Zenith Bank completes Kenya’s Paramount Bank takeover, grows African footprint

Zenith Bank Plc has completed its acquisition of Paramount Bank in Kenya, less than three weeks after opening a new branch in Manchester, United Kingdom, in a move that underscores the lender’s push to deepen cross-border operations. The leading lender confirmed the closure of the transaction on Tuesday.

The acquisition makes Zenith Bank the fourth Nigerian lender operating in Kenya, alongside United Bank for Africa, Guaranty Trust Bank, and Access Bank. The bank said the deal supports its long-term growth plans and broadens its presence across sub-Saharan Africa. “This acquisition marks a significant step towards our long-term strategic growth agenda and a strong inroad into the East African markets,” the bank said.

Kenya deal strengthens cross-border banking

Zenith Bank added that the transaction strengthens its ability to support customers engaged in cross-border trade and investment. It said the completion followed the receipt of regulatory approvals from authorities in Nigeria and Kenya. The lender noted that the move aligns with its strategy of following customers as they expand into new markets and building closer ties with businesses operating across regions.

The Kenyan acquisition comes shortly after the bank opened its Manchester branch, aimed at strengthening links between African businesses and global markets. The UK office is expected to provide corporate banking, trade finance and treasury services to companies operating across the UK, Europe and Africa. By placing operations closer to clients handling international transactions, Zenith Bank is positioning itself to capture more trade-related business.

Management has also outlined plans for a full listing on the London Stock Exchange by 2027, alongside the development of a dedicated corporate banking hub in Manchester. Taken together, the UK expansion and Kenyan acquisition highlight a lender seeking to broaden its reach while supporting trade flows between Africa and other regions.

Profit steady despite rising costs

The expansion drive comes as Zenith Bank reported a steady financial performance in 2025. The group posted profit after tax of N1.04 trillion ($753.76 million), up 0.74 percent from N1.03 trillion ($748.2 million) a year earlier. The modest increase reflects stable earnings despite higher costs and a challenging operating environment.

Profit before tax declined 5 percent to N1.26 trillion ($915.6 million), compared with N1.33 trillion ($961.5 million) in 2024, as impairment charges and operating expenses rose. Gross earnings, however, climbed 6 percent to N4.19 trillion ($3.04 billion), supported by growth in interest income and core banking activities. Fees and commissions also improved, contributing to a more balanced revenue mix.

Zenith expands assets, doubles dividend

Zenith’s footprint expanded modestly during the year, with total branches increasing to 456, alongside more than 2,148 ATMs and over 473,000 point-of-sale terminals, strengthening its retail and digital presence. Total assets rose to N31.46 trillion ($22.8 billion), up from N29.96 trillion ($21.7 billion), driven by growth in loans and investment securities. Customer deposits climbed to N24.33 trillion ($17.6 billion), reinforcing the bank’s liquidity position.

In a move likely to attract investor attention, Zenith Bank proposed a total dividend of N10 per share ($0.00725), double the N5 ($0.00362) paid in 2024, supported by strong capital buffers and sustained profitability. Founder Jim Ovia is expected to receive about N58.01 billion ($42.04 million) in dividend payments, reflecting his significant stake in the lender.