Executive Summary
Zenith Bank Plc delivered a resilient performance for the nine months ended September 30, 2025, despite a challenging macro-financial environment marked by elevated interest rates, volatile trading markets, and heightened credit risk pressures. The Group demonstrated strong balance sheet expansion, robust core banking income momentum, and disciplined funding structure management. Profit Before Tax (PBT) stood at ₦917.4 billion, representing a -8.5% YoY decline relative to ₦1.00 trillion in 9M 2024, primarily impacted by substantial impairment charges amid a high-risk credit environment. Profit After Tax (PAT) declined by 7.6% YoY to ₦764.2 billion. Gross earnings increased 16% YoY to ₦3.37 trillion, reflecting strong interest income growth supported by higher yields on risk assets and sustained customer activity. Net interest income grew 50% YoY to ₦1.93 trillion, underscoring Zenith’s strong earning asset franchise and efficient asset pricing strategy. Trading income moderated significantly to ₦277.7 billion (9M 2024: ₦686.3 billion) reflecting lower market gains relative to the prior year FX-driven windfall. Impairment charges rose sharply to ₦781.5 billion (9M 2024: ₦478.0 billion) driven by IFRS 9 provisioning and sector credit stress.
Financial Highlights — Statement of Profit or Loss
₦’ Million 9M 2025 9M 2024
Gross earnings 3,371,829 2,899,600
Net interest income 1,926,719 1,280,670
Impairment charge (781,524) (477,765)
Net interest income after impairments 1,145,195 802,905
Net fee & commission income 202,943 174,260
Trading income 277,654 686,341
Other operating income 54,185 (4,592)
Total operating expenses (762,565) (655,470)
Profit Before Tax 917,412 1,002,844
Profit After Tax 764,204 827,277
Revenue Performance
- Gross earnings +16% YoY to ₦3.37 trillion, driven by:
- Higher interest rates and robust risk-asset yields
- Increased corporate and retail banking activity
- Interest income +41% YoY to ₦2.74 trillion
- Trading gains normalized post 2024 FX repricing gains
- Fee and commission income +16% YoY, supported by digital channels and corporate transactional banking growth
Zenith’s strong deposit franchise and pricing power enabled it to capitalize on elevated interest rate conditions.
Profitability & Margins
- NII growth reflects asset repricing and robust loan yields
- Impairments surged +64% YoY driven by credit risk environment and IFRS9 forward-looking provisions
- Operating expenses rose 16% YoY amid inflationary pressures and technology investments
- PBT margin contracted due to credit costs and lower trading gains
Despite earnings compression, Zenith sustained industry-leading profitability and capital strength.
Balance Sheet Overview
₦’ Million Sep 2025 Sep 2024 Dec 2024 % Δ (YTD)
Total Assets 31,176,359 30,383,385 29,957,525 +4%
Customer Deposits 23,687,723 21,569,067 21,959,369 +8%
Loans & Advances 9,371,453 9,402,973 9,965,364 -6%
Investment Securities 4,859,403 4,771,178 5,098,044 -5%
Borrowings 628,773 2,540,285 2,045,185 -69%
Equity (derived)* ≈ 4.73 trillion — ≈ 4.03 trillion ↑
*Equity = Total Assets − Total Liabilities
Interpretation
- Balance sheet expanded to ₦31.2 trillion, Nigeria’s largest banking balance sheet
- Strong deposit inflows reflect unmatched retail & corporate franchise
- Loans contracted modestly, reflecting prudent risk stance amid macro pressures
- Borrowings sharply reduced following deleveraging and FX improvement
- Equity strengthened on earnings accretion
Key Ratios
Metric 9M 2025
Gross Earnings Growth +16%
Net Interest Income Growth +50%
PBT Growth -8.5%
PAT Growth -7.6%
Asset Growth +4%YTD
Deposit Growth +8%YTD
Impairment Growth +64%
Heightened impairments and trading normalization weighed on bottom-line momentum.
Strategic Insights
- Focus on asset repricing, digital scale, and risk discipline
- Capital & liquidity remain strongest in industry, supporting growth optionality
- Strategic FX and funding optimization strengthened balance sheet
- Continued investment in digital banking and payments ecosystem
Strengths
- Strongest deposit franchise in Nigeria
- Market-leading profitability and efficiency metrics
- Robust capital adequacy and liquidity buffers
- Digital banking scale and operational leadership
Weaknesses
- Elevated impairment charges
- Trading income normalization from high 2024 FX gains
- Inflation-driven OPEX pressures
Outlook
Zenith is well-poised heading into FY2026, supported by strong capital ratios, resilient asset quality buffers, and scalable retail and corporate banking platforms. While macro uncertainty, FX volatility, and credit risks remain, the Bank’s systemic strength and conservative risk architecture support sustainable growth.
Analyst View
“Zenith Bank continues to demonstrate superior earnings resilience and balance sheet strength. While credit impairments and normalization in trading gains moderated YoY profits, core banking earnings remain robust. With its unmatched deposit franchise and strong capital position, Zenith is primed for long-term outperformance.”
Conclusion
Zenith Bank Plc delivered a solid 9M 2025 performance, characterized by strong core interest income growth, disciplined balance-sheet management, and resilient profitability against macro pressures. With industry-leading scale and risk-management capabilities, the Bank remains the benchmark for stability and sustained shareholder value creation in the Nigerian banking landscape.
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Disclaimer
The user Wane_Investment_House holds no position in NGSE:ZENITHBANK. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
