Zenith Bank Plc · NSENG:ZENITHBANK
Zenith Bank — FY2024 Earnings Presentation
46 slides from Zenith Bank's earnings presentation, 2025
Slide 1: Zenith Bank Plc 2024 Full-Year Results
ZENITH BANK PLC 2024 FULL-YEAR RESULTS PRESENTATION TO INVESTORS AND ANALYSTS © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts 1 Strictly Private and Confidential
Slide 2: Basis of preparation of financial statements
This presentation is based on the consolidated financial statements of Zenith Bank Plc, a company incorporated in Nigeria on 30 May 1990, and its subsidiaries (hereinafter collectively referred to as "the Group"). The financial statements are prepared in accordance with the International Financial R
Slide 3: Agenda
Agenda 1 MACRO AND OPERATING ENVIRONMENT 2 FINANCIAL AND NON-FINANCIAL HIGHLIGHTS 3 GROUP RESULTS 4 RISK MANAGEMENT 5 BUSINESS SEGMENTS PERFORMANCE AND SUBSIDIARY REVIEW 6 ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) 7 STRATEGY AND OUTLOOK © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to
Slide 4: Macro and Operating Environment
Macro and Operating Environment © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts
Slide 5: Global and Sub-Saharan Africa Macroeconomic Overview
Global and Sub-Saharan Africa Macroeconomic Overview Global Sub-Saharan Africa GDP and Inflation Data for Countries of Interest Real GDP Growth: GDP Growth: 2024 ▪ Growth in the region is Global growth stood at 3.2% in 2024 GDP Annual projected to rise to 4.2% in 2024 and is projected to hit 3.3% in
Slide 6: Nigeria Macroeconomic and Operating Environment
Nigeria Macroeconomic and Operating Environment GDP Growth Rate Inflation Rate Real GDP Growth: ▪ Nigeria’s real GDP grew by 3.84% y/y in Q4 2024 mainly driven by the services sector, which recorded 3.84% a growth of 5.37%, thereby contributed 57.38% to 34.60% 34.80% 33.88% the aggregate GDP. 3.46%
Slide 7: Monetary and Fiscal Policy Overview
Monetary and Fiscal Policy Overview To set the right tone for Nigeria’s policy environment to meet the current economic realities, the government embarked on fundamental changes to address certain macro and structural challenges. Monetary Policy Electronic Foreign Exchange Matching The CBN acted dec
Slide 8: Financial and Non-financial Highlights
Environment, Financial and Non-financial Social Highlights & Governance © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts
Slide 9: Attractive Investment Proposition
Attractive Investment Proposition A Formidable Player in The Nigerian Banking Industry ■ Nigeria’s largest bank, with a decade-long track record of the highest Tier-1 capital of NGN3.2Tn, delivering superior returns to a diversified shareholder base Strong Financial Health: Diverse Income, Consisten
Slide 10: The Board of Directors
The Board of Directors Dame Dr. Adaora Engr. Mustafa Bello Dr. Al-Mujtaba Abubakar Dr. Omobola Dr. Peter Olatunde Chuks Emma Dr. Juliet Pamela Mimi Umeoji OON Non-Executive Director MFR Ibidapo-Obe Ogunfowora Bamkole Okoh Ehimuan Yough JP, HCIB Group Managing Director / CEO Independent Non- Independ
Slide 11: Our Well-seasoned Executive Team
Our Well-seasoned Executive Team The combined intellect and dedication of the staff, management and board contribute to making Zenith Bank a world-class institution. The bank has recorded five consecutive smooth successions internally for the role of Group Managing Director since its inception. Dame
Slide 12: © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors &
© 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts
Slide 13: Non-financial Highlights – Credit Ratings
Non-financial Highlights – Credit Ratings Rating Agency LT rating Standalone rating Outlook B- B Stable B- B Stable Caa1 b3 n/a © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts 13
Slide 14: Financial Highlights – FY 2024
Financial Highlights – FY 2024 Impressive year-on-year growth. Income Statement Statement of Financial Position Gross earnings: N3.97Tn +86% YoY Customers’ deposits: N21.96Tn +45% YoY Net-interest income: N1.73Tn +135% YoY Gross loans: N10.99Tn +56% YoY Non-interest income: N1.10Tn +20% YoY Total as
Slide 15: Group Results
Group Results © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts
Slide 16: Income Statement for the Period Ended December 2024
Income Statement for the Period Ended 31 December 2024 Robust profit before tax, driven by growth in interest income and trading gains. Group Group YoY (N’million) 2024 2023 Change Gross income 3,970,959 2,131,750 86.3% Interest and similar income 2,721,377 1,144,674 137.7% Interest and similar expe
