Zenith Bank’s Onyeagwu, Riding High Three Years On

FOCUS

Louis Achi

As Mr. Ebenezer Onyeagwu notches three eventful years in the saddle as the Group Managing Director and Chief Executive Officer of Zenith Bank Plc, having taken over the reins on June 1, 2019, the world and Africa stand on the brink of significant disruption – and of substantial opportunity – as new business models challenge traditional templates.

 This is especially so as the Covid-19 pandemic massively disrupted conventional business playbooks and upended the global economy. 

As it were, only tested pathfinders with vision, knowledge and courage can provide the critical leadership to ensure both stability and progression in their sectors. And this is Onyeagwu’s forte.

As it were, a powerful vision pulls in ideas, people and other resources. It creates the momentum and will to actualise progressive change. It inspires individuals, complementary organisations and institutions to commit, to persist and to give their best.

Enlisting this enduring philosophy, unassuming Onyeagwu has deployed impeccable professionalism, discipline and persistence to change the traditional narrative of the banking sector in Nigeria and the continent.

No less a child of providence who wields influence and authority with alluring humility and exemplary focus, the Zenith Bank boss has demonstrated with his life’s trajectory that faith, accountancy, Banking and International Finance fundamentally address transformation of society and the human condition for good.

To-date and three years in the saddle, he unabashedly maintains this unique footing.

With little question, to manage a behemoth in the scope of Zenith Bank Plc which was founded in May 1990 by the highly esteemed Jim Ovia, it certainly requires a seasoned boss in Onyeagwu’s mould.  

Zenith Bank provides individual customers and corporate clients with a range of financial products and services from over 500 branches and business offices across all states in Nigeria and the Federal Capital Territory (FCT).

It further has presence in the United Kingdom (UK), Ghana, Sierra Leone, The Gambia, United Arab Emirates (UAE) and a representative office in China, and its shares are traded on the Nigerian Exchange (NGX) and the London Stock Exchange (LSE).

 In just over 30 years, it has grown enormously to become Nigeria’s largest and one of Africa’s largest financial institutions by tier-1 capital, with shareholders’ funds of N1.28 trillion ($3.03 billion) as at 31st December, 2021.

Up-scaling an excellent service culture with continuous deployment of state-of-the-art technology to keep the institution at the forefront of Nigeria’s banking industry, the seamless transition at the bank is clear evidence of a well-planned institution and is consistent with the bank’s tradition and succession strategy of grooming leaders from within.

Indisputably an industry leader in the Nigerian financial space, with several firsts in the deployment of innovative products and solutions that ensure convenience, speed and safety of transactions, Zenith Bank boasts of a team of dedicated and well-trained professionals.

It leverages its robust Information and Communication Technology (ICT) infrastructure to provide products and services through its network of branches, point-of-sales terminals and electronically through its internet and mobile banking channels.

More, the pack leader places premium on its core business strategy which is anchored on “People”, “Technology” and “Service” to create value for its clientele. Aligning closely with global best practices, the bank combines market knowledge, professionalism, expertise and ICT to create products and provide services that anticipate and meet customers’ dynamic needs.

To sync its processes with global best practices and support the achievement of the sustainable Development Goals (SDGs), Zenith Bank continues to maintain its commitments as member and signatory to various domestic and international sustainability frameworks including the United Nations Global Compact (UNGC) and the Central Bank of Nigeria Sustainable Banking Principles.

Zenith Bank is also a member of the United Nations Environment Programme Finance Initiative (UNEP FI) and a founding signatory of the UNEP FI Principles for Responsible Banking (PRB). After joining 130 banks across the globe to launch the Principles in September 2019, the Bank has energetically pursued the implementation of the Principles thereafter, signifying its intention to create value for its shareholders, customers, clients, investors, communities and the environment through its practices, operations and investments.

On the Corporate Social Responsibility (CSR) front, the bank boasts a myriad of initiatives and donations. It contributes significantly to the sustainable development of many local communities across Nigeria anchored on an empathetic understanding of the developmental gap that exists across many rural communities in Nigeria.

 Provision of access roads, potable water for local communities, establishment of health centers and cottage hospitals, provision of free agricultural extension services to the host communities amongst others took center stage.

Also while the extreme impact of coronavirus on society has scaled down, many communities are still experiencing bracing challenges to rebuild from the economic and social losses of the pandemic. Zenith Bank continues to play an active role in rebuilding with its communities.

