According to the News Agency of Nigeria (NAN), Zenith Bank closed some of its branches on Tuesday in the Federal Capital Territory (FCT) and other states across the nation because of alleged attacks on its employees.
The bank’s branches were reportedly under lock and key on Tuesday, according to NAN, which tracked developments throughout the FCT and its surroundings.
The entrance gates to the banking rooms and the ATM Gallery at the Zenith Bank Check-Point branch on Nyanya Mararaba Road were closed to visitors.
Some of the bank’s branches were also closed, according to a bank official who wished to remain anonymous, because of a weak network and a shortage of the new naira notes.
The representative claimed that clients who were unable to remove the new notes from their accounts attacked many of their branches throughout the nation.
According to NAN, some social media video footage depicted bank employees scaling fences to escape mob assaults from clients.
Complaints
Some bank clients Tuesday turned to social media to vent about their experience. Twitter user @Ellacious berry claimed that Zenith Bank was directly causing the pain of the general public.
I’ve been unable to evaluate the mobile app for three days. The smartphone app won’t transfer if it accidently opens, and their ATM card won’t work to make payments either. My account with @ZenithBank is definitely being closed,” she declared.
Another client, @ambi 255, expressed regret about the bank’s clients’ recent network issues and operational difficulties on Twitter.
He declared, “I believe I will be cancelling my account with them.
One other client, who goes under the Twitter handle @IamSixFeetTall, stated: “One of the supervisors in my office just deleted his Zenith account this morning. My other two coworkers intend to withdraw all of their funds from their Zenith accounts.
A different client, Linda Chinemerem Paul, asked “those of you banking with Fidelity Bank, kindly, how is your experience with them” on her Facebook page. I want to switch over from Zenith.
According to NAN, some of the bank’s branches in Enugu were open, but the employees were not wearing any of the bank’s uniforms to prevent being easily recognized by irate clients.
The Chartered Institute of Bankers of Nigeria (CIBN) has meantime urged restraint and tolerance among bank clients.
The Central Bank of Nigeria (CBN) and operators (the banks), according to a statement by Akin Morakinyo, the Registrar/Chief Executive, CIBN, were putting in a lot of effort to get things under control.
He urged bankers to fulfill their responsibilities with the utmost professionalism and care.
Zenith Bank surmounts headwinds with strong Q3 2022 topline and bottom line performance
Zenith Bank Plc has released its preliminary results for the third quarter that concluded on September 30, 2022. Gross earnings increased by an impressive 20%, from NGN518.7 billion in the third quarter of 2021 to NGN620.6 billion in the third quarter of 2022, a stunning double-digit gain. This performance reveals the Group’s fortitude in the face of a difficult macroeconomic climate.
The expansion in the topline was driven by interest and non-interest income growth, according to the unaudited statement filed to the Nigerian Exchange (NGX). From NGN308.8 billion to NGN390.8 billion, interest income increased by 27%, mostly due to an increase in risk assets and an improvement in pricing. Additionally, this increased NGN5.55’s Earnings Per Share (EPS) by 9%.
The Group also posted a 13% year-over-year (YoY) increase in profit before tax, expanding from NGN179.8 billion in Q3 2021 to NGN202.5 billion in Q3 2022. This double-digit growth in the topline helped the bottom line. In the same period, profit after tax increased by 9%, from NGN160.6 billion to NGN174.3 billion.
The Group’s retail strategy enabled increase in non-interest revenue, with ongoing significant customer acquisition driving transactions, deposit growth, and growth in electronic banking income.
Operating costs increased by 17% as a result of rising costs associated with doing business and inflationary pressure. However, this was less than the growth in gross earnings (20%), which allowed the bottom line to grow by double digits.
The cost of funding grew in the present period from 1.4% to 1.7% because to the persistently high yield environment. Because of the prompt adoption of increased yields on interest-bearing instruments, this had an impact on the net interest margin (NIM), which decreased.
liabilities. However, once the assets side is repriced appropriately, it is anticipated that the NIM would experience a correction in the following quarters.
From NGN9.45 trillion to NGN11.34 trillion in 2022, total assets increased by 20%, primarily due to increases in customer deposits. Due to the market’s faith in the brand, customer deposits increased by 24%, from NGN6.47 trillion in December 2021 to NGN8.04 trillion in September 2022.
Additionally, loans and advances increased by 16% from NGN3.5 trillion in December 2021 to NGN4.06 trillion in September 2022, increasing the Group’s interest revenue and demonstrating the Group’s enthusiasm for the construction of high-yielding risk assets. This growth caused the liquidity ratio to decrease from 71.6% to 68.9% and the capital adequacy ratio to drop from 21 to 19.1%. Both prudential ratios are still quite strong and significantly higher than the required levels.
Management is focused on continuing the year’s good performance trajectory in the final quarter while reacting to regulatory environment changes and concentrating on innovative efforts to reduce inflationary trends, foreign exchange challenges, and the expanding competitive environment.
Due to its stellar track record, Zenith Bank has received numerous accolades, including recognition as the top bank in Nigeria by Tier-1 Capital for the 13th consecutive year, Best Bank in Nigeria for three consecutive years from 2020 to 2022, Best Commercial Bank, Nigeria in 2021 and 2022, and Best Corporate Bank in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine.
Additionally, the Bank won awards for Retail Bank of the Year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, and Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021.
The Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021 saw Zenith Bank win in four categories, including “Best Company in Reporting and Transparency,” “Best Company in Infrastructure Development,” “Best Company in Gender Equality and Women Empowerment,” and the coveted title of “Most Responsible Organization in Africa.” Zenith Bank was also recognized as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020.