Zenith Bank last week released its first quarter 2025 results. The bank made N949 billion in revenue (up 2.68% from the same period last year). Its about a N100 billion shy from joining a select group of firms that generate N1 trillion in revenue every quarter.

The bulk of revenue came from interest income (more specifically loans and advances to customers, treasury bills as well as Government and other bonds)

It made  N311 billion in profit after tax (up 20.7% from the same period last year).

Earnings per share dipped slightly due to the higher outstanding shares following the last rights issue and public offer. Earnings per share dropped 7.66% from N8.22 in 2024 to N7.59 in 2025.

Weak spot 

Net fees and commission income went down slightly year on year, from N57.7 billion in 2024 to N56 billion in 2025. 

The dip was due to lower revenue from Foreign withdrawal charges (expected following a stable currency) and lower revenue from electronic banking 

FY 25 forecast

At its current run rate, it could end the 2025 financial year with N4 trillion in revenue and N1.2 trillion in profit after tax. 

If you annualize its earnings, it could end the year with N30 in earnings per share. 

The bank paid N5 as FY 24 dividend from the N32.87 in earnings it made in the 2024 financial year. N1 in interim dividend and N4 in final dividend. That amounts to a payout ratio of 15.2%. 

I think its payout ratio will inch up to 30% in earnings. That amounts to a payout ratio of N9 (i expect the interim dividend of N1 to remain unchanged, and final dividend to be N8). 

A repricing is due 

Zenith typically trades at roughly the same price level with GTCO. GTCO’s share price has run in the last few months following a bumper final dividend for FY 24 of N7.03

Ive done a bit of napkin math below and have a 1 year target price of N75. That would amount to a potential upside of 56.25%

Please note, this is not financial advice in any shape or form.