Jim Ovia’s Zenith Bank Wins Shareholder Backing for Holding Company Strategy

Zenith Bank, under the stewardship of Jim Ovia, has received a resounding endorsement from its shareholders to transition into a holding company structure. This pivotal move, sealed during a court-ordered Extraordinary General Meeting held virtually, showcases a strategic evolution in the bank’s operational framework. 

Jim Ovia, Nigeria’s wealthiest banker and a visionary in the banking sector, has steered Zenith Bank through this transformative phase, aiming to bolster the bank’s market dominance and adaptability in the rapidly changing financial services sector.

How shareholder’s approval paves the way for new beginnings

During the recent EGM, shareholders of Zenith Bank, one of Nigeria’s top financial institutions, overwhelmingly voted in favor of transforming the existing corporate structure into a new entity, Zenith Bank Holding Company Plc (HoldCo). 

This approval facilitates the transfer of 31.396 billion ordinary shares to HoldCo, promising shareholders an equivalent stake in the new structure. Furthermore, this transition includes the conversion of Global Depositary Receipts (GDRs), offering one new HoldCo GDR for every existing GDR, and streamlining the bank’s presence in international markets.

The restructuring effort also extends to Zenith Bank’s subsidiary, Zenpay Limited, whose shares will be transferred to HoldCo, signifying a consolidated approach towards financial innovation. Moreover, the strategy includes delisting Zenith Bank’s shares from the Nigerian Exchange and its GDRs from the London Stock Exchange, marking a shift towards privatization under the Companies and Allied Matters Act (CAMA) 2020 in Nigeria.

Jim Ovia foresees a digital revolution in banking

Jim Ovia, the founder and chairman of Zenith Bank, expressed his enthusiasm about the bank’s new direction. He anticipates that this structural shift will provide Zenith Bank with a strategic advantage to tap into burgeoning opportunities in the Fintech sector and enhance its capabilities in digital and retail banking. 

This move is expected to not only diversify the bank’s service offerings but also fortify its commitment to technological advancements and customer satisfaction.

Under the new HoldCo structure, Zenith Bank is set to make a significant entry into the Fintech space. According to Ebenezer Onyeagwu, the outgoing group managing director and CEO, the bank has secured all necessary approvals from the Central Bank of Nigeria (CBN) to venture into this innovative field. The focus will be on addressing gaps in the current market, promoting further innovation, and driving growth, which will ultimately enhance shareholder value and strengthen the bank’s market position.

Continued excellence and growth under Jim Ovia’s Leadership

Since its inception in 1990 by Jim Ovia, Zenith Bank has established itself as a formidable force in Nigeria and across Anglophone West Africa. With operations extending to several other countries, the bank has consistently delivered exceptional value to its shareholders.

In 2023, under the guidance of Jim Ovia, Zenith Bank reported a staggering 202.3 percent increase in profits, achieving a record high of N676.91 billion ($522.03 million). This phenomenal growth, driven by strong interest income and foreign exchange gains, solidifies Zenith Bank’s status as Nigeria’s most profitable lender.