Zenith Bank Plc absorbed the impact of a sharp reversal in asset trading gains, which fell from N1.10 trillion in the previous year to a loss of over N63 billion in 2025.

The bank’s ability to cushion this steep decline and protect its bottom line defines its earnings performance for the year.

In 2024, trading gains of N1.10 trillion accounted for 27.7 per cent of gross earnings, highlighting their significance to the bank’s revenue base.

The swing into a loss position in 2025 underscores the volatility of trading income and, more broadly, the earnings exposure faced by Zenith Bank and the wider banking sector.

Zenith Bank’s audited financial report for the year ended December 2025 shows its first trading loss in over a decade, following two consecutive years of strong trading gains. In the two years leading up to 2024, the bank generated more than N2 trillion in asset trading gains—exceeding the total it earned from trading over the previous 10 years to 2022.

However, the boom reversed in 2025, as the strong growth in non-interest income seen in prior years gave way to a sharp decline. Trading-related earnings fell by 63 per cent, dropping from N1.10 trillion to N405 billion.

The bank’s management had to lean on other income sources to offset the steep drop in trading revenue, with interest earnings providing the main support.

Interest income from lending and investment activities rose to N3.67 trillion, representing an additional inflow of N952 billion for the year. This reflects a 35 per cent increase, even as loans and advances and investment securities grew only in single digits.

The stronger income performance points to improved asset yields, with the average return on loans and advances climbing from 27 per cent to an all-time high of over 35 per cent over the review period.

Interest income therefore more than offset the weak performance of trading activities, helping gross earnings rise by 5.6% to N4.19 trillion at the end of 2025.

However, cost efficiencies were harder to achieve on the expense side, as operating expenses rose by over 23 per cent to N1.04 trillion—outpacing the growth in gross earnings by more than four times.

Zenith Bank ended its 2025 operations with earnings per share of N25.32, a marginal increase from N25.15 recorded in 2024.