Slide 17: Strong Financial Performance
Strong Financial Performance Revenue from diversified income sources and a strong customer base, reinforcing superior profitability and enabling consistent and growing dividend payments FY 2024 financial results were driven primarily by interest income and trading gains 54.5% 5Y CAGR 50.9% 5Y CAGR 4
Slide 18: Strong Financial Performance
Strong Financial Performance Diversified Revenue Streams Net Interest Margin Diversified Revenue Streams: 9.5% ▪ Net interest income (NII) up 135% 39.6% 31.5% from FY23 44.1% 42.9% 46.3% ▪ Non-interest income growth of 7.9% 20%, driven by diverse income 7.3% 7.3% streams, making up c.31.5% of 60.4%
Slide 19: Evolution of Revenue Base
Evolution of Revenue Base Consistent growth in interest income; +137% YoY recorded in FY 2024 Revenue (NGN’billion) 2,721 1,145 1,100 540 567 421 428 356 213 243 122 168 133 157 178 103 51 38 36 2020 2021 2022 2023 2024 -207 Interest income Trading income Fees & commission income Other operating inc
Slide 20: Revenue Base: Interest and Non-Interest Income Diversification
Revenue Base: Interest Income and Non-Interest Income (NII) Diversification Continued diversification and growth in income across all elements resulting in a well fortified revenue base Interest Income – FY 2024 Interest Income – FY 2023 Placement w/banks & Others, 1% Placement w/banks Others, 2% di
Slide 21: Interest Expense: Funding Cost Optimization
Interest Expense: Funding Cost Optimization Interest expense rose by 143% YoY, driven by a 45% growth in deposits and an increase in interest rates Interest Expense – FY 2024 Time deposits, 23% FY 2024 FY 2023 YoY CASA, 40% Borrowed funds CASA 393,839 182,400 116% & lease, 37% Time deposits 228,169
Slide 22: Statement of Financial Position – Assets
Statement of Financial Position for the Period Ended 31 December 2024 Robust statement of financial position - well positioned for growth opportunities as the economy recovers Group Group YoY (NGN‘million) Dec-24 Dec-23 Change Cash and balances with central bank 5,888,216 4,253,374 38% Treasury bill
Slide 23: Statement of Financial Position – Liabilities and Equity
Statement of Financial Position for the Period Ended 31 December 2024 Assets are largely funded by deposits with a fortified capital base providing buffer for further growth. Group Group YoY (NGN‘million) Change Dec-24 Dec-23 Customers’ deposits 21,959,369 15,167,740 45% Derivative liabilities 9,258
Slide 24: Gross Loans and Advances to Customers
Gross Loans and Advances to Customers 56% YoY growth in gross loans, largely made up of Term Loans Gross Loans & Advances to Customers by Product (NGN’billion) 8,912 5,292 2,983 2,003 1,099 691 665 451 78 Term Loans Overdraft Onlending Dec-22 Dec-23 Dec-24 © 2024 ZENITH BANK PLC | Full Year Group Re
Slide 25: Deposits
Deposits Deposits are predominantly made up of current and savings account (CASA) Deposits by product (NGN’billion) 9,268 6,875 5,106 5,037 4,881 3,245 2,858 2,548 2,189 1,655 1,378 1,062 Current Account Savings Account Term Deposits Domicilliary Accounts Dec-22 Dec-23 Dec-24 © 2024 ZENITH BANK PLC
Slide 26: Risk Management
Risk Management
Slide 27: Healthy Risks Assets Portfolio
Healthy Risks Assets Portfolio The Group adopts an integrated approach to risk management Strict Portfolio Management Strict Portfolio Management 4.7% ▪ Strict portfolio management practiced through credit assessment, approval processes, and the entire loan 4.4% lifecycle to maintain loan portfolio
Slide 28: Focused Risk Management through a Diversified Loan Portfolio
Focused Risk Management through a Diversified Loan Portfolio Loans by Sector – FY 2024 Loan by Sector – FY 2023 Real Estate, Upstream Oil & Cement 8.0% Real Estate, Loan Portfolio Manufacturing, 4.0% 3.3% Gas, 19.0% Upstream Oil & Cement Manufacturing, Downstream Oil & Gas, Gas, 21.0% 4.4% Downstrea
Slide 29: Robust Capital Base
Robust Capital Base Solid and high-quality capital position provides room for future growth Strong Capitalisation Funding Strategy and Capital Mix ▪ Solid statement of financial position underpins robust financial health, liquidity and ▪ Largest bank by Tier 1 capital, consistently delivering superi
Slide 30: Foreign Currency (FCY) Loans
Foreign Currency (FCY) Loans Foreign Currency Loans FY 2024 Gross Loan Split by Currency – FY 2024 % to Gross US$ m NGN m % to US$ loans Loans Oil and Gas 2,687 4,162,061 70.8% 37.9% Loans in Manufacturing 719 1,113,238 18.9% 10.1% Naira, Loans in 46.5% USD, Power 102 158,138 2.7% 1.4% 53.5% Others
Slide 31: Risk Management Strategy
