Zenith Bank Plc has reported a strong start to the 2026 financial year, crossing the N1 trillion mark in gross earnings for the first quarter, despite a challenging macroeconomic environment and tighter monetary conditions.
In its unaudited results for the period ended March 31, 2026, submitted to the Nigerian Exchange Group, the bank recorded a 6 per cent increase in gross earnings to N1.01 trillion, up from N950 billion in the corresponding period of 2025.
The growth was driven by improvements in both interest and non-interest income streams. Interest income rose on the back of an expanded risk asset portfolio and disciplined pricing strategy, while interest expense declined by 5 per cent year-on-year due to an optimised deposit mix and funding structure. Consequently, net interest income climbed by 7 per cent to N634 billion.
Non-interest income also showed strong performance, rising by 19 per cent from N89 billion to N106 billion, supported by higher fees, commissions, and increased transaction volumes across key banking channels—an indication of stronger customer engagement.
Profit before tax grew by 3 per cent to N361 billion, compared to N351 billion recorded in Q1 2025, while profit after tax edged up by 1 per cent to N314 billion.
The bank’s profitability was further strengthened by improved efficiency metrics, including a reduction in cost of funds to 3.76 per cent from 3.90 per cent, and a moderation in cost of risk to 2 per cent, reflecting prudent risk management in a high-yield environment.
On the balance sheet side, gross loans rose by 9 per cent to N12.04 trillion from N11.06 trillion at the end of 2025, highlighting sustained lending to key growth sectors. Asset quality improved slightly, with the non-performing loan ratio easing to 3.79 per cent.
Customer deposits increased significantly to N24.47 trillion, while total assets grew by 2 per cent to N32.01 trillion during the period.
Key profitability indicators remained robust, with return on average equity (ROAE) at 24.9 per cent and return on average assets (ROAA) at 4 per cent. Net interest margin also strengthened to 12.5 per cent, up from 10.3 per cent in Q1 2025.
The bank maintained strong prudential ratios, with capital adequacy at 23.5 per cent and liquidity ratio at 71 per cent, both well above regulatory thresholds. Its coverage ratio stood at 169 per cent, underscoring a solid buffer against potential credit losses.
The Q1 performance reflects Zenith Bank’s continued focus on high-quality earnings growth, strong risk management, and deepening customer engagement through digital innovation, positioning the Group for sustained growth in the months ahead.