Zenith Bank Plc has again emerged as the Number One Bank in Nigeria by Tier-1 Capital in the 2020 Top 1000 World Banks Ranking published by The Banker Magazine.
The bank climbed 29 spots from the 415 position it occupied in 2019 to 386 in the 2020 global ranking of banks, thus retaining its position as the number one Tier-1 bank in Nigeria with Tier-1 Capital of $2.79 billion, representing an increase of 16.1 per cent on the $2.40 billion recorded in the 2019 rankings.
The ranking, published in the July 2020 edition of The Banker Magazine, a subsidiary of the Financial Times Group, UK, was based on the 2019 year-end Tier-1 capital of banks globally. According to the Ranking Report, Zenith Bank extended its lead over the second-placed bank in Nigeria. Its a financial performance for the year was underpinned by a 29 per cent increase in non-interest income, with an improved market share in both retail and corporate sectors.
In his reaction, the Group Managing Director/Chief Executive, Ebenezer Onyeagwu said: “this ranking, which further attests to our market leadership, is the outcome of a well-thought-out strategy of always delighting and creating value for our teeming customers through a broad range of superior product offerings, best-in-class service and top-of-the-range technology.”
Tier-1 capital describes the capital adequacy of a bank, and it is the core measure of a bank’s financial strength from a regulator’s point of view. Tier-1 Capital, includes loss-absorbing capital, which denotes common stock, disclosed reserves, retained earnings and minority interests in the equity of subsidiaries that are less than wholly owned.
He said Zenith Bank has clearly distinguished itself as the leader in the Nigerian financial services industry through superior service quality, unique customer experience and sound financial indices, pointing out that the bank has a knack for setting the pace and raising benchmarks in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels that ensure convenience, speed and safety of transactions.
In the year ended December 31, 2019, the bank posted profit after tax (PAT) of N208.8 billion, achieving the feat as the first Nigerian Bank to cross the N200 billion mark. In the recently released Q1 2020 unaudited financial results, the bank also recorded an improved result over the corresponding period in 2019, with gross earnings rising by 6% to N166.8 billion and profit before tax (PBT) growing 3% to N58.8 billion.