The Nation Newspaper

Tag: Zenith Bank

  • Zenith Bank gets CEO

    Zenith Bank gets CEO

    Zenith Bank Plc yesterday named Peter Olisamedua Amangbo as its new Chief Executive Officer after its head was confirmed as the next governor of the Central Bank of Nigeria (CBN).

    Until his appointment, he was an executive director and has worked in the bank for more than 21 years. His appointment takes effect from June 1, the bank said in a Nigerian Stock Exchange (NSE) filing.

    Outgoing Zenith Bank chief Godwin Emefiele was appointed last month to replace suspended CBN (CBN) governor Sanusi Lamido Sanusi. His appointment was confirmed by the Senate last week.

    Amangbo worked with Pricewaterhouse as a Senior Consultant in the Financial Services Group. He holds Bachelors Degree in Electrical and Electronics Engineering from University of Benin.

    He also holds a Masters in Business Administration from the University of Warwick, Coventry, United Kingdom.

    He is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN).

  • Jim Ovia gets new look

    Jim Ovia gets new look

    IF you run into the former MD of Zenith Bank International, Jim Ovia, chances are that you may not recognise him. The chairman of Visafone, a telecommunication company, currently spots a rotund face and rich moustache that make him to look different from his days as Zenith Bank’s chief executive.

    Jim Ovia has spotted the new look since he relinquished his position in Zenith Bank. His new looks are a total departure from his clean shave as a banker. In fact, it is easy for one to confuse him with an actor in full costume, ready to act a role; even when he celebrated a wedding ceremony for her daughter in the UK, he wore the same looks.

    The man, who transformed Zenith Bank to a global institution, is said to have found a new pastime in humanitarian activities. A few months ago, he built a massive school, named James Hope College, in his hometown, Agbor in Delta State. He capped the building with the appointment of a British educationist as the principal.

    According to him, he decided to help in making quality education accessible to the people and he would be replicating the gesture in other states.

  • Zenith Bank tasks youth on financial literacy

    Spurred by the Central Bank of Nigeria’s (CBN’s) drive for financial inclusion in the country, Zenith Bank Plc has launched a campaign targeted at inculcating a savings culture and general financial literacy among secondary schools students in the country.

    The bank, last week, organized a one-day training programme for students of Girls’ Secondary School, Abayi, Aba, Abia State, where over 300 students of the school were groomed on the need to develop the healthy habit of managing money and using the banks for their daily financial dealings.

    Delivering a lecture titled Financial Literacy 101/ Financial Management, the General Manager in charge of Owerri Zone, Austin Njoko who represented the Group Managing Director and Chief Executive Officer of Zenith Bank Plc, Mr. Godwin Emefiele stated that the programme had become imperative judging from the fact that over 43.6 per cent of adult Nigerians do not transact business in banks; a figure he said, would become worse if youths were added to the already frightening figure.

  • Jim Ovia dreams anew

    Jim Ovia dreams anew

    THAT Jim Ovia is a big name in Nigerian banking through the Zenith Bank which he founded in 1990 and grew into West Africa’s 2nd largest financial services provider by market capitalisation and asset base and that he was forced to step down as chief executive after a 20-year stint in banking, following a Central Bank directive, is no longer news.

    Well, the gist is that the bulk of the wealth of the recluse millionaire comes largely from a massive portfolio of prime real estate in some of Nigeria’s priciest neighbourhoods: Victoria-Island and Ikoyi. Before one could say Jack, the shrewd businessman moved into the hospitality business. Inside sources divulged that the massive hotel is still under construction. Now the news making the rounds is that Ovia is proposing to build one of the biggest malls in Africa. Jim Ovia also owns Aquamarine, an exclusive boat club catering to Nigeria’s richest folks.

  • Why now, Zenith Bank?

    SIR: I am too pained in my heart, to do a proper introduction of myself, so everyone reading this would have to forgive me for that. I am a young male employed by Zenith Bank in 2012, when the bank decided to opt for contract staffing of fresh university graduates.

