UBA and Zenith Bank: A Tale of Growth and Gender Dynamics in Nigeria's Banking Sector
March 31, 2025, 7:30 am
In the bustling world of Nigerian banking, two giants are making headlines. United Bank for Africa (UBA) and Zenith Bank are not just competing for market share; they are also navigating the complex waters of workforce diversity and digital transformation.
UBA recently reported a staggering N284.7 billion in revenue from electronic business transactions for the year 2024. This figure is not just a number; it’s a testament to the bank’s strategic pivot towards digital banking. The growth is impressive—an 85.9% increase from N157.1 billion in 2023. This leap is fueled by a surge in electronic banking income, which alone accounted for N236.3 billion.
The digital landscape is changing rapidly. UBA's revenue from funds transfer fees also saw a significant rise, reaching N48.4 billion. This growth is reflective of a broader trend in Nigeria, where digital transactions are becoming the norm rather than the exception. The bank's remittance revenue skyrocketed by 158%, reaching N39.91 billion. This surge highlights the increasing reliance on digital channels for cross-border money transfers, especially among Nigerians living abroad.
However, this growth comes with its challenges. UBA's electronic transaction expenses rose to N199.2 billion, up from N107.1 billion in 2023. The cost of doing business in the digital realm is climbing, but the bank’s ability to generate substantial profits—N803.7 billion pre-tax—indicates that the strategy is paying off. The high-interest rate environment in Nigeria has also contributed to a significant increase in net interest income, which stood at N1.5 trillion.
On the other side of the banking spectrum, Zenith Bank is making strides in workforce expansion. The bank's headcount grew by 15% in 2024, rising from 6,681 to 7,704 employees. This growth is not just about numbers; it reflects a commitment to building a robust team capable of navigating the complexities of modern banking.
Gender dynamics within Zenith Bank are noteworthy. Women now make up 53% of the workforce, a slight increase from the previous year. This shift is a positive sign in an industry often criticized for its male-dominated leadership. However, the board composition tells a different story. While the number of female board members increased from 4 to 5, men still dominate leadership roles.
The top management structure remains predominantly male, with men holding 68% of the positions. This disparity raises questions about the true commitment to gender diversity at the highest levels. Despite a growing female workforce, the glass ceiling remains intact.
Zenith Bank's efforts to improve gender representation are commendable, but the pace of change is slow. The bank has made strides in increasing female representation in certain areas, such as General Managers, where the number of women rose from 1 to 4. Yet, in other categories, such as Deputy General Managers, female representation declined.
The contrast between UBA and Zenith Bank highlights the diverse strategies employed by these institutions. UBA is aggressively pursuing digital transformation, capitalizing on the growing trend of electronic transactions. Zenith Bank, meanwhile, is focused on expanding its workforce and improving gender diversity, albeit with mixed results.
Both banks are navigating a challenging landscape. The Nigerian banking sector is evolving, driven by technological advancements and changing consumer behaviors. As digital banking becomes more prevalent, institutions must adapt or risk being left behind.
The financial results from UBA demonstrate the potential of digital banking. The bank's ability to generate significant revenue from electronic transactions is a clear indicator of the future. As more customers embrace online banking, UBA is well-positioned to capitalize on this trend.
Zenith Bank's workforce growth reflects a broader commitment to inclusivity. However, the slow progress in gender representation at the leadership level suggests that more work is needed. The bank must continue to push for diversity, not just in numbers but in influence and decision-making power.
In conclusion, UBA and Zenith Bank are two sides of the same coin. One is racing ahead in the digital realm, while the other is striving for a more inclusive workforce. Both paths are crucial for the future of banking in Nigeria. As these institutions continue to evolve, they will shape the landscape of the financial sector for years to come. The challenge lies in balancing growth with inclusivity, ensuring that progress benefits all stakeholders.
