Zenith Bank Tops N1 Trillion in Q1 2026 Gross Earnings, Posts N361bn PBT
By Rashidat Olushola Okunlade
Zenith Bank Plc has reported a strong financial performance for the first quarter ended March 31, 2026, with gross earnings rising by 6 per cent year-on-year to N1.01 trillion, up from N950 billion recorded in the corresponding period of 2025.
The bank disclosed this in its unaudited financial results submitted to the Nigerian Exchange Group on April 30, 2026, attributing the growth to increases in both interest and non-interest income streams despite a challenging macroeconomic environment and tight monetary conditions.
Interest income growth was driven largely by the expansion of the bank’s risk asset portfolio, supported by disciplined, risk-adjusted pricing strategies. At the same time, interest expenses declined by 5 per cent year-on-year, reflecting improved deposit mix optimisation and a more efficient funding structure.
As a result, net interest income rose by 7 per cent to N634 billion, compared to N591 billion in Q1 2025. Non-interest income also recorded a notable 19 per cent increase, climbing to N106 billion from N89 billion, supported by stronger fees, commissions, and other operating income streams tied to increased customer activity and transaction volumes.
Profit before tax (PBT) grew by 3 per cent to N361 billion, up from N351 billion in the same period last year, while profit after tax edged up by 1 per cent to N314 billion.
The bank’s profitability metrics were further strengthened by a reduction in cost of funds to 3.76 per cent from 3.90 per cent, alongside a moderation in cost of risk to 2 per cent, reflecting prudent risk management in a high-yield environment.
On the balance sheet side, gross loans expanded by 9 per cent to N12.04 trillion, compared to N11.06 trillion at the end of the 2025 financial year, demonstrating sustained credit deployment to key growth sectors of the economy.
Asset quality also improved slightly, with the non-performing loan (NPL) ratio declining to 3.79 per cent from 3.82 per cent in December 2025, underscoring effective credit risk management practices.
Customer deposits rose to N24.47 trillion, while total assets increased by 2 per cent to N32.01 trillion during the period under review.
Key performance ratios remained strong, with Return on Average Equity (ROAE) at 24.9 per cent and Return on Average Assets (ROAA) at 4 per cent. Net interest margin improved significantly to 12.5 per cent from 10.3 per cent in Q1 2025, reflecting the bank’s ability to sustain margins and enhance shareholder value.
The bank also maintained robust prudential ratios, with Capital Adequacy Ratio (CAR) at 23.5 per cent and Liquidity Ratio at 71 per cent, both well above regulatory thresholds. Coverage ratio stood at 169 per cent, reinforcing its strong buffer against credit losses.
Zenith Bank stated that its Q1 2026 performance highlights its strategic focus on sustaining high-quality earnings growth, strengthening asset quality, and deepening customer engagement through digital innovation.
The lender reaffirmed its commitment to long-term growth anchored on sound corporate governance, prudent risk management, and disciplined capital allocation.
