Zenith Bank: Ahead Of The Curve In An Ever-Evolving Financial Ecosystem

Zenith Bank

OpenLife Nigeria reports that for 35 years, Zenith Bank has not just participated in Nigeria’s banking evolution—it has defined it.

The bank with branches across Continents around the world has become a beacon of financial strength and innovation.

It has consistently set the benchmark for excellence, solidifying its position as the gold standard in the financial industry.

What accounts for this is the banks recent financial records.

In its December 31, 2024 year-end audited financial results, the bank reinforced its leadership status in the Nigeria’s financial space.

The numbers tell a compelling story of a remarkable surge across key performance metrics, crowned by an unprecedented N1.3 trillion profit before tax.

This stellar financial performance is a testament to its strategic risk management, prudent asset pricing, and an optimised treasury portfolio—all of which have solidified its standing as a dominant force in Nigeria’s banking landscape.

Clearly, the bank’s performance in the 2024 financial year, as presented to the Nigerian Exchange (NGX), is a testament to its strategic foresight and operational efficiency.

With an 86% year-on-year (YoY) surge in gross earnings, Zenith Bank’s revenue skyrocketed from N2.13 trillion in 2023 to N3.97 trillion in 2024.

This remarkable growth, fuelled by a 138% increase in interest income, is a direct result of the bank’s well-calibrated investment strategy in high-yield government securities and a robust expansion of its loan book.

Interestingly, by striking a balance between risk and reward, Zenith Bank demonstrated an unparalleled ability to navigate economic shifts while maximising returns.

Zenith Bank’s financial strength is amplified by its profit before tax (PBT), which surged by 67% to a record-breaking N1.3 trillion in 2024, up from N796 billion in 2023, an achievement driven by a combination of top-line expansion and efficient treasury portfolio management.

At the heart of this success is net interest income, which saw an extraordinary 135% increase, rising from N736 billion in 2023 to N1.7 trillion in 2024.

This growth underscores the bank’s strong core banking performance and its ability to generate substantial earnings even in the face of macroeconomic challenges.

More so, non-interest income recorded a solid 20% growth, climbing from N919 billion to N1.1 trillion, highlighting Zenith Bank’s diversified revenue streams and operational efficiency.

A key driver of this asset growth is the bank’s phenomenal increase in customer deposits, which soared by 45% from N15 trillion to N22 trillion in 2024.

This surge reflects a historically strong corporate deposits portfolio and, more significantly, a sustained expansion in retail deposits.

The bank’s aggressive customer acquisition strategy, coupled with its focus on low-cost funding, has fuelled this upward trajectory, ensuring steady and sustainable growth in deposit mobilisation.

Even amid rapid expansion and capital reinvestment, Zenith Bank continues to uphold strong financial fundamentals.

The bank’s Return on Average Equity (ROAE) adjusted to 32.5%, reflecting the impact of new capital injection, while Return on Average Assets (ROAA) remained stable at 4.1%—a testament to its efficient asset utilisation and profitability.

Despite inflationary pressures, cost-to-income rose only marginally from 36.1% to 38.9%―that speaks volumes about the bank’s cost discipline and operational efficiency in a challenging economic environment.

Moreover, the bank’s Non-Performing Loan (NPL) ratio stood at 4.7%, backed by a coverage ratio of 223%, reinforcing Zenith Bank’s strong risk management framework.

In recognition of its strong earnings performance, Zenith Bank has proposed a final dividend of N4.00 per share, bringing the total dividend for the year to N5.00 per ordinary share.

This move reaffirms the bank’s commitment to delivering value to shareholders, ensuring that they remain key beneficiaries of its sustained growth and profitability.

Zenith Bank once again demonstrated its market leadership and investor appeal with a landmark N350 billion capital raise through a rights issue and public offer.

The overwhelming 160% subscription rate underscores the unwavering confidence investors have in the bank’s growth trajectory and long-term strategy.

This fresh injection of capital is not just a boost to the bank’s balance sheet—it is a strategic play aimed at enhancing technology infrastructure, strengthening liquidity, and accelerating expansion into key African markets.

By unlocking new growth opportunities across the continent, the bank is positioning itself as a dominant force in the regional banking space, driving economic transformation beyond Nigeria’s borders.

Zenith Bank’s legacy of excellence endures, reaffirmed by industry accolades that highlight its leadership in Nigeria’s financial sector.

It has been Nigeria’s Number One Bank by Tier-1 Capital for 15 consecutive years in The Banker’s 2024 Top 1000 World Banks Ranking.

The Bank also secured The Banker’s Bank of the Year (Nigeria) title in 2020, 2022, and 2024, and was named Best Bank in Nigeria by Global Finance four times in five years (2020-2022, 2024).

Zenith Bank’s commitment to innovation and sustainability earned it Best Commercial Bank, Nigeria (2021-2024) in the World Finance Banking Awards and Most Sustainable Bank, Nigeria (2023-2024) in the International Banker Banking Awards.

Its governance excellence was recognised with the Best Corporate Governance Bank, Nigeria title (2022-2024) by World Finance and Best in Corporate Governance – Financial Services, Africa (2020-2023) by Ethical Boardroom.

Zenith Bank’s brand strength remains unmatched, earning the Most Valuable Banking Brand in Nigeria title from The Banker (2020, 2021).

It was named Bank of the Year at the BusinessDay BAFI Awards (2023, 2024) and Retail Bank of the Year in 2020-2022 and 2024.

Similarly, it won Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria at the International Banker 2022 Banking Awards.

Its social impact efforts earned multiple honours at the SERAS CSR Awards Africa 2024, including Most Responsible Organisation in Africa and Best Company in Transparency, Gender Equality, and Women Empowerment.

Further recognition includes Bank of the Year 2024 from ThisDay and New Telegraph, and Best in MSME Trade Finance 2023 by Nairametrics.

For industry observers, the figures from the 2024 financial year were hardly a surprise.

The numbers echoed a familiar tune of triumph.

The bank’s Group CEO, Dame Dr Adaora Umeoji, reflecting on the achievements, highlighted innovation, customer-centricity, and an unwavering commitment to financial inclusion—values that extend beyond profit and which proved that the Zenith Bank success is more than just a balance sheet.

In a nation often grappling with economic uncertainties, Zenith’s story affirmed a powerful truth: even amid fluctuating markets, vision and steadfast dedication can build not just wealth, but a legacy—one founded not merely on numbers, but on the enduring currency of confidence.

As banks unveil their 2024 financials, Zenith Bank stands well ahead of the pack.

At the helm of this success is Dame Adaora Umeoji, the bank’s Chief Executive Officer, whose visionary leadership has propelled Zenith Bank to new heights of profitability and operational excellence.

Her strategic acumen, combined with the unwavering guidance of Group Chairman Jim Ovia, has kept Zenith Bank ahead of the curve in an ever-evolving financial ecosystem.

Zenith Bank’s trailblazing legacy of innovation and excellence cements its reputation as a titan of African banking, a testament to the visionary leadership of its chairman, Jim Ovia—hailed by Forbes as “the godfather of Nigerian banking.”

More so, the management skills of Jim Ovia had resonated with the President, Commander-In-Chief, Federal Republic of Nigeria, President Bola Ahmed Tinubu who, through a press statement, congratulated Ovia on his recent admission to the prestigious Freedom of the City of London.

In the congratulatory message, President Tinubu pointed out Ovia’s exceptional contributions to business, innovation, and technology.

President Tinubu equally highlighted Ovia’s significant role in shaping Nigeria’s financial landscape and strengthening economic ties between Africa and the rest of the world.

With Zenith Bank, the financial space looks assuring and interesting to investors.