Sound Financial Health Confirms Zenith
OpenLife Nigeria views the recently introduced Forbearance Policy by the Central Bank of Nigeria, in multi-dimensional ways, as another avenue that exposes Zenith Bank’s capacity to weather any storm and restore shareholders’ confidence.
On June 13, 2025, the Central Bank of Nigeria, in a circular signed by Director of Banking Supervision, Dr. Olubukola Akinwunmi, instructed all banks currently under regulatory forbearance to suspend the payment of dividends to shareholders, bonuses to directors and senior executives, and investments in offshore subsidiaries or new foreign ventures.
The move, according to the apex bank, is part of a broader strategy to ensure that banks operating under forbearance supervision strengthened their financial resilience and fully complied with capital adequacy and loan provisioning standards.
The policy, which targets institutions benefiting from credit or Single Obligor Limit forbearance arrangements, is a demonstration of CBN’s commitment to strengthening Nigeria’s financial system at this critical transitional period of new capital requirements with deadline set for March 31, 2026.
Clarifying the intention, the CBN, on Tuesday further stated that “The step was part of the CBN’s broader, sequenced strategy to implement the recapitalization programme announced in 2023.”
But in the face of this fresh regulatory policy from the CBN, Zenith Bank is, undoubtedly, well-prepared with its well-oiled administrative machinery and portfolio management.
Building Systemic Resilience
Only recently, specifically between late 2023 and early 2024, Zenith Bank, like other banks, undertook ambitious platform migrations and digital overhauls, aimed at balancing innovation with operational efficiency.
The technology investments have since translated into improved service delivery, increased transaction volumes, and new revenue lines, keeping the bank firmly ahead of the curve.
Consistent Profitability & Robust Capital Buffers
Over the years, Zenith Bank has consistently delighted its shareholders with sumptuous profitability.
For instance, the Bank delivered a remarkable triple-digit growth of 118% in gross earnings from N1.33 trillion reported in Q3 2023 to N2.9 trillion in Q3 2024.
The stellar performance underscored the Group’s resilience and market leadership in spite of the challenging macroeconomic environment.
The consistent robust increase in profitability reflects the Bank’s focus on operational efficiency and strong risk management practices.
In the same period under review, the bank’s Capital Adequacy Ratio, CAR, remained strong, improving to 21.9%, well above regulatory requirements. The return on average equity (ROAE) stood at 37.8%, up from 35.1%, while return on average assets (ROAA) also improved to 4.3%.
2025 Financial Position
Zenith Bank’s total assets stood at ₦32.42 trillion as of 31 March 2025, compared to ₦29.96 trillion as of 31 December 2024 and ₦24.28 trillion at the same point in the prior year.
Total liabilities reached ₦27.97 trillion, up from ₦25.93 trillion as of 31 December 2024 and ₦21.43 trillion in the prior year.
2025 Comprehensive Income
For the three months ended 31 March 2025, Zenith Bank reported gross earnings of ₦950 billion, a significant increase compared to ₦781 billion in the same period of 2024. Profit after tax for the period was ₦312 billion, up from ₦258 billion in the prior year. Basic earnings per share were ₦7.59, compared to ₦8.22 for the three months ended 31 March 2024.
Recapitalization
At the moment, Zenith Bank Plc is Nigeria’s most recapitalized bank in share capital and share premium threshold with over N614.65 billion.
The Tier 1 bank launched a capital raise programme on August 1, 2024, consisting of a combined Rights Issue and Public Offer.
The Hybrid Offer garnered substantial interest from domestic and international investors and successfully raised a total of N350.4 billion.
This feat positioned the Bank as one of the few banks in Nigeria to meet and even surpass the CBN’s N500 billion minimum capital requirements for Banks with International Authorization well ahead of the March 2026 regulatory deadline.
The Bank’s share capital then rose to N614.65 billion, which is N114.65 billion above the regulatory minimum requirement.
Strategic Positioning for Recovery and Growth
Zenith Bank’s financial strength enables a particularly optimistic outlook regarding the current regulatory environment. The bank’s capacity to address entire forbearance exposures through half-year earnings by June 2025 demonstrates remarkable financial resilience and operational efficiency.
Importantly, as the underlying financed assets within forbearance arrangements begin demonstrating improved performance, the recovery phase promises additional upside potential. All cash recoveries from these improving assets will flow directly to profitability enhancement, creating a virtuous cycle of strengthening returns and capital position improvement.
The fundamental principle that “the size of the pie determines the amount that can be cut away or shared” applies directly to Zenith Bank’s current position. The institution’s substantial earning capacity provides flexibility to navigate temporary regulatory requirements while maintaining long-term strategic momentum.
The FUGAZ Enclave
Zenith Bank is among the systemically important institutions classified under the FUGAZ banking group.
