October 31, 2025/Cordros Report
Zenith Bank Plc (ZENITHBANK) published its unaudited 9M-25 financial results, reporting a 29.4% y/y drop in earnings per share (EPS) to NGN18.60 billion (9M-24: NGN26.34). The earnings contraction reflected a sharp drop in non-interest income (-37.5% y/y) and elevated credit impairment charges (+63.6% y/y), which offset strong interest income growth supported by the high-yield environment.
Interest income rose sharply by 40.8% y/y to NGN2.74 trillion, driven by solid gains across major income lines, particularly investment securities (+55.5% y/y), loans to customers (+27.0% y/y), and banks (+69.5% y/y).
Interest expense, however, increased 22.2% y/y to NGN814.23 billion, largely due to higher deposit costs (+32.5% y/y), even as borrowing costs moderated (-1.7% y/y). Consequently, net interest income advanced by 50.4% y/y to NGN1.93 trillion. Still, higher credit impairment charges (+63.6% y/y to NGN781.52 billion) weighed on performance, bringing net interest income ex-LLE to NGN1.15 trillion (+42.6% y/y).
Non-interest income declined sharply by 37.5% y/y to NGN534.78 billion, driven by lower trading and investment gains (-59.5% y/y). This weakness offset improvements in fee and commission income (+16.5% y/y) and FX gains (NGN24.23 billion vs. NGN1.71 billion loss in 9M-24).
Operating expenses rose 16.2% y/y to NGN762.57 billion, mainly due to higher AMCON charges (+56.0%), personnel (+20.8%), and IT (+56.5% y/y) fees. All told, the cost-to-income ratio (ex-LLE) remained broadly stable at 31.0% (9M-24: 30.7%).
Operating income grew marginally by 1.3% y/y to NGN1.68 trillion, while PBT declined 8.5% y/y to NGN917.41 billion, reflecting weaker non-core income and elevated impairments. A lower effective tax charge (-12.7% y/y) partly cushioned the impact, resulting in PAT of NGN764.20 billion (-7.6% y/y).
Comment: ZENITHBANK’s demonstrated continued core strength in 9M-25; however, elevated impairment charges and lower trading gains moderated profitability. Looking ahead, we expect continued topline growth, while non-core income could remain subdued given weaker trading gains. Our estimates are under review.
