Zenith Bank CEO speaks on global banking crisis & overcoming headwinds

The CEO of Zenith Bank, Emmanuel Onyeagwu, recently shared insights on the challenges and opportunities faced by the banking sector in a volatile market environment. Speaking with CNBC Africa's Kenneth Igbomor, Onyeagwu highlighted the impact of various risk elements on the market in 2022, emphasizing the difficulty in predicting outcomes for 2023. The CEO stressed the importance of diligence and robust risk management practices to navigate market volatility and mitigate potential risks. Onyeagwu referenced the recent collapse of Silicon Valley Bank, underscoring the unpredictable nature of the market and the need for proactive risk management strategies to safeguard institutions against systemic contagion. Despite the market uncertainties, Zenith Bank delivered strong financial performance in 2022, with notable growth in key areas such as deposits, assets, and loans. Key Points: 1. Market Uncertainty and Risk Management: Onyeagwu discussed the challenges posed by market volatility and the importance of enhancing risk management controls. He highlighted the need for banks to remain diligent and adaptive in the face of evolving risk factors to protect against potential financial shocks. 2. Financial Performance in 2022: Despite the challenging market conditions, Zenith Bank reported impressive growth in key financial indicators such as top-line revenue, deposits, assets, and loans. The CEO noted a substantial increase in the bank's subsidiary in the U.K, reflecting strong performance in international markets. 3. Future Growth Strategies: Onyeagwu outlined Zenith Bank's strategy for future growth, including plans to transition to an old school structure to expand market presence and explore new business verticals. The bank is focused on leveraging technology to enhance its digital capabilities and offer innovative banking solutions to customers. In response to questions about the bank's balance sheet and loan portfolio, Onyeagwu highlighted the resilience of Zenith Bank's loan book across different sectors of the economy. Despite marginal movements in non-performing loans, the bank demonstrated robust growth in gross loans and advances, signaling a diverse and resilient lending portfolio. Looking ahead, Onyeagwu discussed Zenith Bank's commitment to technological innovation and digital transformation, positioning the institution as a technology-driven company with a banking license. The bank is accelerating its implementation plan to create a robust digital ecosystem that can seamlessly connect with various businesses and drive financial inclusion. Key Theme: Market Uncertainty and Strategic Resilience In conclusion, the interview with Zenith Bank's CEO shed light on the evolving landscape of the banking industry, emphasizing the need for agility, innovation, and strategic foresight to navigate market challenges and drive sustainable growth. As the sector continues to grapple with uncertainties, banks like Zenith Bank are harnessing technology and proactive risk management practices to adapt to changing market dynamics and deliver value to stakeholders.