Zenith Bank Plc has released its audited results for the half-year ended June 30, 2026, reporting a 1.91 per cent year-on-year rise in profit before tax, from ₦625.6 billion to ₦637.6 billion.

The audited financial statements filed with the Nigerian Exchange show that the profit growth came from stronger margins, a leaner funding cost base and a significant improvement in asset quality.

On the back of this performance, the bank has proposed an interim dividend of ₦1.50 per share, a 20 per cent increase from ₦1.25 per share in H1 2025.

The dividend is scheduled to be paid electronically on October 30, 2026, to shareholders whose names appear on the Register of Members as of October 23, 2026.

Eligible shareholders must also have completed their e-dividend registration and authorised the Registrar to pay directly into their bank accounts.

Holders of Global Depositary Receipts (GDRs) will receive their dividends after this date.

Zenith Bank’s H1 2026 performance was driven by improved net interest margins, lower funding costs, stronger transaction-related income and a significant reduction in impairment charges.

A major contributor to the growth in profit before tax was a 13 per cent year-on-year reduction in interest expense to ₦421.8 billion, which management attributed to the continued optimisation of the bank’s liability mix and funding structure.

This supported an improvement in net interest margin (NIM) to 12.4 per cent from 11.9 per cent in H1 2025, while net interest income stood at ₦1.25 trillion.

The cost of funds also declined to 3.3 per cent from 4.0 per cent, reflecting improved funding efficiency.

The bank’s transaction-led businesses also contributed to earnings.

Net fee and commission income rose by about 40 per cent year-on-year to ₦178.77 billion, supported by higher transaction volumes across its digital banking channels.

Other operating income also grew by 314 per cent year-on-year, adding further support to the group’s earnings.

Another significant driver was the improvement in asset quality.

Impairment charges fell by 81 per cent year-on-year to ₦141.1 billion, following the bank’s clean-up of forbearance-related facilities.

As a result, the cost of risk improved substantially to 2.2 per cent from 14.3 per cent in H1 2025, reducing the impact of credit-related losses on profitability.

On the balance sheet, gross loans grew by 14 per cent to ₦12.57 trillion from ₦11.06 trillion in December 2025, reflecting continued lending across productive sectors of the economy.

The expansion in lending came with an improvement in the non-performing loan (NPL) ratio to 3.78 per cent from 3.82 per cent at the end of 2025, indicating stronger asset quality despite the growth in the loan portfolio.

Customer deposits grew by 8 per cent to ₦26.35 trillion.

Total assets increased by 4 per cent to ₦32.65 trillion, reflecting continued balance sheet expansion across the group’s operations.

Beyond its financial performance, Zenith Bank expanded its international footprint during the period by establishing operations in Côte d’Ivoire and completing the acquisition of Paramount Bank in Kenya.

The bank also opened six additional branches in Nigeria, further expanding its domestic network.

On financial strength, Zenith Bank maintained a capital adequacy ratio of 25.1 per cent and a liquidity ratio of 60.5 per cent, both above regulatory requirements.

The group reported a return on average equity (ROAE) of 17.6 per cent and a return on average assets (ROAA) of 2.7 per cent, while its cost-to-income ratio stood at 49.9 per cent.

Meanwhile, the adoption of the new tax framework under the Nigerian Tax Act 2025 affected bottom-line earnings.

Tax expense rose to ₦206.84 billion from ₦93.45 billion in H1 2025.

This resulted in a profit after tax of ₦430.76 billion, compared with ₦532.18 billion in the corresponding period.

Overall, improved funding efficiency, stronger transaction-related income and lower impairment charges lifted Zenith Bank’s profit before tax to ₦637.6 billion in H1 2026, alongside continued growth in its loan portfolio, customer deposits and banking operations.

Zenith Bank shares have gained about 118 per cent year-to-date, rising from ₦61.80 at the start of 2026 to ₦134.70 as of October 9, 2026.

The stock has also recorded a marginal month-to-date gain of 0.52 per cent, compared with its September closing price of ₦134.00.