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Lagos-based financial services group, Zenith Bank Plc, founded by Nigerian banker Jim Ovia, reported mixed results for the first half of its 2025 fiscal year. Its profit fell below $360 million, weighed down by a sharp rise in impairments on financial and non-financial instruments.
Profit down on higher impairments
According to the bank’s interim financial statements for the six months ending June 30, 2025, net profit dropped to N532.2 billion ($355.7 million) from N578 billion ($386.3 million) a year earlier. The decline came despite a notable increase in interest income and higher fees and commissions which pointed to underlying strength in core banking operations.
Interest income climbed from N1.15 trillion ($770 million) to N1.84 trillion ($1.23 billion) while fees and commission income rose from N109.6 billion ($73 million) to N128.1 billion ($86 million). However, these gains were offset by a fall in trading profits, which slipped from N795.57 billion ($532.2 million) to N468 billion ($313 million), and a surge in impairment losses, rising from N415.3 billion ($277.9 million) to N760.8 billion ($509 million).
Zenith Bank assets hit $20.7 billion
Zenith Bank, founded in 1990 by Nigerian banker and businessman Jim Ovia, has grown into one of the country’s most important financial institutions. Ovia, who still owns about 14.12 percent of the group, remains closely tied to its performance.
The bank is Nigeria’s most profitable lender and the second-biggest financial services group by market capitalization. Despite weaker earnings, its balance sheet strengthened. Total assets rose to N31 trillion ($20.7 billion) in June from N24 trillion ($16.05 billion) at the end of 2024.
Shareholders’ equity climbed to N4.6 trillion ($3.07 billion) from N3.1 trillion ($2.07 billion), while retained earnings increased to N2.45 trillion ($1.64 billion). Reflecting confidence in its financial position, the board proposed an interim dividend of N1.25 ($0.00083) per share.
