Zenith Bank Plc has reported a net profit of ₦532.18 billion for the first half of 2025, as disclosed in its audited financial statement filed with the Nigerian Exchange Group.
This figure represents a 7.9% decline compared with the ₦578 billion posted during the same period in 2024. Earnings per share also fell to ₦12.95, down from ₦18.40 in the corresponding year.
Market analysts attribute the weaker results to a drop in trading income and higher loan impairment costs. The bank’s recapitalisation effort, which led to new share issuances, also diluted its earnings per share.
Despite the dip in profits, the board proposed an interim dividend of ₦1.25 per share—up from ₦1.00 per share declared in H1 2024. This translates to a dividend yield of 1.9%, based on its last closing price of ₦66.95.
On the positive side, Zenith Bank Plc benefited from the prevailing high-interest-rate environment. Interest income rose 60% year-on-year to ₦1.84 trillion. Lending to customers grew by 53.3% to ₦935.75 billion, loans to banks jumped 71.1% to ₦121.08 billion, while returns from fixed-income securities surged 67.1% to ₦782.41 billion.
Interest expenses grew modestly by 11.5% to ₦484.53 billion, reflecting higher deposit costs. Borrowing expenses, however, declined by 23.5% to ₦132.38 billion. Consequently, net interest income almost doubled, reaching ₦1.35 trillion—an 89.5% year-on-year increase. After adjusting for impairment charges that rose by 83% to ₦760.81 billion, net interest income excluding loan losses stood at ₦593.91 billion, up 98.1% from 2024.
On the flip side, non-interest income dropped 31.8% year-on-year to ₦613.15 billion, primarily due to weaker investment securities gains. Income from securities fell 41.2% to ₦467.79 billion. However, fee and commission income rose 16.8% to ₦128.06 billion, while foreign exchange revaluation brought in a gain of ₦11.13 billion—a sharp turnaround from a ₦2.65 billion loss in H1 2024.
Operating income rose slightly by 0.7% to ₦1.21 trillion, but operating expenses increased by 23.2% to ₦581.43 billion, driven by personnel costs, Nigeria Deposit Insurance Corporation (NDIC) premium, and Asset Management Corporation of Nigeria (AMCON) levy. This pushed the bank’s cost-to-income ratio to 48.2%, up from 39.4% in the previous year.
Overall, Zenith Bank Plc’s pre-tax profit fell 13.9% year-on-year to ₦625.63 billion, while after-tax profit came in at ₦532.18 billion, reflecting the impact of higher costs despite a 37.3% reduction in tax expenses.
