Finance
ZENITH BANK PLC
THERE cannot be any doubt that over the past 16 years of its existence, Zenith Bank has succeeded in entrenching itself in the Nigerian banking industry as a leader in providing innovative customer services solutions. It has particularly played the pioneering role in bringing to existence most of the IT-based services that now dot the industry. Not only this, the Bank is constantly on the move technologically all in its desire to always move to the next level in the customer services strategy.
About a decade ago, the Bank became the first in the industry to offer on-line, real time services to customers. This revolutionalised customer services delivery and brought about unprecedented convenience in its wake as operators endeavoured to achieve maximum branch coverage with this service for competitive advantage.
Similarly, the Bank became the first to build its own website and went ahead to equip the site with substantial e-banking capabilities.
These pioneering roles inspired Zenith Bank to subsequently develop a number of other leading I-T products such that the Zenith franchise has become synonymous with Information Technology in Nigeria.
Some of these products include Electronic Point of Sale, Zenith Flowline, Zenith Automated Direct Payment System, Etranzact, Zenith Siftpay, Z-Save Card, Z-Credit Card, Web-Surffer Card, Z-Travelex Cash Passport, Z-Mobile Commerce etc.
Perhaps, one other area it has of recent tried to replicate earlier technological successes is in the ATM technology. Some few months ago, it launched a unique and first ever branded ATM Galary in Lagos. This is a virtual banking office, without human tellers, with capability to handle more complex transactions than the conventional ones.
With successful test-run of the Gallery of Lagos, the stage is set to launch in other selected locations and spread, the usual Zenith quality of services.
The effect of satisfied customers has reflected in multiple expansion of deposit base and number of customers. Consider that during the 2006 review year, deposit liabilities increased by as much as some N160 billion to N393 billion. Reports (yet to be validated) had it that the Bank hosted the most patronised ATMs in the Inter-switch platform with about 970,299 transactions. The Bank in the second position was credited with 874,864 customers.
It hopes to see at least 30 per cent literate Nigerians patronise ATM by 2011. Usage rate currently is still below five per cent. In fact, another independent study found that in Nigeria as a percentage of that of South was as low as two per cent. Given its efforts to revolutionalise ATM usage, it is hoped that the situation will improve tremendously in a few years time.
Recently, Zenith Bank opened a banking subsidiary in Ghana with a pledge to replicate its customer-centric quality standards outside the shores of Nigeria. Interestingly, the Ghana subsidiary is first in the series of such investments planned between 2006 and 2011.
In order to use gross selling capabilities to achieve its broad goals, Zenith Bank has joined the rank of others that seek to become financial supermarkets. Accordingly, it set up subsidiaries to operate in the insurance, securities trading, pension custodian and registraship markets with the mandate to ensure uniform Zenith quality services to clients.
Apart from these key investments, another major area the Bank took major interest in 2006 is the small and medium-scale sector. During the period alone, it increased equity exposure to this sector by N1.16 billion to attain a total of N2.62 billion. But an important observation here is the preponderance of information, technology and telecom-related enterprises. This reflects in the known orientation of management.
But 2006, for Zenith Bank, was not all about customer satisfaction and technology. It emerged as one of the biggest spenders for social causes during the year.
Disturbed by the state of roads in the vicinity of its head office building, the bank collaborated with the government to reconstruct the road that pass through the office. This not only brought relief to the road users but also beautified the environment. But an area it made the most strategic intervention in its area of corporate social responsibility is in sports. Documented reports has it that it put in as much as N52.5 million into sports and N30.67 million to educational development.
The Bank considers these as necessary efforts to give back to a society that has given it so much.
Indeed, to have grown within a space of 16 years to achieve total asset plus contingencies of N715 billion through societal support, much is really expected.
Interestingly, the Bank achieved this balance sheet which put it in a position to contest for position of the biggest bank in Nigeria without active participation in the just concluded regulation-induced consolidation, and the growth in 2006 was indeed phenomenal.
EARNINGS AND PROFITABILITY
During the 2006 review year, the Bank grew gross earnings from N34.9 billion to N59.2 billion, the third highest volume reported in the industry for the year. As expected, interest income was dominant, accounting for 64 per cent of the total. But the interesting thing is that non-interest income continued on a slow but gradual increase in importance.
Hence interest income proportion declined to 64 per cent from 66 per cent in the preceding year. It was 67 per cent in 2003.
