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ZENITH BANK MAINTAINS LEADING POSITION IN PROFITABILITY AS PBT SOARS TO N727 BILLION IN H1 2024 RESULT

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4 months ago

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Zenith Bank Enhances E-Channel Services for Customers

 

ZENITH BANK MAINTAINS LEADING POSITION IN PROFITABILITY AS PBT SOARS
TO N727 BILLION IN H1 2024 RESULT

 

Zenith Bank Plc has announced its audited results for the half-year ended 30 June 2024,
recording an impressive triple-digit growth of 117% in gross earnings from N967.3 billion
reported in H1 2023 to N2.1 trillion in H1 2024. This superior performance has been
achieved even as the Nigerian banking industry navigates a challenging macro
environment.

According to the bank's audited half-year financial results presented to the Nigerian
Exchange (NGX) on Friday, 30th August 2024, the triple-digit growth in the top line also
drove growth in the bottom line as the Group recorded a 108% Year on Year (YoY) increase
in profit before tax, from N350 billion in H1 2023 to N727 billion in H1 2024. Profit after tax
also grew by 98% from N292 billion to N578 billion in the same period. This led to growth in
earnings per share (EPS) by 98% from N9.29 in H1 2023 to N18.41 in the period under
review.

 

The growth in gross earnings was driven by an acceleration in both interest income and
non-interest income. Propelled by the growth of and by the effective pricing of risk assets,
interest income surpassed the N1 trillion mark, a half-year record, growing by 177% from
N415.4 billion in H1 2023 to N1.1 trillion in H1 2024, while non-interest income grew by 74%
from N515.7 billion to N899.3 billion.

 

 

The Group continued to strive for operational efficiency, resulting in only a marginal
increase in cost-to-income ratio Year on Year (YoY) from 38.5% to 39.4%. The heightened
risk environment has fuelled a growth in impairment levels, thus mildly elevating the cost of
risk from 8.8% to 9.7%. Cost of funds grew Year on Year (YoY) from 2.6% to 4.4% given
the high-interest rate environment. This also resulted in growth in interest expense from
N153.6 billion in H1 2023 to N434.4 billion in H1 2024. Despite this, net interest margin
grew by 49% from 5.9% in H1 2023 to 8.8% in H1 2024, underscoring the efficient repricing
of interest earning assets and interest accruing liabilities.

 

Total assets grew by 35% from N20.4 trillion in December 2023 to N27.6 trillion in June
2024, while customer deposits grew by 29% from N15.2 trillion in December 2023 to N19.6
trillion in June 2024. Gross loans also grew by 44% from N7.1 trillion in December 2023 to
N10.2 trillion in June 2024 aided by loans disbursements to customers and the translation
effect of foreign currency denominated loans. The Group’s consistent stringent risk
acceptance criteria helped ensure that the non-performing loan ratio continued to show only
modest growth, increasing from 4.4% in December 2023 to 4.5% in June 2024 despite the
challenging macroeconomic environment. Capital adequacy ratio improved from 21.7% in
December 2023 to 23% in June 2024, loan-to-deposit ratio grew by 11% from 46.5% to
51.7%, while liquidity ratio reduced from 71% to 59% in the current period. All prudential
ratios are still well above regulatory thresholds.

 

In maximizing value to its highly esteemed shareholders, the Group has declared an interim
dividend of N1.00 per share. This represents the highest half year dividend pay-out in its
history, and also the highest interim dividend in the Nigerian banking sector till date.
The Group’s strong brand equity and excellent service quality position it to mine new
business opportunities in strategic sectors of the economy, in existing geographies where it
has a presence, and in new geographies it is exploring. In furtherance of its expansion
plans, the Group has received regulatory approval for the establishment of a third-country
branch in Paris, France, which, when fully operational, will enhance its product offerings in
international markets.

 

The Group will continue to invest in enhancing its digital banking capabilities and is
expediting the completion of its technology infrastructure upgrade. Its track-record of
successful capital raises puts it on a solid footing to meet the new minimum capital
requirements for commercial banks with international authorisation, well ahead of the
deadline set by the CBN. The Group remains undoubtedly on track for a record year in its
financial performance and will continue to deliver maximum value to its shareholders, while
ensuring a strong corporate governance culture.

