Zenith Bank Increases Interim Dividends by 25%, Profit Slides
Zenith Bank Plc posted N532 billion as net profit for the first half of 2025, according to the audited financial statement submitted to the Nigerian Exchange.
The group reported a 7.9% year on year decline in profit after tax which settled at N532.18 billion from N578.00 billion in the comparable period in 2024. Hence, earnings per share dropped to N12.95 as against N18.4 the bank delivered in the comparable period in 2024.
According to analysts, the bank’s earnings momentum in H1-25 was constrained by weaker trading income and significantly higher credit impairment charges. Zenith Bank’s EPS also declined due to the impact of new share issuances relating to recapitalisation requirements.
The Board proposed an interim dividend of N1.25/share , an increase of 25% above N1.00/share paid in the first half of 2024, translating to a dividend yield of 1.9% based on the last closing price of N66.95/share.
The elevated interest rate environment continues to be a positive for banks, Cordros Capital Limited said, driving a 60.0% year on year increase in interest income to N1.84 trillion.
Across contributory lines, income from customer loans grew by 53.3% year on year to N935.75 billion, loans to banks rose by 71.1% year on year to N121.08 billion, while gains from fixed income securities surged by 67.1% year on year to N782.41 billion.
However, interest expense rose modestly by 11.5% year on year to N484.53 billion, reflecting increased customer deposit costs partly offset by lower borrowing expenses. Zenith Bank borrowing costs declined by -23.5% year on year to N132.38 billion, according to the results.
As a result, net interest income nearly doubled in the first half of 2025, up by 89.5% year on year to N1.35 trillion. After accounting for 83% surge in credit impairment charges which settled at N760.81 billion, net interest income (ex-LLE) settled at N593.91 billion – a year on year growth of +98.1% above equivalent period in 2024.
Zenith Bank reported that non-interest income fell by 31.8% year on year to N613.15 billion as lower gains on investment securities overshadowed modest improvements in net fees and commissions and FX revaluation gains.
Income from investment securities declined by 41.2% to N467.79 billion in the first half. However, net fees and commission income rose by 16.8% to N128.06 billion in addition to FX revaluation gain of N11.13 billion, reversing FX loss of N2.65 billion in the comparable period in 2024.
As a result, operating income inched slightly by 0.7% to N1.21 trillion.
The bank’s operating expenses increased by 23.2% year on year to N581.43 billion, driven by higher personnel costs, AMCON levy , and NDIC premium, which pushed the cost-to-income ratio higher to 48.2% from 39.4% in the equivalent period in 2024.
Accordingly, pretax profit of the bank declined by 13.9% year on year to N625.63 billion, while the bank profit after tax settled 7.9% lower year on year at N532.18 billion, despite a 37.3% year on year drop in tax expense. #Zenith Bank Increases Interim Dividends by 25%, Profit Slides Fitch Downgrades France to ‘A+’ with Stable Outlook
