Business
Zenith Bank on to surpass shareholders dividend expectations as PAT hits N351bn in Q1 2025
Zenith Bank Plc has announced its unaudited results for the first quarter ended 31st March 2025, recording a double-digit growth of 22% in gross earnings—from N781 billion reported in Q1 2024 to N950 billion in Q1 2025.
According to the unaudited statement of account submitted to the Nigerian Exchange (NGX) on Wednesday, 30th April 2025, the growth in the topline was driven mainly by a 72% increase in the group’s interest and similar income, which rose from N489 billion in Q1 2024 to N838 billion during the review period. This surge was attributed to the sustained high-interest rate environment. However, non-interest income declined by 67%, as gains in other operating income were offset by a significant drop in trading gains.
The group also posted a 10% year-on-year increase in profit before tax (PBT), which rose to N351 billion from N320 billion recorded in Q1 2024. Profit after tax (PAT) followed a similar trajectory, climbing 21% to N312 billion.
Profitability was further supported by a decline in the cost of funds, which dropped to 3.9% in Q1 2025 from 4% in the same period last year. The cost of risk improved to 1.8%, down from 2.8% in March 2024—an outcome of the bank’s proactive deposit mix optimization, enhanced asset quality, and improved risk management. Net interest margin (NIM) increased to 10.3% from 8.3% in Q1 2024. However, return on average equity (ROAE) and return on average assets (ROAA) declined to 29.4% and 4.0% respectively, due to the industrywide recapitalization exercise which expanded the bank’s shareholding base.
Gross loans rose by a modest 1%, from N11 trillion in December 2024 to N11.08 trillion in March 2025, as the bank maintained a cautious approach to credit expansion. Customer deposits increased by 3% to N22.68 trillion from N21.96 trillion during the same period, while total assets grew 8% to N32.42 trillion.
Zenith Bank maintained strong prudential ratios, with a capital adequacy ratio (CAR) of 24% and a liquidity ratio of 60% at the end of Q1 2025. Its coverage ratio stood at 217.2%, underscoring the bank’s robust and liquid balance sheet.
Looking ahead, the bank reaffirmed its commitment to driving enhanced profitability through cost efficiency, improved digital adoption, and superior customer experience. It also intends to deploy additional capital to accelerate ongoing expansion and deliver increased shareholder value.
Zenith Bank’s consistent performance has earned it numerous accolades. The bank was ranked as Nigeria’s number one bank by tier-1 capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks ranking by The Banker magazine. It was also named Bank of the Year (Nigeria) in 2020, 2022, and 2024 by The Banker, and Best Bank in Nigeria in 2020, 2021, 2022, and 2024 by Global Finance.
Other honors include Best Commercial Bank, Nigeria (2021–2024) by World Finance, Most Sustainable Bank, Nigeria (2023–2024) by International Banker, and Best in Corporate Governance by Ethical Boardroom (2020–2023). The bank was named Most Valuable Banking Brand in Nigeria by The Banker (2020, 2021), and received several BAFI Awards, including Bank of the Year (2023, 2024) and Retail Bank of the Year (2020–2022, 2024).
In recognition of its corporate responsibility efforts, Zenith Bank was awarded Most Responsible Organisation in Africa, Best Company in Transparency and Reporting, and Best Company in Gender Equality and Women Empowerment at the SERAS CSR Awards Africa 2024. The bank also clinched Bank of the Year 2024 awards from ThisDay and New Telegraph newspapers and was recognized for Best in MSME Trade Finance 2023 by Nairametrics.
