Tag: Zenith Bank

  • Trade: Zenith Bank Signs Smart Portal Pact With AfCFTA

    Trade: Zenith Bank Signs Smart Portal Pact With AfCFTA

    Zenith Bank Plc, on Tuesday, signed a Memorandum of Understanding (MoU) with the African Continental Free Trade Area (AfCFTA) to build a smart portal for trade on the African continent.

    Under the arrangement, Zenith is to fund the single portal for trade information with $1 million.

    The MoU was signed by the Group Chief Executive Officer of Zenith Bank, Dr. Ebenezer Onyeagwu and the Secretary-General of the AfCFTA, Wamkele Mene during the ongoing 2023 Zenith Bank International Trade Seminar in Lagos.

    Urging Africa to look inward for trade, the Zenith Bank GMD at the seminar themed: ‘Nigerian Non-Oil Export Industry, The Present, The Future’ said the need to drive Africa’s prosperity by Africans informed the idea of the single Africa trade portal.

    He said the portal would play a significant role in facilitating trade among African countries.

    He said: “With the MoU, Zenith will be developing the smart AfCFTA portal which is going to serve as a straight Porter that will showcase African products and services and where they can be found. With the development of this portal, one of the capabilities we are going to build in there is that you can see it in every part of Africa and market your products and services. You can see it in every part of Africa and identify whatever products and services you require that are in Africa.

    “If you look at Q1 exports in Nigeria, you will realize that 46.43% of non-oil exports in Nigeria go to Europe, 24.85% go to Asia, America 18.39%, and Africa 10.27%. And also, there is this tendency in Africa; the moment you are looking for an item you can’t find in your geography or region, the next thing you think of is how do I find it in Europe? How do I find it in the West? How do I find it in China? Now with the development of the AfCFTA portal, we are saying look for it in Africa before you look elsewhere.”

    On his part, the Secretary-General of the AfCFTA, Mene commended Zenith Bank for coming up with the idea of a smart trade portal for Africa and for funding it to the tune of $1 million.

    “What many of you may not be aware of and the MD may be too modest to say is that Zenith Bank was the first bank to come to me to say we want to partner with you. We went to see the chairman and the Chairman said that Zenith Bank wants to make a contribution to digitize trade in Africa. I’ve never been offered a million dollars before it was the first time when he said here is a million dollars.

    “The chairman said the one million dollars was to demonstrate the commitment as a bank to digitization in Africa”

  • Shareholders approve HoldCo structure for Zenith Bank at EGM

    Shareholders approve HoldCo structure for Zenith Bank at EGM

    Shareholders of Zenith Bank Plc have unanimously ratified the restructuring of the Bank to a holding company during a court-ordered Extraordinary General Meeting (EGM) held virtually from Zenith Heights,on Victoria Island, Lagos at the weekend.

    In a statement issued by the bank, its shareholders voted in favour of transferring 31,396,493,787 ordinary shares of 50 Kobo each held in the issued and paid-up share capital of Zenith Bank Plc to Zenith Bank Holding Company Plc (the HoldCo) in exchange for the allotment of 31,396,493,787 ordinary shares of 50 Kobo each in the share capital of the HoldCo in the same proportion to their shareholding in the Bank.

    The bank explained that the development is in accordance with the Scheme of Arrangement dated March 28, 2024, pursuant to Section 715 of the Companies and Allied Matters Act (CAMA) 2020 between the Bank and the holders of the fully paid ordinary shares of 50 Kobo each in the financial institution.

    The shareholders approved that each Existing GDR Holder receive, as a consideration for each existing GDR held, one new HoldCo GDR. They also agreed to transfer all shares held by the Bank’s nominees in Zenpay Limited, a direct subsidiary of the HoldCo, to the HoldCo along with all associated rights and liabilities.

    The Board of Directors were authorized to delist the shares of the Bank and the Existing GDRs from the official list of the Nigerian Exchange and the London Stock Exchange respectively, as well as re-register the Bank as a private limited company under the CAMA Act 2020.

    At the EGM, Founder and Chairman of Zenith Bank Plc, Jim Ovia, commended the shareholders for their commitment and support, which he said, had contributed to the Bank’s outstanding performance over the years.

    He expressed excitement about the transition to a holding company structure, which is expected to position the Bank for growth in the Fintech space and enhance its digital and retail banking initiatives.

    Group Managing Director and Chief Executive Officer (GMD/CEO), Dr. Ebenezer Onyeagwu, applauded Ovia for his role in establishing a pioneering institution in the financial services industry, while also expressing hope about the Bank’s future growth, as it transitions to a holding company structure.