 In 2021, Zenith Bank’s total CSR investment was N4.37 billion, representing 1.79 per cent of its profit after tax (PAT) and 33.1 per cent increase from 2020. The bank remains one of the biggest spenders on social investment in the Nigerian corporate space.

In the crucial arenas of security, sports, health, education and others, Zenith Bank has posted sterling and enduring interventions. These involved promotion of security of lives and property which remained a significant social investment in 2021.

The previous year, its need-gap analysis revealed that security remains a fundamental need of local communities. In 2021, it invested the sum of N2.78 billion in its various partnerships with the local communities, the federal, state and local governments, and other relevant agencies to preserve public peace, and ensure a crime-free environment.

In 2021, the bank supported the Private Sector Health Alliance of Nigeria, a health initiatives complementing government’s efforts at improving life expectancy in the country.   

The education sector remains a key area of its attention as the bank continues to pay great attention to championing SDG4 (Quality Education). It expended about N776.5 million towards educational initiatives in the outgone financial year.

Certifications of Zenith Bank by the International Standards Organisation (ISO) speak to its sheer focus and commitment. A non-exhaustive check-list: It is certified ISO/IEC 27001:2013 (Information Security Management System), ISO/IEC 20000-1:2011 (IT Service Management System) and ISO 22301:2012 (Business Continuity Management System) by the British Standards Institution (BSI).

 Zenith’s credit ratings include: (A) Standard and Poor’s ratings – B/Stable/B (Issuer Credit Rating) and ngBBB/ngA-2 (National Scale Rating); (B) Fitch ratings – (1) Long-term foreign currency IDR: ‘B+’ – Negative Outlook (2) Short-term foreign currency IDR: ‘B‘ (3) National Long-term rating: ‘AA-(nga)’ (4) National Short-term rating: ‘F1+(nga)’ and (C) Moody’s ratings – (1) Long Term Debt – B2 with Stable Outlook (2) Foreign currency deposit – B3.

 In its recently released unaudited results for the first quarter (Q1) ended 31st March 2022, the bank achieved an impeccable growth of 22 per cent in gross earnings from N157.3 billion reported in Q1 2021 to N191.5 billion in Q1 2022. From the unaudited statement of account presented to the Nigerian Exchange (NGX) in April, the strong double-digit growth in the topline culminated in an increase in the bottom line, as the Group recorded an 11 per cent Year-on-Year (YoY) increase in profit before tax, growing from N61.02 billion in Q1 2021 to N67.99 billion in Q1 2022. 

 Zenith Bank’s stellar record of excellent performance not surprisingly has earned the brand numerous awards by reputable domestic and global organisations. It was voted as Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria in the International Banker 2022 Banking Awards and Best Corporate Governance, Nigeria in the World Finance Banking Awards 2022.

It was also voted Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021; Best in Corporate Governance ‘Financial Services’ Africa, for three consecutive years from 2020 to 2022, by the Ethical Boardroom; and Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020.

 Zenith Bank also emerged the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Number One Bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks” Ranking by The Banker Magazine and the Retail Bank of the year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021.

 Similarly, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the THISDAY Awards 2020 and emerged winner in four categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, 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.

Zenith Bank’s GMD/CEO’s choice as one of Africa’s biggest financial institutions tacitly acknowledges the capacity of focused individuals to transform their sector, effectively manage new disruptions and hence positively impact society for the better.

For three years, he has provided clear, pragmatic leadership in his industrial sector. Today, he has been deservedly transformed into an active, focused national and continental industry leader; a genuine pathfinder.

The position of CEO carries considerable weight, especially in charting the course of bold engagement with the critical elements in the financial sector mix and especially so when the occupant enjoys the total confidence of his board as Onyeagwu undoubtedly does as he targets the zenith with Zenith Bank.

He certainly is not the kind of professional who stays tamely at the receiving end of received policy prescriptions.

He covets knowledge-driven innovations, proactive engagement with stake-holders, policy makers, fluid operating environments and sure-footed action. These dimensions have been boldly mirrored in his nimble leadership of one of the continent’s foremost banking behemoths.

Little wonder he was feted as Bank CEO of the Year for 2020 and 2021 respectively by the respected BusinessDay Newspaper and CEO of the Year 2020 by SERAS Awards.