Zenith Bank PLC Reports N1 Trillion Pre-Tax Profit for Nine-Month Period

Zenith Bank Plc has reported a remarkable pre-tax profit of N1 trillion for the nine-month period ending September 30, 2024, including N275.8 billion in pre-tax profit recorded for the third quarter. This represents a significant 98.57% year-over-year increase from the N505 billion recorded for the same period in 2023.

The bank’s net interest income saw exceptional growth, surging by 208.43% from N415.2 billion in the previous year to an impressive N1.2 trillion. Additionally, Zenith Bank’s gains from equity instruments at fair value rose significantly, climbing 107.30% year-over-year from N73.8 billion to N153.1 billion.

Key Financial Highlights (2024 vs. 2023)

—Gross Profit: N2.8 trillion, up 118.16% YoY

– Net Interest Income: N1.2 trillion, up 208.43% YoY

– Net Fee and Commission Income: N174.2 billion, up 119.64% YoY

– Trading Income: N686.3 billion, up 438.83% YoY

– Personnel Expenses: N150.6 billion, up 70.40% YoY

– Pre-tax Profit: N1 trillion, up 98.57% YoY

– Equity Fair Value Gain: N153 billion, up 107.30% YoY

– Total Assets N30.38 trillion, up 67.30% YoY

– Cash and Cash Equivalents: N2.8 trillion, up 5.06% YoY

Zenith Bank’s gross profit for the nine-month period reached N2.8 trillion, a 118.16% increase from the N1.3 trillion reported the previous year, while net interest income rose sharply by 208.43%. The company’s net fee and commission income grew by 119.64% year-over-year to N174.2 billion, and trading income saw a substantial 438.83% surge.

Despite a 70.40% year-over-year increase in personnel expenses, the bank’s overall profitability remained robust, achieving a nine-month pre-tax profit of N1 trillion, with N275.8 billion contributed in Q3 2024 alone. Post-tax profit grew by 90.54% year-over-year, reaching N827.2 billion from the previous N424.1 billion, while gains on equity at fair value also strengthened the company’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, largely supported by N9.4 trillion in loans and advances to customers. Total liabilities rose to N28.8 trillion, up from N16.2 trillion reported in the same period the previous year.

Cash Flow Performance

Zenith Bank demonstrated a strong cash flow position, with operating cash flows amounting to N685.66 billion for the period. Investment activities resulted in a net cash outflow of N971.64 billion, primarily due to significant investments in treasury bills and property, while financing activities saw a net cash outflow of N102.26 billion, largely from long-term borrowing repayments and dividend payments. Despite these outflows, the bank ended the period with a robust cash reserve of N2.84 trillion, reflecting a stable liquidity position for the nine-month period.