——-Trading Losses Weigh on Income as Higher Taxes Drag Net earnings
October 12, 2026/CSL Update
Financial Highlights:
- Interest Income: -8.9% y/y to ₦1.7tn
- Interest Expense: -12.9% y/y to ₦421.8bn
- Net Fees and Commission: +39.6% y/y to ₦178.8bn
- Cost to Income Ratio: 44.9% y/y from 29.6% in H1 2025
- Profit before Tax: +1.9% y/y to ₦637.6bn
Zenith Bank Plc released its H1 2026 results, reporting that interest income fell 8.9% year-on-year (y/y) to ₦1.7 trillion (H1 2025: ₦1.8 trillion). The decline was driven by lower income from liquid assets, with treasury bill income falling 22.3% y/y to ₦406.2 billion from ₦522.8 billion in H1 2025, and income from placements with banks and discount houses declining 40.3% y/y to ₦72.3 billion from ₦121.1 billion over the same period, partially offset by a modest 1.1% increase in interest on loans and advances to ₦945.8 billion. Interest expense declined at a faster pace, falling 12.9% y/y to ₦421.8 billion from ₦484.5 billion in H1 2025, which provided some cushion to net interest income (NII). Nonetheless, NII still contracted 7.4% y/y to ₦1.3 trillion from ₦1.4 trillion in H1 2025.
Non-interest income was mixed. Net fee and commission income rose 39.6% y/y to ₦178.8 billion from ₦128.1 billion in H1 2025, However, other income swung to a loss of ₦20.6 billion from a gain of ₦485.1 billion in H1 2025, as trading losses of ₦92.2 billion (H1 2025: ₦467.8 billion gain) outweighed a rebound in other operating income to ₦71.6 billion (H1 2025: ₦17.3 billion). We note that the trading loss was largely driven by a ₦284.9 billion realised foreign currency loss. The rebound in other operating income was supported by FX revaluation gains of ₦38.4 billion and loan recoveries of ₦29.7 billion. As a result, total operating income fell 28.2% y/y to ₦1.4 trillion from ₦2.0 trillion.
On the balance sheet, total assets grew 3.8% year-to-date (YTD) to ₦32.6 trillion. Net loans and advances expanded 15.3% YTD to ₦12.0 trillion, driven entirely by a 16.6% surge in Term Loans to ₦11.2 trillion which easily offset marginal contractions in overdrafts and on-lending facilities. Meanwhile, customer deposits rose 8.3% YTD to ₦26.3 trillion.
Stocking Rating: Under Review
Click here to download full: ZENITH BANK H1 2026 Quick Take