Nine Months 2026: Zenith Bank posts 12% drop in profit to N675.8bn
Zenith Bank Plc on Friday announced a 12 per cent drop in profit to N675.83billion in its unaudited nine months ended September 30, 2026 from N764.21 billion reported in nine months ended September 30 2025.
Gross earnings moderated by 15per cent year‑on‑year to N2.87 trillion from N3.37 trillion reported in September 2025, as lower interest income and trading losses offset strong growth across customer‑driven revenue lines.
Interest income declined by five per cent to N2.62 trillion as yields on earning assets moderated relative to the prior period.
The Group, however, benefited from improved funding efficiency, with interest expense declining by 15per cent year‑on‑year to NGN689 billion from N814 billion, underpinned by a more efficient funding composition.
Consequently, net interest margin improved from 11.99per cent to close at 12.7per cent. While trading‑related income remained softer than the prior year, underlying customer activity continued to perform strongly. Net fees and commission income increased by 27per cent year‑on‑year to N257 billion, benefiting from higher transaction volumes and increased adoption of the Bank’s digital platforms.
Other operating income also grew by 97per cent to N107 billion from N54 billion during the period, driven by continued recoveries on previously written‑off loan facilities. Despite these gains, non‑interest income declined to Nper cent134 billion, primarily due to revaluation losses within the Bank’s trading portfolio.
Profit before tax increased by one per cent year‑on‑year to N929 billion, compared with N917 billion reported in September 2025.
Profit after tax eased to N676 billion, compared with N764 billion in the corresponding period of 2025, reflecting the impact of a higher effective tax rate following the implementation of the Nigerian Tax Act (NTA) 2025.
Gross loans rose by 11per cent from N11.06 trillion as at December 2025 to N12.26 trillion as at September 2026. Customer deposits increased by 11per cent to N27.11 trillion from N24.33 trillion, while total assets grew by nine per cent to N34.39 trillion from N31.46 trillion over the same period. This continued expansion across the Group’s lending, deposit and asset base demonstrates the Group’s ability to support growing customer activity and capture opportunities across key market segments.
The Group recorded further gains across key efficiency and risk metrics during the period. Cost of funds declined to 3.5per cent from 4.5per cent reported in September 2025, while cost of risk significantly improved to 2.4per cent from 9.9per cent, following lower credit impairment charges during the period. Cost‑to‑income ratio increased to 49.3per cent from 45.4per cent, largely due to inflationary pressures and higher regulatory costs.
Return on Average Equity (ROAE) and Return on Average Assets (ROAA) stood at 18.0per cent and 2.7per cent, respectively, compared with 23.3per cent and 3.3per cent reported in September 2025.
The Group’s prudential ratios remained robust and well above regulatory threshold, with Capital Adequacy Ratio (CAR), Liquidity Ratio and Coverage Ratio at 24.5 per cent, 49.1per cent and 123.2per cent, respectively, reinforcing the Group’s resilience and prudent risk management culture.
Commenting on the results, the Group Managing Director/Chief Executive Officer, Dame Dr. Adaora Umeoji, stated꞉ “Our performance during the first nine months of 2026 reflects the increasing contribution of customer‑driven business activities across the Group. Growth in lending, transaction volumes and customer deposits continued to support the business during the period, while lower funding and credit costs contributed to profitability and improved earnings quality.
“We are seeing growing momentum as more customers continue to choose Zenith Bank as a trusted partner for their banking needs. This is translating into deeper customer relationships, greater business volumes and a more balanced earnings profile across the Group.
“Our focus is not only on growing the business, but on ensuring that growth translates into greater value for our customers, shareholders and the communities we serve. We believe the progress we have made positions us well to capture future opportunities while maintaining the financial strength and disciplined execution that have long defined the Zenith brand.”
