Ebenezer Onyeagwu: Driving Culture of Financial Leadership

Donatus Eleko

Zenith Bank Plc earlier this month released its unaudited results for the first quarter ended 31st March 2024, and in line with the financial institution’s culture of financial leadership excellence instituted since the outgoing Group Managing Director/Chief Executive of the bank, Dr. Ebenezer Onyeagwu, assumed office, the numbers were impressive.

Onyeagwu would this weekend hand over the baton of leadership at Zenith Bank to his successor, even as the financial institution continues to gain global recognition due to the efforts of the outgoing chief executive and his team. Dr. Adaora Umeoji succeeds Onyeagwu as from June 3, 2024.
Specifically, the results showed that the bank under the leadership of Onyeagwu recorded an impressive triple-digit growth of 189 per cent in Gross Earnings, from N270 billion reported in first quarter (Q1) 2023 to N781 billion in Q1 2024. This was despite the challenging operating environment and tightening monetary policy stance.

From the unaudited statement of account submitted to the Nigerian Exchange (NGX), the impressive growth in the topline also enhanced the bottom line, as profit before tax (PBT) rose to N320 billion in Q1 2024, representing an increase of 270 per cent from the N87 billion reported in Q1 2023. Profit after tax (PAT) equally grew significantly by 291 per cent from the N66 billion reported in Q1 2023 to N258 billion in the current period.
Interest and non-interest income contributed significantly to the growth in gross earnings. Zenith Bank’s interest income grew by 155 per cent from the N192 billion reported in the quarter ended March 2023, to N489 billion in the period to 31 March 2024. The growth in interest income was due to the repricing of risk assets, owing to the increase in the central bank’s Monetary Policy Rate (MPR), which currently stands at 26.25 per cent. The growth in net interest income was primarily due to the increase in fees and commissions as well as trading grains.

The Group reported an impairment charge of N56 billion for Q1 2024, up from N8 billion recorded in Q1 2023. This is attributable to significant growth in risk assets, primarily driven by the revaluation of its USD loans, which necessitated additional impairment on the bank’s foreign currency-denominated loans.
The cost of funds grew by 48 per cent from 2.7 per cent in Q1 2023 to four per cent in Q1 2024, due to the high-interest rate environment, while interest expense increased by 157 per cent from N71 billion reported in Q1 2023 to N182 billion in the period to March 2024. Notwithstanding the year-on-year (YoY) increase in interest expense, net interest margin (NIM) grew by 20 per cent from 6.9 per cent in the three months ended March 2023 to 8.3 per cent in the current period ending 31 March 2024. Return on Average Equity (ROAE) and Return on Average Assets (ROAA) increased year-on-year (YoY) by 114% and 119%, respectively, due to improved profitability.

Gross loans, which are largely funded by customer deposits, grew by 30 per cent from N7.1 trillion in December 2023 to N9.2 trillion in March 2024. Customer deposits also grew by 11 per cent from N15.2 trillion in December 2023, to N16.8 trillion in March 2024, underpinning continued customer confidence in the Zenith brand. Total assets increased by 19 per cent to N24 trillion within the same period.

The Zenith Bank Group has consistently maintained all prudential ratios well above the minimum regulatory requirement. At the end of Q1 2024, Capital Adequacy Ratio (CAR) and Liquidity Ratio stood at 20% and 67%, respectively, demonstrating the Group’s ability to maintain a strong and liquid balance sheet.
The Zenith Bank Group is making progress on the planned capital raise to support future growth and is very optimistic about meeting the new minimum capital requirements in line with the CBN’s recapitalisation directive. As the Group accelerates migration to its new technology architecture and also transitions into a holding company, it remains poised to maximise value for all stakeholders.

In line with what has become a tradition since Onyeagwu assumed the leadership of the bank, Zenith Bank recently emerged as the Best Bank in Nigeria in the Global Finance Best Banks Awards 2024, winning the award for the fourth time since 2019.
The bank was among other banks from 36 countries in Africa recognised as the prestigious Global Finance announced its 31st Annual Best Bank Awards Winners.
The editors of Global Finance made the selections after extensive consultations with corporate financial executives, bankers and banking consultants, and analysts worldwide. Factors considered in selecting the top banks ranged from the quantitative objective to the informed subjective.

Objective criteria considered included: growth in assets, profitability, geographic reach, strategic relationships, new business development and innovation in products. Subjective criteria included the opinions of equity analysts, credit rating analysts, banking consultants and others involved in the industry.
Commenting on the award, Onyeagwu said: “This award serves as a powerful affirmation of our resilience and tenacity despite headwinds and a very challenging macroeconomic environment. Indeed, it is a testament to our status as the leading financial institution in Nigeria, dedicated unwaveringly to delivering exceptional value to our stakeholders.”

