One of Nigeria’s foremost financial institutions, Zenith Bank Plc, is in the capital market to raise additional equity to meet the new recapitalization threshold set by Nigeria’s Central Bank.
On its Capital Markets Day on Tuesday, Zenith Bank showcased its inherent values to prospective investors. The event brought together key market players and focused on the bank’s growth trajectory, strategic objectives, market performance, and consistent, robust dividend payout.
The bank’s Group Managing Director/Chief Executive Officer, Adaora Umeoji, highlighted the financial institution’s tier-1 capital of N1.8 trillion, shareholders’ funds of N2.3 trillion, market capitalization of N1.3 trillion, profit before tax of N796 billion, and dividend of N4 per share for the year ended December 2023.
Adaora Umeoji projected 2024, stating that the bank is on track to deliver over N1 trillion in profit before tax in 2024. She expressed confidence that with the quality of the board and management and strong corporate culture, the bank can deliver superior value to investors and other stakeholders and navigate the recapitalization process successfully.
Zenith Bank plans to drive financial inclusion, expand corporate and retail banking through technology and other state-of-the-art digital platforms, and establish a fintech subsidiary, ZenPay, to drive profitability. Additionally, the bank intends to expand to France and other Francophone African countries.
History of Achievements
The bank recently emerged as the Best Commercial Bank, Nigeria in the World Finance Banking Awards 2024, retaining the award for the fourth consecutive year—a testament to its commitment to excellence. The bank was also named Best Corporate Governance, Nigeria, for the third year running in the World Finance Corporate Governance Awards 2024, further reinforcing its strong corporate governance practices.
In its audited results for the year ended December 31, 2023, Zenith Bank achieved a remarkable triple-digit growth of 125% in gross earnings, from N945.6 billion reported in 2022 to N2.132 trillion in 2023. The impressive growth in gross earnings resulted in a year-on-year increase of 180 percent in profit before tax (PBT), from N284.7 billion in 2022 to N796 billion in 2023, while profit after tax (PAT) also recorded triple-digit growth of 202%. These key metrics demonstrate the bank’s robust financial performance and its ability to deliver strong returns to its shareholders.
Due to the high interest rate environment, Zenith Bank’s cost of funds grew from 1.9% in 2022 to 3.5% in 2023, while interest expense increased by 135 percent. The Group’s cost-to-income ratio improved significantly from 54.4% in 2022 to 36.1% in 2023 due to improved top-line performance. Return on Average Equity (ROAE) increased by 118%, from 16.8% in 2022 to 36.6% in 2023, underpinned by improved gross earnings, as the Group sought to deliver better shareholder returns.
Zenith Bank Plc, was founded by billionaire banker, Jim Ovia in 1990, is a leading African financial institution known for its customer-centric approach. The bank has received numerous awards, including ranked as the Number One Bank in Nigeria, Bank of the Year, and Most Sustainable Bank in the International Banker 2024 Banking Awards. Zenith has also pioneered digital banking in Nigeria, deploying ICT infrastructure to create innovative products. The bank’s culture of excellence and global best practices drive its innovative approach.
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