Strategic N2.3 Billion Share Purchase by Zenith Bank Staff Fund Signals Investment Opportunities

Zenith Bank Plc has revealed that its Staff Provident Fund recently purchased 33,015,935 units of the bank’s shares, valued at approximately N2.3 billion. The fund, which consists of salary contributions from employees, executed the purchase over three trading days—September 26, 29, and 30, 2025—through nine separate tranches at an average price of N69.67 per share.

The transaction was disclosed in a director dealing notice filed with the Nigerian Exchange (NGX) on November 11, 2025, and signed by Zenith Bank’s company secretary, Michael Osilama Otu.

On November 7, 2025, the fund also sold 1,750,000 units at N59.98 per share, totaling N104.97 million, likely to meet employee benefit obligations. This activity demonstrates how staff funds can grow through strategic equity investments.

Rising Personnel and Operating Costs

For the nine months ending September 30, 2025, Zenith Bank recorded a personnel expense of N182 billion, up from N150.6 billion in the same period in 2024. Other operating expenses also increased to N532.1 billion, a 12.74% rise, putting pressure on pre-tax profits despite growth in revenue.

Interest income rose sharply, reaching N2.74 trillion, a 40.7% increase from N1.94 trillion in the same period last year. The growth was driven by:

• Interest income on loans and advances: N1.36 trillion
• Interest from investment securities, including treasury bills: N740.5 billion from treasury bills and N400.3 billion from other investment securities

Despite total expenses of N814.2 billion, net interest income grew to N1.92 trillion from N1.2 trillion in the prior period. After accounting for an impairment charge of N781.5 billion, net income stood at N1.14 trillion, representing a 42.63% increase, though operational expenses moderated overall profitability. Pre-tax profit reduced slightly to N917.4 billion from N1 trillion in 2024.

Strong Asset Growth

Zenith Bank’s total assets increased by 2.6% to N31.17 trillion, underpinned by growth in several key areas:

• Cash and bank balances rose to N6.85 trillion from N5.37 trillion
• Loans and advances increased to N9.37 trillion
• Investment securities grew 2% to N4.85 trillion
• Treasury bills surged 46% to N4.1 trillion, reflecting a focus on liquidity management

On the liabilities side, customer deposits increased 9.8% to N23.68 trillion, highlighting strong retail and corporate banking support.

Zenith Bank’s shares have shown impressive performance, appreciating over 30% year-to-date on the NGX and currently trading at N59.40.