Zenith Bank Raises Dividend to ₦10 as 2025 Profit Hits N1.04tn

Zenith Bank has increased its full year dividend to ₦10 per share after posting a modest rise in net profit for the 2025 financial year.

Nigeria’s second-largest lender recorded a net profit of ₦1.04 trillion, up 0.7 per cent from ₦1.03 trillion in 2024. The bank also grew total assets to ₦31.5 trillion from ₦30 trillion.

The results show that profit growth remained weak in 2025 as interest income, which is the bank’s main source of earnings, recorded its slowest growth since 2021. Trading gains, which made a strong contribution to earnings in 2024, turned negative during the year under review.

According to the bank’s audited accounts released on Tuesday, turnover rose from ₦4 trillion to ₦4.2 trillion. However, profit before tax dropped slightly to ₦1.26 trillion from ₦1.33 trillion recorded a year earlier.

A wider slowdown in the banking sector

Zenith Bank’s performance reflects a wider trend in the banking sector. Guaranty Trust Holding Company recently reported its smallest interest income growth in four years, along with a 15 per cent fall in net profit to ₦865.7 billion.

Analysts say the results suggest that the period of unusually strong gains from rising interest rates may be coming to an end. The Central Bank of Nigeria raised its monetary policy rate several times between May 2022 and November 2024 in a bid to tackle inflation. In 2025, the bank held rates four times and made only one small 50-basis-point cut as inflation started to ease.

Key income figures

Interest and similar income for Zenith Bank rose by 35 per cent to ₦3.7 trillion, while net interest income increased by 52.7 per cent to ₦2.6 trillion. Other operating income stood at ₦176.3 billion, recovering from a loss of ₦206.8 billion in 2024, largely due to foreign-currency revaluation gains.

The bank made impairment charges of ₦742.2 billion on financial instruments, up from ₦657 billion in the previous year. It also reported an impairment credit of ₦578 million on non-financial instruments, compared with a charge of ₦1.8 billion in 2024.

Dividend doubles as expansion plans continue

Zenith Bank’s biggest move for shareholders was its decision to increase dividend payout. The bank declared a final dividend of ₦8.75 per share, bringing the total full-year dividend to ₦10 per share when combined with the ₦1.25 interim dividend already paid. This is double the ₦5 per share paid for the 2024 financial year.

The lender also signalled fresh expansion plans. In March, Zenith Bank announced plans to seek a secondary listing on the London Stock Exchange, following GTCO’s path in July 2024. The bank also opened a new branch in Manchester, adding to its existing presence in Ghana, Sierra Leone and The Gambia.