By Bamidele Famoofo
WorldStage– Zenith Bank Plc, a leading tier-one lender in Nigeria has consummated the process of acquisition of Paramount Bank Kenya Limited in a move to spread its tentacles on the African continent.
Zenith Bank first disclosed its intention to acquire Paramount Bank Kenya Limited on the Nigerian Exchange Limited on November 18, 2025 and today, April 7, 2026, it again disclose that the process has been completed with the acquisition of the entire share capital of the Kenyan Bank, following the receipt of all requisite regulatory approvals in Kenya and Nigeria.
Commenting on the deal, Zenith Bank Company Secretary, Michael Osilamatu Otu, said: “This acquisition marks a significant step towards our long-term strategic growth agenda and a strong inroad into the East African markets. It further reinforces the Bank’s position as a leading financial institution in Sub-Saharan Africa and affirms the Bank’s mantra of following our customers’ businesses.”
The Bank reported gross earnings of N4.19 trillion for the 2025 financial year, up 5.6 percent from N3.97 trillion in 2024, driven largely by a 35 percent jump in interest income to N3.67 trillion. This pushed net interest income up by 52.7 percent to N2.64 trillion, with net interest margin improving to 13 percent from 10 percent.
However, non-interest income weakened significantly as trading and foreign exchange gains swung to a loss of N63.1 billion from a gain of N1.1 trillion in the prior year, limiting overall operating income growth to 7.6 percent at N3.04 trillion.
The bank’s balance sheet remained resilient, with total assets growing by 5.0 percent to N31.46 trillion and shareholders’ equity rising by 22.2 percent to N4.92 trillion. Loans and advances expanded modestly by 4.9 percent to N10.45 trillion, while investment in treasury bills surged by 74 percent to N4.66 trillion, reflecting a more cautious asset allocation.
Despite softer profitability, the bank’s valuation remains attractive, trading at a price-to-earnings ratio of 2.44x and price-to-book of 0.52x, with an earnings yield of 41 percent and a dividend yield of 8.5 percent.
The board declared a final dividend of N8.76 per share (dividend yield at 8.50%), bringing the total dividend for the financial year to N10.00 (2024: N4.00K per share).
