Zenith Bank Plc has reported a strong financial performance for the 2025 fiscal year, posting record earnings and doubling shareholder dividends despite a slight decline in pre-tax profit.
Strong Revenue Growth Driven by Interest Income
According to its audited results for the year ended December 31, 2025, the bank recorded gross earnings of N4.19 trillion, representing a six per cent increase from N3.97 trillion in 2024.
This growth was largely driven by a 35 per cent surge in interest income, which rose to N3.7 trillion, supported by higher asset yields, expansion in interest-earning assets, and effective pricing strategies.
Net interest income also jumped significantly by 53 per cent to N2.6 trillion, reflecting strong margins and efficient cost management.
Profit Before Tax Slips, But Bottom Line Holds Firm
Despite the impressive revenue growth, Profit Before Tax dipped by five per cent to N1.26 trillion, largely due to the cleanup of loans previously under regulatory forbearance.
However, Profit After Tax edged up by one per cent to N1.04 trillion, with earnings per share closing at N25.32—demonstrating resilience in the bank’s bottom line.
Deposits, Loans, and Asset Quality Improve
Customer confidence remained strong, with deposits rising 11 per cent to N24 trillion, driven by growth in both corporate and retail segments.
Gross loans increased moderately to N11 trillion, while strategic write-offs helped improve asset quality.
Notably, the Non-Performing Loan (NPL) ratio dropped to 3.8 per cent, down from 4.7 per cent in 2024, signaling improved credit risk management.
The bank also maintained a strong coverage ratio of 173 per cent, underscoring its conservative provisioning approach.
Leadership Speaks on Performance
Group Managing Director/CEO, Adaora Umeoji, described the results as a reflection of disciplined execution and strategic focus.
“We strengthened our asset quality, optimised our balance sheet, and invested in capabilities that will drive our next phase of growth,” she said.
Dividend Doubles for Shareholders
In a major boost for investors, the bank proposed a final dividend of N8.75 per share, bringing total dividends for 2025 to N10.00 per share, including the interim payout.
This represents a 100 per cent increase compared to N5.00 paid in 2024.
Solid Financial Position Amid Economic Pressure
Zenith Bank maintained strong fundamentals, with:
- Capital Adequacy Ratio: 25%
- Liquidity Ratio: 71%
- Return on Average Equity (ROAE): 23.2%
- Net Interest Margin (NIM): 13.7%
However, the cost-to-income ratio rose to 45.2 per cent, reflecting inflationary pressures and higher impairment charges.
Outlook for 2026
Umeoji expressed confidence in the bank’s future, noting that it enters 2026 as a stronger and more resilient institution.
“We are investing for the future and remain committed to delivering long-term value to our customers and shareholders,” she added.
With solid fundamentals and improved asset quality, Zenith Bank appears well-positioned to sustain growth despite economic headwinds.