Zenith Bank Profit Drops 14% Despite Earnings Growth

Zenith Bank Plc has reported a 13.95 per cent year-on-year decline in pre-tax profit for the half year ended June 30, 2025.

According to the lender’s financial statements released to the Nigerian Exchange Limited (NGX), pre-tax profit dropped to N625.63bn in H1 2025 from N726.97bn in the same period last year.

Post-tax profit also fell by 7.93 per cent to N532.18bn, down from N577.91bn recorded in H1 2024.

However, the bank maintained strong top-line performance, with gross earnings rising by 19.96 percent to N2.52tn, compared with N2.10tn in the corresponding period of 2024.

Net interest income surged 89.35 per cent to N1.35tn from N715.07bn a year earlier, reflecting improved yields and stronger lending performance.

Operating expenses rose significantly, up 23.42 per cent to N411.28bn, from N333.23bn in H1 2024.

The increase in costs, according to market analysts, contributed to the profit decline despite revenue gains.

In a bid to sustain investor confidence, the Board of Directors approved an interim dividend of N1.25 per share, representing a 25 percent increase over the N1.00 paid in H1 2024.

The proposal, made in line with Section 426 of the Companies and Allied Matters Act (CAMA 2020), will be presented for ratification at the next Annual General Meeting.

The bank had already met and exceeded the Central Bank of Nigeria’s (CBN) recapitalization requirement ahead of the 2026 deadline.

As of June 30, 2025, Zenith Bank’s share capital and share premium stood at N614.65bn, surpassing the CBN’s N500bn threshold, alongside retained earnings of N2.45tn.

Despite the profit decline, the bank said its robust earnings, strengthened capital buffers, and consistent dividend payout underscored its resilience in navigating Nigeria’s challenging operating environment.