Banking
Zenith Bank Shares Crash After Declaring 25k Interim Dividend
By National Daily
For a second session in a row last Friday, Zenith Bank shares depreciated despite a sharp rise in its first-half earnings.
Last Thursday, the lender announced that its pre-tax profit in the first six months jumped 71 percent to N92.2 billion.
Afterwards, the board of directors of the financial institution declared an interim dividend of 25 kobo, an amount some investors believed was lower than expected.
According to National Daily, Zenith Bank stock fell one percent to N23.75 on Friday, the lowest since July 26.
In May 2017, the bank raised $500 million Eurobond which could increase its funding costs.
Recall that the first tier lender Q2 2017 results showed that PBT grew by a remarkable 120% y/y to N48 billion. The strong PBT growth was mainly driven by a stellar growth of 389% y/y to N88.5 billion on the non-interest income line.
Growth on this line was underpinned by a strong performance in forex trading income which grew to N46 billion from a forex loss of N496 million in 2016. In contrast, funding income came in flat y/y.
The strong revenue contribution was strong enough to completely offset increases of 196% y/y and 39% y/y in loan loss provision and opex respectively.
Further down the P&L, PAT declined by 19% y/y to N31.4 billion mainly because of a negative result of N6.3 billion in other comprehensive income line (OCI) compared with a strong gain of N30.2 billion in Q2 2016 on the same line.
On a sequential basis, the results mirrored the y/y trends. PBT was up by 9% q/q.
Again, robust growth of N199% q/q on the non-interest income line was the key driver underpinning the q/q growth in PBT. PAT fell by -19% q/ because of the negative result on the OCI line.
Compared with our forecasts, PBT beat by 22%.
However, PAT was broadly (-4%) in line with our N32.8 billion forecast.
In terms of the H1 performance, PBT and PAT expanded by 71% y/y and 8% y/y to N92.2 billion and N70.3 billion respectively.
Although both revenue lines contributed to the strong results, non-interest income which grew by 254% y/y was the major driver. The y/y growth on the funding income line was 9% y/y.
The company is proposing an interim dividend of N0.25 which is flat y/y and in line with our expectations. The proposed dividend translates to a dividend yield of 1.0% and a payout ratio of 11.2%.
While the strength of the non-interest income result will be welcomed, we believe the weakness on the funding income line and the spikes in impairments and opex will also attract investors’ attention.
On funding income, it appears that Zenith Bank also may have struggled to capitalise (effectively) on the elevated yields in the fixed income market because sourcing deposits may have been trickier, and the workings of the NAFEX forex market may also have led to a loss of funds from customers.
Its deposits fell -1% q/q. Pending comments from management, we believe that the bank may have capitalised on the strong set of results to book significantly higher provisions. It is not clear why opex jumped 55% q/q.
Zenith Bank’s H1 PBT tracks well ahead of consensus FY 2017 PBT forecast of N165 billion. As such, we expect to see marked upward revisions to consensus PBT forecast. The shares have outperformed the Index this year. They have gained 62.7% ytd vs. 41.8% ytd for the ASI.
By Aduragbemi Omiyale
A collaboration to enable fast money transfers into Nigeria has been entered into between Flutterwave and Xoom, PayPal’s international digital money transfer service.
The partnership allows Xoom transfers to be converted by Flutterwave and settled locally in Naira, enabling quick transfers directly into recipients’ bank accounts at Access Bank, UBA, Zenith Bank, First Bank, GTBank, and additional participating banks across Nigeria.
The deal also enables Xoom’s global network with Flutterwave’s local payout infrastructure, allowing users globally to send funds directly into Nigerian bank accounts with improved speed and efficiency.
Nigeria is the leading remittance recipient in Sub-Saharan Africa, receiving over $20 billion in personal remittances in 2024. Despite this volume, receiving international payments has historically remained complex due to FX constraints and settlement delays. This collaboration helps address those challenges in a market of more than 232 million people, where the ICT sector is projected to contribute 21 per cent of GDP by 2027.
By combining Xoom’s expansive reach with Flutterwave’s local compliance and banking partnerships, the two companies are providing a more accessible financial corridor for the continent.
