“Maximum Value to Its Shareholders”: Zenith Bank Announces Increase in Earnings to N2.1 Trillion

• The audited results for the half-year that concluded on June 30, 2024, have been made public by Zenith Bank Plc
• The bank's triple-digit gross earnings rise of 117% from N967.3 billion in H1 2023 to N2.1 trillion in H1 2024 was rather remarkable
• The bank asserts that the main cause of the rise in gross earnings was an increase in interest and non-interest revenue

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

As the nation's banking sector navigates a difficult macro environment, Zenith Bank Plc has released its audited results for the half-year that ended on June 30, 2024.

The bank recorded an impressive triple-digit growth of 117% in gross earnings from N967.3 billion in H1 2023 to N2.1 trillion in H1 2024.

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The bank's audited half-year financial results, which were presented to the Nigerian Exchange (NGX) on Friday, August 30, 2024, showed that the Group's 108% Year-on-Year (YoY) increase in profit before tax (from N350 billion in H1 2023 to N727 billion in H1 2024) was driven by the triple-digit growth in the top line.

Earnings per share (EPS) increased by 98% from N9.29 in H1 2023 to N18.41 in the period under review, driven by a 98% increase in profit after tax from N292 billion to N578 billion over the same period.

The bank stated that an increase in interest and non-interest revenue was the primary factor for the increase in gross earnings, Vanguard reported.

Driven by the expansion and efficient valuation of risk assets, interest income achieved a half-year record by surpassing N1 trillion, rising by 177% from N415.4 billion in H1 2023 to N1.1 trillion in H1 2024. Meanwhile, non-interest revenue increased by 74%, from N515.7 billion to N899.3 billion.

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The cost-to-income ratio (YoY) increased only slightly from 38.5% to 39.4% as a result of the Group's ongoing efforts to improve operational efficiency.

Because of the elevated risk environment, impairment levels have increased, which has resulted in a slight increase in the cost of risk from 8.8% to 9.7%. The cost of funds increased Year-over-Year (YoY) from 2.6% to 4.4% because of the high interest rate environment.

According to the management, the group's strong brand equity and excellent service quality have placed it in a position to mine new business opportunities in strategic economic sectors, in existing geographic areas where it was present, and in uncharted territory.

‘’In furtherance of its expansion plans, the Group has received regulatory approval for the establishment of a third-country branch in Paris, France, which, when fully operational, will enhance its product offerings in international markets.

‘’The group will continue to invest in enhancing its digital banking capabilities and is expediting the completion of its technology infrastructure upgrade. Its track-record of successful capital raises puts it on a solid footing to meet the new minimum capital requirements for commercial banks with international authorisation, well ahead of the deadline set by the CBN.

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‘’The group remains undoubtedly on track for a record year in its financial performance and will continue to deliver maximum value to its shareholders, while ensuring a strong corporate governance culture,’’ the management stated.

Zenith Bank competes with world's biggest banks

Legit.ng reported that Zenith Bank Plc has continued to lead the way in terms of Tier-1 capital in The Banker Magazine's 2024 Top 1000 World Banks' Rankings for the fifteenth consecutive year.

As stated in Banker Magazine's July 2024 report Zenith Bank Plc, with $2.01 billion in Tier-1 capital, is the 565th bank in the world.

According to the UK-based newspaper, Zenith Bank's rating stems from its ongoing stability and strength in the financial sector.

Source: Legit.ng