Zenith Bank Plc recorded an increase in profit before tax (PBT) in the nine months ended September 2026, supported by a reduction in impairment charges that helped cushion weaker trading income and rising operating expenses.
The bank’s unaudited financial statements showed that consolidated PBT rose by 1.24 percent to N928.8 billion from N917.4 billion in the corresponding period of 2025.
The increase came despite a 15 percent decline in gross earnings to N2.87 trillion from N3.37 trillion, reflecting pressure on the bank’s overall income generation during the period.
However, a significant reduction in credit impairment charges provided support for profitability. Impairment charges fell by 70.5 percent to N230.77 billion from N782.76 billion a year earlier, easing the cost of managing credit risks on the bank’s loan portfolio.
Net interest income remained relatively flat at N1.93 trillion, compared with N1.93 trillion in the corresponding period of 2025, as growth in interest income was offset by lower interest expenses.
Interest income declined by 4.5 percent to N2.62 trillion from N2.74 trillion, while interest expenses fell by 15.4 percent to N688.73 billion from N814.23 billion.
The reduction in funding costs helped sustain net interest income despite lower interest receipts, highlighting the importance of deposit pricing and funding management to the bank’s earnings performance.
The improvement in PBT was also supported by stronger fee-based income. Net fee and commission income increased by 26.6 percent to N256.85 billion from N202.94 billion, reflecting increased contributions from the bank’s transaction and other banking services.
However, trading income remained a major drag on earnings. The bank recorded a net trading loss of N229.19 billion, compared with a gain of N277.65 billion in the corresponding period of 2025.
This represented a negative swing of approximately N506.85 billion, limiting the benefits of lower impairment charges and reduced funding costs.
Operating expenses also increased by 18.4 percent to N1.02 trillion from N858.67 billion, reflecting higher costs of running the bank.
The increase was driven partly by technology expenses, which rose to N97.88 billion from N68.12 billion, while fuel and maintenance costs climbed to N92 billion from N65.83 billion.
Personnel expenses also increased by 17.1 percent to N213.15 billion from N182.08 billion, adding to the pressure on the bank’s cost base.
Despite the improvement in PBT, Zenith Bank’s profit after tax declined by 11.6 percent to N675.83 billion from N764.20 billion.
This was largely attributable to a 65.1 percent increase in income tax expense to N252.97 billion from N153.21 billion in the prior-year period.
The bank’s earnings per share consequently declined to N16.41 from N18.60.
A breakdown of the bank’s geographical performance showed that Nigeria remained its largest contributor to PBT, although earnings from the domestic market weakened.
The Nigerian business generated N680.54 billion in PBT, down from N772.87 billion in the corresponding period of 2025.
In contrast, operations in the rest of Africa recorded an improvement, with PBT rising to N195.36 billion from N168.26 billion.
The European business recorded PBT of N55.53 billion, compared with N72.39 billion a year earlier.
The performance highlights the growing contribution of Zenith Bank’s international operations to group earnings, particularly its businesses across the African market.
The bank’s balance sheet also continued to expand, with total assets increasing to N34.39 trillion at September 2026 from N31.18 trillion in September 2025.
Customer deposits rose by 14.5 percent to N27.11 trillion from N23.69 trillion, while loans and advances increased by 24.2 percent to N11.64 trillion from N9.37 trillion.
The bank closed its last trading day on Thursday at N120.00 per share on the Nigerian Stock Exchange (NGX). Zenith began the year with a share price of N61.80 and has since gained 94.2 percent on that price valuation, ranking it 24th on the NGX in terms of year-to-date performance.
Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
