Zenith Bank plans strategic investments in banking technology

Nigeria’s financial giant, Zenith Bank, says it will re-channel its efforts in deploying more electronic banking products, following the divestment from non-banking operations in compliance to Central Bank of Nigeria (CBN) directive.

Speaking at its AGM, Managing Director of the Bank, Mr. Peter Amangbo vowed that “Zenith Bank Plc will pursue new markets and roll out new products to enhance value addition, in line with its medium term plans over the next five years. It is aimed at making it one of the top tier banks in Africa”.

Amangbo further noted that Zenith Bank “shall continue to intensify efforts towards making further in-roads into the retail segment of the market with new and innovative products that support small and medium-sized enterprises.”

He said “Notwithstanding that the domestic and global macroeconomic environment in this financial year is predicted to be challenging due to the volatility of commodity prices and global trade tensions, the bank remains “optimistic and primed to harness potential opportunities for outstanding performance.”

“We shall continue to be guided by our core strategy of adapting to market dynamics and the evolving needs of our customers as we seek to continually delight and surpass their expectations,” he added, stressing that “Our focus in the years ahead is to continually create an environment for our people to thrive, while creating value for all stakeholders.

Making his remarks, Board Chairman, Mr. Jim Ovia, was quick to note that the bank is “constantly monitoring developments in the local and global economic environment, and appropriately applying pragmatic and dynamic approaches to the banking business.”

According to him, “Our strategic focus on the pursuit of shared prosperity has positioned us to seek and leverage new opportunities in the market.”

The founder of the bank further disclosed that “In a period of 28 years, Zenith Bank has created diverse service delivery channels for customer satisfaction, and has remained adequately capitalised to meet customers’ expectations and need as a Tier 1 player, and thus remained one of Nigeria’s strongest brand and largest bank, with specific focus on institutional and investment, corporate, commercial, retail and public sector banking. It also has overseas subsidiaries in the UK, and West African region including Ghana, Sierra Leone and The Gambia.

The 2018 Annual Report of the bank revealed further that it will “look to strengthen its retail banking business by doing a retail banking transformation exercise.” This is expected to “significantly grow its retail banking revenue, deposit liabilities, and risk assets, and obtain a significant share of the retail banking industry in Nigeria.”

In the 2018 report, Zenith Bank’s total deposits grew seven per cent to N252billion in at the end of 2018, just as total assets rose six per cent to N6trillion, and profit after tax at 11 per cent to N19.6billion.

Within the period under review, shareholders’ fund increased year-on-year to N816billion or 0.5 per cent, with dividend payout at four per cent, while return on average equity also rose four per cent.