BREAKING: Zenith Bank declares 14% drop in profit to N625.63bn in H1 2025

Zenith Bank Plc  on Thursday published its half year (H1) ended June 30, 2025, interim financial results with  profit before tax dropping by 14 per cent too N625.63billion as against N727.03 billion declared in corresponding half year of 2024.

The group also  reported a 7.9 per cent  decline in profit after tax to N532.18 billion from N578.00 billion in H1 2024, translating to an Earning Per Share (EPS) of N12.95 from N18.41 in H1 2024.

Earnings momentum in H1 2025 was constrained by weaker trading income and significantly higher credit impairment charges, while EPS also declined due to the impact of new share issuances.

The Board proposed an interim dividend of N1.25/share as against N1.00/share in H1 2024, translating to a dividend yield of 1.9per cent based on the last closing price of N66.95/share.

The elevated interest rate environment continues to be a positive for banks, driving a 60per cent increase in interest income to N1.84 trillion.

Across contributory lines, income from customer loans grew by 53.3per cent to N935.75 billion, loans to banks rose by 71.1per cent to N121.08 billion, while gains from fixed income securities surged by 67.1per cent to N782.41 billion.

However, interest expense rose modestly by 11.5 per cent to N484.53 billion, reflecting increased customer deposit costs (+34.6 per cent to N349.84 billion), partly offset by lower borrowing expenses (-23.5 per cent to N132.38 billion).

As a result, net interest income nearly doubled (+89.5 per cent) to N1.35 trillion. After accounting for higher credit impairment charges (+83.2 per cent to N760.81 billion), net interest income (ex-LLE) settled at N593.91 billion (+98.1per cent).

Responding to the H1 2025 results, analysts at Cordros Research  said, “Zenithbank’s H1 2025 results highlight resilient interest income growth underpinned by elevated yields and growth in investment securities.

“However, the combination of higher impairment charges and weaker trading gains capped profitability in the review period. Looking ahead, we expect that anticipation of a lower interest rate environment could stimulate credit growth, strengthening core performance and supporting profitability despite a moderation in non-core income.”