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Zenith Bank’s profit before tax rose 1.91 percent year-on-year to ₦637.6bn in H1 2026, while its interim dividend increased by 20 percent to ₦1.50 per share.
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Net fee and commission income climbed 39.6 percent to ₦178.77bn, while impairment charges fell 81 percent to ₦141.1bn.
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Profit after tax declined to ₦430.76bn from ₦532.18bn as tax expense increased to N206.84bn, despite improvements in funding costs and asset quality.
October 10, (THEWILL) – Zenith Bank Plc reported a 1.91 percent year-on-year increase in profit before tax to ₦637.6 billion for the half-year ended June 30, 2026, and proposed a 20 percent increase in its interim dividend to ₦1.50 per share.
The audited financial statements filed with the Nigerian Exchange (NGX) showed that profit before tax rose from ₦625.63bn in the corresponding period of 2025, supported by improved interest margins, lower funding costs, stronger fee income and reduced impairment charges.
The proposed dividend of ₦1.50 per share compares with ₦1.25 paid for the corresponding period of 2025.
According to the bank, the dividend will be paid electronically on October 30, 2026, to shareholders whose names appear on the register of members as of October 23, 2026, subject to completion of e-dividend registration and authorisation of the registrar. Holders of Global Depositary Receipts will receive their dividends after that date.
Lower Funding Costs Support Earnings
A major contributor to the bank’s performance was a 13 percent year-on-year decline in interest expense to ₦421.8 billion, reflecting efforts to optimise its liability mix and funding structure.
The reduction supported an improvement in net interest margin to 12.4 percent from 11.9 percent in H1 2025. Net interest income stood at ₦1.25 trillion, while the cost of funds declined to 3.3 percent from 4.0 percent.
Income from fees and commissions also strengthened, rising 39.6 percent to ₦178.77 billion from ₦128.06 billion. The growth was attributed to higher transaction volumes across the bank’s digital channels.
Other operating income increased by 314 percent year-on-year, providing additional support to earnings.
Asset quality also improved during the period, with impairment charges falling 81 percent to ₦141.1 billion following the clean-up of forbearance-related facilities. The cost of risk consequently declined to 2.2 percent from 14.3 percent a year earlier, reducing the effect of credit losses on profitability.
Loans, Deposits Expand As Tax Weighs On Profit
Zenith Bank’s balance sheet continued to expand, with gross loans rising 14 percent to ₦12.57 trillion from ₦11.06 trillion at December 2025. Customer deposits increased eight percent to ₦26.35 trillion, while total assets grew four percent to ₦32.65 trillion.
The non-performing loan ratio improved marginally to 3.78 percent from 3.82 percent at the end of 2025, indicating a slight improvement in the proportion of impaired loans despite portfolio growth.
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The bank maintained a capital adequacy ratio of 25.1 percent and a liquidity ratio of 60.5 percent. Return on average equity stood at 17.6 percent, return on average assets was 2.7 percent, and the cost-to-income ratio came in at 49.9 percent.
Beyond its domestic operations, Zenith Bank established operations in Côte d’Ivoire, completed the acquisition of Paramount Bank in Kenya and opened six additional branches in Nigeria.
However, higher tax expenses weighed on the bank’s bottom line. Tax expense rose to ₦206.84 billion from ₦93.45 billion in H1 2025, following the adoption of the new tax framework under the Nigerian Tax Act 2025.
Consequently, profit after tax declined to ₦430.76 billion from ₦532.18 billion in the corresponding period of 2025, despite the increase in pre-tax earnings.
Shares Gain 118 Percent Year-To-Date
On the NGX, Zenith Bank shares gained approximately 118 percent year-to-date, rising from ₦61.80 at the beginning of 2026 to ₦134.70 on October 9.
The stock recorded a marginal month-to-date gain of 0.52 percent, compared with its September closing price of ₦134.00.
The results show that improved funding efficiency, higher fee-based income and lower impairment charges supported pre-tax profit growth, although higher taxation translated into a decline in after-tax earnings.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