    I had to take it believing that the exposure and the need to equip myself with a certain level of experience were far more important than being idle. My remuneration was pegged at 69,999 Naira a month. The responsibilities assigned to me were the same with other professional non-contract staff in the operations unit of my branch. There is absolutely no disparity in my work load and to make matters worse, my branch could be classified as a non-performing branch in terms of income generation, so my branch head equally subjects me to marketing duties by making sure I introduce accounts to the branch if I want to be appraised very well in the bi-annual appraisal system of the bank.

    I go to work each day, concealing my disdain for the conditions I have to work with. What provoked this write-up is the issue of 13th month salary, also called December bonus. Zenith Bank has a policy of paying 13th month to all cadres of staff, professional and non-professional (contract). By that I mean the security staff and bulk note counters also enjoy of this largesse.

    I expected that those in my category would equally be paid this bonus, having put in more than a fair shift of workload during the year, but to my utmost bewilderment and those of my professional (contract) colleagues, we were denied of the benefit.

    I have tried to rationalize why the bank would decide to treat us with such disdain and contempt for our efforts and I am yet to come up with an answer.

    I want the bank to understand that as frontline officers of our various branches, they’re treading on our emotions and the level of bottled up rage in most of my colleagues would definitely spill over soon; and that the bank as an institution would be setting itself up for the worst public relations disaster of any financial institution in the country.

    To the general public, if you walk into any of the Zenith Bank branch and the attending teller doesn’t reciprocate your friendliness or warmth, please don’t take offence; understand that his animosity is not to you but the employer he/she has to contend with.

     

    • Chris Xander

    Lagos

  • Unveiling the new Tejuoso Market

    Unveiling the new Tejuoso Market

    About six years ago, fire razed the old Tejuoso Market, Yaba, Lagos Mainland. What agitated the minds of many traders and residents of the area then was whether the market would ever be rebuilt. This has been laid to rest, with the unveiling of the new structure built by the Lagos State government. But will the shops be affordable by the former owners? SEYI ODEWALE asks.

    When it was gutted by fire some years ago, traders lost billions of naira. But paramount to them then was the rebuilding of the razed Tejuoso Market on Ojuelegba/Yaba Road, Lagos State. Bemoaning their fate, they wondered if they would ever do business in the market again. Their fears appeared laid to rest last week with the unveiling of the market rebuilt by the Tejuosho Property Development Company (the firm responsible for the market’s rebirth).

    At its unveiling last Wednesday at Tejuosho, the firm’s Head of Sales and Marketing, Comfort Oluwadairo said the market would be delivered in December.

    She said the December date for its completion was not negotiable. “December date for the completion of the project is not negotiable,” Oluwadairo said.

    She assured that the firm would leave no stone unturned to ensure that the project is delivered on schedule, adding that spaces in the complex have almost sold out.

    “As you can see all around, we are putting finishing touches to the property and work is proceeding at a steady pace. We are satisfied with the progress. We are a wholly independent real estate development company and our agreement with the government is clear. We are to develop this property as a market and that is precisely our focus. Technology-assisted security will be available to shop owners by the end of the year,” she said.

    Reliving the memories of the old Tejuoso at the forum, stakeholders wondered if the new shops would be affordable by the occupants of the old market. Not only that, they expressed worry that the gigantic edifice would not have old spark the market radiated before its demise.

    The old market was the economic hub of Yaba, a buzzing community in the metropolis of Lagos. It was made up of shops of various sizes across the three floors. There were various sections of the market with each having its peculiar patrons. However, the complex became a nightmare of some sorts with shop owners going beyond the market’s space and displaying their wares on the road, thus obstructing human and vehicular traffic.

    Aside the unending nightmare occasioned by the activities of bureau de change operators, road side hawkers and touts made the area a place to go with caution. But what changed the face of the market was the fire that gutted it on December 18, 2007, a few months after Governor Babatunde Fashola’s inauguration.

