Zenith Bank’s Group Managing Director/CEO, Dame Adaora Umeoji, has reassured shareholders of the bank’s unwavering commitment to safeguarding their interests as it embarks on a significant N290 billion capital raise.
L-R: Louis Odom, Executive Director, Zenith Bank Plc (left); Adamu Lawani, Executive Director (second left); Femi Shobanjo, Chief Executive Officer, NGX Regulation (NGX RegCo) (third left); Jude Chiemeka, Chief Executive Officer, Nigerian Exchange Limited (NGX) (fourth left); Temi Popoola, Group Managing Director/CEO, NGX Group (fifth left); Dame Adaora Umeoji, OON, Group Managing Director/Chief Executive, Zenith Bank Plc (fifth right); Ahonsi Unuigbe, Chairman, NGX Group (fourth right); Henry Oroh, Executive Director (third right); Adobi Nwapa, Executive Director (second right), and Akin Ogunranti, Executive Director, during Zenith Bank’s facts behind the offer at the Nigerian Exchange Limited (NGX) in Lagos, on Monday.
Speaking at the “Facts behind the combined offer by Zenith Bank Plc,” Umeoji emphasized that the rights issue and public offer have been meticulously structured to prioritize the interests of existing shareholders while supporting the bank’s ambitious expansion plans.
She reassured shareholders that the bank’s expansion plans—including new operations in Paris and broader growth across Africa—will translate into greater value for their investments. She highlighted the strategic allocation of the funds: 35% will go towards expanding the bank’s footprint, 20% will enhance IT infrastructure, and 45% will be used as working capital, particularly in supporting the retail and SME sectors.
“We are offering approximately 5.23 billion units of shares at N36 per share exclusively to our existing shareholders through a rights issue, allowing them to maintain their equity and benefit from the bank’s future growth,” Umeoji stated. The allocation of 65% of the newly issued shares to current shareholders underscores the bank’s strategic intent to avoid diluting their stakes as it raises capital to fund expansion and operational enhancements.”
Zenith Bank’s expansion strategy, which includes launching operations in Paris to serve the African Francophone market, as well as bolstering its presence across Africa and other regions, is set to drive significant growth.
Umeoji highlighted that these initiatives are designed to deliver long-term value to shareholders, with 35% of the funds earmarked for geographic expansion, 20% for upgrading IT infrastructure, and 45% allocated as working capital to support critical sectors of the economy, including retail and SMEs.
“It may interest you to know that as of December 31 2023 Zenith bank, tier one capital was 1.9 trillion Naira being the highest in the Nigerian banking industry. As shareholders’ funds stood at 2.3 trillion Naira being the highest again, in the Nigerian banking industry. We recorded a market capitalization of 1.3 trillion, also the highest in the Nigerian banking industry. Our PBT stood at 796 billion, also the highest in the Nigerian banking industry. That actually made us the most profitable bank In Nigeria.
“We paid a dividend of four Naira per share, which is also the highest paid by any bank in Nigeria. And this trend of being the highest paid dividend bank has been sustained for the past five years. Another point to note is that this dividend payout is actually from our organic profit without Fs revaluation gain. We just paid 25% So the room and the gap is there to pay more to our shareholders. Our total deposit liabilities to that N15.2 trillion Naira placing us among the top three banks in Nigeria. We recorded the largest loan portfolio of 7.1 trillion Naira, and yet our NPL stood at 4.4%, which is below industry average.
“This shows our solid risk management capacity the total assets of the bank through their 20 point 4 trillion naira. We have a network of 447 branches and cash centers as well as 2101 100 ATMs across Nigeria and other countries. We have leverage on our huge network of agents to take banking services to the unserved and underserved community to consolidate our financial inclusion strategy.
“These achievements or more have encouraged us to expand our footprints in Africa, Europe, China, or United Arab Emirates. Investment in our people, technology and service has transformed us into a global brand, placing us among the top 10 in Africa and the best in Nigeria”
This sentiment was also echoed by key figures in the financial community, with Temi Popoola, CEO of Nigeria Exchange Group, and Jude Chiemeka, CEO of Nigeria Exchange Limited, both commending Zenith Bank’s strong corporate governance and strategic vision. Their endorsements further affirm the bank’s position as a leader in delivering shareholder value in the Nigerian banking sector.
