Zenith Bank (ZENITHBANK) Q2 2024 earnings summary

Executive summary

• Achieved 117% year-over-year growth in gross earnings to NGN2.1 trillion for H1 2024, with profit before tax up 108% to NGN727 billion and profit after tax up 98% to NGN578 billion.

• Earnings per share doubled year-over-year to NGN18.41.

• Declared an interim dividend of NGN1.00 per share, the highest in the bank's history and sector.

• Maintained market leadership as Nigeria's largest bank by Tier-1 capital and among the top 10 in Africa.

• Expanded digital footprint and branch network, issuing over 26.6 million cards and operating 452 branches.

Financial highlights

• Net interest income increased 173% year-over-year to NGN715.1 billion; trading gains surged to NGN796 billion from NGN103 billion.

• Gross loans increased 44% to NGN10.2 trillion; customer deposits up 29% to NGN19.6 trillion since December 2023.

• Total assets grew to NGN27.6 trillion from NGN20.4 trillion at year-end 2023.

• Cost-to-income ratio at 39.4%; NPL ratio at 4.5% with 185.9% coverage.

• Return on average equity at 41.9% (up from 36.9% YoY); return on average assets at 4.8%.

Outlook and guidance

• FY2024 guidance: profit before tax NGN1.3 trillion, profit after tax NGN796 billion, ROAE 42%, NIM 10%.

• Plans to raise capital through rights issue and public offer to meet new regulatory capital requirements by March 2026.

• Focus on digital expansion, international growth (including a new Paris branch), and enhanced customer service.

• Management expects continued resilience amid macroeconomic volatility, with focus on risk management.