Zenith Bank Plc has increased its interim dividend payout to shareholders by 25 per cent, paying N1.25 per share for the period ended June 30, 2025, compared with the N1.00 per share paid in the same period of 2024.
The increment in the cash reward followed an impressive performance in the first half of the year, where its gross earnings surged by 20 per cent on a year-on-year basis to N2.5 trillion from the N2.1 trillion achieved between January and June 2024.
The substantial dividend payout reflects the lender’s exceptional underlying performance and cements its position as a leading dividend-paying bank, reinforcing its longstanding commitment to rewarding its esteemed shareholders.
The financial statements of the company filed to the Nigerian Exchange (NGX) Limited showed that the improvement in the gross earnings was driven by higher interest income from N1.1 trillion to N1.8 trillion, reflecting a 60 per cent growth.
This was achieved through strategic repricing of risk assets and effective treasury management.
Net interest income demonstrated exceptional growth, surging 90 per cent year-on-year from N715 billion to an impressive N1.4 trillion, whilst non-interest income contributed N613 billion in H1 2025.
A further look into the results showed that profit after tax hit N532 billion, with earnings per share standing at N12.95 for the period under review.
The bank’s total assets expanded to N31 trillion in June 2025, representing steady growth from N30 trillion in December 2024, underpinned by a robust and well-structured balance sheet.
Customer confidence remained strong, with deposits growing by 7 per cent from N22 trillion to N23 trillion in June 2025, with the loan book at N10.2 trillion in June 2025 versus N11 trillion in December 2024, reflecting its prudent risk management approach.
The lender delivered strong returns with ROAE at 24.8 per cent and ROAA at 3.5 per cent as of June 2025. The cost-to-income ratio stood at 48.2 per cent, reflecting necessary provisioning for regulatory compliance and the impact of inflationary pressures.
Asset quality improved significantly, with the NPL ratio dropping to 3.1 per cent in June 2025 from 4.7 per cent in December 2024, with the company maintaining a fortress balance sheet with capital adequacy at 26 per cent and liquidity ratio at 69 per cent, both comfortably exceeding regulatory requirements.
“Despite the huge provisioning requirements as the industry exits the Central Bank of Nigeria (CBN) forbearance regime, we’ve seen substantial improvement in our asset quality.
“Our balance sheet remains robust with adequate capital buffers, positioning us well to seize opportunities across our key markets,” the chief executive of Zenith Bank, Ms Adaora Umeoji, stated.
Building on this strong foundation, she indicated that the bank expects to accelerate its growth trajectory in the second half of the year.
She assured shareholders that the robust performance, combined with the improved asset quality, positions the bank to deliver exceptional returns, with expectations of a quantum year-end dividend for 2025.
“Our shareholders can look forward to continued value creation as we leverage emerging opportunities and maintain our strategic growth with strong corporate governance culture,” she noted.
Looking beyond the first half of the year, Ms Umeoji said, “We’re on a solid growth path that we expect to maintain through the rest of 2025 and into 2026.
“Our focus remains on innovation, digital transformation, and developing solutions that address our clients’ changing needs. With improving market conditions, we're well placed to sustain this momentum whilst maintaining responsible leadership and delivering exceptional value to all our stakeholders.”