Zenith Bank Plc has released its unaudited results for the first quarter ended March 31, 2024. It reports remarkable triple-digit growth in Gross Earnings, surging from N270 billion in Q1 2023 to N781 billion in Q1 2024, marking a 189% increase.
Despite facing challenges in the operating environment and tightening monetary policy, the bank achieved substantial growth, with Profit Before Tax (PBT) rising to N320 billion in Q1 2024, a significant surge of 270% from the N87 billion reported in Q1 2023. Similarly, Profit After Tax (PAT) witnessed a substantial growth of 291%, reaching N258 billion compared to N66 billion in Q1 2023.
The growth in Gross Earnings was primarily attributed to the significant contributions from both interest and non-interest income streams. Interest income surged by 155%, rising from N192 billion in Q1 2023 to N489 billion in Q1 2024, driven by the repricing of risk assets due to the increase in the central bank’s Monetary Policy Rate (MPR).
The Group reported an impairment charge of N56 billion for Q1 2024, up from N8 billion recorded in Q1 2023. This was mainly due to the revaluation of USD loans, necessitating additional impairment on foreign currency-denominated loans.
Despite the increase in interest expense by 157% from N71 billion in Q1 2023 to N182 billion in Q1 2024, the net interest margin (NIM) grew by 20%, reaching 8.3% in the current period, compared to 6.9% in Q1 2023. Return on Average Equity (ROAE) and Return on Average Assets (ROAA) also increased year-on-year by 114% and 119% due to improved profitability.
Furthermore, gross loans and customer deposits witnessed significant growth, increasing by 30% and 11%, respectively, within the period. Gross loans rose to N9.2 trillion from N7.1 trillion in December 2023, while customer deposits grew to N16.8 trillion from N15.2 trillion in December 2023, indicating continued customer confidence in the Zenith brand. Total assets also increased by 19% to N24 trillion during the same period.
The Group emphasized its progress on the planned capital raise to support future growth and expressed optimism about meeting the new minimum capital requirements in line with the CBN’s recapitalization directive.