The group represents the cornerstone of Nigeria’s financial architecture through their various global footprints, substantial balance sheets, and consistent performance records, underscoring their critical role in supporting economic growth and maintaining financial stability.
Notably, Zenith Bank stands as a beacon of consistent excellence among these distinguished institutions, demonstrating unparalleled financial strength and operational sophistication that positions it uniquely within the current regulatory landscape.
Zenith Bank’s Testament Of Financial Excellence
Zenith Bank’s financial profile represents the gold standard in Nigerian banking, with performance metrics that consistently exceed industry benchmarks and international comparisons.
The bank’s achievement in maintaining the highest profitability levels while simultaneously leading in Tier 1 capital adequacy for sixteen consecutive years demonstrates an extraordinary balance between growth and prudential management.
For fifteen consecutive years, Zenith Bank has secured its position among the world’s top 1,000 banks, a recognition that reflects not just financial performance but operational excellence, governance standards, and strategic vision.
This sustained international recognition validates the institution’s commitment to maintaining global best practices while serving the Nigerian market’s unique requirements.
The bank’s dividend payment record stands as testament to its consistent cash generation capabilities and shareholder-focused approach. This track record reflects management’s confidence in sustainable profitability and prudent capital allocation strategies that benefit all stakeholders.
Industry Stability &Sound Governance Practice
For Zenith Bank specifically, examination of the progression from 2024 audited accounts through the first quarter of 2025 results provides compelling evidence of the institution’s capacity to exit forbearance arrangements while retaining market share and dividend payment traditions.
The bank’s financial metrics suggest no fundamental obstacles to resuming normal capital allocation policies once regulatory requirements are satisfied.
Strength
To Zenith Bank, the CBN’s prudential measures represent progressive banking supervision that prioritises long-term stability over short-term considerations.
Therefore, with demonstrated financial strength, operational excellence, and conservative risk management, these temporary restrictions represent manageable adjustments rather than fundamental challenges.
Zenith Bank’s position reflects the benefits of maintaining consistently strong capital positions, diversified revenue streams, and prudent provisioning policies.
As the banking sector continues supporting Nigeria’s economic transformation, institutions with Zenith Bank’s financial profile will emerge from this transitional period stronger and better positioned for sustainable growth.
The current environment validates the wisdom of maintaining robust capital buffers and conservative risk management approaches.
Zenith Bank’s demonstrated ability to generate substantial earnings while maintaining strong capital positions ensures that temporary regulatory adjustments will not compromise its long-term strategic trajectory or stakeholder value-creation capabilities.
Foreign Outlets
As a demonstration of the Jim Ovia led bank’s determination to lead the way in the global banking space, Zenith Bank opened its Paris branch on November 27, 2024. This is in addition to other several foreign service outlets.
The official commissioning ceremony took place at 21 Rue de la Paix, Paris, France, and was officiated by the Honorable Minister of Finance and Coordinating Minister of the Economy.
The Paris branch is the third-country branch of Zenith Bank UK Limited which has technically positioned the bank well globally.
Recognition By Industry Watch Dogs
Over time, the Bank’s track record of excellent performance has continued to earn the brand numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking, published by The Banker Magazine.
The Bank was also awarded Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020, 2022 and 2024; Best Bank in Nigeria from 2020 to 2022 and in 2024, in the Global Finance World’s Best Banks Awards; Best Bank for Digital Solutions in Nigeria in the Euromoney Awards 2023; and was listed in the World Finance Top 100 Global Companies in 2023.
Further recognitions include Best Commercial Bank, Nigeria for four consecutive years from 2021 to 2024 in the World Finance Banking Awards and Most Sustainable Bank, Nigeria in the International Banker 2023 and 2024 Banking Awards.
Additionally, Zenith Bank has been acknowledged as the Best Corporate Governance Bank, Nigeria, in the World Finance Corporate Governance Awards for 2022, 2023 and 2024 and ‘Best in Corporate Governance’ Financial Services’ Africa for four consecutive years from 2020 to 2023 by the Ethical Boardroom.
The Bank’s commitment to excellence saw it being named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands for 2020 and 2021, Bank of the Year 2023 and 2024 at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards, and Retail Bank of the Year for three consecutive years from 2020 to 2022 and in 2024 at the BAFI Awards.
The Bank also received the accolades of Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria, in the International Banker 2022 Banking Awards.
Zenith Bank was also named Most Responsible Organisation in Africa, Best Company in Transparency and Reporting and Best Company in Gender Equality and Women Empowerment at the SERAS CSR Awards Africa 2024; Bank of the Year 2024 by ThisDay Newspaper; Bank of the Year 2024 by New Telegraph Newspaper; and Best in MSME Trade Finance, 2023 by Nairametrics.
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