Zenith Bank Plc has announced its unaudited financial results for the first quarter ending March 31, 2025. The bank’s gross earnings for Q1 2025 reached N950 billion, a 22% increase from N781 billion in the same period of 2024. The growth was primarily driven by a significant 72% rise in the bank’s interest and similar income, which reached N838 billion, compared to N489 billion in Q1 2024. This increase in interest income was supported by the continued high-interest rate environment.
However, non-interest income declined by 67%, as other operating income was not enough to offset the drop in trading gains. Despite this, Zenith Bank recorded a 10% year-on-year increase in profit before tax (PBT), reaching N351 billion, up from N320 billion in Q1 2024. Profit after tax (PAT) also grew by 21%, reaching N312 billion.
The bank’s profitability was further supported by a decrease in the cost of funds, which fell to 3.9% in Q1 2025, down from 4% in the previous year. Additionally, the cost of risk dropped to 1.8%, compared to 2.8% in March 2024. These improvements reflect the bank’s efforts in optimizing its deposit mix, improving asset quality, and strengthening risk management practices.
The bank’s net interest margin (NIM) improved to 10.3% in Q1 2025, up from 8.3% in the same period last year. However, both return on average equity (ROAE) and return on average assets (ROAA) showed a decline, with ROAE standing at 29.4% and ROAA at 4.0%. This decrease was attributed to the recent industry-wide recapitalization, which expanded Zenith Bank’s shareholding base.
Zenith Bank also reported modest growth in its loan book, with gross loans increasing by 1%, from N11 trillion in December 2024 to N11.08 trillion in March 2025. Customer deposits rose by 3%, from N21.96 trillion in December 2024 to N22.68 trillion in March 2025. Total assets grew by 8%, reaching N32.42 trillion.
In a statement, Zenith Bank emphasized its commitment to enhancing profitability through cost efficiency, superior customer experience, and strategic digital adoption. The bank also highlighted its readiness to deploy additional capital to accelerate its ongoing expansion plans and increase shareholder value.
