By Ayomide Otitoju
Zenith Bank Plc has maintained its lead as Nigeria’s most profitable bank in the first quarter (Q1) of 2025, posting a profit after tax (PAT) of ₦311.83 billion despite a challenging macroeconomic landscape.
The bank’s performance, bolstered by a diversified revenue base and strong interest income, outpaced key rivals. According to data compiled by MoneyCentral, Guaranty Trust Holding Company (GTCO) Plc reported ₦258.02 billion in PAT; United Bank for Africa (UBA) Plc, ₦189.84 billion; Access Holdings Plc, ₦182.75 billion; FirstHoldCo Plc, ₦171.09 billion; Fidelity Bank, ₦91.10 billion; Stanbic IBTC Holdings Plc, ₦82.06 billion; and First City Monument Bank (FCMB), ₦32.23 billion.
Zenith Bank’s strong earnings were underpinned by the Central Bank of Nigeria’s (CBN) sustained tight monetary policy, which drove higher interest income across the sector. The high-rate environment was part of the CBN’s efforts to tame surging inflation, exacerbated by structural reforms such as the removal of fuel subsidies and unification of the foreign exchange rates.
In her remarks, the Group Managing Director and Chief Executive Officer, Dame (Dr.) Adaora Umeoji, emphasized the bank’s resilience and disciplined approach to risk management. The bank’s Non-Performing Loans (NPL) ratio stood at 4.70 percent in Q1—well below the 5 percent regulatory ceiling—reflecting prudent credit practices.
Zenith Bank also remains Nigeria’s largest bank by Tier-1 capital, continuing to reward shareholders with consistent and superior returns. As of Q1 2025, the bank’s Capital Adequacy Ratio (CAR) was 24 percent, while its Liquidity Ratio stood at 60 percent—both comfortably above regulatory benchmarks. The coverage ratio was reported at 217.2 percent, underscoring the bank’s ability to manage risks and preserve balance sheet strength.
Further affirming its investor appeal, Zenith Bank delivered a 25 percent year-on-year dividend growth, offering a dividend yield of 10.35 percent and a price-to-earnings (P/E) ratio of 1.50—metrics that position it attractively in the market.
Looking ahead, the bank remains focused on driving profitability through enhanced cost efficiency, digital transformation, and customer-centric initiatives. With a strong capital base, Zenith is poised to accelerate its expansion strategy and deliver sustained value to shareholders.
