Zenith Bank has revealed that it is restructuring into a Holding Company (HoldCo) after receiving Approval-in-principle from the Central Bank of Nigeria (CBN).
In a statement sent to the Nigerian Exchange Limited (NGX) on Friday, 3rd March 2023, Zenith Bank said it is in the process of establishing Zenith Holdco Plc.
Zenith Bank said the central bank also approved the appointment of its current Chairman, Jim Ovia, as the Chairman of Zenith Holdco Plc.
However, pending the completion of the financial holding company, the central bank approved Ovia to remain in his position as the Chairman of Zenith Bank Plc.
“This is to inform the Nigerian Exchange Limited (NGX) shareholders and the general public that the CBN has granted Approval-In-Principle for Zenith Bank Plc to operate a non-operating Financial Holding Company structure.
“Furthermore, the CBN approved Mr. Jim Ovia as the Chairman of Zenith Holdco Plc (in-formation) and for Mr. Jim Ovia to also continue as the Chairman of Zenith Bank Plc until the commencement of Zenith Holdco Plc,” the bank wrote in the circular.
The essence of Holdco is to enable Zenith Bank to branch into non-banking markets, which will increase the firm’s revenue sources.
Zenith Bank’s rivals, Access Bank, and Guaranty Trust Bank, amongst others, have also restructured into a holding company, expanding their competition to other sectors.
Prime Business Africa understands that the establishment of a holding company will see the Deposit Money Banks (DMBs) branch into full-scale technology, pension and other operations, with each acting as a subsidiary under the Holdco, which serves as a parent company.
Meanwhile, Prime Business Africa previously reported that Zenith Bank’s Deputy Managing Director (DMD), Adaora Umeoji, has exited the company due to the CBN’s new tenure for DMDs, Managing Directors (MD) and Executive Directors (ED).
READ ALSO: Zenith Bank’s DMD, Adaora Umeoji, Quits On CBN’s New Directive
She retired from the board of directors of Zenith Bank after 11 years as Executive Director and Deputy Managing Director.
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