Zenith Bank Plc expanded its net customer loan book by ₦1.6 trillion in the first half of 2026, with much of the increase coming from its Nigerian banking operation, positioning lending as an increasingly important source of growth as returns on government debt moderate.
Nigeria’s Gross Domestic Product (GDP) grew by 4.43% year-on-year (YoY) in real terms during Q2 2026 and Zenith’s loan expansion should help underpin future economic growth.
Group net loans and advances rose 15.3% from December to ₦12.048 trillion at June 30. The standalone bank’s loan book increased faster, climbing 17.3% to ₦9.57 trillion from ₦8.16 trillion.
Gross group lending, before expected-credit-loss allowances, grew 13.6% to ₦12.57 trillion.
The expansion matters beyond Zenith’s earnings.
Greater availability of productive credit can help Nigeria businesses fund inventory, equipment and infrastructure. But the figures show a selective lending push as oil and gas and transportation exposures increased sharply.
Lending Outpaces Deposits
Zenith’s customer deposits increased 8.3% to ₦26.35 trillion in the first half, slower than its net loan growth. The loan to-deposit ratio consequently rose to about 45.7% from 42.9%.
The stronger increase in term loans than overdrafts suggests that lending growth is concentrated in structured facilities rather than short-term revolving credit.
Oil and gas accounted for the largest increase in Zenith’s sector exposures. Gross lending to the industry rose to ₦3.56 trillion from ₦2.59 trillion, adding approximately ₦968 billion. Transportation lending increased to ₦716.8 billion from ₦168.2 billion
The mix offers potential support for energy supply, logistics and construction—activities that can relieve constraints on economic growth.
Falling Yields Change Incentive for Nigerian Banks
The rate backdrop makes Zenith’s lending growth particularly relevant.
An earnings release from the Nigeria Infrastructure Debt Fund reported that the daily average yield on the 10-year Federal Government bond fell to 16.24% in the first nine months of 2026 from 18.16% a year earlier—a decline of 1.92 percentage points.
Lower sovereign yields make lending relatively more attractive when banks reinvest maturing securities. For Nigeria, that creates an opportunity for savings to support business activity rather than predominantly financing government borrowing.
For Nigeria, Zenith’s expansion is an encouraging indication that a major lender is increasing credit exposure even as sovereign returns moderate.
Zenith Bank Plc Half-Year (H1), 2026 pretax profit rose 2% to ₦637 billion, from ₦625.6 billion a year earlier.
The board proposed an interim dividend of ₦1.50 a share, up from ₦1.25.
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