Zenith Bank Plc has announced growth of 117 per cent in gross earnings from N967.3 billion reported in H1 2023 to N2.1 trillion in H1 2024.
Zenith Bank announced this via its audited results for the half-year which ended on June 30, 2024.
According to the bank’s audited half-year financial results presented to the Nigerian Exchange (NGX) on Friday, August 30, the triple-digit growth in the top line also drove growth in the bottom line as the bank recorded a 108 per cent Year on Year (YoY) increase in profit before tax, from N350 billion in H1 2023 to N727 billion in H1 2024.
Zenith Bank said its profit after tax also grew by 98 per cent from N292 billion to N578 billion in the same period, adding that this led to growth in earnings per share (EPS) by 98 per cent from N9.29 in H1 2023 to N18.41 in the period under review.
Zenith Bank noted that the growth in gross earnings was driven by an acceleration in both interest income and non-interest income.
The bank said the interest income, propelled by the growth of and by the effective pricing of risk assets, surpassed the N1 trillion mark, a half-year record, growing by 177 per cent from N415.4 billion in H1 2023 to N1.1 trillion in H1 2024, while non-interest income grew by 74 per cent from N515.7 billion to N899.3 billion.
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It added: “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 per cent to 39.4 per cent. The heightened risk environment has fuelled a growth in impairment levels, thus mildly elevating the cost of risk from 8.8 per cent to 9.7 per cent.
“Cost of funds grew Year on Year (YoY) from 2.6 per cent to 4.4 per cent 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 per cent from 5.9 per cent in H1 2023 to 8.8 per cent in H1 2024, underscoring the efficient repricing of interest-earning assets and interest accruing liabilities.”
Zenith Bank disclosed that its total assets grew by 35 per cent from N20.4 trillion in December 2023 to N27.6 trillion in June 2024, while customer deposits increased by 29 per cent from N15.2 trillion in December 2023 to N19.6 trillion in June 2024.
Zenith Bank stated that its gross loans also grew by 44 per cent 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.
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