BY Onome Amuge.
Zenith Bank Plc has been ranked the number one bank in Nigeria by Tier-1 capital in the 2022 Top 1,000 World Banks ranking published by The Banker Magazine, an international affairs publication owned by the Financial Times Ltd.
The Nigeria-based multinational financial service provider amassed a Tier-1 Capital of $2.75 billion to retain its number one position for the 13th consecutive time, and was ranked the 460th bank on the global stage and the only Nigerian bank in the top 500.
The ranking, published in the July 2022 edition of The Banker Magazine of the Financial Times Group, United Kingdom, was based on the 2021 year-end Tier-1 capital of banks globally.
Despite a very challenging macroeconomic environment exacerbated by the Covid-19 pandemic, Zenith Bank’s financial performance for 2021 recorded a significant growth.
The bank reported a double-digit increase of 10 percent in gross earnings, an 8 percent growth in non-interest income, with an improved market share in both retail and corporate sectors in the period under review.
Commenting on the ranking, Ebenezer Onyeagwu, the group managing director/CEO of Zenith Bank Plc, said the ranking is a testament to the bank’s resilience and doggedness as an institution despite economic headwinds and a persistent challenging macroeconomic environment.
“Indeed, being ranked as the Number One Bank in Nigeria by Tier-1 Capital for the thirteenth year in a row underscores our commitment to sustaining the superior performance we are renowned for and creating value for our highly esteemed customers,” he said.
Speaking further, Onyeagwu expressed his appreciation to Jim Ovia, the founder and chairman of Zenith Bank Plc, for his guidance and for laying the foundation and building the structures of an enduring and very successful institution.
He also commended the Zenith Bank board for its outstanding leadership; the staff, whose drive and commitment have continuously sustained the bank’s exceptional performance; and the bank’s customers for their unflinching loyalty to the Zenith brand.
Tier 1 capital, as described by financial analysts, is a bank’s core capital which consists of shareholders’ equity and retained earnings as well as disclosed reserves recorded on the bank’s financial statements. It is also recognised as the funds a financial institution uses to function on a regular basis and the primary indicator to measure the bank’s financial strength.
The Bank for International Settlements (BIS), in its latest guidelines, noted that Tier-1 capital includes loss-absorbing capital, i.e. common stock, disclosed reserves, retained earnings and minority interests in the equity of subsidiaries that are less than wholly owned.