Despite the challenging operating environment and tightening monetary policy stance, Zenith Bank Plc improved its gross earnings in the first quarter of 2026 by 6 per cent to N1.01 trillion from N950 billion in the corresponding period of 2025.
In the unaudited financial statements of the lender for the period ended March 31, it was revealed that the growth was driven by an increase in interest income and non-interest income.
In the results submitted to the Nigerian Exchange (NGX) Limited on Thursday, April 30, 2026, it was disclosed that the rise in interest income was primarily due to the expansion of the bank’s risk asset portfolio, supported by disciplined, risk-adjusted pricing.
It was observed that interest expense moderated by 5 per cent year-on-year in Q1 2026, underscored by a continued optimisation of the lender’s deposit mix and funding structure. This resulted in a 7 per cent growth in net interest income to N634 billion from N591 billion in Q1 2025.
Non-interest income also improved 19 per cent year on year to N106 billion from N89 billion, highlighting an improvement in fees and commissions and higher contributions from other operating income streams.
This performance reflects stronger customer activity and deeper transaction volumes across key business channels.
As a result, the profit before tax went up by 3 per cent year to N361 billion from N351 billion, and the profit after tax marginally increased by 1 per cent to N314 billion.
Profitability was further supported by a decline in cost of funds to 3.76 per cent in Q1 2026 from 3.90 per cent in Q1 2025; while cost of risk moderated to 2 per cent in Q1 2026, reflecting a prudent and proactive risk management stance in an elevated yield environment.
Gross loans increased by 9 per cent from N11.06 trillion as at full year 2025 to N12.04 trillion in Q1 2026, reflecting the continued commitment to carefully deploying credit into high-growth sectors of the economy that enhance portfolio returns.
Asset quality strengthened as the Non-Performing Loan (NPL) ratio eased to 3.79 per cent, from 3.82 per cent reported in December 2025, underpinned by disciplined credit risk management. Customer deposits rose to N24.47 trillion in Q1 2026, while total assets increased by 2 per cent to N32.01 trillion over the same period.
Return on Average Equity (ROAE) and Return on Average Assets (ROAA) stood at 24.9 per cent and 4 per cent, respectively, supported by strong top-line earnings and enhanced balance sheet efficiency.
Net interest margin (NIM) strengthened to 12.5 per cent, up from 10.3 per cent in Q1 2025, underscoring the Group’s ability to preserve its margins and deliver improved shareholder returns. Prudential ratios remained strong and comfortably above regulatory requirements.
The Group’s Capital Adequacy Ratio (CAR) and Liquidity Ratio stood at 23.5 per cent and 71 per cent, respectively, while the coverage ratio remained strong at 169 per cent, reinforcing the Bank’s resilient capital and liquidity position.
Its performance underscores its continued focus on sustaining high-quality earnings growth, further strengthening asset quality, and deepening customer engagement through continued digital innovation. The Bank remains firmly committed to delivering sustainable growth anchored on sound corporate governance, prudent risk oversight, and disciplined capital allocation.