Zenith Bank (Ghana) Ltd strengthened profitability and balance-sheet growth in the first half of 2026, but the sharp expansion in lending came with a significant deterioration in asset quality.
Net profit rose 35.2% to GH¢727.27 million, while loans more than doubled to GH¢8.75 billion and the non-performing loan (NPL) ratio surged from 1.38% to 10.21%.
Zenith Bank (Ghana) Ltd recorded strong financial performance in the first half of 2026, driven by higher operating income, increased fee and commission earnings and lower impairment charges and income taxes, according to its First Half 2026 Credit Assessment Report.
However, the bank’s rapid loan expansion has emerged as a key credit-risk concern, with the NPL ratio increasing more than sevenfold during the period.
The report shows that operating income increased by 10.41% year-on-year to GH¢1.21 billion in first half of 2026, compared with GH¢1.10 billion during the corresponding period of 2025.
Net interest income rose by 3.44% year-on-year to GH¢758.78 million, while net fee and commission income recorded a stronger growth of 25.6% to GH¢231.44 million.
The improvement in income, combined with contained operating expenses, contributed to a substantial increase in bottom-line earnings.
Net profit climbed 35.2% year-on-year to GH¢727.27 million during the period under review.
Expenses remain largely contained
The bank maintained relatively tight control over personnel-related costs, with personnel expenses declining marginally by 0.3% year-on-year to GH¢160.99 million.
Other operating expenses, however, increased by 8.2% to GH¢173.89 million.
The combination of stronger operating income and controlled expenses supported the bank’s improved profitability in the first six months of the year.
Liquidity remains favourable
Zenith Bank also maintained a favourable liquidity position, although its liquidity ratios declined compared with the same period in 2025.
Liquid assets to total deposits stood at 67.30% in first half 2026, compared with 91.18% in first half 2025.
Similarly, liquid assets to total assets declined to 56.98% from 72.82% over the same period.
Despite the lower ratios, liquid assets themselves grew marginally by 0.19% year-on-year to GH¢16.45 billion.
The report indicated that the level of liquid assets is expected to support the bank’s short-term liquidity requirements.
Capital buffer remains strong
Zenith Bank’s capital position remained above the regulatory threshold, although its capital adequacy ratio declined significantly from the previous year’s level.
The bank’s capital adequacy ratio stood at 19.10% at the end of first half 2026, comfortably above the Bank of Ghana’s regulatory minimum of 13%.
However, the ratio was down from 25.89% recorded in first half of 2025.
The bank’s capital strength was also supported by a substantial increase in shareholders’ equity.
Total equity rose by 45.8% year-on-year to GH¢3.78 billion, from GH¢2.59 billion in H1 2025.
The stronger equity position provides an additional buffer to absorb potential credit losses while supporting further balance-sheet expansion.
Loan growth raises credit-risk concerns
The most significant concern highlighted by the assessment is the deterioration in asset quality following the substantial expansion of the bank’s loan portfolio.
Loans and advances to customers increased by 110.2% year-on-year to GH¢8.75 billion in first half of 2026, more than doubling from GH¢4.16 billion in first half of 2025.
While the expansion demonstrates strong lending activity and balance-sheet growth, it was accompanied by a sharp deterioration in the quality of the loan book.
The NPL ratio rose from just 1.38% in first half of 2025 to 10.21% in first half of 2026.
The assessment said the increase represents a substantial rise in the proportion of the bank’s gross loan portfolio classified as non-performing, pointing to elevated credit risk and potential pressure on loan recoveries.
The sharp increase in NPLs therefore presents a key issue for the bank as it seeks to sustain its aggressive lending growth while protecting profitability and capital.
Balance sheet expands 28%
Beyond the loan portfolio, Zenith Bank recorded broad-based balance-sheet expansion during the period.
Total assets increased by 28.0% year-on-year to GH¢28.86 billion.
Customer deposits also expanded significantly, rising by 35.3% year-on-year to GH¢24.25 billion.
The growth in deposits provides a larger funding base for the bank’s expanding lending operations, although the assessment recommends continued monitoring of the sustainability of the significant loan growth.
Positive outlook with caution on asset quality
The assessment concluded that Zenith Bank remains strongly capitalised, with its 19.10% capital adequacy ratio significantly exceeding the Bank of Ghana’s 13% regulatory minimum.
It also noted that profitability strengthened during the period, reflecting the bank’s underlying balance-sheet capacity.
The principal weakness remains asset quality, with the NPL ratio rising from 1.38% to 10.21% amid the rapid expansion of the loan portfolio.
The report therefore recommends short-term fixed-deposit investments with Zenith Bank, specifically instruments with maturities of between 91 and 182 days.
At the same time, it recommends continued monitoring of profitability trends, the sustainability of the bank’s significant loan growth and developments in asset quality.
Overall, the first-half results point to a bank with strong profitability, substantial liquidity, expanding deposits and a solid capital buffer, but also one facing a heightened credit-risk challenge that will require disciplined loan monitoring and recovery efforts as its balance sheet continues to expand.
