Zenith Bank Posts ₦763.86billion Profit after tax for 9M 2025
Zenith Bank posts N763.86billion profit after tax financial results for the nine months ended 30 September 2025, reflecting a balanced performance that underscores the Group’s underlying strength in interest income generation despite heightened credit impairments and weaker trading activity. The bank’s performance during the period highlights its ability to sustain core earnings momentum amid a challenging macroeconomic backdrop characterised by tight monetary conditions, currency fluctuations, and market volatility.
For the period under review, pre-tax profit declined by 8.5% year-on-year (y/y) to ₦917.41 billion, compared to ₦1.00 trillion in the corresponding period of 2024. Similarly, net profit fell by 7.6% y/y to ₦763.86 billion, translating to earnings per share (EPS) of ₦18.60, down from ₦20.13 in 9M 2024. The decline in bottom-line profitability was primarily attributed to elevated impairment charges, lower trading gains, and increased regulatory and operating costs.
Nevertheless, Zenith Bank sustained impressive growth in interest-related earnings. Interest income rose sharply by 40.8% y/y to ₦2.74 trillion, driven by higher yields on both loans and investment securities as the bank optimised its balance sheet in a rising interest rate environment. However, this growth was partially offset by a 22.2% rise in interest expense to ₦814.23 billion, reflecting the repricing of customer deposits and borrowings. Despite this, net interest income expanded by 50.4% y/y to ₦1.93 trillion, supported by a stronger net interest margin (NIM) of 11.3%, representing a 208 basis points improvement compared with 9M 2024. The margin gain was underpinned by improved asset yields, which outweighed a modest increase in the cost of funds to 4.4%.
Performance on the non-interest income front was mixed, revealing both structural strengths and market-related weaknesses. Fee and commission income climbed 16.5% y/y to ₦202.9 billion, reflecting continued growth in electronic transaction volumes and steady contributions from account maintenance fees. In contrast, trading income dropped by 59.5% y/y to ₦277.7 billion, as derivative and fixed income trading gains moderated in response to reduced market volatility and narrower fair value opportunities. However, other income staged a strong recovery, rising to ₦54.18 billion from a ₦4.6 billion loss in 9M 2024. This turnaround was primarily driven by foreign currency revaluation gains and significant loan recoveries, providing an important cushion for the weaker trading environment.
On the expense side, operating costs rose by 16.2% y/y to ₦762.6 billion, reflecting the combined impact of higher Asset Management Corporation of Nigeria (AMCON) charges — which increased to ₦143.83 billion from ₦92.20 billion — and sustained investments in technology and personnel. The bank’s cost-to-income ratio inched up slightly to 31.0% from 30.7% in 9M 2024, indicating mild cost pressures that were largely offset by digital efficiency gains and disciplined expense management.
A major drag on profitability was the sharp rise in credit impairment charges, which surged 63.6% y/y to ₦781.5 billion. This increase reflects the bank’s conservative risk approach and reclassification of certain exposures in line with evolving credit conditions. Consequently, the cost of risk rose to 9.9% from 7.3% in the prior year. Despite the higher provisioning, asset quality metrics remained strong as the non-performing loan (NPL) ratio improved to 3.0% from 4.5% in 9M 2024, supported by proactive recoveries, write-offs, and improved collection strategies.
Zenith Bank’s balance sheet expanded modestly during the review period, underscoring sustained stability and prudent balance sheet management. Total assets grew by 4.1% year-to-date (ytd) to ₦31.18 trillion, driven largely by an increase in investment securities, which rose 16.4% ytd to ₦9.05 trillion. Conversely, net loans declined 6.0% ytd to ₦9.37 trillion, as the bank adopted a more cautious lending posture amid a high-yield environment and heightened credit risks. On the funding side, customer deposits advanced 7.9% ytd to ₦23.69 trillion, buoyed by strong inflows in local currency deposits and continued trust from both retail and corporate clients. Shareholders’ equity also strengthened by 17.4% ytd to ₦4.73 trillion, reflecting profit accretion, retained earnings, and prudent capital management.
Overall, Zenith Bank delivered resilient core earnings despite the dual challenges of elevated impairment charges and weaker market-related income. The Group’s solid capital base, strong liquidity buffers, and disciplined cost control underscore its continued ability to navigate macroeconomic headwinds while sustaining profitability. Moreover, improved asset quality and robust earnings capacity provide a foundation for long-term growth and shareholder value creation.
Analysts maintain a target price of ₦76.12 on the stock, implying an upside potential of 20.8% from its closing price of ₦63.0 as of 31 October 2025. Based on the bank’s performance, sound fundamentals, and positive outlook for core income growth, we retain a BUY recommendation on the ticker. SOURCE: CORONATION ASSET MANAGEMENT LIMITED
