Zenith Bank Hits N1trn Profit Again, Remains Most Profitable Bank in Nigeria
- Zenith Bank Plc has announced a profit after tax of over N1 trillion for the financial year of 2025
- The bank also recorded an improved asset quality by reducing non-performing loans
- For its investors, it proposed a final dividend of N8.75 per share, bringing the total payout for 2025 to N10
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
With N1.04 trillion in profit after tax for 2025, Zenith Bank Plc not only crossed the trillion-naira mark again but reinforced its position as Nigeria’s most profitable bank.
But the real story goes beyond the headline number.
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According to its financial report obtained from the NGX, gross earnings rose to N4.19 trillion, driven by a sharp increase in interest income and steady growth in customer deposits.
More notably, the bank made a deliberate move to clean up parts of its loan book. While this decision slightly reduced profit before tax, it strengthened the overall business.
And the results were clear:
- Non-performing loans declined
- Asset quality improved
- Investor confidence remained strong
Zenith Bank's impressive performance
Under CEO Adaora Umeoji, the strategy has been consistent: maintain discipline, grow responsibly, and build for the long term.
That approach is reflected both in the numbers and in the decisions behind them.
Even while restructuring its loan portfolio, the bank continued to expand its core operations:
- Customer deposits rose to N24 trillion
- Gross loans increased to N11 trillion
- Interest income surged by 35%
This indicates growing trust from individuals and businesses, alongside the bank’s ability to lend effectively and generate returns.
Net interest income growth of over 50% further highlights strong margin management, even in a challenging economic environment
Operating costs, however, increased, pushing the cost-to-income ratio to 45.2%.
While not ideal on paper, this reflects broader realities, including:
- Inflationary pressures
- Higher impairment charges linked to loan cleanups
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In essence, the cost increase was driven by deliberate strategic decisions and prevailing market conditions.
Dividend payout for investors
Despite these pressures, the bank continues to reward shareholders.
It proposed a final dividend of N8.75 per share, bringing total dividends for 2025 to N10 per share—double the payout in 2024.
Zenith Bank Plc will distribute about N359 billion to shareholders as final dividend for 2025, BusinessDay reports.
This signals strong confidence in its financial position and future cash flows.
Ultimately, the story is not just about a trillion-naira profit. It is about discipline.
Zenith Bank chose to clean up its books, strengthen its foundation, and still achieve growth. That balance is difficult—and it is what distinguishes long-term institutions from short-term performers.
Jim Ovia speaks on founding banking giant with N20 million in 1990
Earlier, Legit.ng reported that Jim Ovia, founder of Zenith Bank, revealed how he launched one of Nigeria’s most profitable financial institutions with just N20 million in 1990.
Speaking in an interview with Zain Asher on Marketplace Africa, Ovia said the initial capital of N20 million was equivalent to about $4–5 million at the prevailing exchange rate of roughly N4 to the dollar at the time.
Zenith Bank commenced operations in July 1990 and was later listed on the Nigerian Exchange Limited in 2004.
Source: Legit.ng