The Nigerian banking sector is at a crossroads. The choices made today will determine the trajectory of these institutions and the broader economy. As UBA and Zenith Bank forge ahead, they must remain vigilant, adaptable, and committed to fostering an environment where innovation and diversity can thrive.
UBA recently reported a staggering N284.7 billion in revenue from electronic business transactions for the year 2024. This figure is not just a number; it’s a testament to the bank’s strategic pivot towards digital banking. The growth is impressive—an 85.9% increase from N157.1 billion in 2023. This leap is fueled by a surge in electronic banking income, which alone accounted for N236.3 billion.
The digital landscape is changing rapidly. UBA's revenue from funds transfer fees also saw a significant rise, reaching N48.4 billion. This growth is reflective of a broader trend in Nigeria, where digital transactions are becoming the norm rather than the exception. The bank's remittance revenue skyrocketed by 158%, reaching N39.91 billion. This surge highlights the increasing reliance on digital channels for cross-border money transfers, especially among Nigerians living abroad.
However, this growth comes with its challenges. UBA's electronic transaction expenses rose to N199.2 billion, up from N107.1 billion in 2023. The cost of doing business in the digital realm is climbing, but the bank’s ability to generate substantial profits—N803.7 billion pre-tax—indicates that the strategy is paying off. The high-interest rate environment in Nigeria has also contributed to a significant increase in net interest income, which stood at N1.5 trillion.
On the other side of the banking spectrum, Zenith Bank is making strides in workforce expansion. The bank's headcount grew by 15% in 2024, rising from 6,681 to 7,704 employees. This growth is not just about numbers; it reflects a commitment to building a robust team capable of navigating the complexities of modern banking.
Gender dynamics within Zenith Bank are noteworthy. Women now make up 53% of the workforce, a slight increase from the previous year. This shift is a positive sign in an industry often criticized for its male-dominated leadership. However, the board composition tells a different story. While the number of female board members increased from 4 to 5, men still dominate leadership roles.
The top management structure remains predominantly male, with men holding 68% of the positions. This disparity raises questions about the true commitment to gender diversity at the highest levels. Despite a growing female workforce, the glass ceiling remains intact.
Zenith Bank's efforts to improve gender representation are commendable, but the pace of change is slow. The bank has made strides in increasing female representation in certain areas, such as General Managers, where the number of women rose from 1 to 4. Yet, in other categories, such as Deputy General Managers, female representation declined.
The contrast between UBA and Zenith Bank highlights the diverse strategies employed by these institutions. UBA is aggressively pursuing digital transformation, capitalizing on the growing trend of electronic transactions. Zenith Bank, meanwhile, is focused on expanding its workforce and improving gender diversity, albeit with mixed results.
Both banks are navigating a challenging landscape. The Nigerian banking sector is evolving, driven by technological advancements and changing consumer behaviors. As digital banking becomes more prevalent, institutions must adapt or risk being left behind.
The financial results from UBA demonstrate the potential of digital banking. The bank's ability to generate significant revenue from electronic transactions is a clear indicator of the future. As more customers embrace online banking, UBA is well-positioned to capitalize on this trend.
Zenith Bank's workforce growth reflects a broader commitment to inclusivity. However, the slow progress in gender representation at the leadership level suggests that more work is needed. The bank must continue to push for diversity, not just in numbers but in influence and decision-making power.
In conclusion, UBA and Zenith Bank are two sides of the same coin. One is racing ahead in the digital realm, while the other is striving for a more inclusive workforce. Both paths are crucial for the future of banking in Nigeria. As these institutions continue to evolve, they will shape the landscape of the financial sector for years to come. The challenge lies in balancing growth with inclusivity, ensuring that progress benefits all stakeholders.
The Nigerian banking sector is at a crossroads. The choices made today will determine the trajectory of these institutions and the broader economy. As UBA and Zenith Bank forge ahead, they must remain vigilant, adaptable, and committed to fostering an environment where innovation and diversity can thrive.