Zenith Bank’s Profit Drops 19% as Revenue Falls

Zenith Bank has reported a 19.1 percent drop in net profit for the first half of 2026 compared to last year, according to its latest earnings report.

This is the second time in a row the bank has seen a profit drop in this half-year period.

The decline in revenue set the bank up for lower earnings, and rising costs also contributed to the profit fall.

Post-tax profit fell to N430.8 billion from N532.2 billion during the same period last year. The bank's earnings were affected by a tax bill that more than doubled, rising to N206.8 billion from N93.4 billion.

Last year, in the first six months, Zenith Bank's after-tax profit had already decreased by 7.9 percent due to increasing expenses.

In the latest report, gross earnings dropped by nearly a quarter to N2.5 trillion. This was due to weaker interest and similar income, which is the bank's main revenue source, along with a significant trading loss.

Net interest income, which is the difference between what a bank earns from interest-bearing assets and what it pays on its liabilities, fell by 7.4 percent to N1.3 trillion.

The decline was triggered by lower interest rates on treasury bills and placements with banks and discount houses.

The bank reduced the money it set aside for bad loans by 81.5 percent to N141.1 billion, which helped lessen the impact on net interest income after impairment charges, which rose by 87.8 percent.

Zenith Bank also faced trading losses of N92.2 billion, compared to trading gains of N467.8 billion the previous year, mainly due to a huge loss in other trading books.

Operating expenses increased by 9.7 percent to N451.3 billion. This rise was fueled by higher spending on information technology, fuel, and maintenance.

Pre-tax profit increased to N637.6 billion from N625.6 billion. The bank's total assets grew by 3.8 percent to N32.6 trillion.

Recently, the bank opened a new branch in Manchester, UK. It is also on track to finish a secondary listing on the London Stock Exchange by 2027.

The bank has declared an interim dividend of N1.5 per share, up from N1.25 for the same period last year. This means a potential dividend payout of N61.6 billion.

So far this year, the stock has risen by 118 percent.