Nigeria’s richest banker Jim Ovia’s Zenith Bank posts $363-million profit in H1 2024

Omokolade Ajayi -
Key Points
  • Zenith Bank, led by Jim Ovia, has reported a 98% increase in profits for the first half of 2024, surpassing $360 million.
  • The bank's increased interest income, trading gains, and fees contributed to this impressive growth.
  • Zenith Bank aims to expand into French-speaking Africa, launch a fintech subsidiary, and complete a significant recapitalization.

Zenith Bank Plc, Nigeria's premier financial services group, helmed by the country’s wealthiest banker, Jim Ovia, has reported a remarkable profit surge in the first half of 2024, exceeding $360 million. This performance solidifies Zenith Bank's position as one of the most profitable banks in Nigeria, with its profit growth surpassing both investor and analyst expectations.

According to the bank’s interim report for the six-month period ended June 30, 2024, Zenith Bank’s profit soared by 98.1 percent, rising from N292 billion ($183.6 million) in the first half of 2023 to N578 billion ($363.4 million) in the corresponding period of 2024. This substantial growth was primarily driven by a significant increase in interest income and trading income.

Interest income jumps to $722.3 million

The bank’s interest income increased from N415.42 billion ($261.27 million) in the first half of 2023 to N1.15 trillion ($722.3 million) in the first half of 2024. Additionally, net income from fees and commissions saw a significant uptick, increasing from N43.92 billion ($27.6 million) to N109.61 billion ($68.8 million). The period also marked a notable spike in trading gains, which jumped from N103.02 billion ($64.7 million) to N795.57 billion ($499.7 million), underscoring the bank’s strong financial management and strategic market positioning.

Zenith Bank plans African expansion

Zenith Bank, established in 1990 by Jim Ovia, is a key player in the Nigerian financial sector, with a substantial presence across Nigeria and Anglophone West Africa. Licensed by the Central Bank of Nigeria, the bank has been instrumental in advancing the digitalization of banking services in the region. Ovia, who retains a 16.2 percent stake in the bank, continues to steer the institution towards sustained growth and profitability.

The group’s strong performance in the first half of 2024 aligns with its goal to hit a record N1 trillion ($700 million) profit this year, following a stellar 2023. The lender plans to expand into French-speaking Africa, launch a fintech subsidiary called ZenPay, and complete a N230 billion ($143.33 million) recapitalization.

Zenith Bank’s total assets soar

Reflecting its robust financial health, Zenith Bank’s total assets grew from N20.37 trillion ($12.81 billion) as of Dec. 31, 2023, to N27.57 trillion ($17.34 billion) by June 30, 2024. Simultaneously, its retained earnings increased from N1.18 trillion ($742.1 million) to N1.62 trillion ($1.02 billion), reinforcing its strong capital position and capacity for future growth.

This performance demonstrates Zenith Bank’s resilience in a tough economy and its commitment to shareholder value, leading the board to propose an interim dividend of N1 ($0.00062) per share, up 50 percent from the previous year.