter of 2024 which ended on September 30, a copy of which was made available to The Star on Thursday, October 31.
Zenith Bank stated that this performance underscores the bank’s resilience and market leadership despite the challenging macroeconomic environment.
According to the bank’s financial results presented to the Nigerian Exchange (NGX), the triple-digit growth in the topline also led to an increase in the bottom line, as the bank recorded a 99% Year on Year (YoY) increase in profit before tax, growing from N505 billion in Q3 2023 to N1.0 trillion in Q3 2024.
The bank noted that its profit after tax equally grew by 91% from N434.2 billion to N827 billion in the same period under review.
Zenith Bank said the growth in the topline was driven by the expansion of both interest income and non-interest income, noting that the interest income saw a notable 190% rise to N1.95 trillion.
It stated that the non-interest income rose by 41% to N856 billion, bolstered by substantial growth in fees and commissions, “which highlights the strength of Zenith Bank’s retail growth and the robust performance of its digital channels during the reporting period.”
“The robust increase in profitability reflects the Bank’s focus on operational efficiency and strong risk management practices,” it added.
Zenith Bank disclosed that its earnings per share (EPS) rose to N26.34 from N13.82 in Q3 2023, saying this underscored the bank’s strong value creation for shareholders.
Zenith Bank stated: “The Bank’s balance sheet grew significantly, with total assets growing by 49% to N30.4 trillion, largely supported by customer deposits, which rose by 42% to N21.6 trillion.
“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% to N10.3 trillion, underscoring the commitment to supporting strategic sectors in the economy.
“Capital adequacy ratio remained strong, improving to 21.9%, well above regulatory requirements. The return on average equity (ROAE) stood at 37.8%, up from 35.1%, while return on average assets (ROAA) also improved to 4.3% as Zenith Bank maximized its asset base.
“Cost of funds increased to 4.3%, reflecting the broader market trend of rising interest rates, while the cost of risk was maintained at 7.3%, underscoring the Bank’s proactive approach in provisioning for credit risk.”
It further noted that its cost-to-income ratio rose to 39.5%, saying this reflected the impact of strategic investments in technology and capacity building aimed at supporting long-term growth, even as it continues to strive for greater operational efficiency.
Zenith Bank added that its asset quality remains a cornerstone of its strength, with a non-performing loan (NPL) ratio of 4.5%, within regulatory limits.
“A high coverage ratio of 198.4% underscores the Bank’s disciplined approach to risk management, positioning it for resilience in the face of market volatility while supporting stable loan growth,” the bank said.
