Zenith BankNSA:ZENITH +4.71%86 Return-on-Tangible-Equity is 25.28% as of Mar. 2026, which is 8% above its 10-year median of 23.43. GuruFocus rates NSA:ZENITH with a GF Score™ of 86/100 and a GF Value™ of ₦60.41 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,523 Banks companies, Zenith Bank ranks better than 92.45% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Zenith Bank's annualized net income for the quarter that ended in Mar. 2026 was ₦1,254,896 Mil. Zenith Bank's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₦4,964,197 Mil. Therefore, Zenith Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 25.28%.
The historical rank and industry rank for Zenith Bank's Return-on-Tangible-Equity or its related term are showing as below:
NSA:ZENITH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.19 Med: 23.43 Max: 37.3
Current: 22.25
During the past 13 years, Zenith Bank's highest Return-on-Tangible-Equity was 37.30%. The lowest was 17.19%. And the median was 23.43%.
NSA:ZENITH's Return-on-Tangible-Equity is ranked better than 92.45% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs NSA:ZENITH: 22.25
Zenith Bank (NSA:ZENITH) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Zenith Bank Return-on-Tangible-Equity Related Terms
Zenith Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zenith Bank's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zenith Bank Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, Zenith Bank's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zenith Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Zenith Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zenith Bank's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 25.28% mean?
Zenith Bank (NSA:ZENITH) has a Return-on-Tangible-Equity of 25.28% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Zenith Bank and its competitors. This is near median its historical median of 23.43. Over the past decade, Zenith Bank's Return-on-Tangible-Equity has ranged from 17.19 to 37.30. According to the industry distribution chart, Zenith Bank ranks #115 out of 1523 companies in the Banks industry, placing it in the top 7.6%.
Is Zenith Bank's Return-on-Tangible-Equity too high?
Zenith Bank's current Return-on-Tangible-Equity of 25.28% is near median its 10-year median of 23.43. Over the past 10 years, this metric has ranged from a low of 17.19 to a high of 37.30. The Banks industry median Return-on-Tangible-Equity is 11.20. Zenith Bank's value of 25.28% is 125.7% above this industry median. Based on the distribution chart, Zenith Bank ranks #115 out of 1523 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Zenith Bank has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenith Bank's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, Zenith Bank ranks #115 out of 1523 companies for Return-on-Tangible-Equity. This places Zenith Bank in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.20. Zenith Bank's value of 25.28% is 125.7% above this benchmark. Historically, Zenith Bank's own Return-on-Tangible-Equity has ranged from 17.19 to 37.30 over the past decade. While the company's 10-year median is 23.43 vs. the industry median of 11.20, Zenith Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zenith Bank's current Return-on-Tangible-Equity of 25.28% is 125.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Zenith Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenith Bank's current Return-on-Tangible-Equity is 25.28%, which is near median its own 10-year median of 23.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Bank stock overvalued right now?
Based on GuruFocus' analysis, Zenith Bank (NSA:ZENITH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦60.41, compared to a current price of ₦106.75 — trading 76.7% above its estimated fair value. The current Return-on-Tangible-Equity is 25.28%, which is near median its 10-year median of 23.43 and 125.7% above the Banks industry median of 11.20. Zenith Bank's overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Zenith Bank (NSA:ZENITH), the current Return-on-Tangible-Equity is 25.28% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zenith Bank (NSA:ZENITH) Overvalued in 2026?
Based on GuruFocus' analysis, Zenith Bank stock appears to be overvalued.
The current stock price of ₦106.75 is trading 76.7% above its estimated GF Value™ of ₦60.41.
GuruFocus considers Zenith Bank to be Significantly Overvalued.
Key valuation signals for NSA:ZENITH:
Return-on-Tangible-Equity: 25.28% (near median its 10-year median of 23.43)
GF Value™: ₦60.41 vs. price of ₦106.75 (76.7% above fair value)
Industry Position: 125.7% above the Banks median (#115 of 1523)
No single metric tells the full story. See the NSA:ZENITH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zenith Bank PLC is a Nigeria- based company. Its core business is the provision of banking and other financial services to corporate and individual customers. The bank provides services such as granting of loans and advances, corporate finance and money market activities. It also provides banking and pension custodial services to a diverse group of corporations, financial institutions, investment funds, governments and individuals; provision of investment advisory, financial planning services and investment product offerings; providing brokerage services, financing services and securities lending services to institutional clients, including mutual funds, pension funds and to high-net-worth individuals. Revenue generated by bank consists of interest income, fees and commission received.
86GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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