    He highlighted the opportunities presented by the HoldCo structure, particularly in diversifying investments and exploring new business verticals.
    Onyeagwu also mentioned the Bank’s upcoming recapitalization plan, which is set to be approved at the Annual General Meeting scheduled for May 8, 2024, in line with directives of the Central Bank of Nigeria (CBN).

    He expressed confidence in the Bank’s ability to raise the required capital, noting that Zenith Bank is expected to raise the least amount among its industry peers due to its strong capital base

     

  • Zenith Bank, AfCFTA Unveil SMARTAfCFTA Portal To Revolutionize African trade

    Zenith Bank, AfCFTA Unveil SMARTAfCFTA Portal To Revolutionize African trade

    Chairman of Zenpay Limited, Dr. Ebenezer Onyeagwu (left) and Secretary-General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, during the signing of a Memorandum of Understanding (MoU) for the development and deployment of  SMARTAfCFTA Portal to facilitate trade in Africa at Zenith Bank Head Office in Lagos.

    A subsidiary of Zenith Bank, Zenpay Limited, has partnered with the African Continental Free Trade Area (AfCFTA) Secretariat to launch the SMARTAfCFTA Portal with the aim of revolutionizing trade within Africa.

    The agreement was signed by Chairman of Zenpay Limited, Dr. Ebenezer Onyeagwu and Secretary-General of AfCFTA Secretariat, Wamkele Mene at Zenith Bank’s Head Office in Lagos.

    The collaboration comes after the signing of a Memorandum of Understanding (MoU) during Zenith Bank’s recent International Trade Seminar on Non-Oil Exports.

    Onyeagwu expressed excitement about the partnership, emphasizing the importance of increasing intra-African trade to boost prosperity across the continent.

    On his part, Mene commended Zenith Bank for its commitment to the project, highlighting the significance of the SMARTAfCFTA Portal in empowering SMEs and young entrepreneurs in Africa.

    The platform will provide crucial trade data, insights on rules of origin, and market intelligence to facilitate trade within the continent.

    Mene, who also discussed the Pan-African Payment and Settlement System (PAPSS) and its relationship with the SMARTAfCFTA Portal, stressed that the two platforms will complement each other, while maintaining that integrating the digital ecosystem into PAPSS remains crucial to support a seamless continental payment system.

    The SMARTAfCFTA Portal aims to streamline trade across Africa by providing information on trade indicators, market trends, custom tariffs, trade agreements and export potential.
    Zenpay Limited, a Fintech company responsible for digital innovation and payments, will play a key role in developing and deploying the portal.

    The AfCFTA is a lofty trade agreement that aims to boost intra-Africa trade and promote economic integration on the continent and by eliminating barriers to trade, the AfCFTA seeks to enhance trade in value-added production and services sectors, with the potential to increase trade by about 52.3 percent.

    Overall, the partnership between Zenith Bank and the AfCFTA Secretariat marks a significant step towards transforming African trade and fostering economic growth and development on the continent

     

  • Zenith Bank Wins Best Commercial Bank, Corporate Governance Award

    Zenith Bank Wins Best Commercial Bank, Corporate Governance Award

    Zenith Bank Plc has emerged as the best commercial bank, Nigeria in the World Finance Banking Awards 2024, retaining the award for the fourth consecutive year. The bank was also named as the best financial institution in corporate governance, Nigeria for the third year running in the World Finance Corporate Governance Awards 2024.

    The awards, published in the Summer 2024 issue of the World Finance Magazine, are in recognition of the bank’s robust financial performance, superior customer service, sustainability initiatives and corporate governance practices.

    Commenting on the recognition, Group Managing Director and Chief Executive of Zenith Bank Plc, Dr. Adaora Umeoji, said: “The 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.

    “Receiving the awards back-to-back for several years signifies the commitment of our staff, loyalty of our customers and support of our shareholders. We remain devoted to setting industry benchmarks and driving excellence across all aspects of our operations.”

    Umeoji expressed delight at the recognition and dedicated the awards to the Founder and Chairman of the bank, Dr. Jim Ovia, for his impactful leadership in establishing a robust and flourishing institution.

    She also commended the board for their vision and insight, the staff for their unwavering dedication and the bank’s customers for choosing Zenith Bank as their preferred financial institution.

    World Finance is a leading international magazine providing comprehensive coverage and analysis of the financial industry, international business and the global economy.

    The editorial combines award-winning reportage, covering a broad range of topics from banking and insurance to wealth management and infrastructure investment, with contributions from some of the world’s most well-respected economists and theorists as well as consultants in government think tanks and the World Economic Forum.

    Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, with these latest accolades coming on the heels of several recognitions including being recognized as the Number One Bank in Nigeria by Tier-1 Capital for the 14th year in the 2023 Top 1000 World Banks Ranking, published by The Banker Magazine.

