Zest, the fintech arm of Stanbic IBTC Holdings, has achieved its inaugural profitable quarter since launching in 2023. This milestone highlights the evolving stability of fintech subsidiaries backed by banks, as they transition from initial losses toward consistent profitability.
In the third quarter of 2025, Zest reported a net profit of ₦543 million ($372,438), a remarkable turnaround from a ₦1.89 billion ($1.29 million) net loss in the same quarter of 2024, as detailed in Stanbic IBTC’s financial report for the period ending September 30, 2025.
This positive outcome was achieved despite an increase in operating expenses, which climbed to ₦2.12 billion ($1.45 million) in Q3 2025 from ₦1.26 billion ($864,221) recorded in the first half of the year.
During the first half of 2025, Zest had already reduced its loss after tax to ₦389 million ($266,811), a 58.8% improvement from the ₦945 million ($648,165) loss in the corresponding period of 2024. This progress came alongside a dramatic fourteenfold surge in revenue, rising to ₦874 million ($599,467) from ₦61 million ($41,839) year-over-year.
Zest’s Journey Toward Profitability
Hover over each bar to explore the details behind the figures.
The financial trajectory of Zest over the past year reveals a notable transformation.
Source: Stanbic IBTC H1 2025 & Q3 2025 financial statements.
Although expenses increased by nearly 25% to ₦1.26 billion ($864,221) in the first half of 2025, insiders shared with TechCabal that Zest had begun generating monthly profits by that time.
Zest is among a new generation of fintech companies owned by banks, such as Access Bank’s Hydrogen and GTCO’s HabariPay. These entities emerged following the Central Bank of Nigeria (CBN)’s 2010 mandate requiring commercial banks to reorganize into holding companies to facilitate non-banking services like payment solutions.
The company’s revenue model centers on facilitating seamless transfers and providing businesses with a unified platform that consolidates card payments, bank transfers, mobile money, and QR code transactions.
Hydrogen and HabariPay established profitability earlier, with Hydrogen posting an after-tax profit of ₦966 million ($662,569) in H1 2025, and HabariPay reporting ₦4.02 billion ($2.76 million) profit in the same period, according to their financial disclosures. Zest’s recent profitable quarter places it alongside these successful peers.
This financial upswing has been supported by continuous capital injections from Stanbic IBTC Holdings, which boosted its investment in Zest to ₦4.33 billion ($2.97 million) by June 2025-an 85.8% increase compared to December 2024. These funds have been instrumental in enhancing Zest’s technological infrastructure and broadening its payment ecosystem, laying the groundwork for sustained profitability.
Note: Exchange rate applied: ₦1,457.96 per US dollar