By Ayomide Otitoju
Zenith Bank Plc has reported a 6 per cent year-on-year increase in gross earnings to N1.01 trillion for the first quarter ended March 31, 2026, up from N950 billion recorded in the corresponding period of 2025, despite a challenging operating environment and tight monetary conditions.
According to the bank’s unaudited financial statement submitted to the Nigerian Exchange on April 30, the growth was driven by increases in both interest and non-interest income. Interest income rose on the back of an expanded risk asset portfolio supported by disciplined, risk-adjusted pricing, while interest expense declined by 5 per cent year-on-year due to improved deposit mix and funding structure. Consequently, net interest income grew by 7 per cent to N634 billion from N591 billion in Q1 2025.
Non-interest income also recorded strong growth, rising 19 per cent to N106 billion from N89 billion, reflecting higher fees and commissions as well as increased contributions from other income streams, driven by stronger customer activity and transaction volumes.
Profit before tax rose by 3 per cent to N361 billion, compared with N351 billion in the prior year, while profit after tax increased marginally by 1 per cent to N314 billion.
The bank’s profitability was further supported by a decline in cost of funds to 3.76 per cent from 3.90 per cent, alongside a moderation in cost of risk to 2 per cent, highlighting its prudent risk management approach amid elevated yields.
Gross loans grew by 9 per cent to N12.04 trillion from N11.06 trillion at the end of 2025, reflecting continued credit expansion into high-growth sectors. Asset quality improved slightly, with the non-performing loan ratio easing to 3.79 per cent from 3.82 per cent in December 2025. Customer deposits rose to N24.47 trillion, while total assets increased by 2 per cent to N32.01 trillion.
Key performance indicators remained strong, with return on average equity at 24.9 per cent and return on average assets at 4 per cent. Net interest margin improved to 12.5 per cent from 10.3 per cent in Q1 2025, reflecting the bank’s ability to sustain margins and enhance shareholder value.
Prudential metrics also remained robust, with capital adequacy ratio at 23.5 per cent and liquidity ratio at 71 per cent, both above regulatory thresholds. The coverage ratio stood at 169 per cent, underscoring the bank’s solid capital and liquidity position.
The performance, the bank said, reflects its continued focus on delivering quality earnings growth, strengthening asset quality, and deepening customer engagement through digital innovation, while maintaining strong corporate governance and disciplined capital management.
