Zenith Bank Proposes 20% Dividend Increase as Pre-Tax Profit Edges Up

Zenith Bank reported profit before tax of ₦637.6B for the six months ended 30 June 2026, up 1.9% from ₦625.6B a year earlier. The bank's audited interim report, reproduced in the published financial statement, shows that a sharp fall in loan impairment charges helped keep pre-tax profit slightly higher despite weaker gross earnings and a swing in currency trading.

Profit after tax dropped 19.1% to ₦430.8B from ₦532.2B. The bank proposed an interim dividend of ₦1.50 per share, up from ₦1.25 in the same period last year. The proposal is due for ratification at the next annual general meeting.

Lower loan provisions offset weaker trading

Gross earnings fell 24.6% to ₦1.90T from ₦2.52T. Trading moved from a gain of ₦467.8B in the first half of 2025 to a loss of ₦92.2B this year, reflecting a reversal in currency trading results.

The bank's impairment charge on financial instruments fell 81.5% to ₦141.1B from ₦762.1B. Lower provisions supported the pre-tax result, but the improvement also reflects how unusually high the prior-year charge had been. It does not mean the bank's operating income grew strongly.

Net interest income declined 7.4% to ₦1.25T. Net fee and commission income moved in the opposite direction, rising 39.6% to ₦178.8B as transaction-related income improved. The mixed performance shows why the headline pre-tax figure alone does not describe the full picture.

Higher tax bill cuts the bottom line

Tax expense rose to ₦206.8B from ₦93.4B a year earlier. That increase helped push after-tax profit lower even as pre-tax earnings edged up. The audited report attributes the higher charge partly to the new Nigerian tax framework and prior-period tax provisions.

The results also show continued balance-sheet growth. Customer deposits reached ₦26.35T, while gross loans rose to ₦12.57T. The bank reported a capital adequacy ratio of 25.1% and a liquidity ratio of 60.5%, both above the regulatory minimums cited in its results coverage.

Nairametrics' analysis of the half-year results also notes that the bank expanded in Côte d'Ivoire and completed its acquisition of Paramount Bank in Kenya during the period.

What shareholders should watch

The proposed dividend is scheduled for electronic payment on 30 October to eligible shareholders on the register as of 23 October, subject to the required approvals and registration conditions set out in the results reporting. Investors will also want to watch whether fee income can continue to offset weaker interest income and currency trading.

Mwenendo has examined broader changes in African credit conditions in its coverage of the regional credit outlook. Zenith's results add a company-level example of how lower credit provisions can support earnings while tax and trading swings still weigh on net profit.

In Summary: Profit Growth Hides a Mixed Picture

Zenith Bank's pre-tax profit rose 1.9% to ₦637.6B in the first half of 2026, helped by a steep decline in impairment charges. After-tax profit fell 19.1% as tax expense increased and currency trading turned into a loss. The proposed interim dividend rises to ₦1.50 per share, subject to ratification. Shareholders will be watching fee income, funding costs, asset quality and the bank's ability to sustain earnings without relying on lower impairment charges.