Risk Management Strategy Zenith Bank's comprehensive risk management strategy positions it strongly to navigate through challenging macro environment Type of Risk Mitigation Measures Type of Risk Mitigation Measures ▪ Engaging in thorough strategic planning ▪ Implementing environmental policies ▪ Bu
Slide 32: Business Segments Performance & Subsidiary Review
Business Segments Performance & Subsidiary Review © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts
Slide 33: Financial Performance: Profit by Business Segments
Financial Performance: Profit by Business Segments Continuous profitability across core business segments FY 2024 Summary Income Statement (NGN’million) Revenue % Contribution by Business Segment – FY 2024 Commercial / Retail, 9.2% Corporates Public Retail Consolidated SMEs Public, 10.1% Gross Reven
Slide 34: Financial Performance: Loans and Deposits by Business Segments
Financial Performance: Loans and Deposits by Business Segments Deposit Breakdown by Business Segment – FY 2024 Loan Book Breakdown by Business Segment – FY 2024 Loan Growth Vs. Deposit Growth Public, 71.1% 8.2% Retail, Public, Corporates, 1.9% 8.4% 55.8% 18.5% 69.0% 38.6% Commercial / 18.6% 20.0% 44
Slide 35: Performance of Major Digital Banking Channels
Performance of Major Digital Banking Channels Continuous growth in digital banking penetration supported by cutting edge technology Value of Electronic Transactions (NGN’billion) 57,357 50,639 50,180 44,756 47,198 46,046 35,254 30,110 21,376 16,893 3,448 6,625 Agency banking POS Internet banking Mob
Slide 36: Financial Performance: Geographical Presence
Financial Performance: Geographical Presence Zenith Bank Plc. (Parent) Zenith Pension Zenith Nominee Established 1990 Established 2005 Established 2018 Branches 405 Zenith ownership 99% Zenith ownership 99% 2024 FY PBT N1,133.3bn Branches 2 Branches 1 Total deposits N17,163bn 2024 FY PBT N11.7bn 202
Slide 37: Financial Performance: By Geography
Financial Performance: By Geography 82% YoY change in the contribution of foreign subsidiaries to the total revenue FY 2024 Summary Income Statement (NGN’million) Gross Revenue (NGN’billion) – FY 2024 Nigeria Rest of Africa Europe Eliminations Consolidated 3,502 Total revenue 3,502,278 275,411 235,0
Slide 38: Environment, Social & Governance
Environment, Social & Governance © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts
Slide 39: Commitment to Environment, Social and Governance (ESG)
Commitment to Environment, Social and Governance (ESG) Zenith Bank adheres to global sustainability principles and standards to ensure that corporate action is aligned with international best practices Zenith Bank has integrated sustainability into its corporate identity over the past fifteen years,
Slide 40: People
Commitment to Environment, Social and Governance (ESG) Strong commitment to sustainability, prioritising ethical business practices, community engagement and environmental sustainability Sustainability is an integral part of the bank’s corporate identity and at the heart of the business ▪ Our SME Gr
Slide 41: Planet
Commitment to Environment, Social and Governance (ESG) Sustainability is an integral part of the bank’s corporate identity and at the heart of the business CLEAN WATER AND AFFORDABLE AND SUSTAINABLE CITIES SANITATION CLIMATE ACTION LIFE ON LAND CLEAN ENERGY AND COMMUNITIES PLANET ▪ Minimise environm
Slide 42: Profit
Commitment to Environment, Social and Governance (ESG) Sustainability is an integral part of the bank’s corporate identity and at the heart of the business DECENT WORK AND INDUSTRY, INNOVATION RESPONSIBLE CONSUMPTION PARTNERSHIPS ECONOMIC GROWTH & INFASTRUCTURE AND PRODUCTION FOR THE GOALS PROFIT ▪
Slide 43: Strategy & Outlook
Strategy & Outlook © 2024 ZENITH BANK PLC | Full Year Group Results Presentation to Investors & Analysts
Slide 44: Strategic Growth Opportunities
Strategic Growth Opportunities Viable growth potential available to increase the Bank’s market share locally and across the African continent. Attractive growth opportunities, driven by emerging markets, technological improvements and evolving consumer preferences Corporate Client Retail & SME Clien
Slide 45: FY2025 Guidance
FY2025 Guidance FY 2025 Guidance FYE 2024 Achieved FY 2024 Guidance Profit before tax NGN1.5tn NGN1.3tn NGN1.3tn Effective tax rate 15% 22% 15% Profit after tax NGN1.27tn NGN1.0tn NGN1.1tn Return on average equity (ROAE) 30% 33% 42% Return on average assets (ROAA) 4% 4.1% 5% Net interest margin (NIM
Slide 46: Thank You
ZENITH BANK … in your best interest THANK YOU PEOPLE | TECHNOLOGY | SERVICE