Though Ghana’s economy has improved over the course of 2017, it registered gross domestic product growth of just 3.5% in 2016, its lowest level in two decades. But if the market as a whole was depressed over this period there is little evidence that it troubled the 2017 country winner, Zenith Bank Ghana, at all.
The lender’s net profits increased by 76% in 2016 while its total assets and Tier 1 capital grew by 34% and 32%, respectively. Beyond this, Zenith Bank Ghana’s return on equity increased to 40% from 29% year on year, while its cost-to-income ratio fell to 40% from 44%.
“The bank prides itself with the creation of a reputation for excellent customer service and a respectable corporate governance culture. Consequently, our balance sheet has grown by 45% year on year and we have maintained a customer retention rate of 99.97%. These have resulted in the bank winning notable awards across the globe,” says Henry Oroh, managing director and chief executive of Zenith Bank Ghana.
Over the 2016 review period, the bank pursued a number of strategic initiatives. These included a greater emphasis on retail banking to minimise the reliance on volatile corporate deposits, the development of innovative products and services to cater to the unbanked population, and the development of a state-of-the-art 24/7 customer contact centre.
“The bank will continue to stay engaged with customers and focus on initiatives that will position it as a market leader in the Ghanaian banking industry. Opportunities are also expected to emerge from increased infrastructural spend, developments in the oil and gas sector, and expansions in trade services for private sector growth,” says Mr. Oroh.
Source: The Banker Magazine, 2017