    In the words of a source who pleaded anonymity, the incident was a disaster waiting to happen.

    “The whole area was a disaster waiting to happen and that was exactly what happened on December 18, 2007. A fire started at around 7.30pm due to an electrical fault. Traders were scrambling for their wares and three of them lost their lives along with two fire fighters trying to rescue people. It was a tragic incident that should never happen again in Lagos State.”

    The incident prompted the rebuilding of the market with emphasis on safety, space and shops with modern facilities to mitigate untoward incidence. To prevent a reoccurrence, the state government ensured that the stores built are adequate for the products intended; took measures to prevent sub-letting and discourage street trading. Free flow of people within the market is assured by the provision of adequate airspace around the market.

    With emphasis on these, work began on the construction of the 1,660 shops in the five-storey complex with adequate attention given to parking space for about 580 cars and basement parking lots.

    The new market has taken care of one of the major problems that caused the fire.

    “The fire fighters had difficulty getting their equipment into the market to put out the fire. But in the new market, there is fire fighting equipment installed and a fire service station within the complex,” a source close to the project said.

    Other facilities expected in the complex include a waste disposal system; security installation and police posts; adequate toilet facilities per floor and public toilets for tenants and visitors; provision of public address systems and Tejuosho Market Radio and TV station to disseminate information to occupants and visitors.

    Oluwadairo said: “The new Tejuosho ultra-modern market is a new landmark in the city of Lagos. The market is a re-development exercise of the old Tejuosho market which is geared at being a truly 21st century market, a first of its kind in this part of the world.

    “The market’s structure takes into consideration all the needs and requirements of the ideal modern market buildings and promises to adequately meet the needs of the buyer and sellers in terms of functionality, accessibility, ease of navigation and aesthetics.

    “Amenities include: Train Station; Basement Car Park; Police post; Crèche; Kee-Klamp; toilet facilities; delivery bay; fire station; roads; drainage; paved walkways; boundary fence; central power back up systems; waste disposal; central water supply; lifts; standby security guards and cleaners amongst others. Upon completion, the complex will house approximately over 1,660 lockup shops.”

    She said sale of the shops and stores are on-going and demand has been very impressive. Commenting on the purported litigation on the complex, she said her firm’s business is only on the construction of phase II of the complex and is not in any way involved with litigation. “Phase II of the market is not involved in any court proceedings or litigation that may slow it down or adversely affect shop owners. PTDC does not have any connection or relationship whatsoever with the Phase 1 or its developers. This project is exclusively financed by Zenith Bank and we have a great relationship with them. Even as the price of building materials, fuel and labour went up, Zenith Bank provided more financing so that the project would proceed without glitches,” she said.

    When asked if her firm would consider the former shop owners, who lost their goods in the inferno and were promised compensation by the Lagos State Government, Oluwadairo said the issue was between the state government and the shop owners and not her firm’s.

  • FBNH, Zenith record slim gains

    FBNH, Zenith record slim gains

    THE stock market was characterised by mixed sentiments in the banking sector with fairly matched gainers and losers at the close of proceedings at the weekend.

    FBNH and Zenith Bank recorded slim gains of 0.9% and 0.2% while UBA and GTBank booked losses of 0.6% and 0.3%, mid-tier banks were also in line with Skye Bank and Fidelity Bank closing on the up-tick while Diamond Bank and FCMB dropped 0.7% and 0.2% respectively.

    The building materials sector was split evenly, Wapco and Ashaka cement rallied with gains of 2.1% and 1.8% on the back of growing demand while CCNN and Dangote Cement lost 0.9% and 1.0% as participants on the buy side remained cautious.

    Flourmills picked maximum points at the close of the day’s proceeding with a clearance of available offers during the session. Closing sentiments suggests that this trend could lead to further appreciation early next week. Multitrex dropped a further 1.6% in spite of a dearth of offers during the session while Nascon lost 2.5%.

