Group Managing Director/Chief Executive of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji
Despite the challenging macroeconomic environment, Zenith Bank has remained resilient as it remained Nigeria’s largest bank by profit in the first quarter (Q1) of 2025.
Zenith Bank recorded profit after tax (PAT) of N311.83 billion as a diversified revenue base enabled consistent earnings growth, according to data gathered by MoneyCentral.
That compares with the bottom lines of Guaranty Trust Holding Company (GTCO) Plc of N258.02 billion; United Bank for Africa (UBA) Plc, N189.84 billion; Access Holdings Plc, N182.75 billion; FirstHoldCo Plc, N171.09 billion; Fidelity Bank, N91.10 billion; Stanbic IBTC Holdings Plc, N82.06 billion, and First City Monument Bank (FCM), N32.23 billion.
It is noteworthy that lenders’ interest income was bolstered by a sustained high interest rate environment as the central bank embarked on an aggressive monetary policy to curb rising inflation.
Prices were aggravated by the bold reforms of the new administration which removed subsidies on fuel and unified the foreign exchange rate.
Zenith Bank adopts an integrated approach to risk management. Its Non-Performing Loans (NPLs) ratio of 4.70 percent in the first quarter is below the 5 percent regulatory threshold.
It is important to note that Zenith Bank is the largest lender by T-1 capital, consistently delivering superior returns to shareholders through regular dividends. Prudential ratios remained well above the minimum regulatory requirement.
At the end of Q1 2025, the Bank’s Capital Adequacy Ratio (CAR) and Liquidity Ratio stood at 24 percent and 60 percent respectively, while our Coverage Ratio remains strong at 217.2 percent, demonstrating its enduring ability to maintain a robust and liquid balance sheet.
It recorded 25 percent year-on year dividend growth as it has an attractive valuation given a dividend yield of 10.35 percent and a price to earnings ratio of 1.50.
As Zenith Bank pursues enhanced profitability, its focus on cost efficiency, delivering superior customer experience, and a strategic improvement on digital adoption, remain at the forefront of our blueprint. In addition, the Bank is well-positioned to deploy further capital to expedite our ongoing expansion plans as we seek to create enhanced shareholder value and go for growth.
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