Zenith Bank: Maintaining Good Corporate Governance Practice

Oluchi Chibuzor writes on the recent recognition of Zenith Bank Plc, for the fourth consecutive year as best financial institution in Africa in terms of corporate governanceEnsuring good corporate governance in the banking industry is becoming increasingly important today given the risks and challenges faced in the sector.

In order to improve the performance of the bank, protect the interests of stakeholders and improve compliance with laws and regulations as well as the code of conduct which applies in general to the banking industry, banks are required to conduct their operations based on the principles of good corporate governance.
Additionally, as part of efforts to improve the quality of implementation of good corporate governance, banks are required to periodically perform a self-assessment of the adequacy of their corporate governance implementation.

The application of principles of good corporate governance in addition to enhancing the competitiveness of banks go a long way in protecting customers, according to Dr. Thobby Wakarmamu, of the Faculty of Economics and Business, University of Cendrawasih, Papua Indonesia.
For Nigeria’s Zenith Bank, which for the fourth consecutive year, was last week named the Best Corporate Governance ‘Financial Services’ Africa 2023 by the Ethical Boardroom, ensuring good corporate governance has been enshrined in its operations.

The award won by the bank, which was published in the Spring 2023 edition of The Ethical Boardroom magazine, was in recognition of Zenith Bank’s adherence to global best practices and institutionalisation of corporate governance, setting an industry-wide example of best practices in that field.
Speaking on the recognition, the Group Managing Director/Chief Executive of Zenith Bank Plc, Dr. Ebenezer Onyeagwu, who has been the driving force behind the bank’s success said: “I am extremely pleased that Zenith Bank has been awarded the Ethical Boardroom Corporate Governance Award as a regional governance champion for the fourth year running. No doubt, the bank’s board has pioneered the exemplary governance culture for which we are now renowned.

“Indeed, this recognition reflects our steadfast commitment, discipline and high ethos in the conduct of our business and dedication to the principles of good corporate governance. This award will motivate us to strengthen this culture internally and advocate for good governance at every forum.”
He dedicated the award to the Founder and Group Chairman, Jim Ovia, CFR, for providing the template for an enduring and very successful institution; the Board for their vision and outstanding leadership; the staff for their dedication and commitment; and the bank’s customers for their unwavering loyalty to the brand.
Zenith Bank has been generally adjudged a corporate governance compliant bank by the Nigerian Exchange Group (NGX), hence its listing on the Premium Board of the Exchange. The bank continues to sustain this reputation and reappraise its processes to ensure that its business conforms to the highest global standards at all times.

As a testament to his quality leadership, Onyeagwu, was today announced as the ‘Best Banking CEO of the Year in Africa’ in the International Banker 2023 Banking Awards. The award, published in the Spring 2023 Issue of the International Banker Magazine, saw Onyeagwu honoured alongside other individuals and banks from the Middle East and Africa.
Expressing gratitude for the recognition, Onyeagwu commended the Publishers of the International Banker for considering him a fitting recipient of the ‘Best Banking CEO of the Year in Africa’ award.

He stated, “This award reflects the bank’s position as a leading financial institution in Nigeria and the African continent. It also attests to our commitment to principles of sustainability and high ethical standards, which have become integral to our overall strategy as an institution”.
He dedicated the award to Ovia, for his guidance and mentorship; the bank’s management team and staff, for being the shoulder upon which his achievements and success as CEO rests; and the bank’s customers for making Zenith Bank their bank of choice.

Onyeagwu’s outstanding career has led to him receiving multiple awards, including Bank CEO of the Year (2019) by Champion Newspaper, Bank CEO of the Year (2020, 2021 & 2022) by BusinessDay Newspaper, CEO of the Year (2020 and 2021) – SERAS Awards, and CEO of the Year (2022) – Leadership Newspaper.
As Group Managing Director/CEO, Onyeagwu has led Zenith Bank to achieve tremendous feats and milestones in financial performance (including 47 per cent growth in the bank’s market capitalisation in four years), financial inclusion, corporate governance and sustainability. These efforts have culminated in several local and international awards and recognitions including being recognised as Number One Bank in Nigeria by Tier-1 Capital, for the 13th consecutive year, in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022; 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 2021 and 2022 in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022; ‘Best in Corporate Governance’ Financial Services’ Africa, for four consecutive years from 2020 to 2023, by the Ethical Boardroom; and the Most Responsible Organisation in Africa 2021 by SERAS Awards.

On March 25, 2023, he was conferred with a Doctorate Degree in Business Administration by the University of Nigeria, Nsukka, Nigeria’s first indigenous University, in recognition of his immense achievements as Group Managing Director/CEO of Zenith Bank as well as his contributions to the growth of the financial services sector in Nigeria and across the African continent. The award was given during the 50th convocation ceremony of the University.
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, had 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.
Just as has been the trend since Onyeagwu assumed the position of GMD/CEO, the financial institution recently announced an impressive unaudited results for the first quarter (Q1) ending 31st March 2023.
The results came in with an exceptional double-digit growth of 41 per cent in gross earnings, increasing from N191.5 billion in Q1 2022, to N270 billion in Q1 2023.

Also, the unaudited statement of account submitted to the Nigerian Exchange (NGX) had indicated that the significant double-digit growth in the topline also boosted the bottom line, with the Group experiencing an impressive 27 per cent year-on-year (YoY) increase in Profit Before Tax (PBT), which rose from N68 billion in Q1 2022, to N86.6 billion in Q1 2023.
It also showed that Zenith Bank’s Profit After Tax (PAT) also grew by 13 per cent, from N58.2 billion to N66 billion during the same period.
“In 2023, the Group will maintain its focus on sustainable growth across all business segments as it restructures into a holding company, introduces new verticals to its businesses, and expands into new frontiers,” the bank explained.

Zenith Bank blazes the trail in digital banking in Nigeria; scoring several firsts in the deployment of Information and Communication Technology (ICT) infrastructure to create innovative products that meet the needs of its teeming customers.
Driven by a culture of excellence and strict adherence to global best practices, the Bank has combined vision, skillful banking expertise, and cutting-edge technology to create products and services that anticipate and meet customers’ expectations; enable businesses to thrive and grow wealth for customers.
With a team of dedicated professionals, the bank leverages its robust Information and Communication Technology (ICT) infrastructure to provide cutting-edge solutions and products through its network of branches and electronic/digital channels.

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 thick, illustrated by the bank’s  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.
Onyeagwu is a Fellow (FCA) of the Institute of Chartered Accountants of Nigeria (ICAN), a Fellow of the Nigerian Institute of Management (NIM), The Chartered Institute of Bankers of Nigeria (CIBN), the Institute of Credit Administrators (ICA) and Senior Associate Member, Risk Management Institute of Nigeria (RIMAN).
Onyeagwu is the Chairman of the Body of Banks’ Chief Executive Officers, Nigeria and Chairman of 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). Onyeagwu is 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 member of 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).

Since assuming the Zenith Bank’s mantle of leader on June 1, 2019, Onyeagwu’s myriad exploits have solidified his sterling leadership qualities.
The Zenith Bank Group recently received approval-in-principle from the Central Bank of Nigeria to convert its present operational structure to a holding company. Once substantive authorisation is received, the bank would get a licence to transit into other businesses within financial services including pensions, insurance, asset management and fintech. These are reflections of better things to come for stakeholders and customers of the bank.