Ebenezer Onyeagwu: Positioning Zenith Bank for Greater Profitability

Zenith Bank under the leadership of Ebenezer Onyeagwu has continued to combine vision, skillful banking expertise, and cutting-edge technology to create products and services that meet customers’ expectations, writes Dike Onwuamaeze

Since he assumed the position of the Group Managing Director/Chief Executive Officer of Zenith Bank Plc on June 1, 2019, Mr. Ebenezer Onyeagwu has continued to introduce initiatives to ensure the financial institution retains its leadership position in the industry.
His achievements in the almost three years of being in the saddle showed that he has maintained his commitment towards ensuring that the bank retained its leadership in the industry.

Despite the challenging macroeconomic environment, Onyeagwu has demonstrated that he has a midas touch considering the strong performance the bank has been recording.
Rated on key parameters such as asset quality, profitability and return to investors, Zenith Bank’s track record has been impressive.
In addition, the bank places a premium on its core business strategy anchored on people, technology and service, to create value for its numerous clientele.

This reflected in its share price performance when Zenith Bank Plc and 14 other highly capitalised stocks on the Nigerian Exchange Limited (NGX) contributed 90.2 per cent or N20.10 trillion to overall N22.3 trillion market capitalisation in 2021.
Its total market capitalisation stood at N789.622 billion as at December 31, 2021, as it led the banking sector on the NGX. Indeed, Zenith Bank has clearly distinguished itself in the banking industry through superior service quality, unique customer experience, and sound financial indices.

As a testament to its resilience and market leadership, Zenith Bank in its unaudited results for the nine months period ended September 30, 2021, posted a profit before tax (PBT) of N180 billion. This represented a one per cent growth over the N177 billion recorded in the same period the previous year, amidst a challenging macroeconomic environment exacerbated by the Coronavirus (COVID-19) pandemic.
The bank grew its total assets and net income by an annual average of 15.7 per cent and 15.5 per cent, respectively, over the last five years, according to a report released by Coronation Merchant Bank.

In recognition of its track record of excellent performance, Zenith Bank emerged the number one bank in Nigeria by tier-1 capital in the 2021 Top 1000 World Banks’ Ranking published by The Banker Magazine, a publication of the Financial Times Group of the United Kingdom.

The bank, with a tier-1 capital of $2.64 billion, retained its ranking as the number one tier-1 bank in Nigeria for the third consecutive year.
In addition, the bank has been making significant progress in its retail banking drive, as evidenced by remarkable growth in transaction volumes and value across its digital platforms and strong growth in customer acquisition. This was part of the reasons why it introduced an Artificial Intelligence (AI) powered Chatbot on WhatsApp named ZIVA (Zenith Intelligent Virtual Assistant), which enables customers to perform financial transactions and enjoy real-time customer service from their mobile phones.

With this solution, customers would be able to enroll by simply adding the bank’s verified WhatsApp mobile number 07040004422 on their mobile devices, agree to the legal terms of use and then initiate a conversation.
This product provides the convenience for the bank’s customers to interact and transact on a 24 hours basis on the encrypted WhatsApp platform, it added.

The bank further explained that with the capability to respond to chats/queries anchored on the existing WhatsApp platform, customers would be able to open new accounts, receive instant transaction notifications, check their balances on the go, transfer funds and top up airtime. They would also be able to confirm cheques, pay bills, apply for loans, block their accounts, and request mini statements, amongst other banking services.

Commenting on the AI banking solution, Onyeagwu said: “The launch of ZIVA is driven by the need for additional secured channels of communication with our customers as we deepen our retail penetration.”

Speaking further on the WhatsApp chatbot, Onyeagwu noted that, “since the behavioural pattern of the modern customer dictates that they want to engage with brands over the channel of their choice, it was really important for us as a leading financial services institution and a pioneer of several technological innovations in the financial services industry to implement this solution in order to continue to create value for our teeming customers who incidentally were already using WhatsApp as a primary channel of communication.”