But direct interest cost of funds increased by almost 100 per cent to N10.5 billion, given the quantum leap in deposit liabilities, thereby giving rise to a marginal decline in gross interest margin from 75 per cent to 72 per cent. Though this remained in the top three, industry performance for the period, it reflected what looks like a sustained declining trend considering the 2003 and 2004 margins of 81 per cent and 79 per cent respectively.
But due to what appears to be exceptionally good performance in risk management, the indirect cost of provisions for risk assets declined from N1.97 billion to N1.31 billion notwithstanding that loans and associated assets witnessed significant expansion.
This helped the Bank to sustain its high rating on managerial cost efficiency at a measure of 26 per cent, the same as in 2005, despite the overhead costs that saw a significant upward escalation.
But our proxy measure of efficiency in the use of assets to generate earnings was not that resistant as it declined from 21 per cent to 19 per cent. Again, this suggests the establishment of a declining trend having moved from 32 per cent in 2003 to 25 per cent in 2004, and to 21 per cent in 2005 as a result of successive increases in total assets.
The bottom-line effect is mixed. While all the absolute bottom-line figures increased, all the relative measures did not move in the desired direction.
Profit After Tax increased to N11.5 billion in 2006 from N7.2 billion during the preceding year which also translated to increase in earnings per share from N1.19 to N1.25. However, return on average shareholders’ fund declined from 27 per cent to 17 per cent. This was, however, explained by the late receipt of the public offer made by the Bank in 2006. Cash dividend paid to shareholders on the other hand increased to 72 kobo per share from 70 kobo. To the shareholders, the board made an abiding commitment to maintain a friendly dividend policy. This commitment was certainly met in 2006.
Finance
Afreximbank successfully closed its second Samurai Bond transactions, raising JPY 81.8bn or $527m
African Export-Import Bank said it has successfully closed its second Samurai bond transaction, securing a total of JPY 81.8 billion (approx. USD 527 million) through Regular and Retail Samurai Bonds offerings.
The execution surpasses the Bank’s 2024 debut issuance size, attracting orders from more than 100 institutional and retail investors, marking a renewed demonstration of strong Japanese investor confidence in the Bank’s credit and its growing presence in the yen capital markets.
On 18 November, Afreximbank priced a JPY 45.8 billion 3-year tranche in the Regular Samurai market following a comprehensive sequence of investor engagement activities leveraging Tokyo International Conference on African Development (TICAD9), including Non-Deal Roadshows (NDRs) in Tokyo, Kanazawa, Kyoto, Shiga and Osaka, a Global Investor Call, and a two-day soft-sounding process which tested investor appetite across 2.5-, 3-, 5-, 7-, and 10-year maturities.
With market expectations of a Bank of Japan interest rate increase, investor demand concentrated in shorter tenors, resulting in a focused 3-year tranche during official marketing.
The tranche attracted strong participation from asset managers (22.3%), life insurers (15.3%), regional corporates, and high-net-worth investors (39.7%).
Concurrently, Afreximbank priced its second Retail Samurai bond on 18 November, a JPY 36.0 billion 3-year tranche, more than double the inaugural JPY 14.1 billion Retail Samurai issuance completed in November 2024.
The 2025 Retail Samurai bond also marks the first Retail Samurai bond issued in Japan in 2025.
Following the amendment to Afreximbank’s shelf registration on 7 November 2025, SMBC Nikko conducted an extensive seven-business-day demand survey through its nationwide branch network, followed by a six-business-day bond offering period.
The offering benefited from strong visibility supported by Afreximbank’s investor engagement across the country, including the Bank’s participation at TICAD9, where Afreximbank hosted the Africa Finance Seminar to introduce Multinational Development Bank’s mandate in Africa and its credit profile to key Japanese institutional investors.
MBC Nikko Securities Inc. acted as Sole Lead Manager and Bookrunner for both the Regular and Retail Samurai transactions. Chandi Mwenebungu, Afreximbank’s Managing Director, Treasury & Markets and Group Treasurer, commented:
“We are pleased with the successful completion of our second Samurai bond transactions, which marked a significant increase from our inaugural Retail Samurai bond in 2024, and which reflect the growing depth of our relationship with Japanese investors.
The strong demand, both in the Regular and Retail offerings, demonstrates sustained confidence in Afreximbank’s credit and mandate.
We remain committed to deepening our engagement in the Samurai market through regular investor activities and continued collaboration with our Japanese partners.”
