Zenith Bank lost N5.26 billion ($3.4 million) to fraud in 2024, even as the Nigerian lender reported a profit after tax of 1.3 trillion, according to its latest audited financial statements. The bank reported about 497 incidents in 2024, a decline from 523 incidents in 2024, but actual losses surged to ₦5.26 billion, up 1,273% YoY (N383.38 million).
The Bank disclosed that N7.74 billion worth of transactions were linked to fraudulent activities in 2024, with 68% translating into actual losses.
Although its losses represent a small fraction, 0.405% of its profit after tax, they underscore the bank’s vulnerability to fraud. Zenith Bank’s profit after tax of N5.26 billion marks a significant 52.5% increase from ₦676.91 billion in 2023.
Zenith Bank’s disclosure comes at a time when Nigerian banks are under scrutiny by stakeholders to fight fraud. Last week, United Bank for Africa (UBA) reported fraud losses of ₦1.14 billion ($744,200). The bank linked the fraud activities to electronic fraud and fraudulent transfers.
Nigerian banks lost ₦10.1 billion ($6.7 million) to fraud in Q3 2024, a 76.4% decline from the previous quarter, according to a Financial Institutions Training Centre (FITC) report. Yet, the rising sophistication of fraudsters continues to pose a challenge to even the most robust security systems.
According to the report, outsider involvement in fraud cases surged by 70.4% between Q2 and Q3 2024, while staff-related fraud increased by 54% during the same period.
The rise in fraud incidents comes amid broader financial pressures in Nigeria’s banking sector. In January, the Central Bank of Nigeria directed NIBSS to debit the settlement accounts of commercial banks that receive fraud proceeds, a move aimed at forcing banks to tighten internal controls and curb illicit financial flows.
Zenith Bank’s disclosure marks a shift toward transparency in Nigeria’s banking sector, where many institutions still choose to downplay fraud risks for fear of suffering reputational harm.
Only 60 of 163 financial institutions in Nigeria reported fraud cases in 2023, according to a Nigeria Inter-Bank Settlement System (NIBSS) report.
As financial crime grows more sophisticated, regulators and banks have their work cut out: strengthen controls while maintaining customer trust.
Zenith Bank reported gross earnings of N3.9 trillion, up from N2.39 trillion recorded a year earlier. A key driver of this growth was interest income, which surged to N2.7 trillion, compared to N1.14 trillion in the previous year.
A bulk of Zenith Bank’s income was generated within Nigeria, accounting for N3.5 trillion out of the N3.97 trillion in net consolidated revenue. Income from its African and European operations totaled N510 billion, up from N281.1 billion in the previous year.
Zenith Bank Plc’s total assets stood at N29.96 trillion, cementing its position as one of Nigeria’s largest financial institutions, trailing only Access Holdings and UBA. Customer deposits rose to ₦21,959.37 billion from ₦15,167.74 billion the year earlier.
Loans and advances increased to N9.965 trillion, a 51.99% YoY, with net interest income standing at N1.73 trillion. On the cost side, interest expenses increased by 142.96% year-on-year to N992.47 billion, reflecting the rising cost of funds amid tighter monetary conditions.
As part of its earnings announcement, the bank proposed a final dividend of N4.00 per share, bringing its total dividend payout from 2024 profits to N5 per share, compared to N4 per share in 2023.