Clearly, Zenith Bank has continued to distinguish itself in the Nigerian financial services industry through superior service offerings, unique customer experience and sound financial indices.

The bank has remained a clear leader in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels that ensure convenience, speed and safety of transactions.
The bank’s commitment to world-class service standards has led to several product innovations, including the Zenith Timeless Account”, which allows Nigerians aged 60 years and above bank for free, the “Zenith Save4me a high-interest target savings account and the deployment of contactless payments and QR on ATM points, amongst others.

Zenith Bank’s outlook, according to its management remains positive, with anticipation of a declining inflationary trend, expected increase in foreign exchange inflows, and improving oil production.
“The Group remains focused on increasing its retail market share, consolidating its leadership position in the corporate segment and maintaining a robust balance sheet,” it stated.

In recognition of its track record of excellent performance, Zenith Bank was voted as Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and 2021, and Best in Corporate Governance ‘Financial Services’ Africa 2020 and 2021 by the Ethical Boardroom.
Also, Onyeagwu, emerged ‘CEO of the Year’ for a second consecutive year at the Sustainability, Enterprise and Responsibility (SERAS) CSR Africa Awards held in 2021.

According to the judges, Onyeagwu was selected for a number of reasons, including engendering a culture that promotes the continued investment in social initiatives in support of the United Nations Sustainable Development Goals (SDGs).

Under his leadership, the Zenith Bank’s social investments totalled N3.285 billion in 2020, representing nearly two per cent of the bank’s profit after tax. The judges found Onyeagwu worthy for his commitment to promoting sustainability and responsible business practices in Nigeria, through his frontal leadership of sustainability in Zenith Bank, thereby enabling best industry practices in the banking sector. They also chose him for his passion for reducing carbon emissions in the bank’s operations.

Zenith Bank also emerged winner in four other categories at the SERAS CSR Africa Awards, carting home the awards for “Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women Empowerment”, and the coveted “Most Responsible Organisation in Africa”.

The bank was adjudged the “Most Responsible Organisation in Africa,” winning the overall best sustainability award, for its continued commitment to the tenets of Sustainability and Corporate Social Responsibility within its immediate community and in the society at large.

In addition, the bank emerged as winner in the category for Reporting and Transparency for its consistency in disclosing and communicating its sustainability journey and progress annually vis-a-vis environmental, social, and governance (ESG) goals, in line with the guidelines and protocols set by the Global Reporting Initiative (GRI), Nigeria Sustainable Banking Principles (NSBP), Nigerian Exchange (NGX), United Nations Global Compact (UNGC), and United Nations Environment Programme Finance Initiative (UNEP FI).

The bank also ensures the assurance of its sustainability report by reputable independent third parties.
In 2021, the bank’s 2020 sustainability report was assured by PricewaterhouseCoopers (PwC) and disseminated through the Bank’s website for the public and sent to all relevant stakeholders, including the United Nations Global Compact (UNGC).

In the infrastructure development category, the bank was voted winner for its nation-building initiatives and investments, including supporting efforts towards establishing basic services and functional security, governance, and economic and infrastructure systems, especially in Nigeria.
As a testament to this and in demonstration of its commitment to the development (often referred to as reform, restructuring and rebuilding) of the Nigeria Police Force for the preservation of law and order, protection of life and property, and law enforcement in Nigeria, the bank supported the Lagos State Security Trust Fund with N500, 000,000 for the provision of security-enhancing facilities and infrastructure. This was in addition to contributions to other state security trust funds.

Clearly, the Onyeagwu-led Zenith Bank has distinguished itself in the Nigerian financial services industry through superior service offerings, unique customer experience, and sound economic indices.
The bank remains a leader in the digital space with several firsts in deploying innovative products, solutions, and an assortment of alternative channels that ensure convenience, speed, and safety of transactions.