  • Five banks’gross earnings hit N388b

    Gross earnings of Guaranty Trust Bank (GTB), Zenith Bank, Access Bank, Skye Bank and Enterprise Bank rose to N388.9 billion last year, according to data compiled by The Nation.

    GTB’s gross earnings were N221.9 billion and profit after tax was N87.3 billion, indicating 68.7 per cent leap from N51.7 billion in 2011. Further review shows that the bank recorded a slight growth in risk assets, with its loan book expanding by 11 per cent year on year – almost flat at 0.3 per cent quarter-on-quarter.

    The bank grew deposits by 11.9 per cent last year despite what is believed to be the restrictive monetary policy of the Central Bank of Nigeria (CBN).

    On a quarterly basis, growth in the GTB’s net interest income was on downward trend, slowing from 103.8 per cent in the second quarter to 50.1 per cent in third quarter and narrowed down to 36.4 per cent in the fourth quarter of 2012.

    Renaissance Capital (RenCap) said in an emailed report that it viewed GTB’s results as positive, reinforcing the best-in-class operating efficiency and profitability of the lender.

    “While noting that exceptional income from the sale of its last subsidiary, GT Homes in May 2012, may have also contributed to its earnings, however slight, we would like to highlight the bank’s rather strong operating performance,” it said.

    Zenith Bank’s net income rose to N100.68 billion in 2012 from N48.7 billion a year earlier, as its cost-to- income ratio fell to 54 per cent from 63 per cent. “Zenith’s operating efficiency showed material improvement” driving earnings higher, Muyiwa Oni and Rele Adesina, Lagos-based analysts at Stanbic IBTC Holding Co, wrote in an e-mailed note to Bloomberg.

    Zenith doesn’t expect Nigerian bank industry earnings this year to be “as aggressive” as in 2012, Chief Executive Officer Godwin Emefiele said during a March 21 interview.

    Access Bank Plc said full-year profit more than doubled as customer deposits increased. Net income advanced to N38.6 billion in 2012 from N14.5 billion a year earlier. Revenue rose 54 per cent to N208.3 billion as loans and advances to customers climbed five per cent to N604 billion. Deposits grew nine per cent to N1.2 trillion. Access Bank restrained its loan book following its purchase of Intercontinental Bank Plc in 2011, Chief Executive Officer Aigboje Aig-Imoukhuede said in October.

    Another lender, Skye Bank Plc announced N12.64 billion profit after tax for the year ended December 31, 2012. Key extracts of the lender’s audited report showed that the result represents an increase of 872.6 per cent on N1.30 billion recorded in 2011.

    Profit Before Tax (PBT) rose from N2.84 billion in 2011 to N16.51 billion in 2012. The bank maintained a steady top-line in 2012 with net interest income and net non-interest income of N44.50 billion and N22.60 billion.

    In a statement, the bank said its audited report and accounts for the year ended December 31, 2012 showed remarkable improvement in profitability as it harnessed its vast business base and increasingly efficient cost management to deliver impressive returns to shareholders.

    “On the basis of the impressive bottom-line, the board of the bank has recommended an increase in cash dividend per share from 25 kobo paid for 2011 business year to 50 kobo for 2012. This performance underlined Skye Bank as a return-driven bank. Earnings per share increased to N1.01 in 2012 as against 20 kobo in 2011,” it said.

    Enterprise Bank Limited also announced PBT of N11.3 billion for 2012. The bank was one of the bridge banks that emerged on August 5, 2011 following the takeover by the Nigeria Deposit Insurance Corporation (NDIC) of the defunct Spring Bank Plc. The new bank was recapitalised by the Asset Management Corporation of Nigeria (AMCON).

    In a statement, the bank said the profit is a marked improvement from the loss of N5.2 billion for the five-month period it operated as Enterprise Bank in 2011 (August to December 2011). The PBT represents a growth of 316.6 per cent. Other figures from the result show that gross earnings grew by 283.9 per cent to N40.4 billion as at year ended December 2012, from N10.5 billion achieved in the five-month period in 2011.

