Zenith Bank Plc has reported a 1.91 percent year-on-year increase in profit before tax to ₦637.6 billion for the half-year ended June 30, 2026. The bank's profit before tax rose from ₦625.63bn in the corresponding period of 2025, supported by improved interest margins, lower funding costs, stronger fee income, and reduced impairment charges. This growth is a positive indicator of the bank's financial performance.
The bank's interim dividend increased by 20 percent to ₦1.50 per share, compared with ₦1.25 paid for the corresponding period of 2025. According to the bank, the dividend will be paid electronically on October 30, 2026, to shareholders whose names appear on the register of members as of October 23, 2026. This move is expected to reward shareholders and demonstrate the bank's commitment to delivering value.
A major contributor to the bank's performance was a 13 percent year-on-year decline in interest expense to ₦421.8 billion, reflecting efforts to optimise its liability mix and funding structure. The reduction supported an improvement in net interest margin to 12.4 percent from 11.9 percent in H1 2025. Net interest income stood at ₦1.25 trillion, while the cost of funds declined to 3.3 percent from 4.0 percent.
Income from fees and commissions also strengthened, rising 39.6 percent to ₦178.77 billion from ₦128.06 billion. The growth was attributed to higher transaction volumes across the bank's digital channels. Other operating income increased by 314 percent year-on-year, providing additional support to earnings. This growth in fee-based income is a positive trend for the bank.
Asset quality also improved during the period, with impairment charges falling 81 percent to ₦141.1 billion following the clean-up of forbearance-related facilities. The cost of risk consequently declined to 2.2 percent from 14.3 percent a year earlier, reducing the effect of credit losses on profitability. Loans and deposits expanded, with gross loans rising 14 percent to ₦12.57 trillion and customer deposits increasing eight percent to ₦26.35 trillion.
Despite the positive performance, higher tax expenses weighed on the bank's bottom line. Tax expense rose to ₦206.84 billion from ₦93.45 billion in H1 2025, following the adoption of the new tax framework under the Nigerian Tax Act 2025. Consequently, profit after tax declined to ₦430.76 billion from ₦532.18 billion in the corresponding period of 2025.
On the NGX, Zenith Bank shares gained approximately 118 percent year-to-date, rising from ₦61.80 at the beginning of 2026 to ₦134.70 on October 9. The results show that improved funding efficiency, higher fee-based income, and lower impairment charges supported pre-tax profit growth, although higher taxation translated into a decline in after-tax earnings.
Key points
- Zenith Bank's profit before tax rose 1.91 percent year-on-year to ₦637.6 billion for the half-year ended June 30, 2026.
- The bank's interim dividend increased by 20 percent to ₦1.50 per share.
- Improved funding efficiency, higher fee-based income, and lower impairment charges supported pre-tax profit growth.
