Ebenezer Onyeagwu: Keeping Eyes on the Prize at Zenith Bank

Zenith Bank Plc has not only been winning more customers through its digital capability and its arrays of irresistible product offerings, but it has also succeeded in maintaining the confidence of its teeming shareholders with mouth-watering returns on investment, a feat which its current Group Managing Director, Ebenezer Onyeagwu described as unstoppable, reports Festus Akanbi

In Nigeria today, the pulse of the banking industry is determined by developments in five Tier-1 Banks namely, Zenith Bank Plc; Guaranty Trust Bank (Guaranty Trust Holding Company Plc); First Bank of Nigeria (FBN Holdings); Access Bank Plc, and United Bank for Africa Plc.
In the ensuing rat race among these front-runner banks, recourse is being made to core competence, innovation, and boldness to explore and satisfy the specific needs of bank customers as these industry leaders cover new grounds in Nigeria, other parts of the African continents, and Europe.

Zenith Bank: Staying on Top of Ladder
This is the competition where Zenith Bank has continued to stay on top of the ladder, in defiance of the growing difficult operating environment in Nigeria. And this is why some chroniclers of the emerging trends in the Nigerian banking industry are showering praises on the current Group Managing Director of Zenith Bank, Mr. Ebenezer Onyeagwu for not only maintaining the we-can-do-it attitude of his predecessors in the bank but for revolutionising the way the bank goes about its operations ever since 2019 when he came to the saddle. Zenith Bank Plc, through its subsidiaries, provides banking and other financial products and services in Nigeria, the rest of Africa, and internationally.
For his efforts and those of his management team, Zenith Bank was ranked as the Number One Bank in Nigeria by Tier-1 Capital in the 2021 Top 1000 World Banks Ranking published by The Banker Magazine. For the third consecutive year, the bank retained its position as the number one Tier-1 bank in Nigeria with a Tier-1 Capital of $2.64 billion, emerging as the 454th bank globally and the only Nigerian bank in the top 500.
The ranking, which was published in the July 2021 edition of The Banker Magazine of the Financial Times Group, United Kingdom, was based on the 2020 year-end Tier-1 capital of banks globally.

Culture of Profitability
However, judging by its latest results, which covered its 2021 operation, Zenith Bank can be described as a hugely profitable bank.  In its 2021 full-year audited financial statement, the bank reported a profit after tax of N244.5 billion, the highest on record. This reflects a 6.07% increase year on year.
The bank also reported earnings per share of N7.79, which is six per cent higher than the N7.34 reported a year earlier. This means that Zenith Bank has now grown its earnings per share every year since 2016.
The financial statement revealed a 7.05% growth in Interest Income from N420.81 billion to N427.60 billion in the current period. Zenith Bank’s profit performance is on the back of an impressive all margin growth as income from interest and trading income all rose year on year.
An analysis of the result showed that the Net Interest income which it earns from its lending business rose 7% to N320.8 billion. As a result of its innovation, the bank’s commission and fees rose 31% to N103.9 billion year on year. It also raked in N167.4 billion in net trading income, representing a 37.6% increase year on year.
Still, within the period under review, Zenith Bank grew its deposits by 21.2% to N6.4 trillion while its total asset is now N9.4 trillion. Net assets rose 14.4% to N1.27 trillion.

Market Capitalisation
Zenith Bank gained N62.79 billion w-o-w after its market capitalisation appreciated N784.91 billion from N722.12 billion at the end of last week. This appreciation can be attributed to the 8.70% growth in its share price, from N23.00 traded at the end of the previous week, to N25.00 at the end of last week.

Shareholders’ Endorsement
Expectedly, the feat was loudly celebrated by the bank’s shareholders at its annual general meeting that took place in Lagos on April 6. They expressed their delight at the final dividend payment of N2.80 per share which brings the total dividend for the 2021 financial year to N3.10 per share with a total value of N97.33 billion.
In his reaction, Chairman Emeritus of the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, expressed the delight of shareholders over the consistent payment of dividends by Zenith Bank, noting that the bank’s shares remain the toast of investors because the bank has never failed to pay dividends to shareholders.
Another shareholder activist, who is also the President of the Association of the Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said: “The bank is doing very well. All the ratios and indices have gone up. The leadership of the bank has been very effective; we thank Jim Ovia for the leadership he has been giving, he has increased the dividend despite the economic hardship in the country, and I believe the GMD is doing very well.”
It was a testimony time for the Founder and Chairman of Zenith Bank Plc, Mr. Jim Ovia, who thanked the shareholders for their unflinching loyalty, which has enabled the bank to rise to the pinnacle of the nation’s financial services industry, and assured them of the bank’s commitment to consistently deliver superior value to them.

Zenith Bank Unstoppable
Speaking on the bank’s performance, the Group Managing Director/Chief Executive, Mr. Ebenezer Onyeagwu, said: “if you look at the bank’s history over the years, Zenith Bank has always grown, and even within the pandemic, we have maintained a reasonable positive growth trajectory. Growth is coming from the fact that we are deploying our digital capability to grow more businesses, simplify our service processes, make our processes more efficient, and deal with customers’ complaints. Apart from developing new products, we are discovering new business verticals, especially within the retail segment, which have significant revenue.” He added that: “meeting the expectation of shareholders means we have to work harder. The team is dodged, hardworking, resilient, and above all, we have a very supportive board that comes with superior guidance”.
Onyeagwu, who has been in the driver’s seat since June 1, 2019, is a graduate of Accounting from Auchi Polytechnic, Nigeria. He qualified as a Chartered Accountant (ACA) of the Institute of Chartered Accountants of Nigeria (ICAN) in 1989 and became a Fellow (FCA) of ICAN in 2003. He is also a Fellow of the Institute of Credit Administration (ICA) in Nigeria. He is an alumnus of the University of Oxford, England, where he obtained a Postgraduate Diploma in Financial Strategy and a certificate in Macroeconomics. He also undertook extensive executive-level education at Wharton Business School of the University of Pennsylvania, Columbia Business School of Columbia University, and the Harvard Business School of Harvard University, in the United States.
Apart from his transformative leadership in Zenith bank, Onyeagwu is also the Chairman of Zenith Pensions Custodian Limited and Zenith Nominees Limited. He is also on the Board of Zenith Bank (UK) Limited, FMDQ Holdings Plc, Shared Agent Network Expansion Facilities (SANEF) Limited, and Lagos State Security Trust Fund (LSSTF). He also served on the board of Zenith Bank Ghana Limited, Zenith General Insurance, Zenith Securities Limited, Zenith Assets Management Company, Zenith Medicare Limited, and Africa Finance Corporation (AFC).
For his uncommon leadership style, Onyeagwu has won many awards chief among which were Bank CEO of the Year 2019 by Champion Newspapers and Bank CEO of the Year 2020 by BusinessDay Newspapers. Apart from his recognition, Oyeagwu has led the bank to win several awards too. For instance, Zenith Bank, under his stewardship was named Most Valuable Banking Brand in Nigeria 2020 (The Banker), Biggest Bank in Nigeria by tier-1 capital 2020 (The Banker), Best Bank in Nigeria 2020 (Global Finance Magazine), Best Corporate Governance ‘Financial Services’ Africa 2020 (Ethical Boardroom), Bank of the Decade (People’s Choice) – THISDAY Awards 2020, Bank of the Year 2020 (Independent Newspapers), and Retail Bank of the Year 2020 (BusinessDay Newspapers).