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AFRICA NEWSBanking, Finance & InvestmentNigeria

Nigeria’s richest banker, Jim Ovia, to pocket $3.2 million Zenith Bank dividend

by Editor
written by Editor

Nigerian banking giant Zenith Bank has reported remarkable financial results for the first half of 2023, with profits soaring by a staggering 161.85 percent, propelling Jim Ovia, one of Nigeria’s most prominent bankers, to receive an interim dividend of N2.54 billion ($3.24 million) from his stake in the bank.

Jim Ovia, recognized as Nigeria’s richest banker and a top figure in Africa’s financial services industry, stands to benefit significantly from Zenith Bank’s robust performance. The bank’s interim dividend payout follows an impressive financial showing and reflects the substantial profits earned during H1 2023.

Zenith Bank’s financial report, released recently, reveals that its profits surged from N111.41 billion ($141.95 million) in the first half of 2022 to N291.73 billion ($371.7 million) during the same period in 2023. This remarkable triple-digit percentage increase is attributed, in part, to a significant upswing in the group’s interest income, which skyrocketed from N241.72 billion ($306.4 million) to N415.42 billion ($526.6 million).

Despite incurring an impairment charge of N207.93 billion ($263.6 million) related to its financial and non-financial instruments, Zenith Bank delivered a remarkable profit in H1 2023. This achievement was buoyed by a substantial foreign currency revaluation gain of more than N355.6 billion ($451 million) for the same period.

The impressive financial performance of Zenith Bank prompted its board of directors to propose an interim dividend of N0.50 ($0.00063) per share, marking a 40-percent increase from the interim dividend of N0.30 ($0.00038) per share paid to shareholders in 2022.

Jim Ovia, who holds a 16.18 percent stake in Zenith Bank, equivalent to 5,081,255,311 shares, stands to receive N2.54 billion ($3.24 million) in interim dividends. This significant dividend payout adds to his substantial final dividend earlier this year.

Zenith Bank’s exceptional financial performance underscores its status as a leader in Nigeria’s banking sector, while Jim Ovia’s substantial dividend earnings reflect his prominent position in the nation’s banking and business landscape.

Source; billionaires.africa

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AFRICA NEWSBanking, Finance & Investment

Zenith Bank’s half-year profit more than doubles to N350bn

by Editor
written by Editor

Zenith Bank Plc has reported a 169 percent growth in profit before tax to N350.4 billion in the first half of 2023 from N130 billion in the same period of 2022.

The country’s biggest lender by market value saw its after-tax profit jump 162 percent to N291.7 billion from N111.4 billion.

Zenith Bank reported 139 percent growth in gross earnings to N967.3 billion from N404.8 billion, driven by both interest income and non-interest income.

Interest income grew 72 percent to N415.4 billion from N241.7 billion, while non-interest income grew 246 percent to N515.7 billion from N149 billion.

The growth in interest income can be attributed to the impact of both the growth and repricing of risk assets, Zenith Bank said in a statement on Monday.

It said the liberalization of the foreign exchange market during the period spurred the growth in non-interest income as revaluations gains improved significantly.

Read also: Juliet Ehimuan joins Zenith Bank’s board of directors

In terms of efficiency, the cost-to-income ratio improved to 38.5 percent from 58 percent in the current period on the back of an enhanced income line.

The lender said the FX liberalization coupled with the heightened risk environment resulted in cost of risk growing to 8.8 percent from 1.4 percent. Cost of funding also grew to 2.6 percent in H1 2023 from 1.4 percent in the same period of 2022 because of the spike in interest rates between both periods as interest expense grew to N153.6 billion from N57 billion.

Total assets grew by 31 percent from N12.3 trillion to N16.0 trillion in December 2022, mainly driven by growth in customers’ deposits and the devaluation of the local currency, the lender said.

Customers’ deposits grew by 30 percent from N9.0 trillion in December 2022 to N11.6 trillion in June 2023.

Loans and advances also grew by 32 percent 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.

Read also: Zenith Bank honoured at World Finance Banking Awards 2023

Non-performing loans ratio improved from 4.3 percent to 3.9 percent in December 2022 despite the deterioration of the macros and heightened risk environment because of the currency mix of risk assets.

