The third quarter ending September 30, 2024, saw triple-digit increase of 118% from N1.33 trillion in Q3 2023 to N2.9 trillion in Q3 2024, according to Zenith Bank Plc’s unaudited data.

The bank stated in a statement yesterday that despite the difficult financial climate, this result highlights the Group’s tenacity and market leadership.

As the Group recorded a 99% Year on Year (YoY) increase in profit before tax, rising from N505 billion in Q3 2023 to N1.0 trillion in Q3 2024, the triple-digit growth in the topline also contributed to an increase in the bottom line, according to the Bank’s unaudited Q3 2024 financial results that were presented to the Nigerian Exchange Limited (NGX) yesterday. In the same time frame, profit after taxes increased by 91%, from N434.2 billion to N827 billion.

Both interest income and non-interest income increased, which propelled the topline’s rise. Due to the high-yield environment, interest revenue increased by 190% to N1.95 trillion. The significant increase in fees and commissions supported the 41% increase in non-interest revenue to N856 billion, demonstrating the strength of Zenith Bank’s retail expansion and the strong performance of its digital channels during the reporting period.

The Bank’s emphasis on operational effectiveness and sound risk management procedures is reflected in the notable rise in profitability. Zenith Bank’s robust value generation for shareholders was highlighted by its nearly twofold increase in earnings per share (EPS), which went from N13.82 to N26.34 in Q3 2023.

Customer deposits, which increased by 42% to N21.6 trillion, were a major contributor to the Bank’s balance sheet’s notable growth, which saw total assets increase by 49% to N30.4 trillion. This increase in deposits was widespread throughout the business and retail sectors, underscoring the Bank’s expanding clientele and devoted clientele. With a 46% rise in gross loans to N10.3 trillion, the commitment to bolstering key economic sectors was highlighted.

The capital adequacy ratio improved to 21.9%, which is significantly more than what is required by law, maintaining its strength. As Zenith Bank made the most of its asset base, the return on average equity (ROAE) increased from 35.1% to 37.8%, and the return on average assets (ROAA) also improved to 4.3%. The cost of risk was kept at 7.3%, highlighting the Bank’s proactive commitment to provisioning for credit risk, while the cost of funding rose to 4.3%, reflecting the general market trend of rising interest rates. Even while it continues to aspire for increased operational efficiency, the Bank’s cost-to-income ratio increased to 39.5%, showing the impact of strategic investments in technology and capacity building meant to support long-term growth.

With a 4.5% non-performing loan (NPL) ratio that is within regulatory bounds, Zenith Bank’s asset quality continues to be a pillar of its strength. The Bank’s rigorous commitment to risk management is demonstrated by its high coverage ratio of 198.4%, which positions it for stability in the face of market turbulence and supports steady loan growth.

Zenith Bank is unwavering in its dedication to value creation and sustainable growth. On August 1, 2024, the Bank began raising capital through a combined rights issue and public offer. The Central Bank of Nigeria’s (CBN) March 2024 recapitalisation order for commercial banks served as the impetus for this capital increase. Although regulators are still awaiting the Bank’s final capital verification clearances, the fundraising effort was a success, demonstrating the high level of trust in Zenith Bank’s advertise.