Zenith Bank has posted remarkable second-quarter results for 2024, with pre-tax profits reaching N406.8 billion, a 370% increase compared to N86.8 billion in the same period last year. Substantial gains in forex-related transactions primarily drove this growth, significantly boosting the bank’s bottom line.
Key Drivers and Highlights
Gains from its trading activities greatly supported the bank’s profits, which soared to N871.6 billion for the first half of 2024, compared to just N77.9 billion in the previous year. This impressive performance has propelled Zenith Bank’s pre-tax profits for the year’s first half to N727 billion, positioning it to become the first commercial bank in Nigeria to achieve N1 trillion in annual profits by the end of 2024.
Detailed Financial Highlights:
- Net Interest Income: N408.6 billion, up by 238%
- Loan Impairments: N359.3 billion, up by 4,548%
- Net Interest After Impairments: N49.3 billion, down by 56%
- Operating Income: N677 billion, up by 264%
- Operating Expenses: N270 billion, up by 172%
- Pre-Tax Profit: N406.8 billion, up by 370%
- Earnings Per Share (EPS): N10.2, up by 434%
- Loans and Advances: N9.29 trillion, up by 131%
- Total Deposits: N19.6 trillion, up by 115%
- Net Assets: N3.19 trillion, up by 121%
- Total Assets: N27.5 trillion, up by 106%
Additional Insights:
- Forex and Derivative Gains: The bank’s impressive gains included N123 billion from derivatives, compared to N65.2 billion in the same period last year.
- Impairment Losses: Despite strong gains, Zenith Bank faced a significant impairment loss of N359.3 billion in the second quarter alone, bringing the total impairments for the year to N415.2 billion. This is notably higher than the N409.6 billion impairment charge taken for 2023 and just N123.2 billion in 2022.
- Segment Revenue: The bank’s Nigerian operations contributed N645.3 billion to the group’s profits, while operations outside Nigeria contributed N81.7 billion.
- Dividend Declaration: Zenith Bank declared an interim dividend of N1 per share.
Commentary:
Zenith Bank’s performance was bolstered by substantial gains of N871.6 billion compared to N77.9 billion a year earlier. These gains include a significant N123 billion from derivatives. However, the bank also faced a high impairment charge, reflecting the challenging economic environment.
With these strong results, Zenith Bank is well-positioned to achieve a historic N1 trillion in profits by the end of 2024, marking a significant milestone in the Nigerian banking sector.
