The relatively stable outlook for Nigeria's currency presents an opportunity for ZENITHBANK to recalibrate its revenue mix. While FX- related gains are expected to moderate, the bank continues to deliver strong growth in net fees and commission income. As a proactive measure, ZENITHBANK is strategically increasing its investment in higher- yield risk-adjusted assets such as treasury bills, which saw impressive growth in Q1'25. The implied impact on Net Interest Income (NII) should mask the effect of the projected decline in Non-Interest Revenue (NIR) to N499.8 billion (vs. N1.1 trillion in FY'24).
Elsewhere, following the completion of ZENITHBANK's capital raise, total shares outstanding rose from 31.4 billion to 41.1 billion, implying a potential net-dilutive impact on EPS. We therefore expect FY'25 EPS to decline by 6.3% to N30.79 despite an expected 22.4% increase in PAT to N1.3 trillion.
