Ebenezer Onyeagwu: The Helmsman Taking Zenith Bank Above The Summit

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By Obinna Chima

It was a grand occasion characterised by a flurry of activities. The decorous audience was exquisitely dressed. There was excitement in the air as their admiration of the man of honour reached a climax. For many years, many great Nigerians have walked this aisle of glory. Amidst the graceful grins and gleeful greetings, everyone looked up to welcome the Group Managing Director and Chief Executive Officer of Zenith Bank, Ebenezer Onyeagwu, at his conferment of a doctorate by the University of Nigeria, Nsukka (UNN).

His unassuming bespectacled visage belies his ingenuity, dexterity and sublime vivacity. Inspiring in silence and action, Onyeagwu is a sure-footed leader of men with a sense of corporate clairvoyance. He makes today’s Zenith Bank ticks, illustrated by the bank’s financial performance, agile organisation, enduring conducive corporate culture and cordial stakeholders relations. Futuristic in thought and approach, Onyeagwu, as a transformational leader, is committed to Zenith Bank’s vision that promotes re-engineering and innovation.

Since assuming the Zenith Bank’s mantle of leader on June 1, 2019, Onyeagwu’s myriad exploits have solidified his sterling leadership qualities. He does not waver. Onyeagwu always wins for the good of humanity, corporate sustainability, and the profitability that ensures prosperity. The media-shy Zenith Bank CEO remains a deep thinker and goal-oriented strategist devoted to the art of deepening success and widening opportunities. Onyeagwu has not faltered.

Little wonder, he was recently awarded a doctorate in Business Administration by UNN.

The award, which was in recognition of his immense achievements as the GMD and CEO of Zenith Bank and his contributions to the growth of the financial services sector in Nigeria and the African continent, was conferred on him during the 50th convocation ceremony of the university. Speaking during the ceremony, the UNN Vice-Chancellor, Prof Charles Igwe, congratulated Onyeagwu for distinguishing himself in his career and for his service to humanity, which made him worthy to receive the prestigious Doctorate Degree from Nigeria’s first indigenous university.

In his acceptance speech, Onyeagwu expressed his gratitude to UNN for finding him a worthy recipient of the honorary doctoral degree in Business Administration of one of the leading universities in Nigeria, considering the rigorous selection process of awardees by the institution.

He said, “For me to have been considered and to have passed through the meticulous selection process makes it more dignifying because I have no connection with the university.”

Noting that the award represented a validation of the outstanding corporate governance, ethical leadership, and overall outstanding performance that Zenith Bank was recording, Onyeagwu dedicated the award to the board and management of Zenith, especially the founder and chairman, Jim Ovia, “who has remained a mentor, a leader and a source of inspiration to everyone at the bank and beyond; the staff, for being the shoulder and proverbial base of the pyramid upon which his achievements and success as CEO of the leading financial institution in Nigeria rest; the bank’s customers for their unflinching loyalty to the brand; and to his family for their unceasing love and support.”

Presenting the citation of Onyeagwu to the assemblage at the 50th convocation for the conferment of the doctorate in Business Administration, the orator of the university, Dr Ikenna Onwuegbuna, noted that the Zenith Bank CEO “is an alumnus of Auchi Polytechnic, the University of Oxford, England and Salford Business School, University of Salford, Manchester, United Kingdom, Delta State University, Abraka.”

He added, “Also, he is an alumnus of 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.”

Beyond academics, Onyeagwu’s leadership at Zenith has continued to reflect on the bank’s financial performance, and he is not about to slow down anytime soon. For instance, Zenith Bank’s recently released full-year 2022 results showed an impressive double-digit growth of 24 per cent in gross earnings, from N765.6 billion reported in the previous year to N945.5 billion in 2022 despite the persistent challenging macroeconomic environment and headwinds.

According to the audited financial results for the 2022 financial year presented to the Nigerian Exchange (NGX), the double-digit growth in gross earnings was driven by a 26 per cent year-on-year growth in interest income from N427.6 billion to N540.2 billion and a 23 per cent year-on-year growth in non-interest income from N309 billion to N381 billion.

