After Acquiring New Bank, Zenith Races Toward N3 Trillion Valuation as CBN Deadline Looms
- Zenith Bank nears N3 trillion market capitalisation amidst rising investor confidence and a strong share price
- Upcoming Q4 earnings raise cautious optimism as analysts assess Zenith's ability to maintain dividends
- CBN's new restrictions on dividend payouts introduce uncertainty, but investors trust Zenith's resilience and strategic positioning
Zenith Bank Plc is closing in on the coveted N3 trillion market capitalisation mark, riding on renewed investor confidence, a rising share price and heightened expectations ahead of its fourth-quarter 2025 earnings release.
The development comes just weeks after the lender completed the acquisition of a new bank, a move widely seen as a strategic play ahead of the Central Bank of Nigeria’s recapitalisation deadline.
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Shares of the tier-one lender crossed the N71 mark once again during Thursday’s trading session on the Nigerian Exchange, reinforcing its position as one of the market’s most valuable financial institutions.
Share price rally signals strong investor confidence
Zenith Bank’s stock has staged a remarkable rebound over the past year, climbing from a 52-week low of N43 to close at N71.35.
The sustained rally reflects strong demand from investors who view the bank as a haven in an increasingly regulated and volatile banking environment.
Market watchers say Zenith’s reputation for consistent dividend payments and strong balance sheet has made it a preferred pick for institutional and long-term investors, even as regulatory pressure mounts across the sector.
Earnings anticipation builds ahead of Q4 results
With fourth-quarter earnings expected shortly, analysts are closely watching whether Zenith Bank can maintain its dividend tradition despite tightening regulatory conditions in 2025.
Expectations remain cautiously optimistic, driven by the bank’s strong capital buffers and earnings resilience.
Several analysts believe Zenith is better positioned than most peers to absorb regulatory shocks, thanks to its disciplined risk management and diversified income streams.
CBN rules cast shadow over dividend payouts
The Central Bank of Nigeria has, however, introduced new restrictions that could reshape shareholder expectations across the banking sector.
Under the latest directive, banks benefiting from regulatory forbearance or those breaching the single obligor limit have been instructed to suspend dividend payments.
While the rule has injected uncertainty into the market, investors appear confident that Zenith Bank can navigate the constraints without significantly undermining shareholder value.
Market cap nears historic N3 trillion mark
At the close of trading on Thursday, Zenith Bank’s 41.069 billion outstanding shares were valued at approximately N2.93 trillion on the Nigerian Exchange.
The valuation marked a modest increase of about 50 basis points, supported by renewed trading activity and a notable block transaction.
The bank recorded several deals involving 7.13 million shares, traded within a price band of N71.10 to N71.35. The transactions were valued at N505.74 million, underscoring sustained interest from high-value investors.
All eyes on the next move
As the CBN’s recapitalisation deadline approaches, Zenith Bank’s recent acquisition and rising valuation place it firmly in the spotlight.
Whether the lender breaks through the N3 trillion barrier may depend on its upcoming earnings, dividend clarity and how the broader market responds to regulatory tightening.
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For now, Zenith’s steady climb suggests investors are betting that the bank has both the capital strength and strategic edge to stay ahead of the curve.
Two Nigerian banks acquire Kenyan lenders
Legit.ng earlier reported that East Africa is fast becoming the new battleground for Africa’s biggest banks, and Kenya sits firmly at the centre of the fight.
In the space of a single week, two major moves signalled a decisive shift in continental banking strategy, as Nigerian and South African lenders doubled down on Kenya to anchor their pan-African ambitions.
Zenith Bank secured regulatory approval to enter Kenya through the acquisition of 100 per cent of Paramount Bank, while South Africa’s Nedbank announced plans to buy a 66 per cent stake in NCBA Group, one of Kenya’s top-tier lenders.
Source: Legit.ng
