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How to Apply for Canadian Permanent Residency from Nigeria on Your Own

How to Apply for Canadian Permanent Residency from Nigeria on Your Own

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Live and work in Canada

We live in a world where we have many more opportunities today than we did yesterday. So many people can move, travel and build a life in a totally different place from where they were born. Some countries, like Canada, have impressive policies that allow skilled people to earn permits to live and work in Canada.

If you are educated and looking for a legal way to move yourself or your family to Canada to take a chance at a new path, these are the details on how to go about it. Of course, this article cannot cover every single aspect of immigrating to Canada. However, if you want to know more about the Express Entry process to move to Canada, this is for you.

There are many reliable agents who charge a hefty fee to help you through the process. However, you can complete it on your own from beginning to end. You don’t have to but you can. So, here you go!

[READ ALSO: Canada’s 2018 population growth consisted of 61% immigrants(Opens in a new browser tab)]

Step 1a – Take the quiz to find out if you are eligible

Cost: FREE

The quiz is simple and you can do it by yourself here. If you have not done a language test before, give yourself a hypothetical test score and fill out your other information. I recommend that you give yourself a test score lower than what you think you may get so you can gauge the amount of room you have to play around with.

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Step 1b – Find out what your work NOC is

This is important because you can only claim work history in one NOC, which means that if you’ve jumped around from job description to job description, you will need to choose the one that you have the longest number of consistent years of work. It is okay if you’ve changed jobs, but as long as your jobs have all been in one NOC, they count. Find your NOC here.

Step 2 – Register for the language test – IELTS General, etc

Cost: USD208/CAD275/N75,000
Time Required: 2 to 3 months

If you are eligible based on the quiz above, the next step is to register for the language test. Everyone applying for Canadian PR has to take a language test to show proficiency in either French or English. You get bonus points if you can prove both! I recommend that you give yourself a two to three-month window to prepare for the language test. For most people, this is the only thing you have in your control. Your age isn’t going to change, your work history won’t change much and you may need a few years to get an additional degree. So, even though you have been speaking English all your life, IELTS General and others are standardised tests (yuck) and you have to know how they want you to answer the questions they ask you. The most common test for English Language is IELTS General (you cannot use IELTS Academic for immigration purposes) but it isn’t the only one. See the approved language tests for Canadian PR here. This is the official site to register for IELTS with British Council.

Here are practice tests to help you prepare for the IELTS General test. Do not take these practice guides for granted. They go a long way in ensuring you ace the test.

Step 3 – Prepare your documents for WES evaluation

Cost: from USD230/CAD305/N83,000
Time Required: 2 months 

Use the two or three months of IELTS preparation to also prepare your degree evaluation, so you can save time. Everyone who goes to school outside of Canada must go through this process. The Canadian IRCC has a list of certified organisations that can verify your degree and equate it with a Canadian one. The list of organisations can be found here. The most common on this side of the pond is WES. Basically, they need to say that your degree is equivalent to so-so-and-so degree in Canada.

You can decide to evaluate your most recent degree or all your degrees. The IRCC only requires your most recent degree (your highest degree), however, you need to figure out what works best for you. It is important to note that if you evaluate multiple degrees under one WES profile, it costs the same as evaluating only one degree. This is the process:

  • Register an account with WES here.
  • Fill out a profile and provide information about your degree(s). Please, make sure every detail is correct and you cross-check a couple of times.
  • Pay the evaluation fee of CAD220 and the courier fee of CAD85 (for them to ship your evaluation back to you). I recommend you pay the CAD85 courier fee instead of the CAD7 regular postage fee so that when your evaluation is returned, it is returned speedily and securely and doesn’t get stuck in the local post system. As soon as you pay, you will receive a unique WES Number.
    • Note: When you put in all your degree details, the WES system will automatically pull out the documents you are required to send to them for verification. For most countries, only transcripts are required. Unfortunately, those with Nigerian degrees are required to provide a whole lot more due to a number of people sending in falsified documents (Naija, why oh why?). This is where you need to decide whether to use only your higher degree if you have one from another country. List of requirements for Nigerian degrees:
      • Degree Certificate
      • Academic Transcripts
      • Final Secondary Examination Results
      • WAEC/NECO Scratch Card

The requirements were the same for everyone until late 2018 when they couldn’t take the number of fraudulent documents coming their way from Nigeria anymore. Too bad!

