N500bn capital requirement: Zenith Bank not under pressure to raise more money – CEO Adaora Umeoji

By Seun Ibiyemi

Zenith Bank has confirmed it is under no obligation to raise additional capital after comfortably surpassing the Central Bank of Nigeria’s (CBN) minimum requirement of N500 billion.

The bank now holds a capital base of N614.65 billion, reaching 160 per cent of the CBN’s threshold. This milestone follows a significantly oversubscribed hybrid offering concluded earlier in the year.

In January 2025, Zenith Bank raised N350.46 billion through a dual-phase capital raise, comprising a rights issue and a public offering.

The hybrid transaction involved a rights issue of 5,232,748,964 ordinary shares priced at N36 each, along with a public offer of 2,767,251,036 shares at N36.50 each.

Addressing shareholders at the bank’s Annual General Meeting (AGM) in Lagos, Group Managing Director and Chief Executive Officer, Adaora Umeoji, reaffirmed the bank’s strong financial position, making it clear that there is no need to return to the capital markets.

“We have completed our recapitalisation and are now at 160 per cent of the required capital. There is no pressure whatsoever to raise additional funds. Our solid capital structure puts us in a strong position to continue delivering value to our shareholders,” Umeoji stated.

Zenith Bank’s financial results for the 2024 financial year reflected strong growth, with profit before tax surging by 67 per cent to N1.3 trillion, compared to N796 billion in 2023.

This performance was underpinned by substantial revenue growth and effective management of the bank’s treasury portfolio.

Net interest income recorded a sharp increase of 135 per cent, rising from N736 billion in 2023 to N1.7 trillion in 2024.

Additionally, non-interest income climbed by 20 per cent, moving from N919 billion to N1.1 trillion over the same period.

During the AGM, Umeoji reinforced the bank’s pledge to reward its shareholders, noting that Zenith Bank has a consistent track record of dividend payments and intends to sustain that momentum.

She also offered clarification on the rise in interest expenses, attributing it to an expansion in the deposit base and shifts in the Monetary Policy Rate (MPR).

“Our deposit base grew from N15.1 trillion in 2023 to N21.9 trillion in 2024, which affected our interest expenses and required adjustments in our asset pricing,” she explained.

She pointed to the increase in Nigeria’s MPR, from 18.75 per cent in February 2023 to 27.5 per cent in November 2024, as a factor impacting interest payments on deposits, especially savings accounts.

Shareholders voiced approval of the N5.00 final dividend payout and encouraged the bank to maintain its performance in the years to come.

“I’m proud to be both a shareholder and a customer of Zenith Bank. Their consistent professionalism and dependability make it easy to recommend them. The growth in deposits reflects their dedication to customer service,” said Chief Timothy Ayobami Adeshiyan.

“They promised a N5 dividend and they delivered. That kind of reliability strengthens our confidence in the bank,” he added.