Capital adequacy ratio improved from 19.8 percent to 22.0 percent, while liquidity ratio reduced from 75 percent to 61 percent in the current period.

Zenith Bank said: “Both prudential ratios are still well above regulatory thresholds. The reorganisation into a holding company structure has advanced, as the group adds new verticals to its businesses and expands into new frontiers.

“As the year progresses, the group said it 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.”

Source; Businessday.ng

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AfricaAFRICA NEWSNigeriaZenith Bank

Zenith Bank Maintains it’s position as Nigeria’s best bank

by Radarr Africa
written by Radarr Africa

Getting to be at the top of the pack may not be an easy task but keeping that spot requires a whole lot of work and dedication, a trait that Zenith Bank Plc seems to have mastered.

Zenith Bank which has been named the ‘Bank of the Year in Nigeria’ in The Banker’s Bank of the year awards 2022 also has its group managing director named the LEADERSHIP Chief Executive of the Year 2022.

These two awards are just some of the bevy of awards and accolades the bank has received this year all due its commitment towards professionalism, excellent customer service, profitability and rewards for its stakeholders as well as its outstanding corporate social responsibility.

Nigeria’s Bank of the Year award bestowed on Zenith Bank by The Banker earlier this month, was in recognition of the Bank’s strong management, sound business model and strategy, support for small businesses and efforts to cut energy consumption.

Consistent Growth

This came on the heels of the award as Number One Bank in Nigeria by Tier-1 Capital by The Banker won by Zenith Bank earlier in the year. Looking at the 2022 nine months financials of the bank as filed on the Nigerian Exchange Group, Zenith Bank recorded a 20 per cent growth in gross earnings from N518.7 billion in Q3 2021 to N620.6 billion in Q3 2022.The growth was driven by positive interest-income related performance. Interest income grew by 27 per cent from N308.8 billion to N390.8 billion, driven majorly by growth in risk assets and an improvement in pricing. This also strengthened Earnings Per Share (EPS) by nine per cent to N5.55.

Profit before tax of the Bank was up by 13 per cent year on year growing from N179.8 billion in Q3 2021 to N202.5 billion in Q3 2022, as profit after tax equally grew by nine per cent from N160.6 billion to N174.3 billion in the same period.

Despite the downturn in the economy and most banks’ unwillingness to increase lending, Zenith Bank’s Loans and advances grew by 16 per cent from N3.5 trillion in December 2021 to N4.06 trillion in September 2022, boosting the Group’s interest income and displaying the Group’s appetite for high-yielding risk assets creation. As a result of this growth, the capital adequacy ratio reduced from 21 per cent to 19.1 per cent, while the liquidity ratio reduced from 71.6 per cent to 68.9 per cent.

Total assets grew by 20 per cent from N9.45 trillion to N11.34 trillion in 2022, mainly driven by growth in customers’ deposits, which grew by 24 per cent from N6.47 trillion in December 2021 to N8.04 trillion in September 2022 due to the market’s confidence in the brand.

Formidable Virtues, Values and Vision

Commenting on how the bank has been able to sustain its leadership position in the Nigerian banking space, the group managing director, Mr. Ebenezer Onyeagwu, said Zenith Bank has been able to keep to the values on which it was built on whilst innovating to meet up with the changing environment.

Onyeagwu, whilst receiving the Letter of Notification of LEADERSHIP Chief Executive of the Year 2022 Award, he thanked the management of EADERSHIP for keeping up with the vision of its founder, the late Sam Nda-Isaiah, saying the newspaper has been able to maintain standard and professionalism.

Also, appreciating LEADERSHIP for the upcoming which holds on January 31, 2023 at the International Conference Centre, Abuja, FCT, he said “when you say you look at the performance of Zenith and its trajectory, somehow it is good to be CEO because you take credit for what everybody has done. So, the credit for this honour, the recognition is actually to the team.

“We have a roadmap we are following. There is nothing else we are doing other than following the vision of our founder and chairman, Dr Jim Ovia. We are privileged to have had a foundation that is built on very formidable virtues and values that continue to withstand the test of time.

