Zenith Bank Set To Hit Capital Market To Raise N230bn
…Wins Best Commercial Bank In Nigeria and Best Corporate Governance Awards 2024
By Emmanuel Uffot
The management of Zenith Bank PLC, has put machinery in place to offer It’s shares to the public through the capital market.
The bank, intends to raise N230 billion fresh equity in line with the Central Bank of Nigeria (CBN) new capital base of N500 billion requirement by August 2026 for tier- 1 banks which Zenith Bank falls under.
The bank’s Group Managing Director/Chief Executive Officer Dr Adaora Umeoji, disclosed this to capital market players Lagos.
According to her, Zenith Bank, which is one of the leading financial institutions in Nigeria has already secured N270 billion hence the desire to seek for the remaining N230 billion to meet the CBN’s N500bn capital base requirement.
On the future plans of the bank aside meeting the new apex bank requirement, GMD/CEO stated that one of their key projections is to expand its operations to France and other Francophone countries in Africa.
Also planned by the bank according to her, is the promotion of financial inclusion and deployment of it’s advanced technology to enhance corporate and retail banking as well as establish a Fintech subsidiary known as Zeepay to drive it’s profitability.
The GMD who assumed duty a month ago after the retirement of his predecessor, is upbeat that the bank has what it takes to easily meet the new capital base given it’s strong and impressive financial results.
According to the bank’s financials, it’s capital stands at N1.8 trillion, market capitalisation N1.3 trillion and shareholders funds N2.3 trillion.
Similarly, the bank’s profit after tax for 2023 year ending stood at N796 billion.
This no doubt, put the bank at a strong footing to surpass even the N500bn prescribed for grade A banks with international connections like Zenith Bank.
The impressive financial results of the bank for last year, also includes a gross earnings of N2,123 trillion which represents 125 percent increase from N945.6 billion recorded in 2023.
These impressive financials, is what has given Dr Umeoji the confidence that the bank is capable of meeting the new capital base. ” We possess the capacity, balance sheet, human capital and network to achieve this”.
Meanwhile, the bank has retained for the fourth consecutive year, the award of Best Commercial Bank in Nigeria and also retained for the third consecutive year the award for Best Bank in Corporate Governance for 2024.
It achieved the feat at the World Finance Magazine publication.
According to the organisers, the awards published in the summer 2024 of the magazine are in recognition of the bank’s robust financial performance, sustainability initiatives, superior customer services and corporate governance practices.
Also commenting on the double awards, Dr Umeoji the Group Managing Director of Zenith Bank said the award highlights the bank’s dedication to excellence revolved around global best practices.
” These awards highlights our steadfast dedication to excellence, adherence to global best practices and our persistent effort to deliver superior value to all stakeholders through innovative products and services.
” Receiving these awards consecutively for multiple years signifies the commitment of our staff, the loyalty of our customers and the support of shareholders”.
She dedicated the award to the founder and chairman of Zenith Bank Jim Ovia.
Zenith Bank, founded by Ovia began operations in July 1990 and was listed at the Nigerian Stock Exchange in 2004.
The bank with over 400 branches and subsidiaries in Nigeria and offshore countries, was equally listed in the London Stock Exchange.
The 34 year old bank, has won many awards in the industry over the years through its excellent services and strong financials.
It is grouped among the tier-1 commercial banks in Nigeria that includes, First Bank, United Bank for Africa, Guaranty Trust Bank, Fidelity Bank, Ecobank, Access Holdings and Union Bank .
Zenith Bank we gathered, is making moves to evolve into a holding company like Access and Guaranty Trust
