Connect with us

Banking

Zenith Bank, GTBank May Acquire Other Banks

Published

on

By Dipo Olowookere

The duo of Zenith Bank Plc and Guaranty Trust Bank (GTBank) have expressed the possibility of expanding their operations through the acquisition of other financial institutions.

It is an open secret that the two banks, which are among the top five tier-one lenders in the country, run a policy of growing organically unlike one of its peers, which has expanded its operations by swallowing smaller financial institutions.

Addressing analysts from Lagos few days ago, the new Group Managing Director of Zenith Bank, Mr Ebenezer Onyeagwu, said the bank will not hesitate to acquire any available lender that falls in line with its (Zenith Bank) vision.

“In terms of acquisition, we will continue to grow organically, but if we find anything attractive in the market, that is in line with our strategic imperative, we will look at it.

“But we will not go out inordinately to seek for acquisition, but if we find something that is quite attractive and really fits the kind of profile of the investment that we do, we will consider [it].” Mr Onyeagwu said at the conference call, which Business Post was also part of.

Speaking further, the Zenith Bank chief said, “On the opportunity to acquire any of the retail lender; first is that we will continue to grow organically, that is our primary goal. If we find anything that is strategically relevant and would add reasonable value to us, we will look at it.

“We will not just do acquisition for the sake of doing it, we will do it [because] there is money to be made, there is incremental value, not for cosmetic reasons.”

Commenting on whether Zenith Bank wants to remain the largest bank in the country, the respected banker said, “There is a pecking order where we stand and we want to defend that. That is the legacy passed on to us by our leader.”

“It can’t be that under this exco team led by me, that we will lower the standard, no. The whole essence is to project and maintain our leading position in the market; no matter the condition or situation, we will do everything possible to maintain our prime position,” Mr Onyeagwu declared.

Earlier, in its conference call, GTBank said it was also considering expanding its operations in the banking space, however, outside Nigeria if the right deal comes its way.

Addressing analysts from its based in Lagos, the GMD of GTBank, Mr Segun Agbaje, said his bank will not rush into acquiring any lender for the sake of it.

“In terms of growing strategy, I am trying to be very careful because a lot of these things are strategic and require approvals I can’t make alone.

“We will start to look at other things, probably outside of what you are seeing us do now, some of it might be to look at making acquisitions outside of Nigeria so that we can [spread] to certain region.

“But I think it would be wrong for me to say at this point that we will not consider other option of growing [inorganically] because as a bank, we would continue to grow. We would broaden our options,” he said at the analyst call last week, which also had Business Post in attendance.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

Click to comment

Leave a Reply

Banking

Access Bank Opens Branch in Malta to Strengthen Europe-Africa Trade Ties

Published

on

Musicians Access Bank Opebi

By Modupe Gbadeyanka

To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.

It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.

Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).

Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.

Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.

This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.

It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.

“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.

“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.

“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).

“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.

Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”

Continue Reading

Banking

Goldman Sachs, IFC Partner Zenith Bank, Stanbic IBTC, Others to Empower Women Entrepreneurs

Published

on

Zenith Bank $500m Eurobond

By Adedapo Adesanya

The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.

The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.

Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.

Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.

“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”

Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.

“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.

Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.

Continue Reading

Banking

Development Bank of Nigeria Wins Financial Inclusion Leadership Award

Published

on

Development Bank of Nigeria

By Aduragbemi Omiyale

In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.

This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.

The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.

“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.

“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.

On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.

“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.

“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.

“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.

Continue Reading

Trending