Zenith Bank targets over N1trn profit in 2024 — Umeoji
By Esther Agbo
Zenith Bank is poised to achieve over N1 trillion in profit by the end of the 2024 financial year, according to the bank’s Group Managing Director/Chief Executive Officer, Dr. Adaora Umeoji who took on the role in June.
She made this announcement during the bank’s recent Capital Markets Day in Lagos.
Umeoji also disclosed plans for the bank’s expansion into France and other Francophone African countries, the establishment of a fintech subsidiary, and raising approximately N230 billion as part of its ongoing recapitalization efforts.
According to Zenith Bank’s 2023 annual report, the bank’s tier-1 capital was N1.8 trillion, with shareholders’ funds at N2.3 trillion and a market capitalisation of N1.3 trillion.
The bank reported a profit before tax of N796 billion, while profit after tax surged by 202 per cent to N676.9 billion from N223.9 billion. Shareholders received a dividend of N4 per share for the year.
Umeoji highlighted the bank’s strong performance, noting that with a profit before tax of N796 billion in 2023 and N320 billion in the first quarter of 2024, Zenith Bank is on track to exceed N1 trillion in profit before tax in 2024.
She emphasised the bank’s robust board and management, strong corporate culture, and strategic position to deliver superior value to investors and stakeholders while successfully navigating the recapitalization process.
“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.
“We are looking to raise N230bn because we are already at N270.7bn. That is the least capital to raise among our peers.
“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.
“We are planning for the future, and the technology we have now is the best in the entire industry. It will help us to have a seamless process and integrate,” she stated.
She also outlined the bank’s commitment to driving financial inclusion, expanding corporate and retail banking through advanced digital platforms, and launching a fintech subsidiary, ZenPay, to enhance profitability.
Zenith Bank’s Chief Financial Officer/General Manager, Dr. Mukhtar Adam, noted that the bank’s revenue had grown at a compound annual growth rate of over 27 percent in the last five years, even during challenging economic times.
He said, “This continues to grow year-on-year. Within this period, at some point, Nigeria went into recession, but we forged ahead, worked very hard, and continued to deliver growth. Within the last five years, our profit before tax has also grown cumulatively by about 28 percent.
“This is a market where, at some point, government instruments — treasury bills — were paying one percent, two percent, three percent. But we forged ahead to grow the numbers and provide stable returns of at least 28 percent.”
Recently, Zenith Bank received dual honours at the World Finance Banking Awards 2024, being named Best Commercial Bank in Nigeria for the fourth consecutive year and Best Corporate Governance in Nigeria for the third year running in the World Finance Corporate Governance Awards 2024.
