Zenith Bank (Ghana) Ltd delivered a strong first-quarter performance in 2026, recording robust growth in profitability, lending, deposits and asset quality, according to the latest Credit Assessment Report released by Tesah Capital, a wealth management, investment and pensions firm.
The bank’s earnings momentum was driven by significant increases in interest income, fee-based revenues and trading income, while its balance sheet continued to expand on the back of strong customer deposit mobilisation and aggressive loan growth.
The report showed that profit after tax rose by 65.6% year-on-year to GH¢361.24 million in the first quarter of 2026, compared with GH¢218.14 million during the corresponding period in 2025.
According to Tesah Capital, the impressive earnings performance reflects Zenith Bank’s ability to capitalize on growth opportunities across its core banking operations while maintaining strong liquidity and capital buffers.
Strong revenue growth drives earnings
The bank’s profitability was supported by broad-based growth across all major revenue lines.
Interest income increased by 23.2% year-on-year to GH¢635.58 million, underscoring improved earnings from lending and investment activities.
Non-interest income also posted strong gains during the review period. Net fees and commission income grew by 35.3% to GH¢112.89 million, reflecting increased transaction volumes and stronger activity across the bank’s fee-generating businesses.
Similarly, net trading and other income surged by 59.3% year-on-year to GH¢99.83 million, providing additional support to the bank’s overall revenue growth.
The strong performance across these revenue streams enabled Zenith Bank to deliver one of the strongest earnings growth rates among banks assessed by the research firm.
Loan portfolio nearly doubles
One of the standout features of Zenith Bank’s performance during the quarter was the rapid expansion of its loan portfolio.
The report indicated that the bank’s loan book grew by 99.6% year-on-year to GH¢7.71 billion in the first quarter of 2026, up from GH¢3.86 billion in the same period last year.
The near doubling of loans and advances highlights an aggressive lending strategy aimed at supporting businesses and economic activity while growing the bank’s interest-earning assets.
Tesah Capital noted that the substantial increase in lending was a key contributor to the growth in interest income recorded during the quarter.
Operating efficiency marginally weakens
Despite the strong earnings growth, the bank experienced a slight deterioration in operating efficiency.
The cost-to-income ratio increased to 35.1 per cent in the first quarter of 2026 from 34% in the first quarter of 2025, reflecting higher personnel and operating expenses incurred during the period.
While the increase was relatively modest, it indicates that costs grew at a slightly faster pace than income, although profitability remained strong enough to absorb the impact.
Liquidity remains robust
Zenith Bank maintained a strong liquidity position during the first quarter of 2026, reinforcing its ability to meet short-term obligations and support future business expansion.
According to the report, liquid assets improved by 4.84%, providing the bank with adequate liquidity buffers.
Customer deposits continued to grow strongly, rising by 42.6% year-on-year to GH¢23.53 billion, compared with the previous year.
The substantial growth in deposits provided a stable source of funding for the bank’s lending activities and overall balance sheet expansion.
In addition, cash and bank balances increased by 2.6% year-on-year to GH¢7.43 billion, further strengthening the bank’s liquidity position.
The strong deposit growth underscores customer confidence in the institution and enhances its ability to support future growth initiatives.
Capital position strengthens further
The report highlighted Zenith Bank’s strong capital position, which remained comfortably above the regulatory threshold set by the Bank of Ghana.
The bank’s Capital Adequacy Ratio (CAR) improved significantly to 25.09% in the first quarter of 2026, up from 20.60% in the corresponding period of 2025.
This places Zenith Bank well above the Bank of Ghana’s minimum capital adequacy requirement of 13%, providing a substantial cushion against potential financial shocks.
The improvement in CAR reflects stronger capital resources and the bank’s enhanced capacity to support continued asset growth without compromising regulatory compliance.
Asset quality improves dramatically
A major highlight of the report was the significant improvement in Zenith Bank’s asset quality, despite the rapid expansion of its loan portfolio.
The bank’s Non-Performing Loan (NPL) ratio declined sharply to 1.49% in the first quarter of 2026 from 11.88% in the first quarter of 2025.
The dramatic reduction points to stronger credit risk management practices, improved recoveries and a healthier loan portfolio.
Loan loss provisions also improved considerably.
The loan loss provision ratio fell to 1.57% from 2.46% over the same period, indicating reduced provisioning requirements and improved credit quality.
The findings suggest that the bank’s aggressive lending growth has thus far remained within acceptable risk management parameters.
Total assets expand beyond GH¢28 Billion
The balance sheet of Zenith Bank continued to expand strongly during the first quarter.
Total assets increased by 33.6% year-on-year to GH¢28.37 billion, compared with GH¢21.24 billion in the first quarter of 2025.
The expansion was driven primarily by the significant growth in customer deposits and the sharp increase in loans and advances.
The growth in total assets further consolidates Zenith Bank’s position among the leading banks operating in Ghana.
Leverage ratio improves
The bank also recorded an improvement in its leverage ratio, which rose from 9.49 per cent in the first quarter of 2025 to 9.77% in the first quarter of 2026.
According to Tesah Capital, the increase reflects stronger capital support relative to the bank’s overall exposure levels and further reinforces its financial stability.
Tesah capital recommendation
In its overall assessment, Tesah Capital concluded that Zenith Bank’s current liquidity position is sufficient to meet its financial obligations.
The research firm highlighted the bank’s strong capitalisation, robust deposit mobilisation, rapid asset growth and significant improvement in asset quality as key strengths.
“The bank remains strongly capitalized with a capital adequacy ratio of 25.09%, above the regulatory minimum requirement of 13%,” the report noted.
Tesah Capital further observed that asset growth remained strong, supported by robust customer deposits and aggressive loan expansion, while asset quality improved significantly as evidenced by the sharp decline in the NPL ratio and lower loan loss provisions.
Based on these fundamentals, the firm recommended short-term fixed deposit investments ranging from 91 days to 182 days with Zenith Bank (Ghana) Ltd, while advising investors to continue monitoring the sustainability of the bank’s rapid loan growth.
The report concludes that Zenith Bank enters the remainder of 2026 from a position of strength, backed by solid profitability, strong liquidity, healthy capital buffers and improving asset quality
