Zenith Bank Plc Absorbs N1.1trn Trading Shock, Maintains ₦1.04trn Profit in 2025
Zenith Bank Plc Absorbs N1.1trn Trading Shock, Maintains ₦1.04trn Profit in 2025
Zenith Bank Plc Absorbs N1.1trn Trading Shock, Maintains ₦1.04trn Profit in 2025
Zenith Bank Plc has successfully navigated a major earnings shock in its 2025 financial year, cushioning the impact of a sharp reversal in asset trading performance to maintain a stable bottom line.
The bank’s audited results for the year ended December 2025 show that trading income plunged from a gain of ₦1.10 trillion in 2024 to a loss of over ₦63 billion—marking its first trading loss in more than a decade and highlighting the volatility within the banking sector.
Despite the significant drop, Zenith Bank offset the revenue shortfall through strong growth in interest income, which rose by 35 percent to ₦3.67 trillion. This surge was driven by improved asset yields, with average returns on loans and advances climbing to over 35 percent.
As a result, gross earnings grew modestly by 5.6 percent to ₦4.19 trillion, even as non-interest income declined sharply by 63 percent to ₦405 billion.
The bank’s performance was further supported by improved credit quality and reduced impairment pressures. Net loan impairment charges rose by a slower 13 percent to ₦742 billion, compared to a steep increase in the previous year.
Cost management also played a key role in stabilizing earnings. Growth in the cost of funds slowed significantly to 4 percent, while customer deposits expanded by 10.8 percent to ₦24.32 trillion, effectively lowering funding costs.
Through a combination of rising interest income and controlled expenses, net interest income surged by 52.7 percent, while net interest earnings after loan losses jumped 77 percent to ₦1.90 trillion.
However, operating expenses increased by over 23 percent to ₦1.04 trillion, pushing the cost margin slightly higher and compressing profit margins to 24.8 percent—the lowest in three years.
Despite these pressures, the bank maintained its profit after tax at ₦1.04 trillion, reflecting resilience in its earnings structure.
Earnings per share rose marginally to ₦25.32, up from ₦25.15 in 2024. The board also declared a final dividend of ₦8.75 per share, in addition to an interim dividend of ₦1.25 paid earlier in the year.
The results underscore Zenith Bank’s ability to adapt to market volatility through strategic income diversification and disciplined cost management.
Zenith Bank Plc Absorbs N1.1trn Trading Shock, Maintains ₦1.04trn Profit in 2025
