Banking
We’ll Surpass N1trn Profit Target for FY 2024—Zenith Bank CEO
By Dipo Olowookere
One of the tier-1 lenders in Nigeria, Zenith Bank Plc, has expressed confidence to meet and surpass a profit of N1 trillion in the 2024 financial year.
The chief executive of the financial institution, Ms Adaora Umeoji, gave this assurance when the company engaged critical stakeholders in the Nigerian capital market ahead of its capital-raising exercise designed to meet the new minimum capital requirements of the Central Bank of Nigeria (CBN).
Zenith Bank, which has a presence outside the country, is expected like its peers to have at least N500 billion as a capital base.
The lender currently has N270.7 billion and will need to raise about N230 billion.
“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 N230 billion because we are already at N270.7 billion. 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,” Ms Umeoji said at the event.
Business Post reports that in the 2023 fiscal year, Zenith Bank posted shareholders’ funds of N2.3 trillion, a profit before tax of N796 billion, and a market capitalisation of N1.3 trillion, paying a dividend of N4 per share.
In the first quarter of 2024, the financial institution recorded a pre-tax profit of N320 billion, showing signs that it could hit the N1 trillion-mark by the end of the year.
According to Ms Umeoji, this would be achieved because of the quality of the board and management and a strong corporate culture in the bank and plans to drive financial inclusion, expand corporate and retail banking through technology and other state-of-the-art digital platforms, and the establishment of a fintech subsidiary, ZenPay, to drive profitability.
Last year, Zenith Bank achieved a remarkable triple-digit growth of 125 per cent in gross earnings at N2.123 trillion versus N945.6 billion in 2022, primarily driven by growth in interest and non-interest income.
Specifically, interest income jumped by 112 per cent to N1.1 trillion from N540 billion as a result of the growth in the size of risk assets and their effective repricing, alongside the increase in yield of other interest-bearing instruments over the year.
Also, the non-interest income grew by 141 per cent to N918 billion from N381 billion due to significant trading gains and an increase in gains from the revaluation of foreign currencies.
In the year, the cost of funds went up by 3.0 per cent from 1.9 per cent because of the high interest rate environment, with interest expense up by 135 per cent to N408.5 billion from N173.5 billion, though the cost-to-income ratio improved significantly to 36.1 per cent from 54.4 per cent due to improved top-line performance despite a 32 per cent hike in operating expenses in 2023.
Business Post reports that Zenith Bank ended the accounting year with a year-on-year 202 per cent rise in post-tax profit of N676.9 billion versus N223.9 billion in the preceding year.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
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