“Such that even when we see we know that things are changing market, regulation is changing, market conditions are changing that knowledge is driving different new perspective and rendering incumbent and business model irrelevant. We still find that our bedrock still remains that vision, the foundation, which gives us that firepower to become resilient and be innovative.

Sustained by Innovation  

“We thank LEADERSHIP for recognizing what we are doing in our modest corner. All we try to do is to keep dominating our space. We don’t know by dominating our space that we are doing better than others. All we know is whatever we do we do it well. We are not competing with anyone but we are competing against ourselves, which is why in a very, very long time, Zenith Bank will continue to be very outstanding.

“Zenith Bank will continue to flourish because if what we have seen in the year of the COVID, we have seen the digital disruption, we have seen very aggressive and extremely hawkish regulatory environment, different headwinds and we are able to navigate and achieve success. I say it with all sense of modesty and commitment in terms of what we have and the kind of foundation we have,” added Onyeagwu. 

A History of Honours

Having clinched the 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, Zenith

Bank was also named the Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards. It also has in its basket of laurels, the Best Commercial Bank, Nigeria 2021 and 2022 by the World Finance Banking Awards.

The bank also clinched best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022; Best in Corporate Governance’ Financial Services’ Africa, for three consecutive years from 2020 to 2022, by the Ethical Boardroom; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards.

Also, the Bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and Retail Bank of the year, for three consecutive years from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

Zenith Bank’s love for impacting its environment is visibly seen in its dedication to lighting up Victoria Island area of Lagos every year for the past 16 years without fail. This year at the light-up ceremony at the Ajose Adeogun roundabout tagged “Let There Be Light”, Onyeagwu had joined the many voices calling for peace and love at a time when it is most needed.

SOURCE: Leadership

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AfricaAFRICA NEWSBanking, Finance & InvestmentGTCOZenith Bank

Zenith bank and nine others report N901bn profit in nine months

by Radarr Africa
written by Radarr Africa

Ten Nigerian banks recorded N900.92bn profit before tax in the nine months that ended September 30, 2022, despite an economic downturn in the nation.

According to the financial statements of these banks, this is a 21.40 percent increase from the N742.95bn profit before tax the banks recorded in the corresponding period of 2021.

The ten banks are Zenith Bank Plc, Access Holdings Plc, Guaranty Trust Holding Company Plc, First Bank of Nigeria Holdings Plc, and United Bank for Africa Plc. Others are Wema Bank Plc, Stanbic IBTC Holdings Plc, Union Bank of Nigeria Plc, Fidelity Bank Plc, and Unity Bank Plc.

In the period under review, Zenith Bank recorded the highest PBT, followed by GTCO. Zenith Bank grew its PBT to N202.55bn in the first nine months of 2022 from N179.81bn in the corresponding period of 2021. GTCO grew its PBT to N169.72bn in the period under review from N151.91bn.

Access Holdings grew its PBT to N147.29bn in the period under review from N135.2bn; UBA recorded PBT grew from N123.35bn to N138.49bn in the periods under review; FBN Holdings stated that its nine-month PBT grew by 99.29 percent from N52.93bn to N105.49bn. Commenting on this growth in its results, the Group Managing Director, FBN Holdings, Mr. Nnamdi Okonkwo, said, “FBN Holdings has again in Q3 2022 delivered a stellar performance, growing sustainable income from our core businesses.

“This is a testament to the success of our focus on carefully growing the business and driving profitability. Furthermore, during the period under review, in attestation of the progress made by the Group, Fitch upgraded the credit ratings of FBN Holdings and First Bank to ‘B’ with a Stable Outlook.

“Value creation remains our overarching objective as we continue to leverage the strengths of our unique brand and heritage to optimize our diverse business portfolio.”

He added, “We are confident of making further progress, with the capacity to generate sustainable performance that delivers superior returns to all our stakeholders.”

According to Stanbic IBTC, its nine-month PBT grew from N45.31bn to N68.95bn; Union bank’s PBT grew from N16.19bn to N18.96bn; Fidelity’s PBT grew from N28.05bn to N37.79bn; Wema’s PBT grew from N7.21 to N9.46bn, and Unity Bank’s PBT grew from N2.11bn to N2.21bn in the first nine months of 2021.

