By Omoh Gabriel
Zenith Bank plc has continued to demonstrate to the investing public that it is here to stay and ready to provide the best of service at all times. The bank has shown that it has the management capacity to wither any storm and pilot investors money to safety and deliver superior value. In the last three years, despite the difficulties the banking industry in Nigeria has been facing, the bank has continued to excel in most performance indices. In its 22 years of operation, Zenith Bank Plc. has grown to become one of the biggest and most profitable banks in Nigeria. After going public in June 17, 2004, the bank was listed on the Nigerian Stock Exchange on October 21, 2004 following a highly successful initial public offer (IPO). The bank currently has a shareholder base of over one million and shareholder funds of N402.713 billion ($2.55bn) as at the end of second quarter of 2012 from the N394.268 billion in December 2011.
This is far above the minimum required for banks of its status in Nigeria. The bank’s total Asset hit N2.478 trillion in June 2012 as against the figure of N2.326 trillion it recorded in its full year result in December last year. The bank grew its total earnings from N123.192 billion as at June 2011 to N151.103 billion in June 2012. Profit before tax rose from N36.794 billion in June last year to N50.163 billion in June this year. The bank’s earning per share inched up from 101kobo to 135 kobo in June 2012. Percentage of non performing loans to total loans portfolio of the bank dropped from 3.9 per cent in June 2011 to 3.3 per cent in June 2012. The bank’s operating expenses, however, rose from N59.454 billion in June 2011 to N61.898 billion in June 2012.
The operating results of the bank, since it went public in 2004, indicate an impressive performance in all its measurement parameters. Total assets grew from $1.25billion in 2004 to $15.48billion in second quarter of 2012, representing a growth of 1,138.4 per cent. Within the same period, total deposits went up by 1,174 per cent from $845million to $10.77billion, as at June 2012. The result is evidence of increasing market share for Zenith Bank and popular acceptance by the Nigerian banking public.
Zenith Bank by its tradition places high premium on the pivotal role of exceptional service delivery in its drive to consistently exceed customer expectations. Thus, the bank has put in place a well articulated strategy to meet and surpass customer expectations and constantly ensures that plans and strategies are fine-tuned to address the changing taste and sophistication of the customer. The underlying philosophy is for the bank to remain at all times, a customer-focused institution with a clear understanding of its market and environment. The bank’s commitment to customer satisfaction has at various times led to assigning critical and pervasive roles to Total Quality Management (TQM), Customer Service Ambassadors, Operation Service Excellence Teams, among others. Thus, at all times, all structures and processes are fashioned to drive consistent improvement in the quality of service delivery.
Zenith Bank laid the foundation of its structures and processes on cutting-edge Information and Communications Technology (ICT) infrastructure. This ensures that every transaction is carried out via a medium that makes for speed, flexibility, accuracy and convenience for the customer. At Zenith Bank, all activities are anchored on the e-platform, ensuring service delivery through the electronic media to all customers irrespective of place, time and distance. This disposition puts Zenith Bank ahead and well prepared for the cashlite policy of the CBN which berthed in April, 2012
As the leading institution in ICT-enabled banking in Nigeria, Zenith Bank has leveraged on its deep understanding of the local business environment and global financial market to develop unique e-solutions to meet varied and specific customer needs. The bank’s range of e-products covers virtually all services and fall into three broad categories:
The bank’s management team is made up of seasoned professionals headed by Godwin Emefiele, the Group Managing Director and CEO, who is a pioneering staff member and has been on the board for more than a decade. He took over the reins from the founding CEO, Jim Ovia, in August 2010. The bank’s exceptional performance is built on its experienced leadership, professionalism and vision of the management and staff. Its Corporate Social Investment (CSI) initiatives are driven by a clear understanding of our environment and a strong knowledge of the resource gaps and pressing needs of communities and people within and beyond our areas of operations. The primary reason is the willingness and desire to give back to the people and communities that have been an encouragement in our pursuit of enterprise as well as a conviction that partnering with the public sector to address some areas of need is a healthy investment on our present and future.
As the Bank gets more global, the focus and scope of its CSI policy will be fine-tuned and remodeled to reflect our status as a global brand. Our CSI policy therefore, reflects our commitment to global best practices, including Principles and Conventions of the United Nations on Sustainable Development, Environment, Human Rights, among others. We are also committed to Workplace Principles and Professional Ethics of the International Labour Organization (ILO) and other global institutions dedicated to the enhancement of the common good. In January 2012, Zenith Bank was recognized as one of the 30 outstanding global brands that are making sustainable impact on their operating environments in the area of Corporate Social Responsibility. The recognition was a prelude to the United Nations Development Programme’s (UNDP) Conference on Sustainable Development (‘Road to Rio’), held in Brazil in May 2012. Zenith Bank was honoured along with 30 other global brands which included Airbus, France; ConocoPhillips, USA; Credit Suisse, Switzerland; KLM, Netherlands; South Korea; Olam International, Singapore; Unilever, Netherlands; Verizon, USA; Kia Motors, South Korea; among others.
