In its unaudited 9M’25 financial results, Zenith Bank Plc (NGX: ZENITHBANK; TP: UR*) reported a weaker bottom line, as Profit Before Tax (PBT) and Profit After Tax (PAT) declined by 8.5% and 7.6% YoY to N917.4 billion and N764.2 billion, respectively. The earnings contraction primarily reflected the outsized impact of a significant loan impairment charge booked in Q2’25, alongside a sharp drop in Non-Interest Revenue (NIR).
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Gross earnings grew by 16.3% YoY to N3.4 trillion, underscoring the resilience of the bank’s core business. Interest income surged 40.8% YoY to N2.7 trillion, supported by strong growth in interest income from loans to customers (+27.0% YoY) and treasury bills (+74.4% YoY). Although interest expense rose by 22.2% YoY to N814.2 billion, the bank maintained a healthy Net Interest Margin (NIM) of 12.8% (vs. 10.4% in 9M’24), as Net Interest Income (NII) advanced 50.4% YoY to N1.9 trillion.
However, overall earnings were weighed down by a 37.5% YoY drop in NIR to N534.8 billion, driven by a 59.5% decline in trading gains. In addition, the steep increase in loan impairment charges — Q1’25: N35.9 billion, Q2’25: N755.2 billion, Q3’25: N19.3 billion — significantly dampened profitability in the period.
Consequently, the bank’s profitability softened as annualised ROAA and ROAE moderated to 3.3% (vs 4.3% in 9M’24) and 23.3% (vs 37.8% in 9M’24), respectively. Similarly, Earnings Per Share (EPS) fell by 29.4% YoY to N18.60, reflecting the expanded equity base following its recapitalisation efforts.
On a quarterly basis, Q3’25 performance was buoyed by a sharp decline in net impairment charges to N20.7 billion (vs. N62.5 billion in Q3’24) and a strong rebound in NIR (+81.0% YoY), supported by higher net fee & commission income, foreign currency revaluation gains, and the reversal of prior-period hyperinflationary losses. As a result, PBT grew 5.8% YoY to N291.8 billion, though PAT declined 6.9% YoY to N232.0 billion, reflecting a higher effective tax rate during the quarter.
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