  • Apply for your transcripts and documents. If your school has a cut-throat process, all the more reason to ensure that you have enough time to go through this process. Also, remember to factor in the cost of requesting transcripts.
  • Send your required documents to WES. Make sure you follow all the instructions. All transcripts and documents must be sealed and signed or stamped across the seal fold of the envelope and every envelope must have your WES number on it. Courier shipping via DHL from Lagos to the WES Toronto office costs about $65 or CAD86 or N23,000.
  • Wait for WES to receive your documents and complete your verification. It takes 20 working days from when they receive all your required document for them to send you an evaluation report. This is the report that you need for your Canadian PR application.

Step 4 – Take your IELTS Test & Get Results

Time Required: 13 Days

Your speaking test will be on a different date from your writing, reading and listening tests. You will receive an email a few weeks to your test date with details of your speaking test (usually the speaking test is the same week as your main test date). All the other three tests will be on the day you chose when you registered. Give the test your best shot, keep calm and pick up your results two weeks later. You will be able to pick up your results 13 days after your main test date.

Step 5 – Create an Online Express Entry Profile

Now that you have your WES evaluation report and your language test results, you are ready to create an Express Entry profile. Real quick, use this tool to find out what your exact CRS Score will be. This time, you have the actual information and you can tell what your exact score will be. You don’t know what the cut off score will be but you can check what the cut-off for the last draw was (the week or two weeks before you check) here. That way, you have an idea whether you stand a high chance in the pool or not.

This profile will close within 60 days of opening, that is if you do not submit, so try to complete it as soon as you can. You will be asked personal information, work history, test scores, degree details, etc. All these details will add up to give you a Comprehensive Ranking System (CRS) Score. Make sure you are truthful and consistent. As soon as you complete and cross-check your Express Entry profile, go ahead and submit it.

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You have officially joined the Express Entry Pool.

Step 6 – Wait for an Invitation to Apply (ITA)

Time Required: 1 Day to Indefinite…

Every two weeks, a draw is made from the pool of submitted Express Entry profiles. This draw is done to offer ITAs to candidates. An ITA basically says…’you can now begin the official application process for PR.’ The exact cut-off score is determined by the number of selections the committee plans to choose from that draw. For example, if they need 3,500 selections from that draw, they pick the highest 3,500 candidates in the pool on that date and the 3500th person’s score becomes the cut-off score. If there is a tie for the 3500th person, they use factors like date and time of submission to break the tie. Just as a guideline, the cut-off scores for January and February 2019 were as follows: 449 (Jan 9), 443 (Jan 23) and 438 (Jan 30). See the full list of cut-off scores here.

If you are one of the top candidates, you can receive an ITA in the next draw from when you submit your profile. Technically, if you submit your profile today and the draw is tomorrow, you can get an ITA in one day. However, if your score falls short, you can stay in the pull and keep doing other things to improve your score. See a detailed explanation on ways to improve your score while you’re in the Express Entry pool. After 12 months, if you don’t get selected from the pool, it will expire and you will have to create a new one.

Also, while waiting for an ITA, you can register in the Job Bank and start looking for jobs.

Step 7 – Apply for Canadian Permanent Residency

Cost: USD785/CAD1,040/N282,600 per adult applicant and USD113/CAD150/N54,000 per dependent children.
Time Required: 6 months.

Now that you have been invited to apply, you will need to prepare your application and submit all your documents. It is important to note that your fee of CAD1,040 is split into CAD550 application fee and CAD490 right to permanent residence fee. If you do not successfully get PR, the CAD490 will be refunded to you. You only have 60 days to complete this application!

