By Milcah Tanimu

Zenith Bank Plc has announced its impressive half-year financial results for the period ending June 30, 2024, marking a significant achievement with gross earnings soaring to N2.1 trillion. This represents a remarkable 117% increase from N967.3 billion in H1 2023.

The results were disclosed in a statement presented to the Nigerian Exchange (NGX) on August 30, 2024. The bank’s performance was bolstered by a substantial 108% rise in profit before tax, reaching N727 billion, up from N350 billion in the previous year.

Profit after tax also saw a robust growth of 98%, climbing from N292 billion to N578 billion, which led to a 98% increase in earnings per share (EPS), rising from N9.29 to N18.41.

Zenith Bank attributed this growth to an increase in both interest and non-interest income. Interest income surged by 177% to surpass N1 trillion, reaching N1.1 trillion from N415.4 billion. Non-interest income grew by 74%, rising to N899.3 billion from N515.7 billion.

Despite the challenging macroeconomic environment, the bank managed to keep its cost-to-income ratio relatively stable, increasing only slightly from 38.5% to 39.4%. However, the heightened risk environment led to a modest increase in impairment levels and cost of risk, rising from 8.8% to 9.7%. The cost of funds also grew from 2.6% to 4.4%, resulting in an increase in interest expenses from N153.6 billion to N434.4 billion.

Notably, the bank’s net interest margin improved by 49%, reaching 8.8% from 5.9% in the previous year, reflecting effective repricing of interest-earning assets and liabilities.

Zenith Bank’s total assets increased by 35%, rising from N20.4 trillion in December 2023 to N27.6 trillion in June 2024. Customer deposits grew by 29%, from N15.2 trillion to N19.6 trillion, and gross loans expanded by 44%, reaching N10.2 trillion from N7.1 trillion.

The non-performing loan ratio showed only a slight increase, rising from 4.4% to 4.5%, while the capital adequacy ratio improved to 23% from 21.7%. The loan-to-deposit ratio grew by 11%, from 46.5% to 51.7%, though the liquidity ratio decreased from 71% to 59%. All prudential ratios remain well above regulatory requirements.

In a notable move, Zenith Bank declared an interim dividend of N1.00 per share, marking the highest half-year dividend payout in its history and setting a new standard in the banking sector.

Looking ahead, Zenith Bank plans to expand its international presence with a new branch in Paris, France, and continues to invest in enhancing its digital banking capabilities. The bank’s strong brand equity and commitment to corporate governance are expected to drive continued success and shareholder value.