From November 25th, Zenith Bank will broaden its reach to the Nigerian community in Johannesburg and Cape Town, taking an initial step toward launching a full offshore operation in South Africa.
During the outreach, the bank will offer BVN and NIN enrolment, digital channel onboarding, account reactivation, instant debit card issuance, and mortgage advisory at concessionary rates, as highlighted in a new promotional message.
The bank’s Johannesburg sessions will be held at the Davinci Hotel and Suites from November 25-29, and the Cape Town engagement will take place at Aroko Food Restaurant on Loop Street from December 3-4.
Zenith Bank currently operates a representative office in South Africa, focused on building relationships and supporting trade. After expanding into Côte d’Ivoire earlier this year, their outreach to diasporans in two South African cities hints at a possible move toward a full offshore operation offering retail banking services.
Industry observers say targeted activations test demand, boost brand visibility, and gather market intelligence.
This initiative aims to help the bank connect more effectively with the Nigerian diaspora, lay the groundwork for regulatory approval and business opportunities, and, if successful, boost its chances of setting up a full operational presence in South Africa.
South Africa, boasting a projected GDP of around $410.34 billion and ranked by the IMF as Africa’s largest economy, has an undeniable allure. As one of the continent’s top tourist destinations, its thriving tourism industry plays a key role in driving the nation’s economy.
The bank’s recent oversubscribed capital raise is fueling its plans for expansion across Africa, as highlighted by Group Managing Director Adaora Umeoji during the Nigerian Exchange Group (NGX) Closing Gong Ceremony.
In a striking speech at the NGX, Umeoji outlined the bank’s bold growth plans, backed by solid financials and the impressive success of its oversubscribed N350.46 billion capital raise, which achieved a 160 per cent subscription rate and lifted its stock price.
Her announcement to enthusiastic executives and stakeholders at the NGX in October, highlighted Zenith Bank’s strategic vision, emphasising the capital’s role in expansion.
“Since the capital raise exercise, we have been able to use part of the money to expand our footprint. We’ve started by opening our Paris branch and we are going to move from there to Côte d’Ivoire; we are already processing the license. From there, it will give us a passport to other Francophone African countries. We are looking at East Africa as well.” She added, “This expansion strategy is because we are formally upping our client business and we’re ensuring that we go to countries where we can scale and provide more returns for shareholders.”
Zenith Bank’s capital raise, through a rights issue of 5,232,748,964 ordinary shares and a public offer, complies with the Central Bank of Nigeria’s recapitalisation mandate and reinforces its leading position in the banking sector.
Zenith Bank’s Q3 earnings which grew by 16 per cent to N3.4 trillion, up from N2.9 trillion in Q3 2024 shows it has a strong financial stand to make the foray into the continent. This increase was driven by a 41 per cent year-on-year rise in interest income, reaching N2.7 trillion.
The growth in interest income, driven by a high-yield rate environment and an expanded investment portfolio, enabled the bank to achieve a net interest margin (NIM) of 12 per cent, up from 10 per cent in September 2024, despite a 22 per cent increase in interest expense to N814 billion due to monetary tightening and funding base growth.
Non-interest income decreased by 38 per cent to N535 billion, primarily due to a 60 per cent drop in trading gains. Profitability remained robust, with profit before tax (PBT) at N917 billion compared to N1 trillion in September 2024.
Profit after tax decreased by 8 per cent to N764 billion, with earnings per share at N18.60 compared to N26.34 in September 2024, reflecting the bank’s proactive steps to enhance loan portfolio quality.
The bank’s total assets increased by 4 per cent from N30 trillion in December 2024 to N31 trillion in September 2025, primarily driven by an 8 per cent rise in customer deposits to N23.7 trillion during the same period.
As of September 2025, gross loans decreased by 9 per cent to N10 trillion, and the non-performing loan (NPL) ratio improved to 3 per cent due to NPL write-offs.
Return on average equity (ROAE) and return on average assets (ROAA) stood at 23.3 per cent and 3.3 per cent, respectively. Cost of funds increased to 4.5 per cent, underscored by the broader elevated interest rate environment. The Group’s cost of risk stood at 10 per cent while the cost-to-income ratio rose to 45 per cent.
Coverage ratio and liquidity ratio remain solid and well within regulatory limits at 211.1 per cent and 53 per cent, respectively. This highlights the Bank’s strong capital position and liquidity profile as well as its ability to fund strategic growth opportunities. It also reflects its unwavering commitment to a prudent risk management, compliance and corporate governance culture.
Comments are closed.