SOURCE: Punch news

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AfricaAFRICA NEWSBanking, Finance & Investment

Finalists win N53m at Zenith Tech Fair 2.0

by Radarr Africa
written by Radarr Africa

Zenith Bank HackathonA total sum of N53 million in prize money was won at the end of a keenly contested hackathon session at the Second Edition of the Zenith Tech Fair, themed “Future Forward 2.0”, which was held on Wednesday, November 23, 2022, at the Eko Convention Centre, Eko Hotels & Suites, Victoria Island, Lagos.

The prize money was shared among eleven finalists who emerged from the over 500 contestants that took part in the hackathon, with Ecotutu, a cleantech company making cooling affordable and accessible for businesses, especially in the agricultural sector, emerging as the overall winner and taking home the grand prize of N20 million. This is in addition to a mentorship programme with Seedstars, a company dedicated to implementing high-quality capacity-building programmes for entrepreneurs in emerging markets.

The first runner-up, Foris Labs, an app-based platform that allows students to conduct science experiments individually and in groups interactively via their mobile phones, won N15 million and a mentorship programme with Seedstars, while the second runner-up, Finca, a start-up which helps creditors offer credits at low risk, won N10 million as well as a mentorship programme with Seedstars. Other finalists who took home millions each include Sanwo, Itinu -Ev, Eduvacity, Green Bii, Zion Robotics, Sono Care, Base, and I grow Africa.

Speaking during the presentation of the prize monies, the Group Managing Director/CEO of Zenith Bank Plc, Mr Ebenezer Onyeagwu, congratulated all the finalists for coming this far in the competition. He reiterated the bank’s readiness to provide all that is necessary to make budding entrepreneurs succeed. According to him, “all finalists would be enlisted into our incubation lab for grooming and mentorship. Our expectation is that we are going to scale and grow them just like the zenith brand. So, looking at what we have gone through, I can tell you that so much iron has been loaded on fire. The only thing left is to activate the digital talents, tech skills and entrepreneurship that would culminate in a new digital economy for Nigeria”.

Described as a huge success by participants, the two-day Tech Fair featured presentations on the leading technological innovations that cut across different aspects of life, such as Artificial Intelligence, Computing, Machine Learning, Blockchain, Robotics, Big Data, FinTech, Augmented Reality, Data Analytics, 5G and Communication Technologies, with the keynote address, “The Future of Banking: Digital Transformation Journey”, delivered by Brett King, the renowned futurist, bestselling author, award-winning speaker, Founder of Moven and Author of Bank 4.0.

The event also featured a goodwill message by Jim Ovia, CFR, Founder and Chairman of Zenith Bank and opening remarks by Ebenezer Onyeagwu, Group Managing Director of Zenith Bank Plc and Chairman of Body of Banks’ CEOs, Nigeria. Other eminent IT practitioners from top global brands who also made presentations include; Tarik Alatovic, Senior Partner, McKinsey; Juliet Ehimuan, West Africa Director, Google; Ola Williams, Country Manager, Microsoft Inc.; Andrew Uaboi, Vice President/Head, Visa West Africa; MrsRakiya Mohammed, Director of Information Technology, CBN; Chris Lu, Managing Director, Huawei Technologies Nigeria, and Dame (Dr.) AdaoraUmeoji, OON, Deputy Managing Director of Zenith Bank Plc, amongst others.

The fair featured three-panel sessions. The first panel, which examined “The future of payments: what next and how can we get there”, had Prof. Yinka David West of Lagos Business School as the host, with four discussants, including AgadaApochi, Managing Director, UPSL; OluAkanmu, Managing Director, Opay; Premier Oiwoh, Managing Director, NIBBS; and Kari Tukur, V/P & Head of Products East/West Africa, MasterCard.

The second panel explored the theme “What are the main challenges of digital transformation in the financial industry? How do we solve them?”. It was hosted by Brett King and had four discussants, including TosinEniolorunda, Managing Director, TeamApt; Obi Emetarom, Managing Director, Appzone; Dr BabatundeObrimah, COO, FintechNGR; and OlugbengaAgboola, Founder/CEO, Flutterwave.

