Zenith Bank Plc has significantly strengthened its liquidity position over the past decade, with its liquidity ratio rising to 70.97% in Q1 2026 from 47.70% in Q1 2016 — an increase of 23.27 percentage points, according to the bank’s financial statements seen by THE PUNCH.
The liquidity ratio measures a firm’s ability to use its liquid assets to cover short‑term liabilities. “A liquidity ratio of 70.97% means that for every N100 of short‑term obligations, the bank has about N70.97 in liquid assets available to meet those obligations,” said Lagos financial analyst Eugene Abule.
Zenith’s balance‑sheet strength is reflected across its cash positions and earnings. Gross earnings climbed roughly tenfold over the decade, from N99.44bn in Q1 2016 to about N1.01tn in Q1 2026. Net cash and cash equivalents also increased to N1.152tn in Q1 2026 from N669.06bn in Q1 2016.
Year‑on‑year, Zenith Group posted a 6% rise in gross earnings, from N950bn in Q1 2025 to N1.01tn in Q1 2026, driven by higher interest and non‑interest income. The expansion of the bank’s risk‑asset portfolio and disciplined, risk‑adjusted pricing underpinned the increase in interest income. Interest expense moderated by 5% year‑on‑year, attributed to optimisation of the deposit mix and funding structure, supporting a 7% growth in net interest income to N634bn (from N591bn).
Non‑interest income improved 19% to N106bn from N89bn, reflecting stronger fees, commissions and other operating income. As a result, profit before tax rose 3% year‑on‑year to N361bn (from N351bn), while profit after tax edged up 1% to N314bn.
Analysts say the stronger liquidity and improved earnings mix position Zenith to better absorb funding pressures and support business growth, though they continue to monitor asset quality and macroeconomic risks that could affect future performance.