    “We were also awarded the 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,” she added.

    Other recognitions include Best Bank in Nigeria from 2020 to 2022 in the Global Finance World’s Best Banks Awards and Best Commercial Bank from 2021 to 2023 in the World Finance Banking Awards.

    Additionally, Zenith Bank has been acknowledged as the Best Corporate Governance Bank in the World Finance Corporate Governance Awards for 2022 and 2023 and ‘Best in Corporate Governance’ Financial Services’ Africa from 2020 to 2023 by the Ethical Boardroom.

    The bank’s commitment to excellence saw it being named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands for 2020 and 2021 and Retail Bank of the Year from 2020 to 2022 at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

    The bank also received the accolade of Most Sustainable Bank, Nigeria in the International Banker 2023 Banking Awards, Best Commercial Bank and Best Innovation in Retail Banking in the International Banker 2022 Banking Awards.

    Zenith Bank was named Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper and SERAS Awards Most Responsible Organization in Africa 2021.

     

  • Zenith Bank Floats Rights Issue, Public Offer To Raise N290 Billion Capital

    Zenith Bank Floats Rights Issue, Public Offer To Raise N290 Billion Capital

    Executive Director, Zenith Bank Plc, Louis Odom (right); Executive Director, Akin Ogunranti; Chief Executive, Stanbic IBTC Capital Limited, Oladele Sotubo; Group Managing Director and Chief Executive Officer, Zenith Bank Plc, Dr. Adaora Umeoji; Company Secretary, Michael Otu; Executive Director, Stanbic IBTC Capital Limited, Mrs. Oyindamola Akinyemi; Executive Director, Henry Oroh; Executive Director, Mrs. Adobi Nwapa and Executive Director, Adamu Lawani; during Zenith Bank’s capital raising signing ceremony in Lagos

    Zenith Bank Plc is poised to embark on a significant capital-raising exercise, seeking to generate N290 billion through a combination of Rights Issue and Public Offer.

    Senior management team of the bank, comprising the Group Managing Director and executive directors, who announced the offer during a signing ceremony in Lagos, said the move is in line with the Central Bank of Nigeria’s (CBN) revised minimum capital requirements for commercial banks in the country.

    The Rights Issue will offer 5,232,748,964 ordinary shares of 50Kobo each at N36.00 per share, while the Public Offer will present 2,767,251,036 ordinary shares of 50Kobo each at N36.50 per share.

    Existing shareholders will have the opportunity to purchase additional shares in proportion to their current holdings, while the Public Offer will be open to the general public, aiming to attract new investors.

    Speaking at the ceremony, Group Managing Director and Chief Executive Officer (MD/CEO) of Zenith Bank Plc, Dr. Adaora Umeoji, expressed enthusiasm about the capital-raising exercise, highlighting the bank’s commitment to bolstering its capital base and supporting its growth trajectory.

    She emphasized the importance of incorporating a public offer to ensure that customers who are not yet shareholders can participate in the ownership of the bank.

    The proceeds from the capital raise will be channeled towards expanding banking operations across Africa and internationally, investing in technology infrastructure, and supporting working capital on an ongoing basis.

    Citing Zenith Bank’s track record of profitability and consistency in creating wealth for shareholders in the financial services sector, Umeoji expressed the hope that the capital raise will be a huge success.

    The lead issuing house for the Rights Issue and Public Offer is Stanbic IBTC Capital Limited, with joint issuing houses including Quantum Zenith Capital and Investments Limited, CardinalStone Partners Limited and Meristem Capital Limited.

    Others are; Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited and Vetiva Advisory Services Limited. The Offer will open on August 1, 2024 and close on September 9, 2024.

    Zenith Bank has provided a range of electronic platforms for the Rights Issue and Public Offer, including internet banking, mobile application, corporate internet banking, and branch networks nationwide.

    The NGX Invest platform will also be available for applications. The electronic channels aim to democratize the distribution of public offers and rights issues in the capital market, enabling investors to subscribe with ease.

     

  • Zenith Bank Half-Year Profit Rises By 107.5% To N578 Billion On Interest Income Surge

    Zenith Bank Half-Year Profit Rises By 107.5% To N578 Billion On Interest Income Surge

    By Edu Abade

    The First Tier financial institution proposed N31.4 billion in total interim dividend to shareholders, amounting to double of the cash it paid to shareholders in the corresponding period of last year, which translates to N1 per share.

    Its audited financial records show that Zenith Bank also reported roughly twice the net profit it earned in the first half of 2023 in the same period this year, helped by sharp increases in lending rate introduced by the Central Bank of Nigeria (CBN) earlier in the year in its push to reduce inflation.

