Zenith Bank has confirmed it will not return to the market to raise additional capital after surpassing the Central Bank of Nigeria’s (CBN) minimum capital requirement. The bank, under the leadership of Group Managing Director and CEO Adaora Umeoji, raised its capital base to N614.65 billion—well above the N500 billion threshold.
This achievement was the result of a highly oversubscribed hybrid offer in January 2025. The offer included a rights issue of over 5.2 billion ordinary shares at N36 per share and a public offer of about 2.8 billion shares at N36.50. Combined, they pulled in N350.46 billion, pushing Zenith Bank’s capitalisation to 160%.
“We have finalised our recapitalisation exercise and have reached 160% capitalisation. We are not under any pressure to go back for the second time to raise money,” Umeoji said at the bank’s Annual General Meeting (AGM) in Lagos. “Our robust capital structure allows us to continue delivering value to our shareholders.”
Strong Financial Showing in 2024 Backs ConfidenceIn addition to hitting its capital targets, Zenith Bank recorded impressive financial results for 2024. Profit before tax (PBT) rose by 67% to N1.3 trillion, up from N796 billion in 2023. This was attributed to both strong top-line growth and effective treasury management.
Net interest income soared by 135%, reaching N1.7 trillion from N736 billion the previous year. Non-interest income also grew by 20%, hitting N1.1 trillion compared to N919 billion in 2023. Umeoji noted the bank’s ongoing commitment to rewarding shareholders with consistent dividend payouts.
Monetary Policy Changes Drive Deposit SurgeThe CEO also addressed the rising interest expenses, linking them to a significant expansion in the bank’s deposit base and changes in Nigeria’s Monetary Policy Rate (MPR). Zenith’s deposit base grew from N15.1 trillion in 2023 to N21.9 trillion in 2024.
“Our deposit base grew significantly, which impacted our interest expense and asset repricing,” Umeoji explained. She also highlighted the role of the MPR, which climbed from 18.75% in February 2023 to 27.5% in November 2024, in shaping effective interest repayments, especially on savings accounts.
Shareholders Applaud Growth and DividendsShareholders attending the AGM expressed satisfaction with the bank’s performance and the N5.00 per share final dividend payout.
“I am proud to be both a shareholder and customer of Zenith Bank. They have maintained professionalism and reliability, making it easy to recommend them,” said Chief Timothy Ayobami Adeshiyan. “The N5 dividend payout was promised, and they delivered, which reinforces our confidence in the bank.”
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