Zenith Bank earns N291.8bn from fees as it finalises Paramount Bank Kenya deal

Zenith Bank earned N291.8 billion from commissions and fees in 2025, while completing its acquisition of Paramount Bank Kenya to expand operations into East Africa.

The tier-1 Nigerian lender disclosed the financial results on Tuesday alongside an announcement that it has received all regulatory approvals to complete the purchase of Paramount Bank Kenya Limited’s entire issued share capital.

The bank made N405.8 billion in commission and fee income this year. After N114 billion in associated costs, the bank’s net income from commissions and fees was N291.8 billion.

Account maintenance fees were the highest source of revenue at N91.9 billion, followed by electronic product fees at N89.1 billion. The bank also generated N29.4 billion from foreign currency transaction fees and commissions, N19.1 billion from foreign withdrawal charges, and N53.1 billion from financial guarantee contracts.

Despite strong top-line performance, Zenith Bank posted a pre-tax profit of N1.26 trillion for 2025, representing a 4.78 per cent decline from the previous year.

Interest income rose to N3.6 trillion from N2.7 trillion in 2024, driven primarily by loans and advances to customers, which contributed N1.8 trillion, a 20.15 per cent increase. Treasury bills generated N1.1 trillion in income during the period.

Read also: Zenith Bank enters Kenya with Paramount Bank acquisition

The bank proposed a final dividend of N8.75 per share, up from N4.00, bringing the total 2025 dividend to N10.00 per share, including the N1.25 interim payout declared earlier in the year.

East African expansion through Paramount Bank acquisition

Zenith Bank confirmed Monday it has completed the acquisition of Paramount Bank Kenya Limited after receiving regulatory approvals from authorities in both Kenya and Nigeria.

The transaction, first announced in November 2025, marks a significant step in the bank’s long-term strategic growth agenda and its entry into the East African market.

“This acquisition marks a significant step towards our long-term strategic growth agenda and a strong inroad into the East African markets,” the bank stated in a notice signed by Company Secretary Michael Oshiama Otu.

“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.” he added.

The move positions Zenith Bank to compete across a broader geographic footprint in Sub-Saharan Africa, expanding beyond its dominant position in Nigeria’s banking sector.

House of Reps scrutiny over bank charges

The financial results come amid increased regulatory scrutiny of bank charges in Nigeria. In October 2025, the House of Representatives summoned commercial bank CEOs over allegations of illegal and unexplained deductions from customer accounts.

Committee Chairman Rep. Kelechi Nwogu accused banks of systematic and unlawful deductions, including charges that are neither transparent nor remitted to appropriate authorities.

The committee focused on charges such as SMS alerts, account maintenance fees, and transfer charges, raising concerns over the legality, transparency, and utilisation of such funds.

Bank fees and commission income cover credit service charges, such as advisory services and penalties. Account maintenance fees are N1 per N1,000 debited from a customer’s account. Card maintenance fees are charged monthly while the card is active.

The parliamentary investigation aims to ensure all deductions imposed by banks are properly authorised, correctly computed, and appropriately utilised.

Zenith Bank’s acquisition of Paramount Bank marks its expansion into Kenya, showcasing the lender’s growth strategy beyond its home market despite facing regulatory challenges and profit pressures in Nigeria’s banking sector.