Nigeria’s Zenith Bank targets cost reduction measures, plans five-year organic growth

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Zenith Bank said it will pursue new markets and roll out new products to enhance value addition, in line with its medium term plans over the next five years.

The bank revealed it will re-channel its efforts in deploying more electronic banking products, following the divestment from non-banking operations in compliance to Central Bank of Nigeria (CBN) directive.

Zenith Bnak, which plans to focus on its banking activities, said in its annual report for 2018 that it will “look to strengthen its retail banking business by doing a retail banking transformation exercise”. The report noted that this is expected to “significantly grow its retail banking revenue, deposit liabilities, and risk assets, and obtain a significant share of the retail banking industry in Nigeria”.

To achieve the target and improve the capacity to appeal to clients’ changing needs, the bank said it will implement a core banking system that will replace the existing one, which will ultimately enhance the Group’s internal operating system in terms of enhancing efficiency, while helping to reduce costs.

The Board Chairman, Jim Ovia said the bank is “constantly monitoring developments in the local and global economic environment, and appropriately applying pragmatic and dynamic approaches to the banking business”. He added that “our strategic focus on the pursuit of shared prosperity has positioned us to seek and leverage new opportunities in the market”.

To demonstrate the bank’s commitment to expanding its market share and increasing shareholders’ value, total deposits grew seven percent to 252 billion naira at the end of 2018, just as total assets rose six percent to 6 trillion naira, and profit after tax at 11 percent to 19.6 billion naira.

In a period of 28 years, Zenith Bank has created diverse service delivery channels for customer satisfaction, and has remained adequately capitalised to meet customers’ expectations and needs as a Tier 1 player, and thus remained one of Nigeria’s strongest brand and largest bank, with specific focus on institutional and corporate investment, commercial, retail and public sector banking.

The Chief Executive officer of Zenith Bank, Peter Amangbo, said the bank “shall continue to intensify efforts towards making further in-roads into the retail segment of the market with new and innovative products that support small and medium-sized enterprises”.

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