We are open for ‘acquisition’ talks - Zenith Bank Ghana

We are open for ‘acquisition’ talks - Zenith Bank Ghana
Source: Ghana| Myjoyonline | Abubakar Ibrahim| JoyBusiness
Date: 15-09-2017 Time: 08:09:48:am

Zenith Bank has indicated that it is willing to engage any commercial bank that may be struggling to meet the new capital levels, for possible acquisition.

The Managing Director of the bank, Henry Oroh, said the recapitalization announcement is a special thing for the country, stressing there might be the need for big players like Zenith to extend a helping hand to other banks, beyond what they would traditionally do.

He added that “the bank has not shut its doors for talks and we would have an open mind if we have good invitations, the bank would gladly review it.”  

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Zenith Bank is said to be one of the few banks in the country that is in the position to meet the new minimum capital requirement of ¢400 million, recently announced by the Bank of Ghana.

This is based on its half year results ending June this year which showed that the bank might not require additional capital to meet the minimum levels starting from 2018.

Bank's engagement

Speaking to JOYBUSINESS on the bank’s 12 years of operation in Ghana and some developments in the banking sector, Mr Oroh said it has always been the preference of Zenith Bank to grow organically.

“That is how we have grown our business in most markets that we have operated over the years,” he said.

Regarding how the bank has come this far in terms of improving capital position, the Managing Director noted that this was as a result of prudent management of resources and deciding to plough back some of its profits into the business.

“This is a philosophy that we have run over the years and we are willing to take it to another level,” he said.

Financial Performance

Following the robust financial results Zenith Bank Ghana recorded at the end of the 2016 financial year, the bank has accomplished yet another milestone for the half year ended June 30, 2017. 

The bank’s gross earnings grew by as much as 27% over the same period last year to a remarkable GH¢319 million in June 2017; confirming the bank’s excellent ability to optimise its portfolio of activities in a mixed economic climate.

In an environment of declining interest rates, net interest income grew from GH¢119 million in June 2016 to GH¢152 million in June 2017, a growth rate of 27%.

Total operating income grew by 20% from GH¢168 million in 2016 to GH¢202 million in 2017. The bank’s revenue growth was driven in particular by growth in investment income.

Profit before tax grew by 10% from GH¢92 million in 2016 to GH¢102 million in 2017 while net profit attributable to shareholders of the bank grew by 12% to GH¢66 million.

Growth plans

Meanwhile, the Zenith Bank has indicated that it is targeting to be the biggest bank in the country within the next five years.

Zenith Bank has witnessed some substantial growth in assets pushing it to the ranks of tier one banks in the country.   

Mr Oroh said they want to grow the bank and the brand for it to be a dominant player in the banking industry when it comes to market share, assets, capital, and profits.

On the occasion of the bank’s 12 years anniversary, the Managing Director took time to thank the bank's customers and stakeholders.

He noted that they would not have chalked many successes without the support of their customers and other stakeholders in the economy.

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