As a testament to its dedication to fostering the expansion and progress of Nigeria’s economy, Zenith Bank has issued an impressive sum of N10.99 trillion in loans spanning multiple industries. This substantial support acts as a crucial resource for enterprises, business owners, and people alike.
Included in their 2024 Fiscal Year report, this major loan distribution spans critical areas like agriculture, manufacturing, oil and gas, and construction, highlighting the bank's position as a prominent financial entity and a crucial catalyst for Nigeria's economic growth. According to records, out of the total loan disbursements amounting to ₦10.99 trillion, the oil and gas industry secured the highest portion at ₦4.11 trillion, trailed closely by the manufacturing sector receiving ₦2.65 trillion. Additionally, the commercial sector obtained ₦1.1 trillion, whereas the governmental segment was allocated ₦1.02 trillion.
The finance and insurance sector received N440.2 billion, and the communication sector received N379.3 billion. Other sectors that benefited from the loan disbursement include consumer credit (N336.5 billion), agriculture (N335.7 billion), transportation (N229.7 billion), power (N217.1 billion), and real estate and construction (N150.7 billion). The education sector received the smallest share, with N31.8 billion.
The disbursal of the loan showcases Zenith Bank’s dedication to fostering the expansion and progress of Nigeria's economy. Despite significant increases in Nigeria’s monetary policy rate last year, leading to an elevation of the base lending rate by up to 8.75%, the bank still managed impressive outcomes financially. This allowed banking institutions like Zenith to increase their interest rates on loans substantially.
The interest income for Zenith Bank surged over two-fold to N2.7 trillion, representing 68.5 percent of its total revenue for the year. The gross earnings increased significantly to N4 trillion from N2.1 trillion. Additionally, net interest income, which measures the gap between the interest earned by the bank and what it pays to depositors, rose sharply by 134.8 percent.
Related Sound regulatory oversight keeps banking sector strong —Cardoso Five Nigerian banks make progress in recapitalisation efforts Why $59 billion in cryptocurrency transactions cannot be ignored by banks —ExpertsThe lender set aside N658.8 billion to account for loans where repayments were jeopardized by ongoing defaults. This highlights how the weight of servicing debts has affected borrowers, many of whom saw their incomes squeezed due to high inflation rates in the nation throughout the year.
Boosting profitability, trading gains surged by 94 percent to ₦1.1 trillion, whereas fees and other commissions increased to ₦206.9 billion from ₦109.3 billion compared to the previous year. Earlier this period, Zenith Bank disclosed plans to raise capital with a public offer of ₦162.1 billion and a rights issue totaling ₦188.4 billion aimed at reinforcing their shareholders' funds.
This places the bank on course to increase its core capital to at least ₦500 billion before March 2026, as mandated by the Central Bank of Nigeria for banks with international licenses. Beyond its Nigerian headquarters, Zenith Bank also operates in countries such as Ghana, Sierra Leone, the United Kingdom, and the Gambia. In their financial statement, they pointed out how hyperinflation affected their activities in Ghana, resulting in a reduction of₦30 billion in pre-tax profits for the fiscal year. Additionally, plans are underway to transform into a holding company similar to many of its competitors.
This new approach aims to expand beyond the primary banking sector into various areas within financial services, with hopes that this diversification will enhance overall valuation and broaden income streams. For the reviewed period, operating costs escalated significantly to ₦586.6 billion from ₦291.7 billion due primarily to increased expenditure on fuel and maintenance, which nearly doubled. Pre-tax profits saw an increase of 66.7%, whereas after-tax earnings rose to ₦1 trillion from ₦676.9 billion. Additionally, total assets jumped to ₦30 trillion from ₦20.4 trillion. The institution declared a final dividend of ₦4 per share, bringing the annual total to ₦5 (up from ₦4 last year), equating to a possible distribution amounting to ₦205.3 billion.
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