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| Zenith. |
Zenith Bank Plc has announced its unaudited results for the first quarter ended 31st March 2026, with a 6% growth in Gross Earnings, from N950 billion reported in Q1 2025 to N1.01 trillion in Q1 2026. This is despite the challenging operating environment and tightening monetary policy stance.
From the unaudited
statement of account submitted to the Nigerian Exchange (NGX) on Thursday, 30th April 2026, this growth was driven by
increase in interest income and non-interest income. The increase in interest
income was primarily due to the expansion of the Bank's risk asset portfolio,
supported by disciplined, risk adjusted pricing. Interest expense moderated by
5% YoY in Q1 2026 underscored by a continued optimisation of the Bank's deposit
mix and funding structure. This resulted in a 7% growth in net interest income
from N591 billion in Q1 2025 to N634 billion in Q1 2026. Non-interest income
also improved 19% year on year, rising from N89 billion to N106 billion,
highlighting an improvement in fees and commissions and higher contributions
from other operating income streams. This performance reflects stronger
customer activity and deeper transaction volumes across key business channels.
As a
result, the Group recorded a 3% year on year increase in profit before tax,
which rose to N361 billion compared with N351 billion in Q1 2025. Profit after
tax also increased by 1% to N314 billion.
Profitability
was further supported by a decline in cost of funds to 3.76% in Q1 2026 from
3.90% in Q1 2025; while cost of risk moderated to 2% in Q1 2026, reflecting a
prudent and proactive risk management stance in an elevated yield environment.
Gross
loans increased by 9% from N11.06 trillion as at full year 2025 to N12.04
trillion in Q1 2026, reflecting the continued commitment to carefully deploying
credit into high growth sectors of the economy that enhance portfolio returns.
Asset quality strengthened as Non-Performing Loan (NPL) ratio eased to 3.79%,
from 3.82% reported in December 2025, underpinned by disciplined credit risk
management. Customer deposits rose to N24.47 trillion in Q1 2026, while total
assets increased by 2% to N32.01 trillion over the same period.
Return on
Average Equity (ROAE) and Return on Average Assets (ROAA) stood at 24.9% and 4%
respectively, supported by strong top line earnings and enhanced balance sheet
efficiency. Net interest margin (NIM) strengthened to 12.5%, up from 10.3% in
Q1 2025, underscoring the Group's ability to preserve its margins and deliver
improved shareholder returns. Prudential ratios remained strong and comfortably
above regulatory requirements.
The
Group's Capital Adequacy Ratio (CAR) and Liquidity Ratio stood at 23.5% and 71%
respectively, while the coverage ratio remained strong at 169%, reinforcing the
Bank's resilient capital and liquidity position.
The
Group's Q1 2026 performance underscores its continued focus on sustaining high
quality earnings growth, further strengthening asset quality, and deepening
customer engagement through continued digital innovation. The Bank remains
firmly committed to delivering sustainable growth anchored on sound corporate
governance, prudent risk oversight, and disciplined capital allocation.
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