Zenith Bank records 41% YoY growth in profit; assets value surge to GHS 15bn as NPL dip to 2.14%
Zenith Bank (Ghana) Ltd has emerged from the first quarter of 2024 with commendable financial results, showcasing a robust performance across key indicators. The bank’s unaudited financial statements for the period revealed an impressive 41.03 percent year-on-year growth in profitability, reaching GH¢306.5 million compared to GH¢217.3 million in the corresponding period of 2023.
Driving this exceptional performance were marked increases in both interest and non-interest income. Interest income surged by 59 percent to GH¢437.6 million in Q1 2024 from GH¢275.2 million in Q1 2023, leading to a substantial rise of 59.2 percent in net interest income to GH¢302.2 million.
Furthermore, fees and commission income experienced a notable growth of 9.6 percent, reaching GH¢64.3 million in Q1 2024. This, coupled with trading income of GHS91 million, contributed to diversifying Zenith Bank’s revenue streams and enhancing its financial resilience.
The bank’s balance sheet also witnessed significant expansion, with total assets growing by an impressive 39.6 percent to GH¢15.1 billion in Q1 2024, compared to GH¢10.8 billion in the same period last year. Of particular note was the 54.9 percent increase in loans and advances, reaffirming the bank’s commitment to supporting various sectors of the economy.
Moreover, deposits from customers surged to GH¢12.7 billion in Q1 2024, reflecting a 36.4 percent year-on-year increase and underscoring the growing trust and confidence in Zenith Bank’s services.
Beyond profitability, the bank’s liquidity ratio improved to 99.84 percent in Q1 2024, indicating its exceptional capability to meet short-term obligations. Furthermore, Zenith Bank Ghana boasted an impressive Capital Adequacy Ratio of 31.76 percent, surpassing regulatory requirements and highlighting its robust capital base and financial stability.
The bank’s credit quality also showed notable improvement, with the Non-performing loans ratio dropping from 5.05 percent in Q1 2023 to 2.14 percent in Q1 2024, reflecting effective credit risk management strategies.
In light of these impressive results, Mr. Henry Onwuzurigbo, the Managing Director/CEO of Zenith Bank (Ghana) Ltd, reiterated the bank’s commitment to understanding customer needs and providing tailored financial solutions. He expressed gratitude to customers for their continued trust and emphasized the bank’s dedication to excellence in the remaining quarters of the year.
Zenith Bank (Ghana) Ltd’s remarkable performance in Q1 2024 underscores its position as a leading financial institution, poised for sustained growth and value creation in the Ghanaian market.
