Zenith Bank recorded a 7.9 per cent fall in bottom line for the first six months of the year compared to a year ago, its audited financials showed on Thursday, as profit took a blow from a slide in trading gains.
Trading gains for the top-tier lender declined to N467.8 billion from N795.6 billion in the same period of last year, setting the financial institution up for a weaker pre-tax profit.
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Gross earnings were up by 18.6 per cent at N2.5 trillion, with interest and similar income alone accounting for roughly three-thirds of that amount.
Nigeria’s monetary authorities’ decision to hold the reference interest rate twice in the first half of the year was a big boost to the lender’s interest and similar income, which grew 60 per cent to N1.8 trillion, as the move kept borrowing rates elevated.
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Net interest income, an indicator of the difference between what banks charge on loans and what they pay out to savers, jumped to N1.4 trillion from N715.1 billion.
One major pressure point for performance was the amount Zenith Bank laid aside as impairment charge on financial and non-financial instruments as it surged by 83.2 per cent to N760.8 billion.
Net income on fee and commission rose to N128.1 billion from N109.6 billion, driven in part by a 265.5 per cent increase in foreign currency transaction fees and commission.
In January, the lender announced a successful completion of its hybrid offer, comprising a rights issue and an offer for subscription. It stated in a regulatory filing that that the former recorded a 100.2 per cent subscription and the latter 160.5 per cent subscription.
“This development has positioned the company as one of the few banks in Nigeria to meet and even surpass the Central Bank of Nigeria’s N500 billion minimum capital requirements for banks with international authorisation well ahead of the March 2026 regulatory deadline,” Zenith Bank said.
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“The bank’s share capital would now rise N614.65bn, which is N114.65bn above the regulatory minimum requirement,” it added.
Profit before tax for the period under review diminished to N625.6 billion from N727 billion, while profit after tax dropped to N532.2 billion from N578 billion.
In a separate document on Thursday, the bank announced an interim dividend of N1.25 per share, which compares to the N1 it paid shareholders for the same period of last year. The proposed dividend translates into a potential payout of N51.3 billion.
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