Zenith Bank Targets N1trn Profit in 2024, Expands to France, Francophone Africa

Samuel Mobolaji

Zenith Bank Plc is on track to surpass N1 trillion in Profit Before Tax (PBT) in 2024, as it continues to expand its operations to France and Francophone African countries.

This ambitious target was highlighted during the bank’s recent Capital Markets Day, where it showcased its growth trajectory and strategic objectives amidst its recapitalisation journey.

The event, which brought together key market players, focused on the bank’s robust performance, strategic goals, and consistent dividend payouts over the years.

It also provided an opportunity for the bank to inform capital market stakeholders about its strong risk management culture, adherence to regulations, capital adequacy, and low non-performing loan levels.

Addressing stakeholders at the event in Lagos, Group Managing Director/Chief Executive Officer, Dame Dr Adaora Umeoji, emphasized the bank’s impressive financial metrics, including tier-1 capital of N1.8 trillion, shareholders’ funds of N2.3 trillion, and market capitalisation of N1.3 trillion.

For the year ended December 2023, the bank reported a profit before tax of N796 billion and declared a dividend of N4 per share. Given the bank’s performance trends, Dr Umeoji noted that Zenith Bank is poised to achieve over N1 trillion in profit before tax in 2024, having already recorded N320 billion in the first quarter of the year.

Dr Umeoji also outlined the bank’s plans, including driving financial inclusion, expanding corporate and retail banking through advanced digital platforms, and launching a fintech subsidiary, ZenPay, to enhance profitability. Additionally, the bank is set to extend its footprint to France and other Francophone African nations.

“For us at Zenith, we won’t be left out. We are planning to go to the market to raise capital, and as it stands, Zenith Bank has the least amount of capital to raise. We are looking to raise N230 billion because we are already at N270.7 billion. That is the least capital to raise among our peers. We believe that Zenith Bank has what it takes.

“We have the capacity, the network, the balance sheet, the human capital, and the track record to achieve that. We are planning for the future, and the technology we have now is the best in the entire industry. It will help us to have a seamless process and integrate,” Dr Umeoji explained.

On his part, Chief Financial Officer/General Manager, Dr Mukhtar Adam, highlighted that the bank’s revenue has grown by over 27 per cent CAGR over the last five years, with a 28 per cent cumulative growth in profit before tax during the same period. Despite economic challenges, Zenith Bank has continued to deliver stable returns, demonstrating resilience and strategic growth.

Meanwhile, Zenith Bank has in recent times named the Best Commercial Bank, Nigeria, in the World Finance Banking Awards 2024 for the fourth consecutive year, and Best Corporate Governance, Nigeria, for the third year running. These awards recognize the bank’s robust financial performance, superior customer service, sustainability initiatives, and corporate governance practices.

In its audited results for the year ended December 31, 2023, Zenith Bank reported a 125 per cent increase in gross earnings, reaching N2.132 trillion from N945.6 billion in 2022. Profit before tax surged by 180 per cent to N796 billion, and profit after tax grew by 202 per cent to N676.9 billion. The growth in gross earnings was driven by substantial increases in both interest and non-interest income.

As Zenith Bank continues to set industry benchmarks and drive excellence across its operations, its ambitious plans and strategic initiatives are expected to deliver substantial value to investors and stakeholders, positioning the bank for continued success in the coming years.