Zenith Bank Plc has set a new benchmark in the first half of 2024, achieving record-breaking performance with gross earnings reaching an unprecedented N2.1 trillion. This remarkable achievement represents a 117 percent increase compared to the same period last year.
The bank’s half-year audited report, released at the Nigerian Exchange (NGX) over the weekend, highlighted significant growth in both pre-tax and post-tax profits, which rose by 108 percent and 98 percent, respectively. This stellar performance has further fueled investor confidence, with both existing shareholders and new investors showing strong interest in Zenith Bank’s shares.
Zenith Bank is currently offering a rights issue of 5.233 billion ordinary shares at N36 per share, pre-allotted to existing shareholders on the basis of one new share for every six held as of July 24, 2024. Additionally, the bank is offering 2.767 billion ordinary shares to the general public at N36.50 per share, with a minimum subscription of 250 shares, making it accessible to a wide range of investors. The application window for these offers, which opened on August 1, 2024, will close on September 9, 2024.
The bank’s earnings per share also saw a significant increase, doubling from N9.29 in the first half of 2023 to N18.41 in the first half of 2024. In light of this performance, the board has declared an interim dividend of N31.4 billion, translating to N1 per share—a new record for the bank and the entire Nigerian banking industry.
Zenith Bank’s strong financial performance was driven by notable increases in both interest and non-interest incomes. Interest income surged by 177 percent, surpassing the N1 trillion mark, while non-interest income grew by 74 percent, reaching N899.3 billion. The bank’s total assets also expanded by 35 percent, rising from N20.4 trillion in December 2023 to N27.6 trillion in June 2024. Customer deposits grew by 29 percent, and gross loans increased by 44 percent, underpinned by new loan disbursements and the translation effects of foreign currency loans.
Despite a slight increase in cost-to-income and risk ratios due to the high-interest rate environment, the bank’s net interest margin grew by 49 percent, demonstrating efficient asset and liability management. Non-performing loans remained controlled, with only a modest increase to 4.5 percent.
Zenith Bank’s strategic initiatives, including a planned expansion into Paris, France, and continued investment in digital banking capabilities, position it well to meet the new minimum capital requirements for banks with international authorization, ahead of the Central Bank of Nigeria’s deadline.
Zenith Bank’s outstanding performance continues to earn it numerous accolades, including recognition as the Number One Bank in Nigeria by Tier-1 Capital for the 15th consecutive year in the 2024 Top 1000 World Banks Ranking by The Banker Magazine. The bank has also been lauded with multiple awards for excellence in corporate governance and sustainability, solidifying its reputation as a leader in the Nigerian banking industry.
Seunmanuel Faleye is a brand and communications strategist. He is a covert writer and an overt creative head. He publishes Apple’s Bite International Magazine.
