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ZENITH BANK SET TO COMMENCE N290 BILLION CAPITAL RAISING EXERCISE THROUGH RIGHTS ISSUE AND PUBLIC OFFER

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ZENITH BANK SET TO COMMENCE N290 BILLION CAPITAL RAISING EXERCISE THROUGH RIGHTS ISSUE AND PUBLIC OFFER

Zenith Bank Plc is set to raise N290 billion through a combination of a Rights Issue and a Public Offer in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN). This announcement was made during the Zenith Bank Rights Issue/Public Offer Signing Ceremony held yesterday, July 29, 2024, at The Civic Centre, Victoria Island, Lagos. This event marks a significant milestone in the bank’s previously announced capital-raising programme, aimed at bolstering its capital base and supporting its growth trajectory across its banking and non-banking subsidiaries.

The Rights Issue offers 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share, while the Offer for Subscription presents 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share. The Rights Issue affords existing shareholders the opportunity to purchase additional shares in proportion to their current holdingsand is being offered on the basis of one new ordinary share for every six existing ordinary shares held as of Wednesday, July 24, 2024. Conversely, the public offer for subscription is open to the general public and aims to attract new investors.

Speaking at the signing ceremony, the Group Managing Director/CEO of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON, expressed enthusiasm about the Rights Issue and Public Offer, stating, “Today, we signed the transaction documents with respect to Zenith Bank’s N290 billion Rights Issue and Public Offer. This is slightly above the N230 billion required for us to meet the CBN’s minimum recapitalisation requirement. We are extremely pleased with the level of enthusiasm we have already seen from our existing shareholders for the Rights Issue. Beyond existing shareholders, incorporating a public offer is crucial to ensure that our customers, who are not yet shareholders, can have the opportunity to join in the ownership of this premium brand.

ZENITH BANK SET TO COMMENCE N290 BILLION CAPITAL RAISING EXERCISE THROUGH RIGHTS ISSUE AND PUBLIC OFFER

R – L: Executive Director, Zenith Bank Plc, Mr. Louis Odom; Executive Director, Mr. Akin Ogunranti; Chief Executive, Stanbic IBTC Capital Limited, Mr Oladele Sotubo; Group Managing Director/Chief Executive, Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON; Company Secretary, Mr. Micheal Otu; Executive Director, Stanbic IBTC Capital Limited, Mrs Oyindamola Akinyemi; Executive Director, Mr. Henry Oroh; Executive Director, Mrs. Adobi Nwapa; and Executive Director, Mr. Adamu Lawani; during the Zenith Bank Capital Raising Signing Ceremony at the Civic Centre, Victoria Island, Lagos, yesterday.

“In terms of Tier-1 Capital, Zenith Bank has been adjudged by The Banker, Financial Times to be number one in Nigeria and the only Nigerian Bank in the top 600 banks globally. Over the years, we have consistently rewarded our esteemed shareholders. Specifically, in the last five years, we have maintained the record as the highest dividend-paying Bank in Nigeria. In 2023, we set a record as the only Nigerian Bank to pay a dividend of N4 per share.” She added that the proceeds from the capital raise will be channelled towards expanding banking operations across Africa and internationally, investing in technology infrastructure, and supporting working capital on an ongoing basis. She expressed optimism that given Zenith Bank’s track record of profitability and consistency in creating wealth for shareholders, the capital raise will be a resounding success. She assured prospective investors that Zenith Bank will maintain its leadership in dividend payout in the years ahead and encouraged them to invest in value and invest in Zenith Bank.

She also expressed her profound gratitude to the Founder and Chairman, Dr. Jim Ovia CFR, whose vision over 34 years ago laid the foundation for a reputable, dominant, globally recognised financial institution known for innovation, superior performance, and the creation of premium value for all stakeholders.

The Chief Executive of Stanbic IBTC Capital Limited, Mr. Oladele Sotubo, commended the management of Zenith Bank for their commitment to the transaction, which provides an opportunity for existing shareholders to consolidate their position and welcomes new investors to join the journey towards the future of Zenith Bank. He also expressed gratitude for the opportunity for Stanbic IBTC Capital Limited to lead and guide the execution of the transactions. Speaking further, he said, “A combined offer that is both a Rights Issue and a Public Offer confirms Zenith Bank’s position as a pacesetter and a role model, which will undoubtedly spur more transactions in the capital market.”

The lead issuing house for the Rights Issue and Public Offer is Stanbic IBTC CapitalLimited, with joint issuing houses including Quantum Zenith Capital & Investments Limited, CardinalStone Partners Limited, Meristem Capital Limited, Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited and Vetiva Advisory Services Limited. The Offer will open on Thursday, August 1, 2024, and close on Monday, September 9, 2024.

Zenith Bank has provided a robust suite of platforms for the Rights Issue and Public Offer. Applications can be made through any of Zenith Bank’s electronic channels: Zenith Bank Internet Banking, Zenith Bank Mobile Application, Zenith Bank Corporate Internet Banking, Zenith Bank Branches nationwide and NGX Invest platform.

