Zenith bank delivered a 40.77% YoY growth in interest income, pointing to a sustained trend of core income expansion, as benchmark interest rate stayed elevated for most part of the review period. Specifically, interest income reached NGN2.74trn at the end of 9M:2025, following the increase in interest earned on loans (+26.95% YoY to NGN1.36trn), bank placements (+69.47% YoY to NGN236.02bn) and investment securities (+55.53% YoY to NGN1.14bn). Similarly, interest expense grew by 22.18% YoY to NGN814.23bn, reflecting higher funding costs on current (+71.32% YoY to NGN182.62bn) and savings (+87.68% YoY to NGN296.36bn) accounts, while interest on time deposits decreased by 31.60% YoY to NGN137.06bn in 9M:2025. 

Looking ahead, we expect the growth in interest income to be sustained through 2025, supporting higher gross earnings amid weak non-interest income. We also envisage a modest increase in operating expense by year end, which should support FY:2025 earnings. In the medium to long term, we are optimistic about the bank s earnings potential, as we expect funds from the recent capital raise to be deployed to further expansion and digitalization. Furthermore, we expect the bank to gradually grow its loan book, as the macroeconomic environment continues to stabilize. Thus, we hold a STRONG BUY recommendation on the ticker. 

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