Zenith Bank Plc reported a 1.9% increase in profit before tax to ₦637.60 billion for the half-year ended June 30, 2026, as lower impairment charges offset a sharp reversal in foreign exchange trading income and a decline in gross earnings.
The Nigerian lender’s audited half-year financial statements, filed with the Nigerian Exchange Limited (NGX) on October 9, showed that profit before tax increased from ₦625.63 billion in the corresponding period of 2025. Profit after tax, however, declined 19.1% to ₦430.76 billion from ₦532.18 billion, following a more than doubling of income tax expense.
Gross earnings fell 24.6% to ₦1.90 trillion from ₦2.52 trillion a year earlier, reflecting the impact of weaker trading income and pressure on the bank’s revenue base. The results also showed continued balance-sheet expansion, with total assets rising to ₦32.65 trillion from ₦31.46 trillion at the end of December 2025, supported by growth in loans and customer deposits.
Foreign exchange trading swings to loss
Foreign exchange trading was a major source of pressure on the bank’s earnings during the period. Zenith Bank recorded a trading loss of ₦92.2 billion in H1 2026, compared with a trading gain of ₦467.8 billion in the corresponding period of 2025.
The reversal significantly reduced the contribution of trading activities to operating income. However, the impact was partly offset by an 81.5% decline in impairment charges on financial assets, which fell to ₦141.1 billion from ₦762.1 billion a year earlier.
The reduction in impairment charges helped support pre-tax profitability despite the contraction in gross earnings. The comparison also reflects the substantial provisions recognised in the first half of 2025.
Net interest income falls as fee income grows
Net interest income declined 7.4% to ₦1.25 trillion, as interest earnings came under pressure despite growth in the bank’s lending portfolio. Interest income from loans and advances stood at approximately ₦945.8 billion, while income from treasury bills declined 22.3% to ₦406.2 billion. Interest expense also remained a significant component of the bank’s earnings profile.
Net fee and commission income provided a counterweight, increasing 39.6% to ₦178.77 billion from ₦128.06 billion in H1 2025.
The increase reflects a stronger contribution from fee-generating activities, including electronic banking services and account maintenance fees. The performance indicates that transaction-related income became a more important contributor as trading revenue weakened.
Loans expand as assets rise to ₦32.65 trillion
Zenith Bank’s total assets increased 3.8% from ₦31.46 trillion at the end of 2025 to ₦32.65 trillion as of June 30, 2026. Net loans and advances rose 15.3% to ₦12.05 trillion, while customer deposits increased 8.3% to ₦26.35 trillion over the same period.
Gross loans grew 14% to ₦12.57 trillion from ₦11.06 trillion at the end of December 2025, indicating an expansion in the bank’s lending activity during the first six months of the year.
The growth in loans outpaced the increase in customer deposits and total assets, pointing to a larger allocation of the bank’s balance sheet to lending. The continued growth in deposits, meanwhile, supported its funding base.
Borrowings declined to ₦11.1 billion from ₦651.2 billion at the end of 2025, while shareholders’ funds decreased marginally to ₦4.89 trillion. The bank reported a capital adequacy ratio of 25.1%, providing an indication of its capital position relative to its risk-weighted assets.
Higher tax expense weighs on bottom-line profit
Despite the marginal increase in profit before tax, Zenith Bank’s profit after tax fell 19.1% to ₦430.76 billion.
Income tax expense rose to ₦206.84 billion from ₦93.45 billion in H1 2025, more than doubling over the period. The increase in taxation absorbed the improvement in pre-tax earnings and contributed to the decline in the bank’s bottom line.
Earnings per share consequently declined to ₦10.48 from ₦12.95 in the corresponding period of 2025. The divergence between pre-tax and post-tax profit highlights the extent to which tax expenses affected shareholder earnings during the period.
Board proposes ₦1.50 interim dividend
Zenith Bank’s board proposed an interim dividend of ₦1.50 per share for H1 2026, representing a 20% increase from the ₦1.25 per share proposed for the corresponding period of 2025. The proposed dividend is subject to shareholder ratification at the next annual general meeting, in accordance with the bank’s financial statements.
The higher proposed payout comes despite the decline in profit after tax, signalling the board’s intention to increase interim distributions to shareholders.
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