We don’t have any need at Zenith Bank to talk about raising capital—Amangbo
Group Managing Director of Zenith Bank Plc., Mr Peter Amangbo has once again reaffirmed the supremacy of the bank in terms of capital adequacy ratio and other forms of distress signal hovering around in some banks now.
Speaking in an interview recently, he said “We don’t have any need at Zenith Bank to talk about raising capital. Everybody say we are over-capitalised”.
According to him, “It’s as deliberate strategy. So that issue does not even arise because even if the issue of IFRS and Basel-3 that became effective January 1, 2019 are on the table, it is not an issue for us”.
“We have had a deliberate strategy of having capital adequacy ratio consistently at over 21 percent. If you have so much capital and some other competitors in the Tier-1 category also do, but they are adding or acquiring some other banks with the huge capital at their disposal, to take the lead.
Explaining more on why Zenith has not done that, Amangbo averred that “When you see the way a tortoise and a snake run, they run differently. You see tortoise do its own, while snake goes its own way. The way that you want to dance depends on your style and structure”.
“We have our own strategy. If you look at Zenith, we always grow organically; if you look at the consolidation in 2004 during the Soludo consolidation era, many banks came together; some 10 banks, some 12 banks, some 13 banks; it depends on what they want. We are one or two banks that did not merge with anyone.
“Today you are in a better position to compare each of the banks in terms of any parameter whether in terms of profit or size; you can judge what position Zenith Bank belongs. Everybody must dance their own way; some people are better in some areas and you leave them and focus on your own. At the end of the day, it will be better for the industry, Zenith Bank chief affirmed.
