Zenith Bank Plc has launched its unaudited monetary outcomes for the primary quarter ended March 31, 2025, reporting an all-time excessive quarterly curiosity revenue of N837.64 billion.
This represents a 71.46% year-on-year development in comparison with Q1 2024.
The sturdy curiosity revenue contributed to a powerful bottom-line efficiency, with pre-tax revenue rising by 9.56% to N350.82 billion.
Publish-tax revenue additionally surged by 20.7% year-on-year to N311.83 billion, accounting for over 30% of the bank’s complete revenue for the complete yr 2024.
Key highlights Q1 2025 vs. Q1 2024:
- Gross earnings: N949.857 billion +21.68% YoY
- Curiosity Earnings: N837.643 billion +71.46% YoY
- Curiosity Expense; N246.453 billion +35.34% YoY
- Web curiosity revenue; N591.190 billion +92.92% YoY
- Web price and fee revenue: N56.039 billion -2.90% YoY.
- Earnings per share N7.59 -7.66% YoY
- Loans and advances to clients N10.051 trillion +16.19%.
- Money and Money equivalents N9.542 trillion +16.89%
- Complete Property N32.415 trillion +33.50%.
- Clients’ deposits N22.682 trillion +35.14%.
Outcomes Perception
Zenith Bank posted a formidable efficiency in Q1 2025, powered largely by robust earnings from its core lending and funding actions identified collectively as curiosity revenue.
This section stays the primary engine of development for the bank.
The bank’s curiosity revenue, which is the cash earned from giving out loans and investing in monetary devices, rose considerably, with key contributions from the next sources:
- Loans and advances to clients and different monetary establishments generated N460.97 billion in curiosity revenue, up 53.4% year-on-year.
This section contributed 55% of complete curiosity revenue, although barely decrease than its 66% share in Q1 2024.
The dip in contribution is comprehensible given the bank’s elevated investments in different interest-bearing belongings and nonetheless displays a stable enlargement in its mortgage ebook, which grew by over N1.4 trillion in simply three months.
- Investments in securities, notably treasury payments, contributed considerably, with revenue rising 113.24% to N328.8 billion.
This boosted its share of complete curiosity revenue to 39.23%, up from 30% a yr in the past.
Zenith invested an extra N2.68 trillion in treasury payments in Q1 2025 alone, capitalizing on enticing yields within the high-interest fee surroundings.
- Earnings from money balances (equivalent to placements with different banks) additionally rose by 41% to N47.87 billion, contributing 5.71% of complete curiosity revenue.
Nevertheless, whereas Zenith made more cash from lending and investments, it additionally spent to draw and retain deposits.
Curiosity bills surged to N246.45 billion, with over 70% coming from curiosity paid on customer deposits. This enhance aligns with the numerous development in Zenith’s deposit base.
The bank mobilized an extra N5.9 trillion in Q1 2025. It additionally raised N1.06 trillion in further borrowings.
Along with the elevated rate of interest surroundings, these components contributed to the upper funding prices.
Regardless of this, Zenith retained a wholesome portion of its earnings after curiosity prices.
The bank recorded N591.19 billion in web curiosity revenue, a 92.92% enhance from Q1 2024, representing over 70% of its gross curiosity earnings, up by 12.52% from the earlier yr.
What’s extra stunning is that regardless of the speedy mortgage development, the bank lowered its provisions for dangerous loans.
Impairment prices dropped by 27.81% to N35.95 billion, suggesting improved asset high quality or extra prudent lending practices.
This boosted web curiosity revenue after impairment loss to N541.81 billion, a formidable 116.31% year-on-year development.
Non-interest revenue
Zenith’s non-interest revenue confirmed modest development. It rose barely by 0.98% to N78.98 billion, pushed by:
- Account upkeep prices, which rose by 18.74% to N20.06 billion.
- Digital banking revenue, though down by 19%, nonetheless contributed N16.17 billion.
Steadiness sheet highlights
Zenith’s complete belongings rose by N8.13 trillion in Q1 2025, largely pushed by the expansion in its deposit base, which expanded by N5.9 trillion.
A notable enhance was additionally recorded in restricted deposits with the CBN, which rose by N2.24 trillion, reflecting the regulatory money reserve necessities.
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