Earnings Update: Zenith Bank FY 2024 – Trillion-Naira Profit Sets the Stage for Stronger Future Earnings

Event

Zenith Bank (“The Group”) delivered a strong performance in FY 2024, with gross earnings growing by 86% year-on-year to N3.97trn from N2.13trn in FY 2023. This impressive topline growth was driven by a 138% surge in interest income and a 27% growth in non-interest income. The strong performance reflects higher yields on interest-earning assets, FX revaluation gains, and improved customer transaction volumes.

In line with its strong earnings, the Group declared a total dividend of N5.00 per share for FY 2024 – comprising an interim dividend of N1.00 and a final dividend of N4.00. This represents a 25% increase from the N4.00 paid in FY 2023 (N0.50 interim and N3.50 final). The qualification date for the dividend is on April 15, 2025, while the payment date is April 29, 2025.

Valuation

Our recommendation remains a BUY, based on the strong fundamentals and solid growth prospects. Following our analysis, we revised the Group valuation to N67.65, up from N56.22 in our last report. This revised target price implies a 47% medium-to-long-term total return, including a dividend yield of 11%.

Please follow the link “Zenith Bank FY 2024 – Trillion-Naira Profit Sets the Stage for Stronger Future Earnings” to view the whole report.

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