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By Ngozi Onyeakusi— Zenith Bank Plc has announced its audited results for the half-year ended 30 June 2024,

recording an impressive triple-digit growth of 117% in gross earnings from N967.3 billion

reported in H1 2023 to N2.1 trillion in H1 2024. This superior performance has been

achieved even as the Nigerian banking industry navigates a challenging macro

environment.

According to the bank’s audited half-year financial results presented to the Nigerian

Exchange (NGX) on Friday, 30th August 2024, the triple-digit growth in the top line also

drove growth in the bottom line as the Group recorded a 108% Year on Year (YoY) increase

in profit before tax, from N350 billion in H1 2023 to N727 billion in H1 2024. Profit after tax

also grew by 98% from N292 billion to N578 billion in the same period. This led to growth in

earnings per share (EPS) by 98% from N9.29 in H1 2023 to N18.41 in the period under

review.

The growth in gross earnings was driven by an acceleration in both interest income and

non-interest income. Propelled by the growth of and by the effective pricing of risk assets,

interest income surpassed the N1 trillion mark, a half-year record, growing by 177% from

N415.4 billion in H1 2023 to N1.1 trillion in H1 2024, while non-interest income grew by 74%

from N515.7 billion to N899.3 billion.

The Group continued to strive for operational efficiency, resulting in only a marginal

increase in cost-to-income ratio Year on Year (YoY) from 38.5% to 39.4%. The heightened

risk environment has fuelled a growth in impairment levels, thus mildly elevating the cost of

risk from 8.8% to 9.7%. Cost of funds grew Year on Year (YoY) from 2.6% to 4.4% given

the high-interest rate environment. This also resulted in growth in interest expense from

N153.6 billion in H1 2023 to N434.4 billion in H1 2024. Despite this, net interest margin

grew by 49% from 5.9% in H1 2023 to 8.8% in H1 2024, underscoring the efficient repricing

of interest earning assets and interest accruing liabilities.

Total assets grew by 35% from N20.4 trillion in December 2023 to N27.6 trillion in June

2024, while customer deposits grew by 29% from N15.2 trillion in December 2023 to N19.6

trillion in June 2024. Gross loans also grew by 44% from N7.1 trillion in December 2023 to

N10.2 trillion in June 2024 aided by loans disbursements to customers and the translation

effect of foreign currency denominated loans. The Group’s consistent stringent risk

acceptance criteria helped ensure that the non-performing loan ratio continued to show only

modest growth, increasing from 4.4% in December 2023 to 4.5% in June 2024 despite the

challenging macroeconomic environment. Capital adequacy ratio improved from 21.7% in

December 2023 to 23% in June 2024, loan-to-deposit ratio grew by 11% from 46.5% to

51.7%, while liquidity ratio reduced from 71% to 59% in the current period. All prudential

ratios are still well above regulatory thresholds.

In maximizing value to its highly esteemed shareholders, the Group has declared an interim

dividend of N1.00 per share. This represents the highest half year dividend pay-out in its

history, and also the highest interim dividend in the Nigerian banking sector till date.

The Group’s strong brand equity and excellent service quality position it to mine new

business opportunities in strategic sectors of the economy, in existing geographies where it

has a presence, and in new geographies it is exploring. 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. 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.

Zenith Bank’s track record of excellent performance has continued to earn the brand

numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1

Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking,

published by The Banker Magazine. The Bank was also awarded the Bank of the Year

(Nigeria) in The Banker’s Bank of the Year Awards for 2020 and 2022; and Most

Sustainable Bank, Nigeria in the International Banker 2024 Banking Awards. Further

recognitions include Best Bank in Nigeria for three consecutive years from 2020 to 2022

and in 2024 in the Global Finance World’s Best Banks Awards, and Best Commercial Bank,

Nigeria for four consecutive years from 2021 to 2024 in the World Finance Banking Awards.

Additionally, Zenith Bank has been acknowledged as the Best Corporate Governance Bank,

Nigeria, in the World Finance Corporate Governance Awards for three consecutive years

from 2022 to 2024, and ‘Best in Corporate Governance’ Financial Services’ Africa for four

consecutive years from 2020 to 2023 by the Ethical Boardroom.

The Bank’s commitment to excellence saw it being named the Most Valuable Banking

Brand in Nigeria in the Banker Magazine Top 500 Banking Brands for 2020 and 2021, and

Retail Bank of the Year for three consecutive years from 2020 to 2022 at the BusinessDay

Banks and Other Financial Institutions (BAFI) Awards. The Bank also received the

accolades of Most Sustainable Bank, Nigeria, in the International Banker 2023 Banking

Awards, Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria, in

the International Banker 2022 Banking Awards. Zenith Bank was named Bank of the

Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by

Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, and Most

Responsible Organisation in Africa 2021 by SERAS Awards