The Zenith Bank E-Application channels have been integrated into the NGX Invest platform, which can be accessed at https://invest.ngxgroup.com, and are available to all applicants and authorised receiving agents to submit applications on behalf of applicants. The electronic channels democratises the distribution of public offers and rights issues in the capital market, enabling investors to subscribe with the click of a button.

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Zenith Bank Posts Record Profit with 118% Revenue Surge

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Zenith Bank Plc has posted its unaudited financial results for the third quarter ending September 30, 2024, demonstrating an impressive 118% growth in revenue.

The bank’s earnings soared from N1.33 trillion in the same period last year to N2.9 trillion, a feat that underscores its resilience and leadership in Nigeria’s financial landscape despite macroeconomic challenges.

The detailed financial report, submitted to the Nigerian Exchange (NGX), revealed that the bank’s profit before tax surged by 99% year-on-year, rising from N505 billion in Q3 2023 to N1 trillion in Q3 2024. Similarly, profit after tax climbed 91%, moving from N434.2 billion to N827 billion.

Zenith Bank’s topline growth was driven by a significant increase in both interest and non-interest income.

Interest income experienced a robust 190% increase, reaching N1.95 trillion, benefiting from a high-yield environment. Non-interest income grew by 41% to N856 billion, propelled by gains in fees and commissions, which were attributed to the bank’s strong retail growth and the performance of its digital channels.

The growth in earnings per share (EPS) was equally notable, almost doubling from N13.82 in Q3 2023 to N26.34.

The bank’s balance sheet also showed substantial growth. Total assets rose by 49% to N30.4 trillion, primarily driven by a 42% increase in customer deposits, which reached N21.6 trillion.

This increase spanned corporate and retail sectors, showcasing the bank’s extensive market reach. Gross loans grew by 46% to N10.3 trillion, aligning with Zenith Bank’s dedication to supporting key sectors of the economy.

Operationally, the bank maintained a strong capital adequacy ratio of 21.9%, exceeding regulatory requirements. Return on average equity (ROAE) increased from 35.1% to 37.8%, while return on average assets (ROAA) climbed to 4.3%.

Despite a rise in the cost of funds to 4.3% due to prevailing market conditions, Zenith Bank sustained a cost-to-income ratio of 39.5%, reflective of investments in technology and strategic growth initiatives. The cost of risk remained steady at 7.3%.

Zenith Bank’s asset quality continues to be robust, with a non-performing loan (NPL) ratio of 4.5%, well within regulatory thresholds.

A coverage ratio of 198.4% emphasizes the bank’s stringent risk management and preparedness to handle market volatility.

As part of its forward-looking strategy, the bank initiated a capital raise on August 1, 2024, comprising a Rights Issue and Public Offer in response to the Central Bank of Nigeria’s (CBN) recapitalization mandate issued earlier in the year.

“The fundraising exercise was successful, reflecting strong confidence in Zenith Bank’s brand,” the bank stated. Final verification approvals from regulatory authorities are pending, but the proceeds are expected to support business expansion and strategic initiatives.

Zenith Bank has already laid foundations for further growth. In September 2024, it obtained regulatory clearance to open a branch in Paris, France.

This new location will facilitate international business operations and enhance its service offerings.

Looking ahead, Zenith Bank remains committed to sustainable value creation, guided by rigorous corporate governance and risk management standards.

With a strengthened capital base, the bank aims to extend its influence within the financial sector and continue delivering exceptional returns to its stakeholders while pursuing growth opportunities in key markets.

 

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Wema Bank Shines with 174% Profit Surge in Q3

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Wema Bank Nigeria has unveiled its unaudited Consolidated Financial Statements for the third quarter of 2024, highlighting an impressive 174% year-on-year growth in profit before tax, reaching ₦60.62 billion.

The bank’s assets saw significant expansion, with its balance sheet increasing by 38% to ₦3.084 trillion, while deposits climbed 23% to hit ₦2.292 trillion.

Loans and Advances also grew robustly, up 25% to ₦1.003 trillion, with Non-Performing Loans (NPL) recorded at 3.19%.

Driven by a strong rise in Interest Income (81%) to ₦229.11 billion and a remarkable 144% jump in Non-Interest Income to ₦59.21 billion, Gross Earnings surged 91%, totaling ₦288.32 billion.

Key performance metrics were notably strong, with the bank reporting a Return on Equity (ROAE) of 38.62%, a Pre-Tax Return on Assets (ROAA) of 2.64%, a Capital Adequacy Ratio (CAR) of 14.06%, and a Cost-to-Income ratio of 60.47%.

Commenting on these achievements, Managing Director/CEO Mr. Moruf Oseni expressed confidence in the bank’s progress despite a tough operating environment, stating, “We will sustain our growth trajectory into 2025.”

Wema Bank’s Q3 2024 results reflect its dedication to creating value for shareholders and stakeholders alike, showcasing robust growth across all key financial indicators.

Key highlights of the bank’s financial performance include:

Profit Before Tax: ₦60.62 billion, reflecting a 174% year-on-year increase.

Gross Earnings: ₦288.32 billion, up 91% year-on-year.

Total Assets: ₦3.084 trillion, an increase of 38%.

Deposits: ₦2.292 trillion, up 23%.

Loans and Advances: ₦1.003 trillion, up 25%.

Earnings Per Share: 328.1 kobo.

 

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