Zenith Bank Plc, is on the verge of concluding arrangements to unveil its capital raising drive aimed at meeting the Central Bank of Nigeria, CBN’s new capital base for the banking sector.
The bank is also preparing to complete its transition to a holding company structure.
These initiatives, according to the bank, are expected to position it to explore emerging market opportunities, enhance its digital and retail banking initiatives, and deliver superior value to stakeholders.
The bank hosted an event with capital market stakeholders and investors to outline its strengths as it embarks on its recapitalisation efforts.
Group Managing Director/Chief Executive Officer, Zenith Bank, Dr. Adaora Umeoji highlighted the bank’s robust financials, including tier-1 capital of N1.8 trillion, shareholders’ funds of N2.3 trillion, market capitalisation 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, owing to a high-quality board, strong management, and a solid corporate culture. She said : “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.”
Dr. Umeoji stated, “Zenith Bank is set to raise capital from the market, targeting N230 billion, 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 per cent 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 per cent.”
Executive Director Dr. Henry Oroh spoke about the bank’s digital transformation and future direction, focusing 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 cyber-security issues by developing a network of tech products with zero vulnerabilities, including firewalls and other protections,” he added.
Commenting on the awards won by the bank, Dr. Umeoji said, “These honours reflect our 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.
SOURCE: VANGUARD
