Zenith Bank Plc reported a 21% year-on-year rise in its profit after tax for the first quarter of 2025, totaling ₦311.830 billion, as detailed in its unaudited financial results submitted to the Nigerian Exchange.
The bank’s gross earnings also witnessed strong growth, climbing by 22% to ₦950 billion in Q1 2025, up from ₦781 billion in the corresponding period of 2024.
This topline performance was largely fueled by a significant 72% increase in interest and related income, which rose from ₦489 billion in Q1 2024 to ₦838 billion in the period under review. This surge was largely attributed to the persistent high-interest rate environment.
However, the bank’s non-interest income saw a steep decline of 67%, as the growth in other operating income was overshadowed by a sharp drop in trading gains.
On a year-on-year basis, profit before tax climbed 10% to ₦351 billion in Q1 2025, up from ₦320 billion recorded in the same period last year. Similarly, profit after tax advanced 21%, reaching ₦312 billion.
Zenith Bank’s earnings performance was further bolstered by improved cost efficiency. The cost of funds dropped to 3.9% in Q1 2025 from 4% in the year-earlier period, while cost of risk decreased from 2.8% to 1.8%, reflecting better asset quality and a more optimal deposit mix.
The bank’s net interest margin improved significantly, reaching 10.3% in Q1 2025, compared to 8.3% in Q1 2024. Nonetheless, Return on Average Equity (ROAE) and Return on Average Assets (ROAA) declined year-on-year to 29.4% and 4.0%, respectively, a trend largely attributed to the recent industry-wide recapitalisation which broadened the bank’s capital base.
Zenith Bank’s gross loans increased marginally by 1%, from ₦11 trillion in December 2024 to ₦11.08 trillion by March 2025, reflecting a cautious credit expansion strategy.
Customer deposits rose 3% to ₦22.68 trillion in Q1 2025 from ₦21.96 trillion at the end of 2024. Total assets also grew by 8%, hitting ₦32.42 trillion. Regulatory compliance remained solid, with the Capital Adequacy Ratio (CAR) at 24% and the Liquidity Ratio at 60%. The bank’s Coverage Ratio remained robust at 217.2%.
As Zenith Bank continues to pursue profitability, it maintains a strong focus on cost optimisation, enhancing customer service delivery, and accelerating digital transformation initiatives.
