It’s almost 7 years since the erudite and charismatic co-founder of GT Bank, Tayo Adenirokun died. In a death that sent shock waves around the country, the thought of running the bank without him at the helm was a major concern for some investors.
His Deputy and current Managing Director of the Bank, Segun Agbaje is typically thought of as an introvert and no-nonsense banker presenting a stark comparison to the late Tayo whom everyone admired for his charismatic but business-like approach to banking.
Thus, when Segun was made Managing Director of the bank in July 2011, most of his critics believed the bank will struggle to maintain the momentum created by his predecessor. Seven years later and the numbers suggest his performance has been nothing short of stellar.
We took a look at some of the major metrics that define how well a company has performed under the leadership of its Managing Director. These include earnings per share, profit after tax, return on equity and share price appreciation. Check these out;
Earnings Per Share
This refers to the bank’s profit after tax divided by the total outstanding shares of the company. The earning per share is perhaps the most important determinant of performance of a quoted company and is relied on to assign value in the stock market. Here is what GT Banks earnings per share have been like during Segun Agbaje’s tenure.
Again, the bank’s profits have been on a monstrous ride since he became CEO. From N52 billion to N169 billion representing a 22% CAGR. That is a remarkable profitability growth rate in just 7 years. If the bank continues at this growth rate profits could cross N500 billion by 2025.
Return on Average Equity
This is the profits divided by the average net assets (equity) of the bank. The Return on Average Equity helps shareholders determine of the bank is yielding a return higher than the risk-free rate of return, the market rate of return and inflation rate respectively. On this front, GT Bank has also performed remarkably well under the CEO. Here is a chart again;
GT Bank hit its highest ROAE in 2012 when it hit 34%. However, the bank has maintained an ROAE higher than the inflation rate over the years and has regularly beat the treasury bills rate in Nigeria. The bank is also one of the best performers when it comes to ROAE in Nigeria. Under him, the bank has not returned less than 20% and averaged 29% in this period.
The bank has not missed out a single dividend payment in over 10 years dolling out an amazing N430 billion plus in dividends. Over N350 billion of this amount was paid during his tenure. The bank also declared about N79.4 billion as dividend in 2017, the highest on record for the bank.
Bank Share Price
In terms of share price appreciation, the bank has also done excellently well over the last 7 years. Apart from the fall in its share price, during the stock market bearish run of 2015-2016, the bank has still performed excellently well. Its share price has risen over 200% since he became CEO.