The third-panel discussion, titled “Driving the global trade revolution with technology: current transformation trends”, was hosted by Samuel Eze, Founder/CEO, of Ourpass, and had five discussants, including Mike Ogbalu III, Managing Director, PAPSS; Akeem Lawal, Divisional CEO, Interswitch; Massimiliano Spalazzi, Country Manager, Jumia; and Dr OzoemenaNnaji, Director of Trade & Exchange, CBN.

SOURCE: The news

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Banking, Finance & InvestmentFinance & ServicesNigeria

New naira notes unveiled

by Radarr Africa
written by Radarr Africa

Godwin Emefiele, The Governor of the Central Bank of Nigeria had ealier announced that the President, Major General Muhammadu Buhari, will unveil the New naira notes during the weekly Federal Executive Council at the Presidential Villa on Wednesday.

He also said the new notes would go into circulation before the December 15, 2022 date earlier stated by the central bank.

He made the announcement during a press briefing held after the Monetary Police Committee meeting in Abuja.

Meanwhile, the Director of Information Technology at the CBN, Rakiyat Mohammed, said that about 36 million Nigerians currently had zero access to financial services.

Mohammed, who spearheaded the development and deployment of the eNaira, stated this on Tuesday during the Zenith Bank Tech Fair which was held in Lagos.

Delivering her presentation at the Fair which is themed ‘Future Forward,’ she said the CBN was the first Central Bank in Africa and second in the world to launch a Central Bank Digital Currency.

According to her, the development of the CBDC was borne out of the urgent need to provide “financial inclusion to the 36m Nigerians who currently lack access to financial services.”

She said, “Nigeria has the 6th most advanced retail payment system. This was according to a report by ACI. So, if you look at that report, you will see why.

“Remember, when the president launched eNaira, he did say in the next 10 years, we expected eNaira and its associated technologies to increase our GDP by $20bn. We are working on that.”

She further stated that in the light of emerging trends, it had become pertinent to develop a currency that was a legal tender that would be able to play in the digital economy space.

Source: Punch

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Banking, Finance & InvestmentNigeriaWestern Africa

Fidelity Bank to raise new capital which allows for issuance of 3 billion shares

by Radarr Africa
written by Radarr Africa

Fidelity Bank is on the verge of sourcing new capital allowing for issuance of over 3 billion shares, the tier 1-aspiring lender said Wednesday, a move that could further expansion plans and shoot its outstanding shares above 32 billion units.

It will take the route of private placement whereby a limited number of individuals, usually high-net-worth, and institutional investors are allotted all the shares and the transaction itself is conducted away from the open market.

To hit the starting point, the capital raising requires the sanction of shareholders, including their need to “waive their pre-emptive rights in respect of the 3,037,414,308 unissued ordinary shares of 50 kobo each,” according to a regulatory filing seen by PREMIUM TIMES.

Fidelity Bank’s board of directors hope to obtain approval for other resolutions at an extra-ordinary general meeting coming up on 29 September after which attention will turn to regulatory authorities to endorse the deal.

As the regulatory approval process for private placements is often less stringent compared to initial public offerings, the transaction could launch not long after the meeting is concluded.

The financial institution announced last week a binding pact with Nigeria’s second oldest lender Union Bank for a full buyout of the latter’s United Kingdom subsidiary, easing the path to its first ever operation outside Nigeria.

The bigger picture is its quest for a place among the cohort of  teir-1 lenders by 2025, a group distinguished by banks with enormous capital base particularly derived from assets like disclosed reserves and robust equity capital.

ALSO READ: Fidelity Bank posts N25.1b H1 profit, proposes 10k interim dividend

That aspiration is the pet project of CEO Nneka Onyeali-Okpe who, after taking office last January, unveiled the course of action for joining the Big 5 banks – FBN Holdings, United Bank for Africa, GTCO, Access Bank and Zenith Bank.

Fidelity Bank, Nigeria’s sixth biggest lender, has assets worth N3.7 trillion, setting it miles away from the smallest of that group, GTCO, whose own valuation is N5.7 trillion.

