Onome Amuge

Zenith Bank, Nigeria’s largest lender by tier-one capital, has raised its interim dividend by more than 60 per cent following a healthy half-year performance. The bank paid N51.3 billion in interim dividends for the first half of 2025, N1.25 per share, up from N31.4 billion a year earlier, showcasing  its earnings resilience, growing capacity to generate cash and maintain shareholder value despite persistent inflation and currency volatility.

The payout follows Zenith’s audited results for the six months ended June 30, which showed gross earnings rising 20 per cent to N2.5 trillion, driven largely by a 60 per cent rise in interest income to N1.8 trillion. Total assets rose to N31 trillion, up from N30 trillion at the end of 2024, supported by steady deposit growth and a well-structured balance sheet. Deposits climbed 7 per cent to N23 trillion, reflecting continued customer confidence.

Adaora Umeoji, Zenith Bank’s group managing director, said the results reflect the bank’s resilience and commitment to stakeholders, adding that the lender expects to exceed shareholders’ expectations” by year end.

“Our focus remains on delivering exceptional value through prudent risk management, efficient asset repricing, and a customer-centric strategy,” Umeoji said.

Zenith’s performance comes at a time when Nigeria’s banking industry faces complex headwinds; including high policy rates, naira devaluation pressures, and slow loan growth. 

Zenith Bank has capitalised on this by aggressively repricing its risk assets, enabling it to capture higher yields without compromising asset quality. Analysts say the strategy reflects a broader shift among Nigeria’s tier-one lenders towards balance-sheet agility, as they seek to hedge against regulatory and currency shocks.

The substantial dividend payout also raises questions about how Nigerian lenders are balancing capital retention with investor rewards. Regulators have encouraged banks to strengthen their buffers ahead of Basel III implementation and a possible recapitalisation exercise by the CBN.

Zenith’s strong capital adequacy ratio, estimated above 20 per cent, gives it significant headroom to sustain high dividends while funding expansion and absorbing market shocks.

“Zenith remains committed to prudent capital management even as we continue to reward our shareholders,” Umeoji said, noting that the bank’s dividend policy is aligned with long-term growth objectives.

Zenith Bank’s dominance continues to attract international recognition. It was recently ranked Nigeria’s number one bank by tier-one capital for the 16th consecutive year in The Banker’s Top 1000 World Banks ranking. The lender also won “Nigeria’s Best Bank” at the Euromoney Awards for Excellence 2025 and “Best Commercial Bank, Nigeria” for five consecutive years in the World Finance Banking Awards.

Other accolades include “Most Sustainable Bank, Nigeria” in the International Banker Awards 2024, “Best Corporate Governance Bank” in the World Finance Awards 2025, and “Most Responsible Organisation in Africa” at the SERAS CSR Awards 2024.

Such recognitions underline the bank’s long-term strategy of blending operational efficiency with strong corporate governance and sustainability practices, a model that has positioned it as a benchmark for financial institutions in sub-Saharan Africa.

As Nigeria’s economy continues to face  inflationary pressures, fiscal strain, and sluggish growth, investors are closely watching how top-tier banks like Zenith adjust to shifting macroeconomic dynamics.

The bank’s diversified income streams, cost discipline, and focus on digital transformation are expected to support its full-year performance. Its growing retail base and expansion into new financial technologies also point to a more resilient earnings outlook.

For shareholders, the interim payout signals management’s confidence in the bank’s trajectory. With N31 trillion in assets, rising profitability, and a global reputation for governance, Zenith Bank is considered both a bellwether for Nigeria’s financial sector and a case study in how African banks are adapting to the demands of a turbulent global economy.