Zenith Bank reports $604 million in profit, nearly doubles earnings in Q3 2024

Oluwatosin Racheal Alabi -
Key Points
  • Zenith Bank reports a 99% increase in profit before tax, reaching N1 trillion ($604 million) in Q3 2024.
  • Gross earnings jumped 118%, driven by interest income and non-interest income.
  • Bank's total assets rose by 49% to N30.4 trillion (1.8 billion), supported by broad customer deposits.

Interest income fuels significant profit surge

Zenith Bank’s impressive Q3 2024 results show a nearly doubling of profit before tax, rising by 99 percent to N1 trillion ($604.3 million) from N505 billion ($305.2 million) in Q3 2023. Gross earnings also soared by 118 percent, climbing from N1.33 trillion ($804.1 million) in 2023 to N2.9 trillion ($1.75 billion) in 2024. This remarkable performance was largely driven by a 190-percent rise in interest income, which surged to N1.95 trillion ($1.18 billion) from N672 billion ($406.3 million) in the previous year.

In addition to interest income, the bank’s non-interest income grew by 41 percent, reaching N856 billion ($517.1 million), up from N606 billion ($366.2 million) in 2023. This growth was primarily fueled by gains in fees and commissions, underscoring Zenith’s ability to diversify its revenue streams. The bank attributed its financial success to a focus on operational efficiency and strong risk management practices. Earnings per share almost doubled, rising to N26.34 ($15.92) from N13.82 ($8.35) in the previous year.

Strengthening the balance sheet and gearing for expansion

Zenith Bank also strengthened its balance sheet in Q3 2024, with total assets rising by 49 percent to N30.4 trillion ($18.37 billion) from N20.4 trillion ($12.33 billion) at the end of 2023. This growth was supported by a 42-percent increase in customer deposits, which reached N21.6 trillion ($13.05 billion) from N15.2 trillion ($9.18 billion), reflecting growing customer confidence and loyalty.

Gross loans grew by 46 percent to N10.3 trillion ($6.22 billion), further demonstrating the bank’s commitment to supporting key economic sectors through strategic lending. Zenith Bank also highlighted its recent capital-raising program, launched in response to the Central Bank of Nigeria’s recapitalization directive. The successful rights issue and public offer will enable the bank to enhance its product offerings, pursue its African and global expansion plans, and strengthen its market position.

Expanding globally and investing in fintech

Zenith Bank continues to pursue global expansion and digital innovation. The bank has received regulatory approval to establish a branch in Paris, France, which is now fully operational. This move is part of the bank’s strategy to tap into new opportunities in Europe and extend its global reach.

Additionally, Zenith Bank is preparing to launch its fintech subsidiary, ZenPay, to position itself as a leader in the digital banking space. The bank aims to enhance its digital offerings and expand into French-speaking African markets as part of its broader international growth strategy.

Increased dividend payout for shareholders

In recognition of its strong financial performance and commitment to delivering value to shareholders, Zenith Bank’s board has proposed an interim dividend of N1 ($0.0006) per share, a 50-percent increase from the previous year. This reflects the bank’s focus on rewarding investors while continuing to invest in growth and expansion.

Zenith Bank’s Q3 2024 financial results solidify its position as one of Nigeria’s most profitable banks, with a clear strategy for continued growth both domestically and internationally. With strong financials and ambitious expansion plans, the bank is well-poised to maintain its leadership in the Nigerian banking sector and beyond.