Source: Premium Times

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AfricaBanking, Finance & InvestmentBusinessNewsNigeriaWestern AfricaZenith Bank

Zenith Bank posts double digit growth in H1 2022

by Radarr Africa
written by Radarr Africa

In a clear demonstration of its industry leadership and consistency in providing superior financial returns, Zenith Bank PLC has announced its audited results for the half-year ended June 30, 2022.

Zenith Bank PLC recorded an astounding double-digit growth of 17 per cent in gross earnings of N405 billion in H1 2022.

This was from N346 billion reported in H1 2021.

And this was in spite of a very challenging macroeconomic environment.

According to the bank’s audited half-year financial results presented to the Nigerian Exchange on Tuesday, this growth was underpinned by a 19 per cent YoY growth in interest income from N204 billion to N242 billion and an 18 per cent YoY growth in non-interest income from N127 billion to N149 billion.

The growth in interest income was driven by the modest increase in the loan book and improved interest margins.

The increase in non-interest income attests to the Group’s success in its income diversification strategy.

Profit before tax (PBT) grew 11 per cent YoY from N117 billion to N130 billion.

Earnings Per Share also grew from N3.38 to N3.55 over the same six-month period.

The Group also recorded an 11 per cent year-to-date increase in total customer deposits to close the period at N7.15 trillion.

The retail strategy of the Group continues to deliver outstanding results as retail deposits grew by 17 per cent YtD from N1.82 trillion to N2.13 trillion.

Retail activities also supported the growth recorded in fees on electronic products, which grew by 45 per cent YoY from N17 billion to N25 billion.

Despite the elevated yield environment, the cost of funds increased only marginally from 1.3 per cent in June 2021 to 1.4 per cent in June 2022.

The increase in the cost of funds was lower than the increase in yields on interest-generating assets, giving rise to an improved Net Interest Margin of 7.1 per cent from 6.4 per cent in June 2021.

Total assets rose to N10.12 trillion at the end of June 2022 from N9.45 trillion at the end of December 2021.

Despite the headwinds imposed by the operating environment, the Group grew its risk assets as gross loans grew by 5 per cent YtD, from N3.5 trillion to N3.7 trillion.

This was achieved at a moderate NPL ratio of 4.4 per cent (FYE 2021: 4.2%) and cost of risk of 1.4 per cent (June 2021: 1.3%).

Prudential ratios such as liquidity and capital adequacy also remained stable and well-above regulatory thresholds at 60.5 per cent and 21.0 per cent respectively.

The Group is focused on advancing its digital banking strategy anchored on a strong technology base, and intends to consolidate on the gains achieved in prior years across all business segments.

Combined with the Group’s industry leadership, we expect this to drive improved performance and deliver enhanced returns to stakeholders.

ALSO READ: SheVentures resumes 90 days zero-interest loans to women-owned SMEs

Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, 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; 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 three consecutive years from 2020 to 2022, by the Ethical Boardroom; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards. Also, the Bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and Retail Bank of the year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021.

Similarly, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020 and emerged winner in four categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, carting home the awards for “Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women Empowerment” and the coveted “Most Responsible Organisation in Africa”.

Source: The Eagle online

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AfricaBanking, Finance & InvestmentBusinessNewsNigeriaWestern Africa

Fitch affirms 10 Nigerian Banks at ‘B’, Outlook Stable

by Radarr Africa
written by Radarr Africa

Fitch, the global rating agency, has affirmed Long-Term Issuer Default Ratings (IDR) of 10 Nigerian banks at ‘B’ with a stable outlook.

In a fresh report obtained from its website, the global rating agency listed the 10 lenders to include: Zenith Bank Plc, Access Bank Plc, Guaranty Trust Holding Company Plc (GTCO), Ecobank Transnational Incorporated, Stanbic IBTC, United Bank for Africa, First City Monument Bank, Sterling Bank, Wema Bank and Fidelity Bank.

The agency said it has withdrawn Support Rating and Support Rating Floor as they are no longer relevant to Fitch’s coverage following the publication of its updated Bank Rating Criteria on November 12, 2021.

In line with the updated criteria, “We have assigned a Government Support Rating (GSR) of ‘no support’’ (ns),” it stated.

For Zenith Bank, Fitch also affirmed National Long-Term Rating at ‘AA-(nga)’ and Viability Rating (VR) at ‘b’.