Documents Required:

  • Application Fee (see above)
  • Test Results
  • Academic Verification Report
  • Digital Photographs
  • Medical Examination: Every country has an approved list of panel physicians who can provide a medical examination. In Nigeria, there are three in Lagos and one in Abuja and the costs may vary slightly. See here to find their addresses and book an appointment.
  • Police Certificates: If you have lived in a country for more than 6 months in a row, within the last 10 years, you have to include police reports from each of those countries (including your home country, where you currently live). The cost of obtaining a police certificate will differ based on where you live and where you are requesting one from. See how to get a police certificate in each country.
  • Passport Biodata Page
  • Reference or Experience Work Letter: your former and current employers listed on your Express Entry Profile must all provide letters to prove your work history with them.
  • Proof of Funds: you must provide a letter from your bank vouching for the availability of funds required for relocation. These are the amount required for relocation:
    • 1 Family Member (you alone): CAD12,669 or N3.46 million.
    • 2 Family Members: CAD15,772 or N4.31 million.
    • 3 Family Members: CAD19,390 or N5.30 million.
    • 4 Family Members: CAD23,542 or N6.43 million.
    • 5 Family Members: CAD26,701 or N7.29 million.
    • 6 Family Members: CAD30,114 or N8.22 million.
    • 7 Family Members: CAD33,528 or N9.15 million.
    • For each additional family member: CAD3,414 or N932,000.
  • Other Documents: Depending on whether you have children, you are divorced, married, and so on, there is a host of other documents required including name change certificatebirth certificate of child(ren)marriage certificate, etc. Find the full details here.

Once you have all your complete documents, you will be able to fill out your application on the portal and upload scanned copies of all your documents. Make sure you follow the guidelines for clarity, size and resolution of all documents. You will also be able to make your payment.

Step 8 – Bio-metrics

At some point, you may be called to submit your bio metrics at a local embassy or VFS.

Step 9 – Wait and live your life!

According to the IRCC, 80% of all applicants receive a response within 6 months. Just spend 6 months worrying. Just go about your business. You can log into your profile from time to time to check what stage your application has reached. For some people, it comes in 2 months and for others, it takes 6! It doesn’t matter, just keep living your life.

Step 9 – Receive a PPR – Passport Request email – Ready for Visa

Once you get this letter, you can send in your passports. Your PR approval will also come with a deadline when you have to enter into Canada or else your PR will be invalidated. This is usually between 6 months to 1 year from the approval. You are ready to go!

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Funmi Oyatogun is a travel expert/consultant with TVP Adventure and also the owner/publisher of funmioyatogun.com. She is on Instagram @funmioyatogun.

27 Comments

27 Comments

  1. Jermaine Kobaro

    March 7, 2019 at 7:57 pm

    You’re simply good at what you do, Funmi. One word describes this article of yours – Perfection.

    Keep up the good work.

  2. OBINNA Enyinnaya

    March 10, 2019 at 1:47 pm

    This is awesome, very detailed and broken down for easy understanding

  3. Erica nneka Ehiosu Enoma

    March 21, 2019 at 6:37 pm

    What is it all about

    • Cathy

      April 3, 2019 at 8:44 pm

      Doesn’t the title say it all? Or isit that you cannot read or you did not understand it even after reading?

      • Kay

        November 1, 2019 at 7:56 pm

        Asin Ehn, what a dumb question, it’s for water….. Pfffff!!!

  4. Cathy

    April 3, 2019 at 8:44 pm

    Doesn’t the title say it all? Or isit that you cannot read or you did not understand it even after reading?

  5. Chas

    April 19, 2019 at 9:32 am

    Thanks for this piece of info. I am at the stage of writing my test and credential evaluation. Pls I’d like to ask if I have my wife and I with 3 kid, will have proof of fund of how much. Secondly, is it required I get reference letter from all my past employer or the most recent. Thank you.

    • Anonymous

      June 1, 2019 at 11:43 am

      7.29million naira!

  6. Meer hamza

    April 19, 2019 at 2:52 pm

    I love canada

  7. Gideon

    May 2, 2019 at 6:07 pm

    This is awesome. Very well detailed info… Thanks for your guidance.

  8. Ijeoma

    May 25, 2019 at 3:54 pm

    I rarely comment on anything on social media but after reading this, am amazed humans like you still exist. since the correct word is yet invented, i can only describe your article as simply- PERFECTION!. Remain blessed.

  9. noelle

    May 27, 2019 at 3:49 pm

    it so simple, thank you for your guidlines.please how can i contact yo u.

    • Pharm Jenny

      April 27, 2020 at 1:27 pm

      Was so helpful… Thanks alot!

