Zenith Bank lists retail & digital banking as key drivers of H1 earnings

Zenith Bank has announced impressive half-year numbers, attributing its success to a robust retail and digital banking strategy. Chief Executive Officer Ebenezer Onyeagwu highlighted the bank's resilience in navigating challenging market conditions, with a focus on treasury management and interest income. Despite a significant drop in interest income, Zenith Bank managed to mitigate the impact through effective interest expense management. Onyeagwu also addressed the issue of rising regulatory costs, which affected the bank's profitability in the review period. However, he emphasized the bank's commitment to expanding its retail and digital banking operations, citing investments in technology and customer service. The bank's emphasis on retail banking is evident in its strong deposit growth, with a focus on current account and savings deposits. Zenith Bank's strategy of offering personalized relationship management has resulted in a loyal customer base and lower cost of funds. While discussing loan growth, Onyeagwu acknowledged the gradual economic recovery but emphasized the need for caution in expanding the loan book to maintain asset quality. The CEO also addressed the competition in the banking sector, noting the emergence of digital banks as new rivals. He highlighted both the collaboration and competition with digital banks, emphasizing the need for Zenith Bank to stay agile and innovative to remain competitive in the evolving landscape. Overall, Onyeagwu expressed optimism about the future, acknowledging the increasing competition but affirming Zenith Bank's readiness to adapt and thrive in the dynamic market.