Zenith Bank Climbs as Investors Price in Acquisition Move

Zenith Bank Climbs as Investors Price in Acquisition Move

Zenith Bank Plc saw a slight gain in the Nigerian Exchange (NGX) as the financial services company’s market value inched near N3 trillion, amidst its first growth by acquisition strategy.

The top lender’s share price settled at N71 per share amidst fluctuations that mirrored the portfolio reshuffle ahead of the fourth quarter of 2025 earnings release.

Zenith Bank traded between one week low of N69.55 peaked at N72 by midweek, amidst heavy trading volume driven by block transactions, amidst expectation the group will continue to widen its footprint in African markets.

Reflecting an improved fundamental, the market value of the financial institution’s 41.069 billion outstanding shares increased to about N2.92 trillion, tracking behind its highest valuation in the last 12 months.

Trading data showed a hit 52-week bottom, which represents significant capital appreciation for investors who built a portfolio at N43. The stock reached 52 weeks high of N78.50, and eased sharply to N60 late last year.

Afrinvest Limited sets 12 months target price for Zenith Bank at N96.38, estimated 38% upside potential at the reference price of N69.85 in the domestic bourse. 

The bank’s earnings remain top-notch in the Nigerian banking sector, and has become a proven dividend aristocrat with year-on-year growth performance across key investor indicators.

Analysts said its fresh foray into Kenya will be positive for earnings, and Broadstreet analysts told MarketForces Africa that Zenith Bank has tasted the blood and will perhaps continue to hunt for more.

Last week, the Competition Authority of Kenya (CAK) approved the proposed acquisition of 100% of Paramount Bank Limited by Zenith Bank PLC, subject to conditions intended to protect employment.

In a notice on January 22, CAK stated that it determined that the deal is unlikely to substantially reduce competition in Kenya’s banking sector, while potential negative impacts on jobs can be addressed through mitigating measures.

CAK also stated that Zenith’s proposed acquisition of Paramount Bank met the threshold for mandatory notification and a full review under the Competition Act.

As of December 2024, Kenya had 39 licensed banks: 9 Tier I, 9 Tier II, and 21 Tier III banks. Paramount Bank was classified as a Tier III bank, ranking 33rd out of 39. Zichis Rides Growth Wave with Solid Fundamentals