 

Zenith Bank’s track record of excellent performance has continued to earn the brand
numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1
Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking,
published by The Banker Magazine. The Bank was also awarded the Bank of the Year
(Nigeria) in The Banker’s Bank of the Year Awards for 2020 and 2022; and Most
Sustainable Bank, Nigeria in the International Banker 2024 Banking Awards. Further
recognitions include Best Bank in Nigeria for three consecutive years from 2020 to 2022
and in 2024 in the Global Finance World’s Best Banks Awards, and Best Commercial Bank,
Nigeria for four consecutive years from 2021 to 2024 in the World Finance Banking Awards.
Additionally, Zenith Bank has been acknowledged as the Best Corporate Governance Bank,
Nigeria, in the World Finance Corporate Governance Awards for three consecutive years
from 2022 to 2024, and ‘Best in Corporate Governance’ Financial Services’ Africa for four
consecutive years from 2020 to 2023 by the Ethical Boardroom.

 

The Bank’s commitment to excellence saw it being named the Most Valuable Banking
Brand in Nigeria in the Banker Magazine Top 500 Banking Brands for 2020 and 2021, and
Retail Bank of the Year for three consecutive years from 2020 to 2022 at the BusinessDay
Banks and Other Financial Institutions (BAFI) Awards. The Bank also received the
accolades of Most Sustainable Bank, Nigeria, in the International Banker 2023 Banking
Awards, Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria, in
the International Banker 2022 Banking Awards. Zenith Bank was named Bank of the
Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by
Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, and Most
Responsible Organisation in Africa 2021 by SERAS Awards.

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Sahara weekly online is published by First Sahara weekly international. contact [email protected]

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Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

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2 days ago

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December 20, 2024

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Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

In a show of solidarity, the Committee of Banks in Nigeria has extended a helping hand to victims of the September 2024 floods in Jigawa State. On Thursday, a high-profile delegation led by Dr. Oliver Alawuba, Chairman of the Committee and Group Managing Director/Chief Executive Officer of United Bank for Africa Plc (UBA), visited Dutse, the state capital, to present relief materials to the state government.
The donated items, worth several million Naira, included essential food supplies such as rice and cooking oil, along with mattresses and beverages. Dr. Alawuba highlighted that the gesture aimed to alleviate the hardship faced by flood victims and support critical institutions, especially public hospitals, in their efforts to assist those affected.
“We stand in solidarity with the people and government of Jigawa State during this difficult time. This donation is our way of expressing empathy and supporting those who have lost loved ones, properties, and livelihoods,” Dr. Alawuba stated.
The delegation included notable banking leaders such as Mr. Roosevelt Ogbonna of Access Bank Plc, Dame (Dr.) Adaora Umeoji of Zenith Bank Plc, and Dr. (Mrs.) Nneka Onyeali-Ikpe of Fidelity Bank Plc, among others. Their collective presence underscored the banking sector’s commitment to corporate social responsibility and national development.
Governor Malam Umar A. Namadi expressed profound gratitude for the donation, describing the visit as a rare and commendable act of compassion. He assured the delegation that the relief materials would be judiciously distributed to the intended beneficiaries, emphasizing the importance of partnerships in rebuilding lives and communities.
The Committee of Banks also reiterated their commitment to supporting Nigerians during emergencies, drawing attention to previous interventions, including relief efforts during the 2011 and 2013 floods, the COVID-19 pandemic, and security initiatives like the Lagos State Security Trust Fund.
This humanitarian gesture reflects the collective resolve of Nigeria’s financial institutions to foster social and economic growth, making a meaningful impact in times of need.
Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

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Polaris Bank Clinches SERAS Award for Excellence in Sustainability and CSR

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2 days ago

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December 20, 2024

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Polaris Bank Clinches SERAS Award for Excellence in Sustainability and CSR

Polaris Bank Clinches SERAS Award for Excellence in Sustainability and CSR

Polaris Bank has once again cemented its position as a leader in corporate social responsibility (CSR) by winning the prestigious Sustainability, Enterprise, and Responsibility Awards (SERAS), Africa’s foremost recognition for impactful community and sustainability initiatives.

