Zenith Bank posts Africa’s strongest brand value growth

…capital strength, expansion drive lift lender above continental peers

Zenith Bank has recorded the highest brand value growth among African lenders, underpinned by strong capital buffers, rising earnings and an aggressive expansion strategy, according to a BusinessDay analysis of the latest report by Brand Finance.

The lender’s brand value rose by 33.6 percent to $380 million in 2026, from $284.75 million a year earlier, marking a sharp rebound from the 15.5 percent decline recorded in 2025. The performance places Zenith ahead of South Africa’s Capitec Bank and peers across the continent.

The London-based brand valuation consulting firm, which applies the royalty relief methodology to estimate the economic value of brands based on future earnings potential, assessed 22 African banks from February 2025 to February 2026.

Mauritius’ MCB Group and Nigeria’s FirstBank ranked second and third, with brand value growth of 30.3 percent and 29.6 percent respectively, while Access Bank was the only lender in the ranking to record a decline, at 3.9 percent.

“The rapid expansion of Zenith Bank’s banking brand is driven by its formidable Tier one capital position and a sustained growth of its gross earnings, underpinned by a resilient strong balance sheet that has successfully navigated regional currency volatility through decisive digital innovation and strategic international expansion,” said Babatunde Odumeru, managing director at Brand Finance Nigeria.

Capital boost and strategic shift

The bank’s performance comes amid a sweeping recapitalisation exercise led by the Central Bank of Nigeria, which mandates minimum capital thresholds of N500 billion for international banks.

The policy, introduced in 2024, echoes the landmark 2004 consolidation led by Charles Soludo, which reduced the number of banks and strengthened the sector. According to CBN governor Olayemi Cardoso, Nigerian lenders have collectively raised N4.61 trillion ahead of the March 31, 2026 deadline.

Zenith has completed its capital raise, mobilising over N350 billion through rights issues and public offers. Its share capital now stands at N614 billion, comfortably above the regulatory threshold.

Expansion beyond Nigeria

Beyond capital strengthening, Zenith is accelerating its international expansion as it seeks to diversify earnings.

The bank has announced plans to enter Ethiopia—one of Africa’s last major untapped banking markets—as it targets generating up to half of its profits outside Nigeria over the medium term. In January, the country’s top lender by market capitalisation (as of March 26) received regulatory approval from the Competition Authority of Kenya to acquire 100 percent of Paramount Bank Limited, marking its entry into the Kenyan financial market.

Data cited by The Africa Report shows that foreign subsidiaries accounted for 27 percent of profits in the first nine months of 2025, up from 14 percent in 2024, signalling a gradual shift away from its historical reliance on the domestic market.

“Expansion outside Nigeria is primarily a diversification strategy,” said Gloria Fadipe, head of research at CSL Stockbrokers. “The Nigerian banking market is deeply regulated, which can limit performance.”

Zenith is also preparing for a potential listing on the London Stock Exchange by 2027, a move that would deepen access to global capital and align with a broader trend of African banks tapping international markets.

The strategy mirrors Guaranty Trust Holding Company, which became the first Nigerian lender to list on the exchange in 2025, raising about $105 million.

The planned listing coincides with the opening of Zenith’s new branch in Manchester, expanding its United Kingdom footprint beyond London. The hub will focus on corporate banking, trade finance and treasury services, particularly for businesses operating along the UK–Africa corridor.

Nigeria drives continental momentum

Zenith’s performance reflects a broader trend among Nigerian lenders, which posted the highest brand value growth across Africa this year.

Access, GTCO, Zenith, United Bank for Africa and FirstBank recorded a combined brand value of $1.8 billion, up 14.7 percent from $1.57 billion in 2025—an acceleration from 5.37 percent growth the previous year.

This translates to a 9.33 percentage-point increase, outpacing Egyptian banks, which recorded 8.87 percentage points, while lenders in Kenya, South Africa and Morocco posted negative growth.

“The appreciation in the value of Nigerian banking brands in 2026 is primarily driven by intensive capital strengthening to meet the central bank’s requirements alongside revenue diversification strategies that has resulted in the growth in non-interest incomes such as commission revenue; and digital transformation initiatives that have fortified customer loyalty and brand strength,” Odumeru said.

Looking ahead, he expects the momentum to continue as banks shift from capital raising to deployment.“They are transitioning to a high-growth deployment phase, leveraging fortified balance sheets and a projected decade-high GDP growth of 4.4 percent to drive credit expansion and digital revenue.”