Zenith Bank Plc is on the path to achieving a historic milestone, aiming to surpass a profit before tax (PBT) of N1 trillion by the end of its 2024 financial year.
This ambitious target follows a stellar performance in 2023, where the bank posted a PBT of N796 billion. Speaking at the bank’s Capital Markets Day, Zenith Bank’s group managing director/CEO, Dr. Adaora Umeoji, expressed confidence in the bank’s ability to exceed its profit target.
She highlighted Zenith Bank’s robust financial metrics, including a tier-1 capital of N1.8 trillion, shareholders’ funds of N2.3 trillion, and a market capitalisation of N1.3 trillion. For the year ended December 2023, the bank declared a dividend of N4 per share.
Dr. Umeoji noted that with a first-quarter 2024 PBT of N320 billion, the bank is well on its way to achieving its ambitious goal. She attributed this potential success to the quality of the board and management, a strong corporate culture, and strategic initiatives designed to enhance profitability.
Zenith Bank is preparing to raise N230 billion in capital as part of its recapitalisation journey. Dr. Umeoji emphasized that this is the least amount among its peers due to Zenith’s already strong capital base of N270.7 billion.
The bank’s future plans include driving financial inclusion, expanding corporate and retail banking through state-of-the-art digital platforms, establishing a fintech subsidiary, ZenPay, to boost profitability, and expanding operations to France and other Francophone African countries.
“For us at Zenith, we won’t be left out. We are planning to go to the market to raise capital, and as it stands, Zenith Bank has the least amount of capital to raise,” Dr. Umeoji stated. “We believe that Zenith Bank has what it takes. We have the capacity, the network, the balance sheet, the human capital, and the track record to achieve that.”
Chief Financial Officer and General Manager, Dr. Mukhtar Adam, pointed out that in the last five years, the bank’s Compound Annual Growth Rate (CAGR) in revenue has grown by over 27 per cent. He noted that despite economic challenges, including periods of recession and low returns on government instruments, the bank has maintained a steady growth trajectory and stable returns of at least 28 per cent.
Zenith Bank’s commitment to excellence and innovation has been recognized with prestigious awards. Recently, the bank was named Best Commercial Bank, Nigeria, and Best Corporate Governance, Nigeria, in the World Finance Banking Awards 2024.
This marks the fourth consecutive year for the commercial bank award and the third year running for corporate governance. “These awards highlight 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,”
Dr. Umeoji said. She dedicated the awards to the bank’s founder and chairman, Dr. Jim Ovia, CFR, and expressed gratitude to the board, staff, and customers for their continued support.
With strategic initiatives, technological advancements, and a strong financial foundation, Zenith Bank is well-positioned to achieve its N1 trillion profit target in 2024. The bank remains committed to setting industry benchmarks, driving excellence, and delivering value to investors and stakeholders.
