Zenith Bank Profit Grows by 90.5% to N827 Billion
Adaora Umeoji, Zenith Bank Chief

Zenith Bank Plc profit has increased by 90.5% year on year to N827.2 billion in 12 months, according to details from its financials submitted on the Nigerian Exchange.

In its unaudited 9M-2024 financial statement, Zenith Bank Plc pretax profit reached an all-time high level of N1 trillion, which was +98.5% above N505.1 billion recorded in the equivalent period in 2023.

The significant improvement in earnings performance in the period stem from its core operations, despite cost pressures from interest paid to fund providers, impairment charges, and operating expenses.

Details from its financials showed that gross earnings increased by 119.3% year on year to settle at N2.80 trillion at the end of 9m-2024 from N1.278 trillion 12 months ago.

This was as a result of a stronger interest income and non-interest revenue, according to details from its financial scorecard. Interest income surged by 190.2% year on year to N1.95 trillion as banks repriced interest yielding assets after a series of monetary policy rate hikes.

Interest expenses or payments to providers of funds grew slower and boosted Zenith Bank’s margin. Interest expenses surged by 160.6% from N255.7 billion to N666.4 billion in 12 months.

According to details from the result, the bank’s net interest income came stronger year on year, settling at N1.280 trillion, up by 208.5% year on year from N415.2 billion in the comparable period in 2023.

Supporting the bank’s overall performance, non-interest revenue (NIR) rose by 41% year on year to N856 billion from N607.2 billion. This was lifted by a significant surge in trading gains and net fee & commission income, respectively.

Zenith Bank operating expenses (OPEX) surged by 113.5% year on year from N307 billion to N656.1 billion at the end of 9M-2024.  Breakdown showed that this was as a results a sizeable increase in regulatory fees, fuel, maintenance, and IT costs.

In the period, impairment charges on loans also grew by 113.6% year on year to N437.6 billion as the bank’s asset quality plunged.

The non-performing loan ratio (NPL) spiked to 4.6% from 3.9% in 12 months amidst Moody’s claim that Nigerian banks hold an unknown amount of legacy exposures after COVID-19 forbearance. #Zenith Bank Profit Grows by 90.5% to N827 Billion Naira Suffers Big, CBN Goes Ballistic Against FX Whales

Previous articleOil Prices Rise as China’s Manufacturing Activity Expands
Next articleAccess Holdings Profit Grows by 83% to N458 Billion