Analysts at CardinalStone have issued a buy rating on Zenith Bank shares on the Nigerian Exchange, projecting a potential 17.7% upside from a reference price of N129.00.

This view was contained in their equity research report titled “Buy rating mainly tied on compelling medium-term outlook,” published on 7 May 2026.

At the current price of N129 per share, Zenith Bank is projected to reach or surpass a target of N151.80 by FY2026, supported by improving fundamentals.

Key drivers behind the outlook include stronger core lending momentum, ongoing technology investments, and favourable dividend expectations, with the dividend for 2026 projected to rise to N14.27 from N10.00 in 2025.

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What the analysts are saying

According to CardinalStone analysts, Zenith Bank’s management expects its loan book to grow by 20.0% in 2026, signalling a strong recovery from the weak 0.6% growth recorded in 2025, which was affected by write-offs.

  • “About N1.2 trillion in forbearance-related write-offs made the FY’25 figures appear weaker than underlying performance, even though gross loans still grew by 11.9% to N11.1 trillion,” they noted.

In the past two quarters, loans increased by about N2.0 trillion as the bank reallocated funds from treasury bills and investment securities into higher-yielding loans across sectors such as manufacturing, commerce, and mining.

  • As a result, analysts expect stronger profitability, with the Net Interest Margin projected to rise to 11.7% in 2026, supported by lower funding costs and higher interest rates.

The analysts also revealed that Zenith Bank upgraded its core banking system in Q4 2024 using N56.9 billion from its 2024 hybrid offer, improving transaction processing across both digital and traditional banking channels.

This upgrade drove strong fee growth, with net fees rising 41.1% in 2025 and 44.6% in the first quarter of 2026, supported mainly by mobile and digital banking activity.

Over the long term, combined interest and non-interest income are expected to support earnings stability, which is projected to drive a higher FY2026 dividend estimate of N14.27.

Get up to speed 

In the financial year 2025, Zenith Bank’s profitability increased, with post-tax profit rising to N1.04 trillion from N1.03 trillion in 2024.

This was supported by strong top-line growth, as interest income rose to N3.6 trillion from N2.7 trillion recorded in the 2024 financial year.

  • A closer look shows loans and advances to customers contributed the most at N1.8 trillion, up 20.15%, while treasury bills generated N1.1 trillion in income.

On the non-interest side, the group earned N291.8 billion from fees and commissions, up 41.06% year-on-year, with other operating income at N176.2 billion, mainly driven by foreign exchange revaluation gains.

What you should know 

  • Zenith Bank began 2026 on a strong note, posting unaudited pre-tax profit of N360.9 billion in Q1, up 2.9% year-on-year, with post-tax profit at N314.01 billion.
  • On the Nigerian Exchange, the stock has delivered a return of over 108%, trading at N129 per unit on a mid-market basis as of May 11, 2026.
  • Engr. Mustafa Bello was appointed Chairman of Zenith Bank Plc at the 35th Annual General Meeting held on May 5, 2026, succeeding founder Jim Ovia after his 12-year regulatory tenure.
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