Zenith Bank logged a 19.1 per cent slide in internet profit for the primary half of 2026, relative to a 12 months in the past, its newest audited earnings report confirmed.
This marks the second time in a row that the massive lender would report a profit drop on the half-year interval.
Apart from a contraction in revenue, which set the financial institution up for a fall in earnings, value pressures additionally performed an element in weakening the underside line.
Post-tax profit for the monetary establishment declined to N430.8 billion from N532.2 billion in the identical interval of final 12 months as earnings instantly took successful from a surging tax invoice, which noticed taxation greater than double to N206.8 billion from N93.4 billion.
In the primary six months of final 12 months, Zenith Bank’s after-tax profit diminished 7.9 per cent, in comparison with a 12 months earlier, within the face of hovering bills.
In the interval underneath overview, gross earnings plunged by as a lot as nearly 1 / 4 to N2.5 trillion on account of weaker curiosity and related revenue, the financial institution’s high revenue supply, and a considerable buying and selling loss.
Net curiosity revenue, the distinction between what a financial institution earns on its interest-bearing belongings and what it pays on its liabilities, fell 7.4 per cent to N1.3 trillion.
Lower curiosity on treasury payments and on placements with banks and low cost homes triggered the slide.
The lender reduce the money it put aside as a provision for poisonous belongings by 81.5 per cent to N141.1 billion, softening the blow on internet curiosity revenue after impairment costs, which was up by 87.8 per cent.
Zenith Bank’s efficiency additionally took successful from buying and selling losses of N92.2 billion, in distinction to buying and selling beneficial properties of N467.8 billion a 12 months earlier, following an enormous loss on different buying and selling books.
Operating bills rose 9.7 per cent to N451.3 billion, spurred by greater spending on data know-how in addition to gas & upkeep.
Pre-tax profit climbed to N637.6 billion from N625.6 billion. Total belongings inside the interval jumped 3.8 per cent to N32.6 trillion.
READ ALSO: Zenith Bank to launch maiden Girl-Child Empowerment Programme
The financial institution not too long ago opened a department in Manchester, UK and is on observe to finish a secondary itemizing on the London Stock Exchange by 2027.
The lender has introduced an interim dividend per share of N1.5, which compares to the N1.25 it paid for a similar interval of final 12 months. That places the potential dividend payout for the interval at N61.6 billion.
The inventory is up by 118 per cent to this point this 12 months.
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