Zenith Bank Plc has reaffirmed its position as one of Nigeria’s most financially resilient institutions following the Central Bank of Nigeria’s (CBN) latest directive suspending dividends, executive bonuses and foreign investments for banks operating under regulatory forbearance.
Analysis of Zenith Bank’s 2024 audited financial results suggests that the directive is unlikely to affect the bank’s operations, profitability, or its ongoing dividend policy.
The directive, issued on 13 June 2025, targets banks currently benefiting from regulatory relief related to credit exposures and breaches of the Single Obligor Limit (SOL). The CBN directed that affected banks must suspend capital distributions until their capital adequacy and provisioning levels are independently verified to comply with prevailing prudential standards.
However, Zenith Bank’s 2024 full-year financial results, released on 26 March 2025, present a compelling case that it remains largely insulated from the directive’s implications.
Strong Earnings and Dividend Continuity
Zenith Bank reported a profit after tax of ₦1.03 trillion, a 53% year-on-year increase from ₦676.9 billion reported in 2023. This was driven by an 86% growth in gross earnings to ₦3.97 trillion and a 135% rise in net interest income to ₦1.73 trillion.
Based on this robust performance, the bank declared a total dividend of ₦5.00 per share for the 2024 financial year, including a final dividend of ₦4.00. This underscores the bank’s consistent track record of delivering shareholder value through sustainable earnings, a position supported by strong fundamentals rather than one-off regulatory concessions.
Conservative Risk Management
Zenith Bank’s disciplined credit risk posture remains evident in its key asset quality indicators. The non-performing loan (NPL) ratio stood at 4.7%, within regulatory thresholds while the coverage ratio improved to 223%, signaling a well-provisioned loan book.
Although the bank has reportedly provisioned 20% of its limited forbearance exposure, analysts regard the risk as immaterial relative to the bank’s ₦11 trillion loan portfolio. Also, the bank maintained a stable cost of risk at 7.3% and improved its net interest margin to 9.5%.
Capital Strength and Liquidity Buffer
Zenith Bank remains one of Nigeria’s most capitalized lenders. As of year-end 2024, the bank posted a capital adequacy ratio (CAR) of 25.6%, well above the regulatory minimum. This positions it to absorb asset quality shocks and meet evolving capital requirements under the CBN’s recapitalisation framework.
In 2024, the bank successfully raised over ₦500 billion through a rights issue and public offer, surpassing the CBN’s Tier 1 capital threshold. The offer was 160% oversubscribed, reflecting strong investor confidence in Zenith’s governance, long-term strategy and operational integrity.
Total assets grew by 47% to ₦29.96 trillion, while customer deposits increased by 45% to ₦21.96 trillion, supported by strong growth in both corporate and retail segments. Liquidity ratios stood at 83% for the group and 48% for the bank, providing significant buffer to support ongoing operations and compliance.
Zenith Bank Confirms Limited Forbearance Exposure
Building on its strong capital position, Zenith Bank Plc has formally clarified its regulatory status following the CBN’s forbearance directive.
According to an official statement signed by Company Secretary Michael O. Otu, the bank has already raised and surpassed the ₦500 billion minimum capital requirement, an evident of its preparedness for current and future regulatory benchmarks.
The bank confirmed that its exposure under the SOL forbearance is limited to a single obligor, and that this will be brought within compliance on or before 30 June 2025. In addition, the forbearance granted on other credit facilities applies to only two customers.
Substantial provisioning has already been made against these facilities, and the bank has taken “appropriate and comprehensive steps” to ensure full provisioning is completed by the end of the first half of 2025.
“Upon completion, the bank will no longer be under any forbearance arrangements in this regard,” the statement added.
Zenith further stated that, based on its capital strength and provisioning progress, it expects to meet all conditions required to pay dividends to shareholders in the current year.
Official financial disclosures confirm:
- Capital adequacy ratio: 25.6%
- Non-performing loan ratio: 4.7%
- Coverage ratio: 223%
These metrics validate Zenith Bank’s readiness to exit forbearance and maintain its strong dividend-paying reputation, a clear signal of regulatory alignment and financial resilience.
Regulatory Context and Sector Implications
The CBN’s directive signals a deliberate shift from relief-based oversight to tighter capital control and risk-based supervision, particularly in light of macroeconomic uncertainty, FX exposure and elevated credit risks.
While the policy restricts capital distributions for banks still relying on regulatory concessions, institutions such as Zenith Bank — with robust capital, disciplined provisioning, and limited forbearance reliance — are expected to maintain operational and reputational stability.
Unlike peers that may depend on FX revaluation gains or ongoing regulatory waivers, Zenith’s earnings remain organically driven, powered by core banking operations and strong internal governance.
Outlook
Zenith Bank’s strong balance sheet, limited forbearance exposure, and successful capital raise position it to navigate Nigeria’s evolving regulatory landscape without disruption. As the banking industry advances toward full recapitalisation by 2026, Zenith is poised to maintain leadership in operational efficiency, capital discipline and shareholder value creation.