Ratings and corporate governance
Zenith Bank has consistently recorded good ratings from both the international (Fitch Ratings, Standard & Poor’s) and local (Agusto & Co.) rating agencies. The ratings on Zenith Bank Plc are supported by its leading market position in all key performance indices. Zenith Bank has consistently put in place a robust system of corporate governance, bearing in mind the key elements of honesty, trust, integrity, openness and accountability as well as commitment to the organisation’s goals. To uphold strong corporate governance and transparency, the bank adopts a robust public disclosure policy. This is to forestall incidences of abuse, such as insider trading. The impressive growth pattern and performance over the years have earned the bank excellent ratings and recognition from local and international agencies. From a 2012 survey conducted by The Banker, an authoritative publication of the Financial Times of London, Zenith was adjudged the largest bank in Nigeria and the seventh largest in Africa on the basis of Tier-1 capital. Also, in July 2012, Forbes ranked Zenith the largest listed bank in Nigeria and the third largest listed company in West Africa. Forbes employed market capitalization, turnover, and net profit and assets criteria to arrive at its ranking. In 2011, Standard & Poor’s reaffirmed Zenith Bank’s rating at B+/stable/B – the highest rating awarded to any Nigerian bank and in line with the country’s risk rating. In 2012, World Finance, voted the bank as Best Nigerian Bank in Corporate Governance. In the end, Zenith’s value and competitive edge come down to a wining combination of people, talent, propriety, knowledge, equity, leadership, integrity and excellent relationship management.
Over the years, Zenith Bank has redefined customer service standards and created diverse service delivery channels through a strategic deployment of its people, Information Communication Technology (ICT) and world-class service. The group’s main delivery channel is its over 357 (Three hundred and fifty seven) local and foreign subsidiaries and business offices, branches and cash offices. These business offices are spread across the states of the federation and Abuja and are easily accessible to the Central Bank of Nigeria’s (CBN) clearing zones all over the country. Under Jim Ovin leadership, Zenith created strong foundations with a broad shareholder base, high levels of capitalization and very strong corporate governance. Godwin Emefiele and his team have continued to build on these foundations.
In 2009, the Central Bank of Nigeria (CBN) conducted a special audit to ascertain the stability of the banking sector in the country. Zenith Bank was one of the 14 banks that passed the audit. The result of the audit led to the quasi-nationalisation of 10 banks representing about 50 percent of system assets. Zenith Bank has consistently put in place a robust system of corporate governance, bearing in mind the key elements of honesty, trust, integrity, openness and accountability as well as commitment to the organisation’s goals. To uphold strong corporate governance and transparency, the bank adopts a robust public disclosure policy. This is to forestall incidences of abuse, such as insider trading. All financial information, as well as exceptional and extraordinary events capable of influencing the public decision concerning the bank, are approved for dissemination by the board and then related through authorised means to the public at the same time. The release of such information is done speedily and as often as stipulated by the regulatory bodies.
Ratings and corporate governance
Zenith Bank has consistently recorded good ratings from both the international (Fitch Ratings, Standard & Poor’s) and local (Agusto & Co.) rating agencies. The ratings on Zenith Bank Plc are supported by its leading market position in all key performance indices. The bank has won several local and international awards as evidence of its high standard and quality of service to the banking public. It won the Best Performing Ai 40 Company award hosted by Africa investor annual Index Series Summit. The awards are given to profile African capital market success stories. The Africa investor Index Series Summit brings together decision makers from stock markets, listed companies, fund managers, stockbrokers and analysts in Africa and others who have an interest and follow the performance of African equities.
The impressive growth pattern and performance over the years have earned the bank excellent ratings and recognition from local and international agencies. From a 2012 survey conducted by The Banker, an authoritative publication of the Financial Times of London, Zenith was adjudged the largest bank in Nigeria and the seventh largest in Africa on the basis of Tier-1 capital. Also, in July 2012, Forbes ranked Zenith the largest listed bank in Nigeria and the third largest listed company in West Africa. Forbes employed market capitalization, turnover, and net profit and assets criteria to arrive at its ranking. In 2011, Standard & Poor’s reaffirmed Zenith Bank’s rating at B+/stable/B – the highest rating awarded to any Nigerian bank and in line with the country’s risk rating. In 2012, World Finance, voted the bank as Best Nigerian Bank in Corporate Governance. In the end, Zenith’s value and competitive edge come down to a wining combination of people, talent, propriety, knowledge, equity, leadership, integrity and excellent relationship management.