Profit before tax also grew by two per cent from N280.4 billion to N284.7 billion in the current year. The increase in profit before tax was due to the significant growth in all the income lines. It also showed that impairments grew 107 per cent from N59.9 billion to N124.2 billion, while interest expense grew 63 per cent year-on-year from N106.8 billion to N173.5 billion, respectively. The bank explained that the impairment growth, which also resulted in an increase in the cost of risk (from 1.9 per cent in 2021 to 3.3 per cent in the current year), was due to the impact of Ghana’s sovereign debt restructuring programme.

The growth in interest expense increased the cost of funds from 1.5 per cent in 2021 to 1.9 per cent in 2022 due to hikes in interest rates globally. Similarly, Zenith Bank’s customer deposits increased by 39 per cent, growing from N6.47 trillion in the previous year to N8.98 trillion in the current year. The growth in customer deposits came from all products and deposit segments (corporate and retail), thus consolidating the bank’s market leadership and indicating customers’ trust.

The continued elevated yield environment positively impacted the bank’s net interest margin (NIM), which grew from 6.7 per cent to 7.2 per cent due to an effective repricing of interest-bearing assets. Its operating expenses grew by 17 per cent year-on-year, but growth remains below the inflation rate. Its total assets increased by 30 per cent, growing from N9.45 trillion in 2021 to N12.29 trillion, mainly driven by growth in customer deposits.

With the steady and continued recovery in economic activities, the group grew its gross loans by 20 per cent, from N3.5 trillion in 2021 to N4.1 trillion in 2022, which increased its non-performing loan (NPL) ratio modestly from 4.2 per cent to 4.3 per cent year-on-year. The capital adequacy ratio decreased from 21 per cent to 19 per cent, while the liquidity ratio improved from 71.2 per cent to 75 per cent. Both prudential ratios are well above regulatory thresholds.

In 2023, the group intends to expand its frontiers as it also reorganises into a holding company structure, adding new verticals to its businesses and growing in all its chosen markets, both locally and internationally. As a testament to its commitment to shareholders, the bank announced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share.

In addition, Zenith Bank under Onyeagwu recently emerged as the Best Bank in Nigeria in the Global Finance Magazine’s Best Banks Awards 2022, retaining the award for a third consecutive year. The bank was among other banks from 36 countries in Africa, recognised as the prestigious Global Finance and announced its 29th Annual Best Bank Awards Winners. The bank places a premium on its core business strategy anchored on people, technology and service to create value for its numerous clientele.

With a team of dedicated professionals, the bank leverages its robust information and communication technology infrastructure to provide cutting-edge solutions and products through its network of branches and electronic/digital channels, reaching for higher heights under Onyeagwu’s transformational leadership. Thus, Zenith Bank has been well-positioned to continue meeting all its customers’ expectations and maintain its leadership position in the industry.

Onyeagwu, the Zenith Bank honcho, is a fellow of the Institute of Chartered Accountants of Nigeria (ICAN), the Nigerian Institute of Management (NIM), the Chartered Institute of Bankers of Nigeria (CIBN), and the Institute of Credit Administrators (ICA). He is a senior associate member of the Risk Management Institute of Nigeria (RIMAN). He is the chairman of the Body of Banks’ Chief Executive Officers, Nigeria, Zenith Pensions Custodian Limited and Zenith Nominees Limited.

He is also on the board of Zenith Bank (UK) Limited, FMDQ Holdings Plc and Lagos State Security Trust Fund (LSSTF). He is also a member of the International Monetary Conference (IMC), the Wall Street Journal CEO Council, member of the African Trade Gateway Advisory Council of the Africa Export-Import Bank (Afreximbank), and the Governing Council of the Chartered Institute of Bankers of Nigeria (CIBN). 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).

Onyeagwu’s track record of excellence has also seen him win several individual awards, including the Bank CEO of the Year (2019) by Champion Newspaper, Bank CEO of the Year (2020, 2021 and 2022) by BusinessDay Newspaper, CEO of the Year (2020 and 2021) by SERAS Awards, and CEO of the Year (2022) by Leadership Newspaper.