Zenith Bank Plc has announced an impressive pre-tax profit of N1 trillion for the nine-month period ending September 30, 2024, which includes a robust N275.8 billion generated in the third quarter alone. This achievement represents a staggering 98.57% increase compared to the N505 billion recorded during the same period in 2023.
The bank’s net interest income showcased exceptional growth, soaring by 208.43% from N415.2 billion in the previous year to a remarkable N1.2 trillion. Additionally, gains from equity instruments at fair value surged by 107.30%, climbing from N73.8 billion to N153.1 billion year-over-year.
Key Financial Highlights (2024 vs. 2023)
• Gross Profit: N2.8 trillion, +118.16% YoY
• Net Interest Income: N1.2 trillion, +208.43% YoY
• Net Fee and Commission Income: N174.2 billion, +119.64% YoY
• Trading Income: N686.3 billion, +438.83% YoY
• Personnel Expenses: N150.6 billion, +70.40% YoY
• Pre-tax Profit: N1 trillion, +98.57% YoY
• Equity Fair Value Gain: N153 billion, +107.30% YoY
• Total Assets: N30.38 trillion, +67.30% YoY
• Cash and Cash Equivalents: N2.8 trillion, +5.06% YoY
Commentary
Zenith Bank’s gross profit reached N2.8 trillion for the nine-month period, reflecting a remarkable 118.16% increase from N1.3 trillion reported in the previous year. The sharp rise in net interest income, up 208.43%, significantly bolstered the bank’s overall financial performance.
The bank also reported substantial growth in income from net fees and commissions, which rose by 119.64% year-over-year to N174.2 billion. Trading income experienced an extraordinary surge of 438.83%, further contributing to the bank’s profitability.
Despite a 70.40% increase in personnel expenses, Zenith Bank achieved a pre-tax profit of N1 trillion, with Q3 2024 alone contributing N275.8 billion. The post-tax profit grew by 90.54% year-over-year, reaching N827.2 billion, up from N424.1 billion in the previous year. Gains on equity at fair value also strengthened the bank’s income, rising 107.30% to N153 billion.
Strong Asset Position
As of September 30, 2024, Zenith Bank reported total assets of N30.3 trillion, supported by N9.4 trillion in loans and advances to customers. Total liabilities increased to N28.8 trillion, up from N16.2 trillion reported in the same period the previous year.
Cash Flow Performance
Zenith Bank demonstrated a solid cash flow position, with operating cash flows amounting to N685.66 billion for the period. Investment activities led to a net cash outflow of N971.64 billion, primarily due to significant investments in treasury bills and property. Financing activities also saw a net cash outflow of N102.26 billion, largely from long-term borrowing repayments and dividend payments. Despite these outflows, the bank maintained a strong cash reserve of N2.84 trillion, reflecting a stable liquidity position for the nine-month period.