The Group Managing Director/Chief Executive of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji has outlined in a well-received presentation at the Nigerian Exchange (NGX), why the public will be investing in value, when they buy Zenith Banks rights issue and public offer.
Zenith Banks historical performance as well as its growth prospects provide compelling reasons to invest in its shares, according to Umeoji.
The number one Nigerian lender Zenith Bank is set to raise N290 billion through a combination of a Rights Issue and a Public Offer in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN).
The Rights Issue offers 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share, while the Offer for Subscription presents 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share.
Umeoji speaking at a Facts Behind the Offer Presentation to Capital Market Stakeholders by Zenith Bank at the NGX on Monday 12 August 2024, reminded investors that Zenith Bank is number one in all the scorecards and has the best financial result in Nigeria’s banking industry.
According to Umeoji, Zenith Bank is first/number-one in: best corporate governance culture, best customer engagement and service delivery, best risk management practices, most profitable bank in Nigeria, and highest dividend payer.
“The bank will experience exponential growth after the capital raise to the benefit of shareholders,” Umeoji said.
Use of proceeds
Zenith Bank will be looking to raise N290 billion from the Rights Issue and Public Offer and the number-one lender by tier-one capital in Nigeria has already marshalled out its plans on how to utilize the proceeds.
Thirty-five percent (35%) of the proceeds will go towards strategic expansion in the form of increasing Zenith’s footprint in Africa and other parts of the world.
Twenty percent (20%) of the proceeds will go to investments to expand infrastructure and Zenith Banks digital capabilities.
Forty-five percent (45%) of the proceeds will be utilized as working capital to support the real sector of the economy with a focus on SME/Retail segments of the business, according to Umeoji.
Zenith Banks vision and value makes it No 1
Zenith Bank is raising the least amount of money among its peers undertaking the recapitalization exercise as it already had ample capital buffers, according to the GMD/CEO Umeoji.
Zenith Bank is today the number-one bank in tier-one capital, shareholders’ funds, market capitalization, profit-after tax, dividend payment, and capital adequacy ratio. The lender paid a total dividend of N4 per share in the 2023 financial year.
Zenith Bans credit ratings is at par with the sovereign a testament to its sound balance sheet and risk management practices.
As a Bank that is in tune with Sustainability, Zenith Bank has women making up 31 percent of its Board representation, and a 50 – 50 split between men and women in its workforce.
Zenith Bank has invested heavily in compressed natural gas CNG and solar to power its ATMs and branches to save costs.
The bank also incorporates Sustainability in all credit practices, according to Umeoji.
Expanding global footprint
Zenith Bank is today present in Nigeria, Ghana, Sierra Leone, The Gambia, United Kingdom, China, and the United Arab Emirates (UAE).
Dame (Dr.) Adaora Umeoji the GMD/CEO of Zenith Bank however told the excited gathering that Zenith Bank had recently obtained a license to open a Paris, France branch which would be leveraged for operations in Francophone Africa beginning with Cameroon and Côte d’Ivoire.
All of Zenith’s subsidiaries are profitable and contributing to the growth of the Group, according to Umeoji.
Zenpay a fintech/payments subsidiary of Zenith Bank recently signed a partnership with the African Continental Free Trade Area (AfCFTA) for the Zenpay digital payments solution platform to be used to facilitate African trade.
Zenith Bank gets about 58% of its revenue from corporate customers while retail customers make up the rest at 42 percent.
The top-tier lender controls 25 percent of imports into Nigeria and 40 percent of all exports from Nigeria through trade finance, according to Umeoji.
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