Zenith Bank Reports Steady Growth Despite Slight Decline in Profit for 2025

Zenith Bank Plc, one of Nigeria’s leading financial institutions, has released its financial results for the year ended 31 December 2025. The report highlights a year of cautious optimism, with gross earnings rising by 6%, while profit before tax experienced a slight decline of 5% compared to the previous year. Despite this, the bank maintained a strong performance in key financial areas and proposed a significant dividend payout for its shareholders.

Financial Performance Breakdown

Zenith Bank’s gross earnings for 2025 reached an impressive N4.19 trillion, up from N3.97 trillion in 2024. This growth can be attributed to the bank’s robust interest income, alongside its performance in fees, commissions, and foreign exchange trading activities. However, despite the increase in total earnings, the bank’s profit before tax (PBT) dipped to N1.26 trillion, down from N1.33 trillion in 2024, marking a 5% decrease.

The profit after tax (PAT), on the other hand, showed a slight increase of 0.75%, standing at N1.04 trillion, compared to N1.03 trillion in the prior year. This increase, while modest, showcases Zenith Bank’s ability to navigate the economic challenges it faced in 2025, including high inflation rates and a volatile foreign exchange environment.

Despite the dip in profit before tax, the earnings per share (EPS) was reduced to N25.32 from N32.87 in 2024, reflecting the broader impact of the decline in profit and higher provisioning for impairments.

Dividend Declaration

The bank has declared a total dividend of N10.00 per share for the 2025 financial year, which is an increase from the N5.00 total dividend per share paid in 2024. This dividend includes N8.75 as the final dividend and N1.25 as an interim dividend, demonstrating the bank’s ongoing commitment to rewarding shareholders despite a challenging year. Shareholders will vote on the final dividend at the upcoming Annual General Meeting.

Impairment and Risk Management

Zenith Bank’s impairment charge for the year amounted to N658.81 billion, a significant amount reflecting the bank’s proactive approach to managing risks in its loan portfolio. The impairment charge covered both financial instruments and non-financial assets, aligning with the bank’s strategy to fortify its balance sheet against potential defaults, especially in light of the ongoing economic challenges faced by businesses and individuals across Nigeria.

In response to rising inflation and foreign exchange volatility, the bank continues to refine its risk management framework, ensuring that it can remain resilient even in unpredictable market conditions. For the year, Zenith Bank also saw an increase in its loan provisions, with write-offs totaling N1.24 trillion.

Loan and Credit Exposure

The bank’s loan portfolio showed growth, reaching N8.17 trillion at the end of 2025. However, the increase in loans came with higher impairment charges. In particular, non-performing loans (NPLs) continued to present challenges, and Zenith Bank took proactive measures to adjust its credit loss provisions to mitigate the effects of these risks.

The bank’s loan-to-deposit ratio (LDR) remained stable, signaling the bank’s solid capacity to continue financing customers’ credit needs while keeping an eye on asset quality. As of the year’s close, Zenith’s loan book remains diversified, with significant exposure across corporate banking, retail banking, and investment portfolios.

Currency and Foreign Exchange Exposure

Currency fluctuations had a marked impact on Zenith Bank’s foreign exchange operations. The weakening of the Naira against the U.S. Dollar led to a foreign exchange impact on the bank’s operations, contributing N36.25 billion to its profit before tax. This reflects the challenges faced by Nigerian banks operating in a market characterized by significant foreign exchange volatility and a regulatory environment that has seen frequent adjustments to currency exchange rates.

Despite this, the bank’s diversification across its subsidiaries in Ghana, the UK, and Sierra Leone helped mitigate some of the currency risks in its Nigerian operations. Additionally, hedging activities allowed the bank to better manage its foreign currency exposure, minimizing the adverse effects of exchange rate fluctuations.

Sustainability and Corporate Governance

Zenith Bank has been a consistent advocate for corporate governance and sustainability practices. The bank’s leadership remains committed to upholding the highest standards of transparency and accountability, as evidenced by the board’s ongoing efforts to enhance its governance structures.

During the year, Zenith continued its focus on environmental, social, and governance (ESG) factors, making substantial contributions to charitable organizations and social welfare programs. Notably, the bank allocated N5.66 billion to charitable causes, supporting initiatives in education, health, religious organizations, and infrastructure development.

The bank also has a robust whistleblowing policy and is committed to ensuring that its employees and stakeholders are given the means to report any concerns regarding unethical behavior or violations of corporate ethics.

Directors and Board Changes

Zenith Bank’s leadership saw some changes in 2025. Dr. Henry Oroh, an executive director, retired from the board effective 30 September 2025, after serving the bank for several years. His departure marked the end of an era for the bank, but Dr. Rislana Kanya Abdulazeez was appointed to the board on 24 September 2025, bringing in new expertise to help the bank navigate its future growth.

In terms of shareholding, Zenith Bank’s largest shareholder remains Jim Ovia, the bank’s Chairman, who holds 14.13% of the bank’s shares, with both direct and indirect holdings amounting to 5.8 billion shares. He continues to play a pivotal role in the bank’s strategic direction.

Corporate Social Responsibility and Donations

Zenith Bank’s commitment to corporate social responsibility (CSR) is evident in its various philanthropic activities. For 2025, the bank contributed a total of N5.66 billion to a range of social causes, including conferences, state infrastructure projects, religious organizations, sports, healthcare, and education.

Zenith Bank’s 2025 financial results reflect its resilience and adaptability in the face of Nigeria’s challenging economic environment. While the decline in profit before tax is a concern, the bank’s strategic focus on risk management, diversified revenue streams, and strong governance will likely ensure its continued dominance in the financial sector. The increase in dividends and commitment to charitable causes further highlights Zenith Bank’s dedication to both its shareholders and the broader community.