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 in H1 2023 to N2.1 trillion in H1 2024.
This strong performance comes as the banking industry in the country navigates a challenging macro environment.
According to the bank’s audited half-year financial results presented to the Nigerian Exchange, NGX, on Friday, August 30, 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, which led to growth in earnings per share (EPS) by 98% from N9.29 in H1 2023 to N18.41 in the period under review.
According to the bank, the growth in gross earnings was driven by an acceleration in both interest income and non-interest income.
Propelled by the growth of and 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.
The bank said 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.
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