Zenith Bank (ZENITHBANK) Q2 2025 earnings summary

Executive summary

• Gross earnings rose 20% year-over-year to NGN2.52 trillion for H1 2025, driven by robust interest income growth and a diversified revenue base, but profit before tax declined 14% to NGN625.6 billion due to higher impairment charges and operating expenses.

• Profit after tax decreased 8% year-over-year to NGN532.2 billion, with EPS dropping to NGN12.95.

• Maintained sector leadership in profitability, asset base, and capital adequacy, with a focus on risk management and digital transformation.

• Continued expansion in Africa and globally, with all subsidiaries profitable and contributing to group results.

• Reinforced ESG commitments, integrating sustainability into strategy and operations.

Financial highlights

• Net interest income surged 89% year-over-year to NGN1.4 trillion, while non-interest income declined 32% year-over-year to NGN613.1 billion.

• Total assets grew 3% to NGN31 trillion as of June 2025; customer deposits increased 7% to NGN23.5 trillion.

• Gross loans decreased 7% to NGN10.2 trillion, with term loans comprising 87% of the portfolio.

• Operating expenses rose 23% year-over-year, and impairment charges increased 83%.

• Interim dividend grew 25% year-over-year to NGN1.25 per share.

Outlook and guidance

• FY2025 guidance targets profit before tax of NGN1.2 trillion, ROAE of 35%, and NIM of 10%.

• Deposit growth projected at 11%, loan growth at 5%, and NPL ratio at 3.5%.

• Focus on expanding market share, digital banking, and international presence, especially in Francophone and East African markets.

• Management expects sustained performance in H2 2025 and beyond, leveraging digital infrastructure and global expansion.

• Commitment to innovation, ESG integration, and supporting SMEs and women entrepreneurs remains a strategic focus.