Zenith Bank (Ghana) Ltd started off strong in the first quarter of 2024, with impressive financial results demonstrating solid performance in profitability, liquidity, and capital adequacy.
According to the bank’s unaudited financial statements for this period, they continued their exceptional performance from 2023.
The bank’s profitability surged by 41.03 percent year-on-year (compared to the same period in 2023), reaching GH¢306.5 million in Q1 2024, up from GH¢217.3 million in Q1 2023.
This growth was mainly fueled by a significant increase in both interest income and non-interest income. Interest income saw a remarkable jump of 59 percent, rising to GH¢437.6 million in Q1 2024 from GH¢275.2 million in Q1 2023.
As a result, net interest income, representing the difference between interest earned and interest paid, increased by 59.2 percent to GH¢302.2 million in the first quarter of 2024, up from GH¢189.8 million in the same period of 2023.
Additionally, fees and commission income experienced a growth of 9.6 percent, reaching GH¢64.3 million in Q1 2024 compared to GH¢58.7 million in Q1 2023.
This increase, alongside trading income of GHS91 million, contributed to diversifying Zenith Bank’s revenue sources.
The bank’s balance sheet also reflects strategic expansion, with total assets expanding by 39.6 percent to GH¢15.1 billion in Q1 2024, up from GH¢10.8 billion in Q1 2023.
Notably, loans and advances surged by 54.9 percent to GH¢2.1 billion in Q1 2024, underscoring the bank’s dedication to supporting credit availability across various sectors of the economy.
This strong growth in loans and advances signals robust demand for credit from both businesses and consumers, suggesting a potential uptick in economic activity.
The bank’s strategic approach to diversifying its portfolio of earning assets is evident in a substantial GH¢1.75 billion increase in investment securities compared to the previous year.
Furthermore, deposits from customers rose to GH¢12.7 billion in the first quarter of 2024 from GH¢9.3 billion in the same period last year, marking a notable 36.4 percent year-on-year increase.
This surge not only reflects the increasing trust and confidence of the bank’s clientele but also highlights its reputation for providing exceptional value and customer service.
In addition to strong profitability, Zenith Bank Ghana demonstrates a solid financial position. The bank’s liquidity ratio, which measures its ability to meet short-term obligations, improved to 99.84 percent in Q1 2024 from 92 percent in the same period last year.
This indicates the bank’s exceptional capability to manage cash flow and fulfill short-term financial commitments efficiently.
Strong Capital and Improved Credit Quality
Moreover, Zenith Bank Ghana boasts an impressive Capital Adequacy Ratio of 31.76 percent as of Q1 2024, exceeding the regulatory minimum requirement of 10 percent.
This robust ratio reflects the bank’s strong capital base and its ability to absorb potential losses, ensuring financial stability even during economic downturns.
Zenith Bank Ghana’s credit quality is on an upward trend despite the expansion of risk assets. The bank’s Non-performing loans (NPL) ratio decreased significantly from 5.05 percent in Q1 2023 to 2.14 percent in Q1 of this year.
This improvement indicates that the bank’s credit risk management strategies are proving effective, resulting in a high-quality loan portfolio.
Mr. Henry Onwuzurigbo, the Managing Director/CEO of Zenith Bank (Ghana) Ltd, assured that “Our approach is to deepen our understanding of customer needs and to provide financial solutions that will foster beneficial synergies for all stakeholders.”
“Our commitment to this strategy has been pivotal in achieving the remarkable results we see today, and we remain extremely grateful to customers for the beneficial relationship over the years. We will continue to team up with them for excellence in the remaining quarters of the year.”
Mr. Henry Onwuzurigbo
Zenith Bank Ghana’s robust financial performance in Q1 2024 underscores its resilience and strategic prowess. With a solid capital base and improving credit quality, the bank is poised for continued success.
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