It noted that Zenith’s Long-Term IDR is driven by its standalone creditworthiness, as expressed by its VR, among other reasons.

According to Fitch, Zenith is Nigeria’s second-largest banking group, representing 15 per cent of domestic banking system assets at end-2021.

It also noted that the lender has moderate credit concentrations; improving asset quality; strong profitability; strong capitalisation and stable funding profile.

Fitch Ratings, while affirming Access Bank’s Long-Term Issuer Default Rating (IDR) Viability Rating (VR) at ‘b’ and National Long-Term Rating at ‘A+(nga)’, said the bank’s Long-Term IDR is driven by its standalone creditworthiness, as expressed by its VR. The VR factors in a leading franchise, healthy loan quality and strong revenue diversification, profitability and liquidity coverage.

The agency also observed that the lender has significant credit concentrations; improved loan quality and strong profitability.

Similarly, Fitch Ratings, while affirming Nigeria-based Guaranty Trust Holding Company Plc (GTCO) at ‘B’ with stable outlooks and National Long-Term Ratings at ‘AA(nga)’, stated that the Long-Term IDRs of GTCO and GTB are driven by their standalone creditworthiness, as expressed by their Viability Ratings (VRs) of ‘b’.

“The National Ratings are driven by GTCO’s and GTB’s standalone strengths. They are at the higher end of the scale given GTCO’s and GTB’s strong business and financial profiles.

“VRs equalised with Group VR: GTCO is the bank holding company (holdco) for GTB. The VRs of GTCO and GTB are the same as the group VR,” it stated.

Fitch Ratings further affirmed Ecobank Transnational Incorporated’s (ETI) Long-Term Issuer Default Rating (IDR) at ‘B-’ with a stable outlook and Viability Rating (VR) at ‘b-’.

ETI’s Long-Term IDR was driven by its standalone creditworthiness, as expressed by its VR of ‘b-’. ETI is the non-operating bank holding company (BHC) of Ecobank Group. Its VR is notched down once from the ‘group VR’ of ‘b’ due to high common equity double leverage (153 per cent at end-2021).

The agency upgraded Fidelity Bank Plc’s Long-Term Issuer Default Rating (IDR) to ‘B’ from ‘B-’. The outlook is stable. The upgrade reflects Fidelity’s improving business profile and resilient financial metrics.

Fitch also upgraded Fidelity’s National Long-Term Rating to ‘A(nga)’ from ‘BBB+(nga)’, reflecting the bank’s increased creditworthiness relative to other issuers in Nigeria. A full list of rating actions is below.

According to the agency, the VR reflects healthy asset quality, good business profile and reasonable capitalisation and liquidity.

These are balanced against high sensitivity to Nigeria’s challenging operating environment as well as higher credit concentration as a percentage of equity and weaker profitability than larger domestic-rated peers.

Stanbic IBTC Holdings PLC (Stanbic IBTC) and its 99.9 per cent owned subsidiary, Stanbic IBTC Bank PLC, were affirmed at ‘AAA(nga).’

The National Ratings of Stanbic IBTC and Stanbic IBTC Bank are based on potential support from their ultimate parent, South Africa’s Standard Bank Group Limited (SBG; BB-/Stable), which owns 67.5 per cent of Stanbic IBTC.

The ratings reflect SBG’s willingness and ability to support Stanbic IBTC and Stanbic IBTC Bank, if required.

ALSO READ: Ecobank declares $261m pre-tax profit in H1

First City Monument Bank (FCMB) Limited’s Long-Term Issuer Default Rating (IDR) was also affirmed at ‘B-’ with a stable outlook and Viability Rating (VR) at ‘b- .’

Fitch has also upgraded the bank’s National Short-term Rating to ‘F1(nga)’ from ‘F2(nga)’ due to the bank’s improving funding and liquidity.

In line with the updated criteria, “We have assigned FCMB a Government Support Rating (GSR) of ‘no support’ ‘(ns),” it stated.

The VR reflects FCMB’s exposure to Nigeria’s volatile operating environment, a small franchise and high credit concentrations.

