NIGERIA - Finance
Managing Director and CEO, Zenith Bank
Peter Amangbo has garnered over two decades of banking experience spanning various departments of the Bank, from Corporate Finance and Investment Banking, to Business Development, Credit and Marketing, Treasury, Financial Control, and Strategic Planning and Operations. Before his appointment to the board of Zenith Bank and its subsidiary companies in 2005, he was a pioneer non-Executive Director of Zenith Bank UK. Before joining the banking industry, he was a senior consultant with PwC. An alumnus of INSEAD and a fellow of the Institute of Chartered Accountants of Nigeria, he holds an MBA from the Warwick Business School and a Bachelor of Engineering degree in Electrical and Electronics Engineering from the University of Benin.
It all boils down to innovation. At Zenith, we try to look at how to do things better, and differently. The bottom-line is, how do we connect with our customers and add value to their business? We have seen that, over time, once a customer believes that there is value derived from your business they will come to you. Our improvements in profitability QoQ between the previous and the current year boil down to what we have been able to do with our customers. Besides this, we have also gained market share because of the quality of our service.
In West African countries and in the UK, we have done extremely well. We wanted to be very compact, because at the end of the day you need to have checks to ensure that service is up to speed and that there is uniformity in delivery. Our branch in Dubai is intended to serve the growing market in Asian countries, and Dubai is in a strategic location. We can serve most of our customers in Asia from there.
From day one, we have embraced the most modern IT infrastructure, and we will continue to do that. However, it is important that payment systems, electronic banking, and online banking, should not replace branches at multiple locations, but instead complement them. Nigeria is still highly under-banked, and electronic payments will encourage a lot of the un-banked to bank. We are going to ensure that we use mobile payment channels to compliment our branch outlet. These payment systems are not a mutually exclusive strategy. They have helped in terms of our client base, which has grown and customer confidence has been greatly enhanced.
The challenge that we face is not the fault of any specific actor. Commodities like petrol and crude oil are not completely different from other commodities, such cocoa, cotton, and rubber. The prices naturally fluctuate and at some point they will peak, and naturally fall. The way that markets react is what really matters. Naturally, it is bound to affect us, and the price of crude oil has dropped from over $100 per barrel, to on average $55, a decline of about 50%. However, the way we have reacted as a country has been quite positive. We have taken some proactive steps and the economy is undergoing the necessary transition. The government and the Central Bank are encouraging the economic players here to look inwards and see how we can either apply import substitution, or expand their base and develop the local industry. I am not opposed to the Forex restrictions. We have over 10 rice mills in the country today, and some of these millers say that they were given incentives to set them up. The CBN has taken a step in the right direction, and they have the backing of the entire banking industry. If we look inwards, we can actually conserve a lot of foreign exchange, and we can employ more people who are going to go back into agriculture. We cannot continue to import endlessly. It is really important to make the distinction. We are challenged for now as an economy, but the way we are responding is quite positive and over time expect to see positive growth.
Our success is largely a product of our client-base. We have the largest number of multinationals as customers, and that is a major endorsement for the brand and for the bank. If most of the multinationals, across all sectors, chose Zenith Bank over international banks here, it sends a strong message. Apart from the US, we have covered almost all the key financial markets of the world.
Growth will definitely be subdued because of the challenges in the economy, but in the long term the potential is massive and will present investment opportunities. From a banking perspective, we mirror the economy. When the economy is under pressure, it resonates in the financial system. We are committed to looking at innovative ways to even gain more market share.
NIGERIA - Energy & Mining
Group Managing Director, Eraskorp Nigeria Limited
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