He expressed profound gratitude to the founder and chairman, Jim Ovia, CFR, for his exceptional vision and foundational role in establishing a resilient and enduring financial institution. He also lauded the board for their astute insights and exemplary leadership, the staff for their steadfast commitment and unwavering dedication, and the customers for their staunch loyalty to the Zenith brand.
Zenith Bank’s track record of excellent performance has earned the brand numerous awards, under the leadership of Onyeagwu. Under his leadership, Zenith Bank as an institution won a total of 51 awards in the last five years. A breakdown of the awards showed that in 2019 alone, Zenith Bank was adjudged Best Commercial Bank, Nigeria by the World Finance; Biggest Bank in Nigeria by Tier-1 capital by the The Banker; Most Valuable Banking Brand in Nigeria by the The Banker; Best Digital Bank in Nigeria 2019, by Augusto & Co.; Best Company in Promotion of Good Health and Well-Being by SERAS Awards;  Bank of the Year by BusinessDay Newspaper; Retail Bank of the Year by BusinessDay Newspaper, and Most Innovative Bank of the Year by Tribune Newspaper

This continued in 2020, where the financial institution was named Bank of the Year, Nigeria by The Banker; Best Bank in Nigeria by Global Finance; Biggest Bank in Nigeria by Tier-1 capital by The Banker; Most Valuable Banking Brand in Nigeria, by The Banker; Best Corporate Governance ‘Financial Services’ Africa by Ethical Boardroom; Best Company in Promotion of Good Health and Well-Being by SERAS Awards; Best Company in Promotion of Gender Equality and Women Empowerment by SERAS Awards; Bank of the Decade (People’s Choice) by Thisday Newspaper; Bank of the Year by Independent Newspaper, and Retail Bank of the Year by BusinessDay Newspaper.

Furthermore, in 2021, Zenith Bank was also named Best Bank in Nigeria by Global Finance; Best Commercial Bank, Nigeria by World Finance; Biggest Bank in Nigeria by Tier-1 Capital from The Banker; Most Valuable Banking Brand in Nigeria by The Banker; Best Corporate Governance ‘Financial Services’ Africa by Ethical Boardroom; Most Responsible Organisation in Africa by SERAS Awards; Best Company in Infrastructure Development- SERAS Awards; Best Company in Reporting and Transparency-SERAS Awards; Best Company in Gender Equality and Women Empowerment- SERAS Awards; Bank of the Year- Champion Newspaper, and Retail Bank of the Year- BusinessDay Newspaper

In 2022, it was named Bank of the Year, Nigeria- The Banker; Best Bank in Nigeria -Global Finance; Biggest Bank in Nigeria by Tier-1 Capital -The Banker; Best Commercial Bank, Nigeria -World Finance; Best Corporate Governance, Nigeria- World Finance; Best Commercial Bank, Nigeria -International Banker; Best Innovation in Retail Banking, Nigeria -International Banker; Best Corporate Governance ‘Financial Services’ Africa – Ethical Boardroom; Bank of the Year- New Telegraph Newspaper; Retail Bank of the Year- BusinessDay Newspaper; Best Company in Technology for Development – SERAS Awards, and Best Company in Work Place Practice- SERAS Awards.

This continued in 2023, in which it was adjudged the Biggest Bank in Nigeria by Tier-1 Capital -The Banker; World Finance 100- World Finance; Best Commercial Bank, Nigeria -World Finance; Best Corporate Governance, Nigeria – World Finance; Best Corporate Governance ‘Financial Services’ Africa- Ethical Boardroom; Most Sustainable Bank, Nigeria – International Banker; Best Bank for Digital Solutions, Nigeria – Euromoney; Bank of the Year- BusinessDay Newspaper, and Most Sustainable Bank of the Year -New Telegraph Newspaper.

Also, in the five-year period, Onyeagwu was severally rewarded for being consistently humble, disciplined, ethical, hardworking, an outstanding professional and inspirational corporate leader with impeccable track records of excellence.  In 2019, he was named Bank CEO of the Year by Champion Newspaper; in 2020, again he was recognised as Bank CEO of the Year by BusinessDay Newspaper and SERAS Awards respectively. Also, in 2021, BusinessDay and SERAS Awards awarded him Bank CEO of the Year respectively; In 2022, he was adjudged as Bank CEO of the Year by BusinessDay Newspaper and Leadership Newspaper respectively and in 2023, he emerged as Best Banking CEO of the Year, Africa, an award bestowed on him by International Banker, Bank CEO of the Year by BusinessDay Newspaper, and Bank CEO of the Year by New Telegraph Newspaper.