Xoom, a PayPal service, is a fast and secure international digital money transfer service that enables consumers to send money, pay bills, and reload phones for friends and family in approximately 160 markets globally.
As part of PayPal’s global payments ecosystem, Xoom leverages advanced fraud protection, compliance capabilities, and a trusted global network to help millions of customers move money quickly and securely across borders.
“We’re excited to have been chosen by Xoom for their Nigeria expansion. Millions of Nigerians rely on money from abroad to support everyday needs, whether it’s families receiving help from loved ones, freelancers getting paid for their work, or individuals earning income from the global economy. This helps make it easy and more reliable for people in Nigeria to receive funds and stay connected to opportunities beyond borders,” the chief executive of Flutterwave, Mr Olugbenga GB Agboola, stated.
By Aduragbemi Omiyale
An initiative known as Nigeria Lightning Rounds, designed to expand funding opportunities for Nigerian startups and small businesses by connecting founders with local and international investors, has been launched by ProvidusUnity Bank, in partnership with US-based global venture firm and accelerator, gener8tor.
Scheduled to be held on July 15, 2026, Nigeria Lightning Rounds will feature carefully selected startups engaging with targeted investors who have expressed interest in supporting Nigerian innovation.
Participating founders will have the opportunity to pitch their businesses through focused 15-minute virtual sessions facilitated by gener8tor and ProvidusUnity Bank’s networks.
The program will focus on high-growth sectors including fintech, healthtech, manufacturing, sustainability, and AI, but welcomes SMEs from all industries, with intending participants urged to apply via https://www.gener8tor.com/lightning-rounds/nigeria.
“We recognise that access to capital remains one of the biggest challenges facing entrepreneurs in Nigeria. Through our partnership with gener8tor, we are creating a platform that connects promising Nigerian founders with investors who can provide the support required to scale their businesses,” the Head of Business Development at ProvidusUnity Bank, Mr Ernest Elue, stated.
“The partnership reinforces ProvidusUnity Bank’s commitment to strengthening Nigeria’s entrepreneurial ecosystem by supporting innovation, enabling access to opportunities, and creating pathways for businesses with high-growth potential,” he added.
Also commenting, the Director of Lightning Rounds at gener8tor, Ms Elizabeth Larios, said, “gener8tor is thrilled to partner with ProvidusUnity Bank to extend the Lightning Rounds model into Nigeria.
“This collaboration reflects our commitment to building equitable ecosystems and driving capital to the most promising and underrepresented entrepreneurs.”
Lightning Rounds are a signature initiative of gener8tor’s investment platform, which has facilitated thousands of investor-startup meetings globally. The format is optimised to eliminate friction, reduce bias in early-stage fundraising, and help founders secure capital from investors aligned with their mission and stage. gener8tor’s previous Lightning Rounds for Nigerian Founders in 2025 featured 18 participating Investors and led to 50 investment meetings facilitated.
By Modupe Gbadeyanka
The verification of the depositors of the 46 microfinance banks, whose operating licenses were revoked by the Central Bank of Nigeria (CBN) over a week ago, has commenced.
The exercise, aimed at refunding those whose funds were trapped in the small lenders, is being conducted by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement on Thursday, the agency said its staff members have been positioned at the offices of the affected banks across the country to attend to depositors.
It was disclosed that depositors of the defunct banks, who had their Bank Verification Numbers (BVNs) linked to their accounts in the failed banks, will be paid through their alternative accounts in existing banks.
However, depositors whose BVNs were not linked to their accounts in the failed banks have been encouraged to visit the affected banks’ offices with proof of account ownership, a passport photograph, verifiable means of identification (Driver’s Licence, Permanent Voter’s Card, International Passport or National ID Card) and BVN.
NDIC also stated that depositors can alternatively file their claims online through its website: www.ndic.gov.ng, to complete the Pre-Verification Claims Form by clicking on the Search Bar, and typing Pre-Verification Claims Form; opening the Form and filling in their details. They can also do so by clicking the link: https://ndic.gov.ng/ndic-pre-verification-claims-form/ or by visiting any of the NDIC offices closest to them to file their claims.
For further enquiries, the corporation can be reached on any of the following lines: 09037273810, 09038197064, 08104220807, 09064657140.
