Zenith Bank’s pre-tax profit hits N637.6 billion, interim dividend rises 20% to N1.50

Zenith Bank Plc has announced its audited results for the half-year ended June 30, 2026, reporting a 1.91% year-on-year increase in profit before tax from N625.6 billion to N637.6 billion.

The audited financial statements submitted to the Nigerian Exchange (NGX) show that the growth in profit came from stronger margins, a leaner funding cost base and a significant improvement in asset quality.

On the strength of this performance, the Bank has proposed an interim dividend of N1.50 per share, representing a 20% increase from N1.25 per share in H1 2025.

The dividend is scheduled to be paid electronically on October 30, 2026, to shareholders whose names appear on the Register of Members as of October 23, 2026, and who have completed their e-dividend registration and authorised the Registrar to pay directly into their bank accounts. Global Depositary Receipt (GDR) holders will receive their dividends after this date

Key Highlights (H1 2026 vs. H1 2025)

• Profit before tax: N637.60 billion (Up 1.91% YoY from N625.63 billion).
• Net fee and commission income: N178.77 billion (Up 39.60% YoY from N128.06 billion).
• Net interest margin: 12.4% (Up from 11.9%).
• Gross loans: N12.57 trillion (Up 14% from N11.06 trillion in December 2025).
• Customer deposits: N26.35 trillion (Up 8% from December 2025).
• Total assets: N32.65 trillion (Up 4% from December 2025).

Driving the numbers

Zenith Bank’s H1 2026 performance was driven by improved net interest margins, lower funding costs, stronger transaction-related income and a significant reduction in impairment charges.

• A major contributor to the growth in profit before tax was the 13% year-on-year reduction in interest expense to N421.8 billion, which management attributed to the continued optimisation of the Bank’s liability mix and funding structure.

This supported an improvement in net interest margin (NIM) to 12.4% from 11.9% in H1 2025, while net interest income stood at N1.25 trillion.

• The cost of funds also declined to 3.3% from 4.0%, reflecting improved funding efficiency.

The Bank’s transaction-led businesses also contributed to earnings performance.

• Net fee and commission income increased by approximately 40% year-on-year to N178.77 billion, supported by higher transaction volumes across its digital banking channels.
• Other operating income also rose by 314% year-on-year, providing additional support to the Group’s earnings.

Another significant driver was the improvement in asset quality. Impairment charges declined by 81% year-on-year to N141.1 billion, following the Bank’s clean-up of forbearance-related facilities.

Consequently, the cost of risk improved substantially to 2.2% from 14.3% in H1 2025, reducing the impact of credit-related losses on profitability.

Balance sheet

On the balance sheet, gross loans increased by 14% to N12.57 trillion from N11.06 trillion in December 2025, reflecting continued lending activities across productive sectors of the economy.

The expansion in lending was accompanied by an improvement in the non-performing loan (NPL) ratio to 3.78% from 3.82% at the end of 2025, indicating stronger asset quality despite the growth in the loan portfolio.

• Customer deposits also grew by 8% to N26.35 trillion, while total assets increased by 4% to N32.65 trillion, reflecting continued balance sheet expansion across the Group’s operations.
• Beyond its financial performance, Zenith Bank expanded its international operations during the period, establishing operations in Côte d’Ivoire and completing the acquisition of Paramount Bank in Kenya.

The Bank also opened six additional branches in Nigeria, further expanding its domestic banking network.

In terms of financial strength, Zenith Bank maintained a capital adequacy ratio of 25.1% and a liquidity ratio of 60.5%, both above regulatory requirements.

• The Group reported return on average equity (ROAE) of 17.6% and return on average assets (ROAA) of 2.7%, while its cost-to-income ratio stood at 49.9%.

Meanwhile, the adoption of the new tax framework under the Nigerian Tax Act 2025 affected bottom-line earnings.

• Tax expense increased to N206.84 billion from N93.45 billion in H1 2025, resulting in profit after tax of N430.76 billion, compared with N532.18 billion in the corresponding period.

Overall, improved funding efficiency, stronger transaction-related income and lower impairment charges supported Zenith Bank’s profit before tax growth to N637.6 billion in H1 2026, alongside continued expansion in its loan portfolio, customer deposits and banking operations.

Market performance

Zenith Bank shares have gained approximately 118% year-to-date, rising from N61.80 at the beginning of 2026 to N134.70 as of October 9, 2026.

The stock has also recorded a marginal month-to-date gain of 0.52%, compared with its September closing price of ₦134.00.