Zenith Bank Plc has released its unaudited results for the first quarter of 2024 showing triple-digit growth of 189 per cent in gross earnings, from ₦270 billion recorded in Q1 2023 to ₦781 billion in Q1 2024.
From the unaudited statement of account submitted to the Nigerian Exchange (NGX), profit before tax (PBT) rose to ₦320 billion in Q1 2024, representing an increase of 270% from the ₦87 billion reported in Q1 2023.
Profit after tax (PAT) grew significantly by 291% from the ₦66 billion reported in Q1 2023 to ₦258 billion in the current period.
The report also showed that interest and non-interest income contributed significantly to the growth in gross earnings.
Interest income grew by 155% from ₦192 billion reported in March 2023 to ₦489 billion during the period in review.
The bank explained that growth in interest income was due to the repricing of risk assets, owing to the increase in the central bank’s monetary policy rate (MPR), which currently stands at 24.75%.
The group reported an impairment charge of ₦56 billion for Q1 2024, up from ₦8 billion recorded in Q1 2023
The cost of funds grew by 48% from 2.7% in Q1 2023 to 4% in Q1 2024 due to the high-interest rate environment, while interest expense increased by 157% from ₦71 billion reported in Q1 2023 to ₦182 billion in the period to March 2024.
Gross loans, which are largely funded by customer deposits, grew by 30% from ₦7.1 trillion in December 2023 to ₦9.2 trillion in March 2024.
Customer deposits also grew by 11% from ₦15.2 trillion in December 2023 to ₦16.8 trillion in March 2024, while assets also increased by 19% to ₦24 trillion within the same period.
“The group is making progress on the planned capital raise to support future growth and is very optimistic about meeting the new minimum capital requirements in line with the CBN’s recapitalisation directive.
“As the group accelerates migration to its new technology architecture and also transitions into a holding company, it remains poised to maximise value for all stakeholders,” the report stated.
