Business Page Writer
By Nonso Agbodi
Zenith Bank Plc has announced its financial results for the half-year ended June 30, 2025, reporting a strong pre-tax profit of ₦625.63 billion and a post-tax profit of ₦532.18 billion. The performance underscores the bank’s resilience despite a challenging operating environment.
Gross earnings for the period climbed by 19.96% year-on-year to ₦2.521 trillion, driven largely by robust growth in interest income. On the back of this performance, the Board approved an interim dividend of ₦1.25 per share, a 25% increase from the ₦1.00 declared in H1 2024. Payment has been scheduled for October 10, 2025, to shareholders on record as of October 3, 2025.
Strong Interest Income Growth
Interest income remained the major driver of the bank’s performance, contributing 73% of total earnings, up from 55% in the same period of 2024.
-
Total interest income rose 60% YoY to ₦1.839 trillion, already representing over two-thirds of the full-year 2024 figure.
-
Loans and advances to customers contributed ₦936 billion, up 55% YoY, accounting for 37.2% of gross earnings.
-
Earnings from government securities surged 72% YoY to ₦781.5 billion, supported by a significant 84% increase in treasury bills holdings.
While net loans dipped slightly to ₦9.602 trillion from ₦9.965 trillion at the end of 2024, loan growth was offset by higher provisions.
Expense and Impairment Charges
Interest expense grew at a much slower pace compared to income, rising 11% YoY to ₦485.53 billion. Deposits accounted for 72% of total interest expense, reflecting higher funding costs from customer deposits of ₦23.483 trillion.
This favorable spread boosted net interest income by 89% YoY to ₦1.35 trillion. However, loan impairment charges more than doubled to ₦791.20 billion, consuming over half of net interest income. After provisions, net interest income stood at ₦593.91 billion, a 98% improvement YoY.
Non-Interest Income Performance
Zenith Bank also recorded notable gains in fee-based income:
-
Account maintenance fees: ₦43.22 billion, up 32% YoY.
-
Foreign currency transaction fees: ₦25.22 billion, up 267% YoY.
However, trading gains on investment securities dropped to ₦482.22 billion from ₦871.64 billion in H1 2024, reflecting market headwinds.
Balance Sheet Strength
The bank’s balance sheet remained solid, with total assets rising 3.46% to ₦30.993 trillion. Customer deposits, the primary funding source, stood at ₦23.483 trillion, representing 76% of total assets.
Gross loans and advances closed at ₦10.223 trillion, while expected credit loss (ECL) provisions dropped to ₦621.65 billion, compared to ₦1.028 trillion at FY 2024.
Other highlights (H1 2025 vs H1 2024):
-
Earnings per share: ₦12.99 (-29.66%).
-
Cash and cash equivalents: ₦6.658 trillion (+13.07%).
-
Shareholders’ funds: ₦4.57 trillion, supported by share capital and premium of ₦614.65 billion, comfortably above the ₦500 billion CBN recapitalization requirement.
Market Reaction
As of September 18, 2025, Zenith Bank shares closed at ₦66, reflecting a year-to-date gain of 45.1%.
The results not only demonstrate Zenith Bank’s earnings resilience but also reinforce its position as one of the best-capitalized banks in Nigeria, well-prepared for the Central Bank of Nigeria’s new capital adequacy benchmarks.
