Manny Ita –
Zenith Bank Plc has recorded its first trading loss in more than ten years, marking a significant shift in performance that has unsettled investor sentiment on the Nigerian Exchange (NGX).
According to the bank’s audited financial statements for the year ended December 31, 2025, trading income fell sharply from previous strong gains to a loss position, reversing a long-standing trend of strong performance in asset trading activities.
The development comes after years in which trading gains had contributed significantly to the bank’s earnings, with the institution previously benefiting from strong market-driven income streams. The latest figures, however, show a major downturn in that segment, prompting concerns about volatility in non-interest revenue sources.
Despite the trading loss, Zenith Bank reported that interest income from lending and investment activities helped cushion the impact, supporting overall earnings performance for the period.
On the stock market, the announcement triggered caution among investors, with market participants reassessing banking sector exposure amid expectations of tighter earnings visibility and shifting asset conditions on the NGX.
Analysts say the development highlights a broader challenge facing Nigerian banks, where reliance on trading income can expose earnings to market fluctuations, even as core lending operations remain relatively stable.
Market watchers expect investor sentiment around Zenith Bank to remain sensitive in the near term as the market digests the implications of the earnings shift and broader sector trends.
