Zenith Bank Plc has reported a resilient financial performance for the year ended December 31, 2025. The bank posted gross earnings of ₦4.19 trillion and a profit after tax of ₦1.04 trillion, navigating strategic moves to strengthen its loan book and balance sheet.
Gross earnings rose by 6% from ₦3.97 trillion in 2024. This growth was primarily supported by a sharp increase in interest income, which surged by 35% to ₦3.7 trillion. The bank attributed this to high asset yields, an increase in interest-earning assets, and effective pricing.
The strong top-line performance translated into a significant expansion in core earnings, with net interest income climbing 53% to ₦2.64 trillion. This growth highlights the Bank’s ability to maintain a healthy spread between asset yields and funding costs.
Profitability, however, reflected the impact of deliberate balance sheet clean-up measures. Profit before tax declined by 5% to ₦1.26 trillion. This was attributed to a prudent cleanup of facilities that were under regulatory forbearance.
Despite the pre-tax dip, profit after tax grew slightly by 1% to close at ₦1.04 trillion. This demonstrates the bank's ability to manage its operations effectively even after asset quality adjustments.
On the balance sheet, customer deposits increased by 11% to ₦24.33 trillion, reinforcing the depth of the Bank’s funding base. Gross loans rose modestly to ₦11.06 trillion. Underlying loan growth was tempered by write-offs linked to previously restructured exposures, a move that has markedly improved the quality of the Bank’s risk-asset portfolio.
Asset quality metrics showed notable improvement. The non-performing loan ratio declined to 3.8% from 4.7% a year earlier. The coverage ratio remained strong at 172.6%, underscoring the Bank’s commitment to prudent provisioning and strict regulatory compliance.
Efficiency and profitability ratios indicated both strength and macroeconomic pressures. Return on average equity stood at 23.2%, while return on average assets came in at 3.4%. The bank maintained a solid net interest margin of 13.7%, reinforcing the sustainability of the Group’s core earnings.
However, the cost-to-income ratio rose to 45.2%. This increase was driven by higher impairment charges and inflationary pressures impacting operational costs.
Zenith Bank’s capital and liquidity positions remained robust. The liquidity ratio stood at 71%, and the capital adequacy ratio was 25%, both comfortably above regulatory requirements.