The bank was honored at the 18th edition of the SERAS Awards, held at the Oriental Hotel in Lagos, for its unwavering dedication to sustainable development and critical community interventions across Nigeria. The organizers commended Polaris Bank for its consistent efforts to improve lives and foster growth in underserved areas.

Polaris Bank Clinches SERAS Award for Excellence in Sustainability and CSR

 

The SERAS Awards, often regarded as the gold standard in sustainability and CSR, celebrate organizations that drive innovation and create lasting societal and environmental benefits. Polaris Bank stood out this year for its extensive portfolio of impactful projects, earning the “Best in Rural Population Integration” award.

Some of the bank’s notable initiatives include:

Sponsoring the planting of 2,000 economic trees in communities like Ajingi, Kano State.
Renovating the Ibeju-Lekki Skill Acquisition Centre and donating essential equipment.
Installing boreholes in underserved rural areas to provide clean water access.
Supporting over 15,000 indigent students in public schools with educational resources, including uniforms, sandals, and books.
Providing free breast cancer screenings to 20,000 women over a decade and supporting survivors through retreats.
Establishing hospitals and rehabilitation centers for victims of sexual violence and vocational centers for women.
Donating ICT labs to skill acquisition centers and promoting financial literacy among students.
Organizing medical outreach programs and aiding Internally Displaced Persons (IDPs).
These initiatives have not only improved living conditions but also reduced rural-to-urban migration by making communities more self-reliant and livable.

Rebuilding Community Resilience
Polaris Bank recently demonstrated its commitment to resilience by rebuilding its Sagamu branch, which was destroyed during the cash crunch riots following the Naira redesign policy. The bank fully reconstructed and re-equipped the branch, restoring critical banking services and supporting economic recovery in the community.

Commitment to Sustainability
Speaking on the award, Polaris Bank’s Managing Director, Kayode Lawal, emphasized the institution’s dedication to sustainability. “This recognition underscores our deliberate efforts to drive impactful socio-economic interventions and address the effects of climate change on our environment, economy, and people,” he said.

Lawal reiterated that for Polaris Bank, sustainability is not just a destination but a continuous journey of creating positive change.

Celebrating Africa’s Sustainability Leaders
The SERAS Awards brought together policymakers, business leaders, and global sustainability experts to celebrate organizations shaping Africa’s future through innovative solutions. Attendees used the event to connect with like-minded professionals and reaffirm a shared vision of lasting positive change across the continent.

As a trailblazer in sustainability and CSR, Polaris Bank remains steadfast in its mission to uplift communities, foster economic growth, and champion solutions to pressing societal challenges.

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Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

Published

3 days ago

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December 19, 2024

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Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

In a bid to ease financial burdens during the holiday season, Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) to N899.50 per litre. This follows a previous price cut to N970 per litre on November 24. The move is aimed at reducing transportation costs for Nigerians as they prepare for festive celebrations.

Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, disclosed the development in a statement, highlighting additional benefits for consumers. Beyond the price reduction, the refinery is introducing a special credit offer. For every litre of PMS purchased on a cash basis, consumers can buy an additional litre on credit, supported by a bank guarantee from Access Bank, First Bank, or Zenith Bank.

“To help reduce transport expenses this holiday season, we’re offering PMS at N899.50 per litre and providing a credit option for additional purchases. This is part of our commitment to making high-quality petroleum products accessible to Nigerians,” Chiejina said.

The refinery also reaffirmed its commitment to providing premium-quality, environmentally-friendly fuel, while ending Nigeria’s dependence on substandard imported products.

With a capacity of 650,000 barrels per day, the Dangote Refinery is the largest single-train refinery in the world, capable of meeting Nigeria’s entire refined petroleum product demand and generating surplus for export. As the festive season approaches, the company expressed gratitude to Nigerians for their support and pledged continued efforts to ease their economic burdens.

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