How Zenith Bank’s Focus on Customer-Centric Solutions Led to Double-Digit Earnings Surge
By Azeez Disu
Zenith Bank Plc has once again demonstrated its prowess in the banking sector, achieving an impressive 86% year-on-year growth in gross earnings for the financial year ending December 31, 2024. This remarkable surge, which saw gross earnings rise from N2.13 trillion in 2023 to N3.97 trillion in 2024, is a testament to the Bank’s strategic focus on customer-centric solutions and innovation.
At the heart of this growth is a significant 138% increase in interest income, fueled by strategic investments in high-yield government securities and a robust expansion of the Bank’s loan portfolio. Dame Dr. Adaora Umeoji OON, Group Managing Director/CEO of Zenith Bank, attributed this success to the Bank’s unwavering commitment to enhancing customer experience and financial inclusion. “This year’s performance underscores our dedication to innovation and customer-centric solutions,” she stated, emphasizing the importance of creating value for customers and stakeholders alike.
Zenith Bank’s profit before tax (PBT) rose dramatically by 67%, climbing to N1.3 trillion, supported by effective treasury management and expansive top-line growth. Notably, net interest income increased by 135% to N1.7 trillion, showcasing the Bank’s ability to navigate macroeconomic challenges and deliver strong core banking performance. Furthermore, non-interest income also grew by 20%, reaching N1.1 trillion, illustrating the Bank’s diverse revenue streams and its focus on meeting customer needs.
The Bank’s total assets surged by 47%, from N20 trillion in 2023 to N30 trillion in 2024, bolstered by a strong liquidity position and effective balance sheet management. A remarkable 45% increase in customer deposits, from N15 trillion to N22 trillion, reflects Zenith Bank’s successful strategy in attracting both corporate and retail clients. The Bank’s emphasis on customer acquisition and low-cost funding has played a crucial role in this growth.
Despite the slight decline in Return on Average Equity (ROAE) to 32.5% due to new capital injections, the Bank’s Return on Average Assets (ROAA) remained steady at 4.1%. The Non-Performing Loan (NPL) ratio stood at a healthy 4.7%, with a coverage ratio of 223%, indicating Zenith Bank’s commitment to prudent risk management and maintaining a resilient loan portfolio.
In recognition of its strong earnings performance, Zenith Bank proposed a final dividend of N4.00 per share, bringing the total dividend for the year to N5.00 per share. This move highlights the Bank’s commitment to returning value to its shareholders while simultaneously investing in growth initiatives.
A significant milestone for the Bank was the successful capital raise of N350 billion through a rights issue and public offer, which saw a subscription rate of 160%. This achievement reflects strong investor confidence in Zenith Bank’s growth trajectory, with proceeds earmarked for enhancing technology infrastructure and supporting expansion into key African markets.
Zenith Bank’s unwavering focus on innovative banking solutions and customer satisfaction has not gone unnoticed, earning the Bank numerous accolades over the years. It has been recognized as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking by The Banker Magazine. Additionally, the Bank has received multiple awards for excellence in customer service, corporate governance, and sustainability, reinforcing its leadership position in the Nigerian financial landscape.
As Zenith Bank continues to prioritize customer-centric solutions, it remains well-positioned to navigate evolving market conditions while driving sustainable growth and enhancing shareholder value. The Bank’s commitment to innovation, coupled with its solid capital base, sets the stage for future success in an increasingly competitive banking environment.