Ecobank Nigeria, a member of Africa’s leading pan-African banking group, has announced the launch of the Ecobank SME Bazaar—a two-weekend festive marketplace designed to celebrate local creativity, empower entrepreneurs, and give Lagos residents a premium shopping experience this Detty December. The Bazaar will hold on 29–30 November and 6–7 December at the Ecobank Pan African Centre (EPAC), Ozumba Mbadiwe Road, Victoria Island, Lagos. Speaking ahead of the event, Omoboye Odu, Head of SMEs, Ecobank Nigeria, reaffirmed the bank’s commitment to supporting small and medium-sized businesses, describing them as the heartbeat of Nigeria’s economy. She explained that the Ecobank SME Bazaar was created to enhance visibility for entrepreneurs, expand market access, and support sustainable business growth.
According to her, “This isn’t just a market—it’s a vibrant hub of culture, commerce, and connection. From fresh farm produce to trendy fashion, handcrafted pieces, lifestyle products, and delicious food and drinks, the Ecobank SME Bazaar promises an unforgettable experience for both shoppers and participating SMEs. Whether you’re shopping for festive gifts, hunting for unique finds, or soaking in the Detty December energy, this is the place to be.” Ms. Odu added that participating businesses will enjoy increased brand exposure, deeper customer engagement, and meaningful networking opportunities—making the Bazaar a strong platform for both festive-season sales and long-term business growth. The event is powered by Ecobank in partnership with TKD Farms, Eko Marche, Leyyow, and other SME-focused organisations committed to building sustainable enterprises.
The Central Bank of Nigeria (CBN) has said that16 banks have so far met the new capital requirements for their various licences, some four months before the March 31, 2026 deadline. The apex bank also indicated that 27 other banks have raised capital through various methods in one of the most extensive financial sector reforms since 2004. Addressing journalists at the end of the Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Mr Olayemi Cardoso said the banking recapitalisation was going on orderly, consistent with the regulator’s expectations. He said, “We are monitoring developments, and indications show the process is moving in the right direction.” Nigeria has 44 deposit-taking banks, including seven commercial banks with international authorisation, 15 with national authorisation, four with regional authorisation, four non-interest banks, six merchant banks, seven financial holding companies and one representative office.
Cardoso explained that eight commercial banks had met the N500 billion capital requirement as of July 22, 2024, rising to 14 by September of the same year. The number has now increased to 16 as the industry continues to race toward full compliance. He said that the reforms would reinforce the resilience of Nigerian banks both within the country and across the continent. “We are building a financial system that will be fit for purpose for the years ahead. Many Nigerian banks now operate across Africa and have been innovative across different markets. These new buffers will better equip them to manage risks in the multiple jurisdictions where they operate,” Cardoso said. According to him, the reforms would strengthen the financial sector’s capability to support households and businesses. He said, “Ultimately, this benefits Nigerians—our traders, our businesses and our citizens—who operate across those regions. “It should give everyone comfort to know that Nigerian banks with deep local understanding are present to support them. Commercial banks are also creating their own buffers through the ongoing recapitalisation.”
He added that the apex bank considered several factors in determining the new capital thresholds, including prevailing macroeconomic conditions, stress test results and the need for stronger risk buffers. He reassured on the regulator’s commitment to strict oversight as the consolidation progresses. “We will rigorously enforce our ‘fit and proper’ criteria for prospective new shareholders, senior management, and board members of banks, and proactively monitor the integrity of financial statements, adequacy of financial resources, and fair valuation of banks’ post-merger balance sheets,” Cardoso said. He said the CBN remained confident that the banking system would emerge stronger at the conclusion of the recapitalization exercise, with institutions better prepared to support Nigeria’s economic transformation Banks have up till March 31, 2026 to beef up their minimum capital base to the new standard set by the apex bank. Under the new minimum capital base, CBN uses a distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds.
While most banks have shareholders’ funds in excess of the new minimum capital base, their share premium and share capital significantly fall short of the new minimum definition. The CBN had in March 2024 released its circular on review of minimum capital requirement for commercial, merchant and non-interest banks. The apex bank increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion. Others included merchant banks, N50 billion; non-interest banks with national license, N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026. Under the guidelines for the recapitalisation exercise, banks are expected to subject their new equity funds to capital verification before the clearance of the allotment proposal and release of the funds to the bank for onwards completion of the offer process and addition of the new capital to its capital base. The CBN is the final signatory in a tripartite capital verification committee that included the Securities and Exchange Commission (SEC) and the Nigeria Deposit Insurance Corporation (NDIC). The committee is saddled with scrutinising new funds being raised by banks under the ongoing banking sector recapitalisation exercise.
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