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Zenith Bank Plc has increased its interim dividend by 20 per cent to N1.50 per share, despite a decline in profit after tax and gross earnings in the first half of 2026, as stronger fee-based income and improved credit-loss provisions helped cushion pressure on its financial performance.
The bank’s audited half-year results for the period ended June 2026 showed that profit before tax rose marginally by 1.91 per cent to N637.60 billion from N625.63 billion in the corresponding period of 2025.
However, profit after tax fell to N430.76 billion from N532.18 billion, while gross earnings declined by 24.63 per cent to N1.90 trillion, reflecting the impact of weaker trading income and higher tax expenses.
The results present a mixed picture for investors, with the bank demonstrating resilience in some areas of its core banking operations while facing pressure on overall profitability.
Net fee and commission income increased by 39.60 per cent to N178.77 billion, providing an important source of support as trading income swung from a gain of N467.79 billion in the first half of 2025 to a loss of N92.24 billion in the period under review.
The reversal contributed to a 74.20 per cent decline in non-interest income to N158.16 billion.
Net interest income, another major contributor to the bank’s earnings, fell by 7.41 per cent to N1.25 trillion from N1.35 trillion a year earlier.
Tax expenses more than doubled to N206.84 billion from N93.45 billion, adding to the pressure on profit after tax despite the slight improvement in pre-tax earnings.
From an analyst’s perspective, Zenith Bank’s results underscore the importance of distinguishing between recurring banking income and earnings influenced by volatile trading activities.
The 39.60 per cent increase in net fee and commission income suggests that the bank is strengthening revenue from services beyond interest earned on loans and other assets.
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