This is balanced by the bank’s improving funding and liquidity, moderate capitalisation and adequate asset quality for the rating. According to the agency, the latter partly reflects its fairly small loan book (45 per cent of total assets) and large non-loan assets comprising mainly Nigerian government securities (B/stable).

Fitch Ratings affirmed United Bank for Africa (UBA) Plc’s Long-Term Issuer Default Rating (IDR) at ‘B’ with a stable outlook as well as its Viability Rating (VR) at ‘b’ and National Long-Term Rating at ‘A+(nga)’.

UBA’s IDRs are driven by its standalone creditworthiness, as reflected in its ‘b’ VR. The VR considers UBA’s exposure to the Nigerian volatile operating environment, but also the bank’s healthy profitability and adequate capitalisation, which provide reasonable capacity to absorb losses from an economic downturn.

Wema Bank Plc’s Long-Term Issuer Default Rating (IDR) was affirmed at ‘B-’ with a Stable Outlook, Viability Rating (VR) at ‘b-’ and National Long-Term Rating at ‘BBB(nga)’.

Wema’s IDRs are driven by its standalone creditworthiness, as expressed by its VR. The VR reflects Wema’s small franchise, high credit concentrations, aggressive loan and balance-sheet growth and funding weaknesses.

It also reflects good asset quality and our expectation of a significant improvement in capitalisation and leverage, due to a material rights issue due to be concluded by end-2022.

For Sterling Bank Plc, Fitch Ratings affirmed its Long-Term Issuer Default Rating (IDR) at ‘B-’ with a Stable Outlook, Viability Rating (VR) at ‘b-’ and National Long-Term Rating at ‘BBB+(nga)’.

Sterling’s IDRs are driven by its standalone creditworthiness, as expressed by its VR of ‘b-’. The VR reflects Sterling’s sensitivity to Nigeria’s challenging operating environment, a fairly small franchise, high credit concentrations and weaknesses in the bank’s foreign-currency (FC) funding profile. These are balanced by healthy asset quality metrics and reasonable capitalisation the rating agency noted.

Source: Nigerian Tribune

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AfricaBanking, Finance & InvestmentNewsNigeriaWestern AfricaZenith Bank

Zenith Bank ranks number one Bank in Nigeria

by Radarr Africa
written by Radarr Africa

Zenith Bank Plc has been ranked as the Number One Bank in Nigeria with $2.75 billion Tier-1 Capital for the 13th year in a row.

The ranking, which was published in the July 2022 edition of The Banker Magazine of the Financial Times Group, United Kingdom, was based on the 2021 year-end Tier-1 capital of banks globally.

The bank retained its position as the number one Tier-1 bank in Nigeria and the 460th bank globally. The recognition was contained in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine.

Its financial performance for the year was underpinned by double-digit growth of 10 per cent in gross earnings, with an improved market share in both retail and corporate sectors despite a very challenging macroeconomic environment aggravated by the COVID-19 pandemic.

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Commenting on the 2022 Top 1000 World Banks Ranking, the Group Managing Director/CEO of Zenith Bank Plc, Ebenezer Onyeagwu, said: “This ranking is a testament to our resilience and doggedness as an institution despite economic headwinds and a persistent challenging macroeconomic environment.

He expressed his appreciation to the Founder and Chairman of bank, Jim Ovia, for his guidance and for laying the foundation and building the structures of an enduring and very successful institution; the board for the outstanding leadership they provide; the staff, whose drive and commitment sustains the exceptional performance; and the bank’s customers for their unflinching loyalty to the Zenith brand.

Tier-1 Capital describes capital adequacy, which is the core measure of a bank’s financial strength from a regulator’s point of view.

According to the ranking, Tier 1 Capital, as deûned by the latest bank for International Settlements (BIS) guidelines, includes loss-absorbing capital, i.e. common stock, disclosed reserves, retained earnings and minority interests in the equity of subsidiaries that are less than wholly owned.

The bank’s track record of excellent performance has continued to earn the brand numerous awards, with this latest accolade coming on the heels of several recognitions, including being recognised as the best bank in Nigeria for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards.

The bank also emerged 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 three consecutive years from 2020 to 2022, by the Ethical Boardroom.

Source: The Nation

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