    The bank’s deposit also grew from N162.6billion to N208.4 billion between the five months in 2011 and 2012 financial year. This represents a growth of about 28.2 per cent. Total assets also experienced a growth of 31 per cent between the periods from N198.5 billion as at end of 2011 to N261.1billion by the end of 2012.

    The Chairman of Enterprise Bank Limited, Mr Emeka Onwuka, attributed the achievement by the bank to a sustained growth in quality risk asset creation, which equally engendered growth in interest income.

    He stated that in addition, the bank’s other banking income items, such as commissions, fees, electronic banking income, significant improvements in trade-related transactions, facilitated through its strategic focus on Small and Medium scale Enterprises (SMEs) helped in boosting the bank’s fees and commission income.

  • Tax remittance: Bank chiefs snub Reps’ panel

    Tax remittance: Bank chiefs snub Reps’ panel

    Investigation into remittance of tax to the Federal Inland Revenue Service (FIRS) by the House of Representatives Committee on Finance got underway on Monday with no bank chief executive officer in attendance.

    The committee is probing banks’ tax returns between 2008 and 2012 as well as level of compliance with collected tax remittances to the Federal government within the same period.

    Though 12 of the 21 banks under investigation sent representatives, all the bank CEOs were asked to present themselves before the committee on Wednesday or risk being forced to face the panel.

    However nine bank CEOs were specifically warned against being forced to appear before the committee on Wednesday with warrant of arrest.

    The affected banks are Zenith Bank, Sterling Bank, Stanbic IBTC, Skye Bank, Heritage Bank, FCMB, Ecobank and Enterprise Bank.

    Furthermore, the committee stressed that it will not entertain official lower than the rank of Executive Director should the CEO fail to make the meeting.

    In his opening remarks, Chairman of the Committee, Abdulmumin Jibrin, warned that the investigation should not be viewed as attempt by the committee to overstep its boundary.

    “We are here today in line with the oversight mandate of the committee on the FIRS and tax matters. Our vision is to strengthen the FIRS and optimize the potentials of our tax system.

    “All over the world, banks are under tight scrutiny by the parliament because of their strategic role in the economy and of course tax matters and treated with utmost importance,” Jubrin said.

     

     

  • Consolidated Hallmark, Zenith Bank partner

    Consolidated Hallmark, Zenith Bank partner

    Consolidated Hallmark Insurance (CHI Plc) is partnering with Zenith Bank Plc to ease the procurement of the compulsory third party motor insurance.

    The insurance firm said the collaboration would enable those seeking to renew or obtain a new motor insurance cover to pay for it across the bank’s counters nation-wide.

    With this arrangement, vehicle owners, insurance brokers and fleet operators can walk into the bank, effect payment and obtain the e-pin for processing of the third party motor insurance cover through either the product portal www.motorthirdpartyonline.com or from the company’s website.

    The company’s Managing Director, Mr. Eddie Efekoha said the company embarked on the arrangement to provide clients with additional options of obtaining their genuine insurance, having pioneered the online web portal payment for the product in 2008.

    He said that with the Consolidated Hallmark e-pin from the bank, clients can generate their insurance certificates from the comfort of their homes or offices within a few minutes, print the document for their immediate use or save for future use after completing a few details.

    Efekoha added that details of the vehicle thus covered are automatically uploaded to the portal of the Nigeria Insurance Industry Vehicle Database, a central registry of all vehicles with valid insurance cover.

    “Customers also have the option of making payments for the product with their ATM cards, or obtaining this and other classes of insurance through the National Insurance Commission (NAICOM) licensed insurance agents across the country.

    “The Consolidated Hallmark Motor Third Party Insurance cover protects the holder for up to N1 million in property damage liabilities to third parties, and also covers bodily injury and death of third parties arising from the usage of the insured vehicle,” he said.