The Group Managing Director and Chief Executive Officer of Zenith Bank, Dr. Adaora Umeoji, expressed optimism that the bank is poised to achieve a remarkable milestone by exceeding N1 trillion in profit by the conclusion of the 2024 financial year.

Umeoji, who took on the role of Group Managing Director and Chief Executive Officer in June, made this statement during the bank’s recent Capital Markets Day event held in Lagos.

The bank’s expansion plans include France and other Francophone African countries. Additionally, the bank intends to establish a fintech subsidiary and raise approximately N230 billion through the ongoing recapitalization process, she revealed.

As per the 2023 annual report, Zenith Bank’s tier-1 capital amounted to N1.8 trillion, shareholders’ funds reached N2.3 trillion, and market capitalization stood at N1.3 trillion.

In addition, the bank’s pre-tax profit amounted to N796 billion, while its post-tax profit experienced a significant increase of 202%, rising from N223.9 billion to N676.9 billion.

At the conclusion of the fiscal year, shareholders were compensated with a dividend distribution of N4 per outstanding share.

Umeoji stated that based on the current performance trajectory of the bank, having achieved a pre-tax profit of N796 billion in 2023 and N320 billion in the first quarter of 2024, the bank is well-positioned to surpass the N1 trillion mark in pre-tax profit for the year 2024.

She also expressed her conviction that, given the caliber of the board and management, as well as the robust corporate culture, the bank is strategically situated to provide exceptional value to investors and other stakeholders, thereby 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.

Umeoji disclosed the bank’s strategic objectives, which include fostering financial inclusion, expanding corporate and retail banking operations through cutting-edge digital platforms, and establishing ZenPay, a fintech subsidiary, to enhance profitability.

Additionally, Dr. Mukhtar Adam, the bank’s Chief Financial Officer and General Manager, noted that Zenith Bank’s revenue has experienced a compound annual growth rate of over 27% during the past five years.

“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 per cent. This is a market where, at some point, government instruments—treasury bills—were paying one per cent, two per cent, three per cent. But we forged ahead to grow the numbers and provide stable returns of at least 28 per cent,” Adam said.

Recently, Zenith Bank achieved dual accolades at the World Finance Banking Awards 2024. The bank retained the title of Best Commercial Bank in Nigeria for the fourth consecutive year, solidifying its position as a leading financial institution in the country. Additionally, Zenith Bank secured the prestigious award for Best Corporate Governance in Nigeria for the third consecutive year in the World Finance Corporate Governance Awards 2024. These recognitions underscore the bank’s unwavering commitment to excellence in both commercial banking and corporate governance practices.