KEY POINTS
- Zenith Bank reports a 91% increase in profit after tax.
- Revenue hits N2.9 trillion, the highest among Nigerian businesses.
- Customer deposits have boosted assets’ year-to-date growth by 49%.
For the nine months ended September 30, 2024, Zenith Bank Plc recorded a profit after tax of N827 billion, a 91% increase over the N434.2 billion it posted for the same period in 2023. In 9M 2024, gross earnings were N2.9 trillion, up 118% from N1.3 trillion in 9M 2023. This is the most money any Nigerian company has made in the last nine months.
Zenith Bank’s record profit growth amid rising interest rates
A record-high interest rate environment helped the bank’s revenue, which increased by 190% to N1.9 trillion from N670.9 billion during the same time in 2023.
Business From N415.2 billion in 9M 2023 to N1.3 trillion, net interest income increased 208% year over year. Compared to N408.7 billion the year before, interest income from loans and advances increased by 163% to N1.07 trillion.
The bank’s net interest income increased by 291% to N802.9 billion from N205.2 billion in 9M 2023 after N477.8 billion was set aside for anticipated loan losses. This significant increase in interest income, which will reach N9.4 trillion by the end of 2024 from N5.8 trillion in 2023, is a result of both a 63% year-over-year increase in lending and an increase in interest rates.
Asset base expands, placements with central banks increase
Businessday reveals that as of September 30, 2024, Zenith Bank’s total assets increased 49% year-to-date to N30.4 trillion from N20.4 trillion at the start of the year. Placements with central banks rose from N4.3 trillion at the beginning of 2024 to N5.4 trillion during this time, a 26% increase.
The amount of money placed with other banks, both domestically and internationally, increased by 206% to N5.6 trillion from N1.8 trillion at the start of the year. Placements in foreign banks increased from N997.7 billion at the beginning of the year to N2.3 trillion, a 127% increase.
By the end of 9M 2024, customer deposits had increased 42% year-to-date from N15.2 trillion at the start of the year to N21.6 trillion.
The money held by the bank’s shareholders has increased by 51% so far this year, from N2.3 trillion at the beginning of the year to N3.5 trillion. From N1.2 trillion at the start of 2024 to N1.8 trillion, retained earnings increased 54%.