    Interest and similar income of Nigeria’s second-largest lender by market value raced by 176.7 per cent to N1.1 trillion, and alone accounted for above half of the revenue generated within the period.

    It was learnt that even after interest expense was deducted from the total sum, what remained was a great deal for the bank as net interest income stood at N715.1billion, compared to N261.9billion last year.

    Nigeria’s monetary authorities have aggressively raised borrowing costs so far this year, increasing them by 800 basis points in one of its longest rounds of rate tightening on record in the hope of tempering the inflationary pressures that have fuelled a cost-of-living crisis in Africa’s most populous country.

    Zenith Bank’s provision for impairment of financial and non-financial instruments for the period rose almost twofold to N415.3 billion, driven by a surge in the cash it set aside to clear delinquent loans that are not likely to be written off.

    The overall impaired loans of the bank constituted 8.4 per cent of its total loans compared to 7.1 per cent at the end of last year. One major driver of growth was trading gains, which grew to N795.6 billion from N103 billion on the back of increase in the value of its financial instruments.

    Foreign exchange revaluation gain, which boosted the bank’s revenue and that other banks in the country by a great measure last year only saw a tepid increase, as it rose marginally by 3.3 per cent.

    Depreciation of the Naira by about 70 per cent between June 2023 and the beginning of 2024 triggered a spike in the exchange rate of the Dollar and Naira, consequently creating opportunities for banks with investments in foreign currency assets to earn big after converting such securities into naira.

    The heavy income banks are reaping from that stroke of luck has become a subject of contention between them and the government, causing the latter to introduce a windfall tax on such revenues.

    In July, President Bola Ahmed Tinubu sent a bill to the Senate, asking legislators to approve a one-off tax of 50 percent on banks’ foreign exchange revaluation gains.

    The parliament, which wanted the government to take the bigger slice of the pie, endorsed a 70 percent cut interest, a move ratings agencies and financial consultancies say could strain banks’ finances.

     

  • Zenith Bank, Stakeholders Restate Commitment To Economic Diversification, Viable Non-Oil Export Sector

    Zenith Bank, Stakeholders Restate Commitment To Economic Diversification, Viable Non-Oil Export Sector

    By Edu Abade.

    In a bid to further diversify the Nigerian economy, Zenith Bank Plc and stakeholders from different sectors have insisted on creating an enabling environment and concerted efforts to add value to non-oil export products by processing them into semi-finished and finished goods to unlock more economic benefits for Nigeria.

    This was the thrust of the 9th Annual Zenith Bank International Trade Seminar with the theme: Nigerian Non-Oil Export Industry: Awakening the Giant, held virtually on Wednesday, September 4, 2024.

    Group Managing Director and CEO of Zenith Bank Plc, Dr. Adaora Umeoji, who highlighted the importance of non-oil export in creating jobs and generating foreign exchange earnings, stressed the need to increase the number and volume of exportable non-oil items and add value to exportable items into finished products.

    Secretary, National Action Committee of AfCFTA, Segun Awolowo, commended Zenith Bank for its initiative in organizing the seminar and supporting the implementation of the AfCFTA.

    He pointed out the need to focus on scaling production, productivity, and value addition for specific export products with high potential across three main sectors: solid minerals, agriculture, and petro-chemicals.

    Managing Director of the Nigerian Export Import Bank (NEXIM), Abba Bello, who harped on the need to amplify the export of services to facilitate economic growth, said it was important to develop strategic frameworks to support the promotion of export services.

    Also speaking,  Lagos State Governor, Babajide Olusola Sanwo-Olu, who was represented by the Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose-Medebem, revealed efforts of the Lagos State Government in facilitating non-oil export for the growth of the Nigerian Economy.

    He maintained that the state government focus on value addition and transforming raw agricultural products into finished goods, remain crucial for expansion of the Nigerian economy.

    On his part, Kano State Governor, Abba Kabir, who was represented by the Special Adviser, State Affairs, Usman Bala Muhammad, stressed the need for strategic advantages in economic diversification through non-oil exports.

    He highlighted the importance of adding value to agricultural products and aligning export diversification strategies with global market trends and standards.ALSO READ –  LinkedIn to Cut 716 Jobs Globally over Slow Revenue

    Also speaking, Zamfara State Governor, Dr. Dauda Lawal, who was represented by the Commissioner for Finance, Abdullahi Bello Auta, urged stakeholders to explore other untapped areas for export and highlighted the potential of the mining sector and the need to harness them.

    It would be recalled that Zenith Bank launched the Non-Oil Export Seminar in 2015 to deepen the discourse on promoting the non-oil export business in Nigeria.

    Since its inauguration, the bank has remained committed to promoting the non-oil export sector in Nigeria by identifying emerging opportunities and developing robust financial products and incentives for operators in the sector.