Zenith {Bank} posts all-time excessive quarterly curiosity earnings of N837.6 billion in Q1 2025
Zenith {Bank} Plc has launched its unaudited {financial} outcomes for the primary quarter ended March 31, 2025, reporting an all-time excessive quarterly curiosity earnings of N837.64 billion.
This represents a 71.46% year-on-year progress in comparison with Q1 2024.
The sturdy curiosity earnings contributed to a robust bottom-line efficiency, with pre-tax revenue rising by 9.56% to N350.82 billion.
Submit-tax revenue additionally surged by 20.7% year-on-year to N311.83 billion, accounting for over 30% of the {bank}’s complete revenue for the complete yr 2024.
Key highlights Q1 2025 vs. Q1 2024:
Gross earnings: N949.857 billion +21.68% YoY
Curiosity Revenue: N837.643 billion +71.46% YoY
Curiosity Expense; N246.453 billion +35.34% YoY
Internet curiosity earnings; N591.190 billion +92.92% YoY
Internet price and fee earnings: N56.039 billion -2.90% YoY.
Earnings per share N7.59 -7.66% YoY
Loans and advances to prospects N10.051 trillion +16.19%.
Money and Money equivalents N9.542 trillion +16.89%
Complete Belongings N32.415 trillion +33.50%.
Prospects’ deposits N22.682 trillion +35.14%.
Outcomes Perception
Zenith {Bank} posted a formidable efficiency in Q1 2025, powered largely by sturdy earnings from its core lending and funding actions recognized collectively as curiosity earnings.
This section stays the primary engine of progress for the {bank}.
The {bank}’s curiosity earnings, which is the cash earned from giving out loans and investing in {financial} devices, rose considerably, with key contributions from the next sources:
- Loans and advances to prospects and different {financial} establishments generated N460.97 billion in curiosity earnings, up 53.4% year-on-year.
This section contributed 55% of complete curiosity earnings, although barely decrease than its 66% share in Q1 2024.
The dip in contribution is comprehensible given the {bank}’s elevated investments in different interest-bearing belongings and nonetheless displays a strong enlargement in its mortgage ebook, which grew by over N1.4 trillion in simply three months.
- Investments in securities, notably treasury payments, contributed considerably, with earnings rising 113.24% to N328.8 billion.
This boosted its share of complete curiosity earnings to 39.23%, up from 30% a yr in the past.
Zenith invested a further N2.68 trillion in treasury payments in Q1 2025 alone, capitalizing on engaging yields within the high-interest charge surroundings.
- Revenue from money balances (similar to placements with different banks) additionally rose by 41% to N47.87 billion, contributing 5.71% of complete curiosity earnings.
Nevertheless, whereas Zenith made more cash from lending and investments, it additionally spent to draw and retain deposits.
Curiosity bills surged to N246.45 billion, with over 70% coming from curiosity paid on buyer deposits. This improve aligns with the numerous progress in Zenith’s deposit base.
The {bank} mobilized a further N5.9 trillion in Q1 2025. It additionally raised N1.06 trillion in extra borrowings.
Along with the elevated rate of interest surroundings, these elements contributed to the upper funding prices.
Regardless of this, Zenith retained a wholesome portion of its earnings after curiosity prices.
The {bank} recorded N591.19 billion in web curiosity earnings, a 92.92% improve from Q1 2024, representing over 70% of its gross curiosity earnings, up by 12.52% from the earlier yr.
What’s extra stunning is that regardless of the speedy mortgage progress, the {bank} lowered its provisions for unhealthy loans.
Impairment expenses dropped by 27.81% to N35.95 billion, suggesting improved asset high quality or extra prudent lending practices.
This boosted web curiosity earnings after impairment loss to N541.81 billion, a formidable 116.31% year-on-year progress.
Non-interest earnings
Zenith’s non-interest earnings confirmed modest progress. It rose barely by 0.98% to N78.98 billion, pushed by:
- Account upkeep expenses, which rose by 18.74% to N20.06 billion.
- Digital banking earnings, though down by 19%, nonetheless contributed N16.17 billion.
Stability sheet highlights
Zenith’s complete belongings rose by N8.13 trillion in Q1 2025, largely pushed by the expansion in its deposit base, which expanded by N5.9 trillion.
A notable improve was additionally recorded in restricted deposits with the CBN, which rose by N2.24 trillion, reflecting the regulatory money reserve necessities.
