Business
Zenith Bank reports N406.8 billion in pre-tax profits for Q2, aiming for N1 trillion by year-end.
Zenith Bank reports N406.8 billion in pre-tax profits for Q2, aiming for N1 trillion by year-end.
NewsReport gathered that this marks a substantial 370% increase from N86.8 billion in the same quarter last year. The bank’s trading book profits soared to N871.6 billion in the first half, up from N77.9 billion last year.
For the half-year, pre-tax profits reached N727 billion, positioning Zenith Bank to become the first commercial bank to exceed N1 trillion in profits by year-end.
The Founder and Chairman of Zenith Bank Plc, Jim Ovia, CFR (Centre) flanked by the Group Managing Director/Chief Executive, Dr. Ebenezer Onyeagwu (Right) and the Deputy Managing Director, Dame (Dr.) Adaora Umeoji, OON (Left) during a court-ordered Extraordinary General Meeting (EGM) held virtually from the Zenith Heights, Zenith Bank Plc, Victoria Island, Lagos, on Friday.
Key highlights include:
– Net Interest Income: N408.6 billion (+238%)
– Loan Impairments: N359.3 billion (+4548%)
– Net Interest after Impairments: N49.3 billion (-56%)
– Operating Income: N677 billion (+264%)
– Operating Expenses: N270 billion (+172%)
– Pre-tax Profit: N406.8 billion (+370%)
– EPS: N10.2 (+434%)
– Loans and Advances: N9.29 trillion (+131%)
– Total Deposits: N19.6 trillion (+115%)
– Net Assets: N3.19 trillion (+121%)
– Total Assets: N27.5 trillion (+106%)
Commentary:
Zenith Bank’s profit surge was mainly driven by N871.6 billion in gains, up from N77.9 billion last year, including N123 billion from derivatives, compared to N65.2 billion previously. However, the bank reported significant impairment losses of N359.3 billion in Q2, totaling N415.2 billion for the year, in contrast to N409.6 billion for all of 2023 and N123.2 billion in 2022.
Revenue segmentation shows that Nigerian operations contributed N645.3 billion to group profits, while international operations added N81.7 billion. Zenith Bank also declared an interim dividend of N1 per share.
