As Ebenezer Onyeagwu Delivers Bumper Harvest to Shareholders

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James Emejo

Zenith Bank Plc recently announced its audited results for the half-year (H1) ended 30 June 2023, which showed that the bank recorded astounding triple-digit growth of 139 per cent in gross earnings, from N404.8 billion reported in H1 2022 to N967.3 billion in H1 2023.

The result was a clear demonstration of the financial institution’s resilience and strong market share despite a very challenging macroeconomic environment and persistent headwinds. It also a reflection of the enormous amount of work the entire Zenith Bank staff led by its Group Managing Director/Chief Executive Officer, Dr. Ebenezer Onyeagwu, put in, in the first six months of 2023, to deliver bumper harvest to shareholders. Onyeagwu is unassuming and committed to his job. 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.

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.

According to the bank’s audited half-year financial results presented to the Nigerian Exchange (NGX), the triple-digit growth in the top line also spurred the bottom line as the Group recorded a 169 per cent year-on-year (YoY) increase in profit before tax, growing from N130 billion in H1 2022 to N350.4 billion in H1 2023.

Its profit after tax also grew by triple digits, growing by 162 per cent from N111.4 billion to N291.7 billion in the same period. The growth in gross earnings arose from both interest income and non-interest income. Interest income also grew by 72 per cent, from N241.7 billion in H1 2022, to N415.4 billion in H1 2023, while non-interest income grew by 246 per cent, from N149 billion to N515.7 billion.

The growth in interest income was attributed to the impact of both the growth and repricing of risk assets.  The liberalisation of the foreign exchange market during the period spurred the growth in non-interest income as revaluations gains improved significantly.

In terms of efficiency, the results showed that Zenith Bank’s cost-to-income ratio improved from 58 per cent to 38.5 per cent in the current period on the back of an enhanced income line.

The liberalisation of the foreign exchange market coupled with the heightened risk environment resulted in cost of risk growing from 1.4 per cent to 8.8 per cent just as its cost of funding also grew YoY from 1.4 per cent in H1 2022 to 2.6 per cent in H1 2023. because of the spike in interest rates between both periods as interest expense grew from N57 billion in H1 2022 to N153.6 billion in H1 2023.

In addition, its total assets grew by 31 per cent from N12.3 trillion to N16 trillion in December 2022, mainly driven by growth in customers’ deposits and the devaluation of the local currency. Customers’ deposits grew by 30 per cent, from N9 trillion in December 2022, to N11.6 trillion in June 2023.

Loans and advances also grew by 32 per cent, from N4.12 trillion in December 2022, to N5.38 trillion in June 2023, partly due to the revaluation of the foreign currency denominated loans as well as growth in local currency loans. Non-performing loans ratio improved from 4.3 per cent to 3.9 per cent in December 2022, despite the deterioration of the macros and heightened risk environment because of the currency mix of risk assets, while capital adequacy ratio improved from 19.8 per cent to 22 per cent and liquidity ratio reduced from 75 per cent to 61 per cent in the current period.  Both prudential ratios were still well above regulatory thresholds.

“The reorganisation into a holding company structure has advanced, as the Group adds new verticals to its businesses and expand into new frontiers.  As the year progresses, the Group will continue to remain dynamic in anticipating and responding to the changes in the fiscal and monetary environments in order to sustain growth across all its business segments and markets,” the bank explained.

Onyeagwu was recently named ‘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. He had stated that the feat reflected the bank’s position as a leading financial institution in Nigeria and the African continent. It also attested to its commitment to principles of sustainability and high ethical standards, which have become integral to our overall strategy as an institution.

He had dedicated the award to the Founder and Chairman, Jim Ovia, CFR, 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 had 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.

Few weeks ago, it was double honours for Zenith Bank Plc at the London Stock Exchange (LSE) as the bank was named the Best Commercial Bank in Nigeria for the third year running and Best Corporate Governance Bank, Nigeria, for a second consecutive year at the World Finance Awards 2023. The awards were presented to the Group Managing Director/Chief Executive Officer of Zenith Bank Plc, Dr. Ebenezer Onyeagwu, at the LSE. The recognitions celebrated the bank’s tremendous feats and milestones in financial performance, financial inclusion, corporate governance, and sustainability.

Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1 Capital, for the 14th consecutive year, in the 2023 Top 1000 World Banks Ranking published by The Banker Magazine; Best Commercial Bank, Nigeria, for three consecutive years from 2021 to 2023, in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022 and 2023; 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 in Corporate Governance’ Financial Services’ Africa, for four successive years from 2020 to 2023, by the Ethical Boardroom; Most Sustainable Bank, Nigeria in the International Banker 2023 Banking Awards; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards.

Clearly, the impressive earnings have excited shareholders of the bank as it delivers value to their investments and incentivises them to continue holding the bank’s shares.