Zenith Bank Plc is finalizing plans to launch a capital-raising initiative to meet the Central Bank of Nigeria (CBN)’s new capital requirements for the banking sector.
The bank is also nearing completion of its transition to a holding company structure.
These strategic moves are designed to position Zenith Bank to capitalize on emerging market opportunities, enhance its digital and retail banking services, and deliver superior value to stakeholders.
During a recent event with capital market stakeholders and investors, the bank outlined its strengths as it embarks on its recapitalization efforts.
Group Managing Director/Chief Executive Officer Dr. Adaora Umeoji emphasized the bank’s strong financial position, highlighting tier-1 capital of N1.8 trillion, shareholders’ funds of N2.3 trillion, market capitalization of N1.3 trillion, and a profit after tax of N796 billion for the year ending December 2023.
Dr. Umeoji expressed confidence in the bank’s ability to deliver superior value to investors, citing a high-quality board, strong management, and a solid corporate culture. She stated, “Our future plan is to promote financial inclusion, expand corporate and retail banking through advanced technology, and establish a fintech subsidiary, ZenPay, to drive profitability. Additionally, the bank aims to expand into France and the Francophone African region.”
She added that Zenith Bank plans to raise N230 billion from the market, with N270.7 billion already secured, making it the least amount to raise among peers. “We possess the capacity, network, balance sheet, human capital, and track record to achieve this. Our advanced technology will ensure seamless processes and integration.”
Chief Financial Officer/General Manager Dr. Mukhtar Adam noted that the bank’s Compound Annual Growth Rate (CAGR) in revenue has exceeded 27 percent over the past five years. “This growth continues annually. Despite Nigeria’s recession during this period, we maintained growth. Over the past five years, our profit before tax has grown by about 28 percent.”
Executive Director Dr. Henry Oroh discussed the bank’s digital transformation and future direction, with a focus on financing small and medium enterprises and trade. “We are investing in technology to build world-class solutions that enhance customer experience and market penetration. We are also addressing cybersecurity issues by developing a network of tech products with zero vulnerabilities, including firewalls and other protections.”
Dr. Umeoji highlighted the bank’s numerous awards as a testament to its commitment to excellence, adherence to global best practices, and dedication to delivering superior value through innovative products and services. “Our consecutive awards demonstrate the dedication of our staff, the loyalty of our customers, and the support of our shareholders. We remain committed to setting industry benchmarks and driving excellence across all operations.”
Dr. Umeoji also dedicated the awards to Founder and Chairman Dr. Jim Ovia, CFR, for his leadership, and expressed gratitude to the board, staff, and customers. World Finance provides comprehensive coverage and analysis of the financial industry, international business, and the global economy.
