By Ayomide Otitoju
Zenith Bank has announced its financial results for the second quarter of 2024, revealing a remarkable pre-tax profit of N406 billion, a 370% increase compared to the N86.8 billion reported during the same period last year. This significant boost in profits was primarily driven by substantial gains in forex-related activities.
The bank’s trading book gains surged to N871.6 billion for the first half of the year, a dramatic rise from N77.9 billion recorded in the corresponding period in 2023. These gains played a pivotal role in driving Zenith Bank’s half-year pre-tax profits to an impressive N727 billion, positioning the bank on a trajectory to potentially become the first Nigerian commercial bank to achieve N1 trillion in annual profits by year-end.
Among the forex-related gains, Zenith Bank reported N123 billion from derivatives, a notable increase from N65.2 billion in the previous year. However, despite these robust gains, the bank faced a significant impairment loss of N359.3 billion in the second quarter alone, bringing the total impairments for the year to N415.2 billion.
For context, Zenith Bank’s total impairment charges for the entire year of 2023 were N409.6 billion, up from N123.2 billion in 2022, indicating a substantial rise in impairments this year.
In terms of segment performance, Zenith Bank’s Nigerian operations were the major contributor, generating N645.3 billion in profits, while its international operations added N81.7 billion to the group’s overall profits.
