Zenith Bank Plc, led by Nigerian banking executive Adaora Umeoji, reported a pre-tax profit of N637.6 billion ($479 million) for the first half of 2026, supported by a sharp reduction in loan-loss charges and stronger fee income. The Lagos-based lender increased its interim dividend by 20 percent as it expanded lending and attracted more customer deposits.

Dividend rises as earnings hold

The lender’s pre-tax profit for the six months ended June 30 increased 1.9 percent from N625.6 billion ($470 million) a year earlier, according to its unaudited interim financial statements. However, profit after tax fell to N430.76 billion ($323.6 million) from N532.2 billion ($399.8 million), as income tax expense more than doubled to N206.8 billion ($155.4 million).

Zenith Bank’s board proposed an interim dividend of N1.5 per share, equivalent to N61.6 billion ($46.3 million), compared with N1.25 per share in the first half of 2025. The increase came despite a decline in gross earnings to N1.9 trillion ($1.43 billion) from N2.52 trillion ($1.89 billion), reflecting a contraction in trading-related income.

Loan-loss charges fall sharply

A steep reduction in impairment charges provided a major cushion for the bank’s earnings. Net impairment charges on financial instruments fell 81.5 percent to N141.12 billion ($106 million) from N762.05 billion ($572.5 million) in the prior-year period, easing pressure on profitability even as gross earnings declined.

Interest and similar income remained the bank’s largest revenue source at N1.68 trillion ($1.26 billion), down from N1.84 trillion ($1.38 billion). Income from customer loans and advances rose to N945.85 billion ($710.6 million) from N935.75 billion ($703 million), while net fees and commissions increased 39.6 percent to N178.77 billion ($134.3 million), supported by account maintenance fees and electronic banking activity.

African operations widen contribution

Zenith Bank’s international operations added to its earnings base following its acquisition of Paramount Bank (Kenya) Ltd. and the rollout of operations in Côte d’Ivoire. African subsidiaries outside Nigeria generated N244.55 billion ($183.7 million) in revenue and N132.52 billion ($99.6 million) in pre-tax profit, extending the group’s contribution beyond its domestic market.

Its U.K. banking operation recorded N115.02 billion ($86.4 million) in revenue and N33.57 billion ($25.2 million) in pre-tax profit. Nigeria remained the group’s principal earnings market, generating N1.55 trillion ($1.16 billion) in revenue and N469.23 billion ($352.5 million) in pre-tax profit, accounting for the largest share of its reported financial performance.

Assets climb to $24.5 billion

The bank’s balance sheet continued to expand in the first half, with total assets rising 3.8 percent to N32.65 trillion ($24.53 billion) as of June 30, 2026, from N31.46 trillion ($23.63 billion) at the end of December. The increase reflected stronger deposit mobilisation and continued growth in customer lending.

Customer deposits climbed 8.3 percent to N26.35 trillion ($19.8 billion) from N24.33 trillion ($18.28 billion) at year-end 2025. Net loans and advances rose 15.3 percent to N12.05 trillion ($9.05 billion) from N10.45 trillion ($7.85 billion), indicating that credit expanded faster than deposits over the six-month period.

Capital position remains strong

Zenith Bank reported shareholders’ equity of N4.89 trillion ($3.67 billion), including retained earnings of N2.82 trillion ($2.12 billion). Its capital adequacy ratio stood at 25.1 percent, providing a buffer above the regulatory minimum as the lender continued to grow its assets and extend credit across its markets.

The first-half results present a mixed earnings picture: pre-tax profit edged higher and impairment charges declined sharply, but after-tax profit fell as the tax burden increased. The higher interim dividend signals the board’s willingness to increase shareholder distributions while the bank expands its deposit base, lending portfolio and international operations.