Zenith Bank proposes 20% interim dividend hike amid rising H1 profits

Zenith Bank Plc has proposed a 20 per cent increase in its interim dividend following a rise in half-year pre-tax profit. For the period ending June 30, 2026, the bank reported a pre-tax profit of N637.6 billion, a 1.91 per cent increase compared to the previous year. The proposed interim dividend is N1.50 per share, up from N1.25 per share in 2025.

Despite the rise in pre-tax profit, profit after tax declined to N430.76 billion from N532.18 billion in the first half of 2025, largely due to tax expenses more than doubling under the Nigerian Tax Act 2025 framework. The bank noted that lower funding costs and stronger fee income helped mitigate the impact of higher taxation.

The bank’s non-banking subsidiaries, Zenith Pensions Custodian Limited and Zenith Nominees Limited, contributed a combined pre-tax profit of N9.11 billion during the first half of 2026. Zenith Pensions Custodian was the primary driver, recording N8.35 billion in pre-tax profit and managing pension assets under custody totaling N11.94 trillion. Additionally, the group expanded its non-banking operations into East Africa through the acquisition of Paramount Bank Kenya Limited in May 2026.