Zenith Bank H1 2026 Profit Rises Slightly as Tax Hit Cuts After-Tax Earnings

Zenith Bank reports N637.6 billion profit before tax for H1 2026, a modest 1.9% increase from N625.6 billion in H1 2025, according to its NGX-released audited statements. However, profit after tax fell sharply 19.1% to N430.8 billion due to a more than doubled tax bill (N206.8 billion vs N85.2 billion previously), which includes an N89.9 billion prior-period under-provision charge.

The PBT stability came as an 81.5% plunge in impairment charges (to N141.1 billion from N762.1 billion) nearly offset a swing from N268.5 billion FX trading gain to N284.9 billion loss. Net interest income declined 7.4% to N1.25 trillion amid falling lending yields, while net fee and commission income surged 39.6% to N178.8 billion—the bright spot driven by electronic product and account maintenance fees.

The bank proposed an interim dividend of N1.50 per share (up from N1.25), totaling N61.6 billion payable subject to 10% withholding tax. With FX windfalls gone, Zenith's growth now hinges on lending recovery, fee expansion, and cost control as operating costs rose 9% to N633.8 billion.

For investors holding Zenith shares (trading at N134.70, down 1.32% Friday), does this signal a need to reassess reliance on trading gains, or confidence in the bank's ability to pivot toward sustainable fee-based and lending income despite near-term tax headwinds?

SOURCE: https://nairametrics.com/2026/10/10/zenith-bank-h1-2026-pre-tax-profit-rises-1-9-to-n637-6-billion/