Zenith Bank has attributed its strong capital base to what it refers to as the implementation of effective corporate governance strategies.
The bank says, such plans have also made it easy to reduce the levels of non-performing loans and its impact on the books of the banks.
Commercial banks have till December this year (2018) to meet the Bank of Ghana’s new minimum capital requirement of four hundred million cedis (GH¢400,000,000).
Zenith Bank has since met the requirement.
The Managing Director of Zenith Bank, Henry Oroh tells Citi Business News the move positions the bank for competitive business going forward.
“The issues of loans and impairments come when the management and the management system are both faulty, when controls are not in place and when the details are not looked at the point of approval,” he stated.
Mr. Oroh added, “So for us, we are able to minimize those problems because we as much as possible as management and as Board, try to adhere to the basic principles of risk management and corporate governance. I think that is what will sustain any bank whether local or foreign.”
In 2017, Zenith Bank posted a profit after tax of GH¢172, 549, 371, compared to the GH¢140, 265,212 recorded in 2016.
The company’s retained earnings for 2017, which is money ploughed back into its operations, amounted to GH¢379,598,101 compared to the GH¢260,352,620.
Meanwhile for the first quarter of this year, Zenith Bank’s profit after tax amounted to GH¢ 41,767, 308; down marginally from the GH¢42, 865,400 recorded in the same period last year (2017).
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By: Pius Amihere Eduku/citibusinessnews.com/Ghana