Zenith Bank Plc, Nigeria’s premier financial institution, recently held its Capital Markets Day to highlight the bank’s core values and its ongoing recapitalization efforts. The event, attended by key market participants, focused on Zenith Bank’s growth trajectory, strategic goals, market performance, and its consistent track record of strong dividend payouts. It also served as a platform to update capital market stakeholders on the bank’s robust risk management practices, regulatory compliance, capital adequacy, and its low levels of non-performing loans.
At the event in Lagos, Dame Dr. Adaora Umeoji, Group Managing Director/Chief Executive Officer, presented the bank’s financial metrics, including a tier-1 capital of N1.8 trillion, shareholders’ equity of N2.3 trillion, market capitalization of N1.3 trillion, a profit before tax of N796 billion, and a dividend of N4 per share for the fiscal year ending December 2023. Looking ahead to 2024, Dr. Umeoji expressed confidence that, with the bank’s recent performance and having achieved a profit before tax of N796 billion in 2023 and N320 billion in Q1 2024, Zenith Bank is poised to surpass N1 trillion in profit before tax this year. She emphasized that the bank’s strong board, management, and corporate culture position it well to provide exceptional value to investors and successfully navigate the recapitalization process.
Dr. Umeoji also outlined the bank’s future plans, which include advancing financial inclusion, enhancing corporate and retail banking through advanced technology and digital platforms, and launching a fintech subsidiary, ZenPay, to boost profitability. Additionally, the bank aims to expand into France and other Francophone African countries.
Dr. Umeoji stated, “Zenith Bank is committed to remaining at the forefront. We plan to raise N230 billion in the market as we currently have N270.7 billion. This is the smallest capital requirement among our peers. Zenith Bank has the necessary capacity, network, balance sheet, human resources, and track record to achieve this goal. We are preparing for the future with the best technology in the industry to ensure a smooth and integrated process.”
Dr. Mukhtar Adam, Chief Financial Officer/General Manager, highlighted the bank’s impressive Compound Annual Growth Rate (CAGR) of over 27 percent in revenue over the past five years. Despite economic challenges, including Nigeria’s recession, Zenith Bank has sustained growth and delivered a cumulative 28 percent increase in profit before tax over this period.
“Even in a market where government instruments like treasury bills yielded just one to three percent, we continued to achieve significant growth and provide stable returns of at least 28 percent,” Dr. Adam noted.
Zenith Bank recently earned the title of Best Commercial Bank, Nigeria, in the World Finance Banking Awards 2024 for the fourth consecutive year and was named Best Corporate Governance, Nigeria, for the third year running in the World Finance Corporate Governance Awards 2024. These awards, featured in the Summer 2024 issue of World Finance Magazine, recognize the bank’s excellent financial performance, customer service, sustainability efforts, and corporate governance standards.
Dr. Umeoji commented on these accolades, “These awards underscore our commitment to excellence, adherence to global best practices, and our continuous effort to deliver exceptional value through innovative products and services.
Winning these awards multiple times reflects the dedication of our staff, the loyalty of our customers, and the support of our shareholders. We are committed to setting industry benchmarks and driving excellence in all areas of our operations.”
Dr. Umeoji dedicated the awards to the Founder and Chairman, Dr. Jim Ovia, CFR, acknowledging his influential leadership in building a strong and successful institution. She also expressed gratitude to the board for their vision, the staff for their commitment, and the customers for their preference for Zenith Bank. World Finance is a leading international magazine covering financial industry news, global business, and economic analysis.
In its audited results for the year ending December 31, 2023, Zenith Bank reported a remarkable 125 percent increase in gross earnings, rising from N945.6 billion in 2022 to N2.132 trillion in 2023. This growth resulted in a 180 percent year-on-year rise in profit before tax (PBT), from N284.7 billion in 2022 to N796 billion in 2023, and a 202 percent increase in profit after tax (PAT), from N223.9 billion to N676.9 billion.
The surge in gross earnings was driven by substantial increases in interest and non-interest income. Interest income grew by 112 percent, from N540 billion in 2022 to N1.1 trillion in 2023, while non-interest income surged by 141 percent, from N381 billion to N918.9 billion. This growth in interest income was attributed to the expansion of risk assets and effective repricing, as well as higher yields on interest-bearing instruments. Non-interest income growth was fueled by significant trading gains and foreign currency revaluation gains.
Zenith Bank’s cost of funds rose from 1.9 percent in 2022 to three percent in 2023 due to the high-interest rate environment, with interest expenses increasing by 135 percent, from N173.5 billion to N408.5 billion. Despite a 32 percent increase in operating expenses in 2023, the bank’s cost-to-income ratio improved markedly from 54.4 percent in 2022 to 36.1 percent in 2023 due to better top-line performance. Return on Average Equity (ROAE) jumped by 118 percent, from 16.8 percent in 2022 to 36.6 percent in 2023, driven by higher gross earnings and enhanced shareholder returns. Return on Average Assets (ROAA) also increased by 95 percent, from 2.1 percent to 4.1 percent.
Established in May 1990 and commencing operations in July of the same year, Zenith Bank became a public company on June 17, 2004, and was listed on the Nigerian Stock Exchange (NSE) on October 21, 2004, following a successful Initial Public Offering (IPO). In 2013, the bank listed $850 million of its shares on the London Stock Exchange (LSE). Headquartered in Lagos, Zenith Bank Plc operates over 400 branches and business offices across Nigeria and the Federal Capital Territory (FCT).
Founded by Dr. Jim Ovia, CFR, Zenith Bank has grown to be one of Africa’s leading financial institutions. The bank’s philosophy focuses on being customer-centric with a deep understanding of the market and environment. Zenith Bank’s outstanding performance has earned it numerous awards, including being named the Number One Bank in Nigeria by Tier-1 Capital for the 14th consecutive year in the 2023 Top 1000 World Banks Ranking by The Banker Magazine, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020 and 2022, and Most Sustainable Bank, Nigeria, in the International Banker 2024 Banking Awards, among others.
Zenith Bank Plc has pioneered digital banking in Nigeria, achieving numerous firsts in the deployment of Information and Communication Technology (ICT) infrastructure to create innovative products that address customer needs. The bank leads in the use of various banking technologies, with the Zenith brand symbolizing cutting-edge technology in banking. Driven by a culture of excellence and adherence to global best practices, Zenith Bank combines vision, expertise, and technology to deliver products and services that meet customer expectations, support business success, and enhance customer wealth.
