Zenith Bank Hits Record-Breaking N1 Trillion Profit in Nine Months of 2024, Doubling Last Year’s Figures
Business Analysis Finance

Zenith Bank Hits Record-Breaking N1 Trillion Profit in Nine Months of 2024, Doubling Last Year’s Figures

Zenith Bank Hits Record-Breaking N1 Trillion Profit in Nine Months of 2024, Doubling Last Year’s Figures

Zenith Bank Plc has reached a significant milestone, announcing a record-breaking pre-tax profit of N1 trillion for the nine months ending September 30, 2024. This marks an impressive 98.57% increase compared to the N505 billion recorded in the same period in 2023. For the third quarter alone, the bank reported a pre-tax profit of N275.8 billion, showcasing its ongoing strong performance.

Key Financial Achievements

1. Soaring Gross Profit  

   Gross profit reached N2.8 trillion by September 2024, marking a significant 118% year-over-year rise. This growth reflects the bank’s ability to boost its core business, adding value for stakeholders and customers alike.

2. Sharp Increase in Net Interest Income  

   Net interest income surged by 208%, climbing from N415 billion last year to an impressive N1.2 trillion. This boost highlights Zenith’s effective lending and interest management strategies.

3. Record-Breaking Trading Income  

   Trading income saw the most dramatic growth, skyrocketing by 439% to N686.3 billion. This growth highlights the bank’s strong market position and its ability to leverage trading activities effectively.

4. Substantial Net Fee Growth  

   Fee and commission income, another strong revenue stream, grew by 120% to reach N174 billion, demonstrating Zenith’s expanded service reach.

5. Increased Personnel Expenses  

   Despite rising by 70%, personnel expenses were well-managed relative to overall growth, showcasing the bank’s efficient cost management even with a larger workforce.

Strong Asset Position and Cash Flow Performance

As of September 30, 2024, Zenith Bank’s total assets climbed to N30.38 trillion, supported largely by N9.4 trillion in loans and advances to customers, indicating substantial lending activity. However, total liabilities also increased to N28.8 trillion, up from N16.2 trillion a year earlier, reflecting a balanced approach to managing asset growth and risk.

The bank’s liquidity remains stable, with cash reserves of N2.84 trillion. Operating activities generated N685.66 billion in cash flow, showcasing strong operational efficiency. On the investment front, Zenith recorded a net cash outflow of N971.64 billion, driven primarily by its investments in treasury bills and property. Financing activities saw a further outflow of N102.26 billion, attributed mainly to long-term debt repayments and dividend payouts.

Outlook and Industry Position

Zenith Bank’s stellar nine-month performance highlights its financial resilience and market leadership within Nigeria’s banking sector. The substantial increases across multiple income streams and the efficient management of costs position Zenith Bank favorably as it continues to scale its operations and strengthen its asset base. With a cash reserve of N2.84 trillion, the bank is well-prepared to navigate any economic challenges ahead, while remaining focused on delivering value to shareholders.

The growth in trading income, interest revenue, and fee-based earnings reflects Zenith’s ability to innovate and adapt, positioning it as a powerhouse in the financial sector.

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