BREAKING: Zenith Bank Post N406.8 Billion Pre-Tax Profits In Q2 2024—Zenith Bank reported its 2024 second quarter results showing pre-tax profits topped N406 billion in the second quarter of 2024 as forex related gains boosted bottom line.
The genius Media Nigeria reports that The profits represent a 370% increase year on year when compared to the N86.8 billion reported a year earlier.
Zenith Bank’s profits got a major boost from gains made on its trading books which soared to N871.6 billion for the first 6 months of the year up from N77.9 billion a year earlier.
This helped propel half year pre-tax profits to a whopping N727 billion suggesting Zenith Bank is on track to be the first commercial bank to hit N1 trillion in profits by the end of the year.
Key highlights
- 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 profits was driven by gains in N871.6 billion compared N77.9 billion.
- The company explained that the gains include N123 billion in gains on derivatives compared to N65.2 billion.
- Despite the gains in derivates, Zenith Bank took a major impairment loss of N359.3 billion in the second quarter alone, taking its total impairments to N415.2 billion for the year.
- To put this into perspective, Zenith Bank took an impairment charge of N409.6 billion in the whole of 2023 and just N123.2 billion in 2022
- In terms of segment revenue, Nigeria operations contributed N645.3 billion to group profits while its outside Nigerian operations contributed N81.7 billion billion