  10. Christy

    May 29, 2019 at 5:15 pm

    Thanks a lot Funmi

  11. Prince Ekowa

    June 1, 2019 at 2:21 pm

    I want to get my permanent residence (PR) to Canada via PNP application.

  12. taiwo

    June 3, 2019 at 11:27 am

    thanks for your detailed explanation. please what about the provincial nominee program

  13. Ayinla suraju Adekunle

    June 25, 2019 at 4:58 am

    i want to get permanent residence , pls guid me on it

    • Alfred Akuki

      June 25, 2019 at 9:05 am

      Hi Ayinla, this article is a guide, follow every step stated.

  14. Yemi adeyemi

    September 28, 2019 at 8:40 am

    Talk later

  15. Chris

    September 28, 2019 at 10:44 pm

    Dear Funmi, kind hearted and selfless people like yon are rare. May your days be long.

  16. Abimbola Opaleye

    October 7, 2019 at 7:42 pm

    pls am using my SSCE NECO result as my highest qualification and my Skill work vocational hand on certificate (electronics technician) to apply for the task B level on the Atlantic high skilled program…. Pls do I still need to evaluate my NECO result…

  17. Ayomide Rufai

    October 10, 2019 at 9:04 pm

    Is it compulsory that I have a degree before I apply for a residence visa to Canada ? What if I just have my save as my highest qualification and I can get involved in any vocational or handwork available

  18. Anonymous

    November 3, 2019 at 12:07 am

    Wow!… Perfectly written article.

  19. Ben.

    November 3, 2019 at 3:07 am

    How to Apply for Canadian Permanent Residency from Nigeria on Your Own.

    If you want to travel to the abroad (obodo oyinbo). If you want to go and live in the obodo.
    If you want to go live and work in a place called Canada.

    I hope it’s very clear now. You understand abi?

    Only problem is that people who don’t read will very rearly pass the English test.

    • Obi nkechi joy

      January 8, 2020 at 10:20 am

      Absolutely right, how can I get a permanent residence to Canada for myself and husband,my husband has (NAB-TECH) result on (automobile engineering) and I have a bsc on economics.

  20. Ifeoluwa Titilope

    March 6, 2020 at 11:56 am

    Noted.i now understood

  21. Chidinma Obinna

    March 15, 2020 at 11:00 pm

    As polytechnic graduate, are u to present both the National Diploma (ND)transcript and the Higher National Diploma (HND)transcript…..

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Blurb

Is Zenith Bank thriving on the strength of sound financial indices?

Zenith Bank posts N103.8bn profit in half-year financial result.

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Zenith Bank reaffirms market dominance and leadership with Q3 2019 results, Zenith Bank Plc, Access Bank Plc and United Bank for Africa Plc, Zenith Bank reports 7.9% profit increase for full-year 2019

Sound financial indices have made Zenith Bank one of the largest banks in the Nigerian banking Industry. It was recognized as the Most Valuable Banking Brand in Nigeria 2019, in the Global Banker magazine Top 500 Banking brands; and Best Commercial Bank in Nigeria 2019, by the World Finance.

Zenith Bank has successfully bolstered this narrative even further with the release of its Half Year 2020 Financial Report, where it closed with a profit of N103.8 billion.

Growing profit position in these perilous times, speaks remarkably of the suppleness and elasticity of any establishment. A lull in economic activity caused by inflationary pressures, precariousness of the market, and the coronavirus pandemic has forced most Deposit Money Banks (DMBs) to cave in, and reveal achievements worse off than their 2019 results y/y – but not Zenith Bank Plc. The institution has showcased beyond reasonable doubt, that the apparent limitations are incapable of distorting its active growth pattern.

Zenith Bank closed H1 2020, 16.8% better off than it did in 2019 y/y, in terms of profit after tax. Although this massive leap, hugely resulting from tax paid as profit before tax, noted just a 2.2% growth. Further analysis of its HY’2020 results, demonstrates more efficiency, a focused cost of fund optimization, and an aggressiveness in generating income across its business heads and segments. This strategy had begun since 2018, and was shared by the bank when it disclosed planned implementation of an improved core banking system, hoping it would ultimately enhance efficiency while reducing costs.

Zenith Bank has thrived on the strength of its sound business model, corporate governance, conservative risk management, and strategic corporate social investment. The bank has been very forceful in the market, improving massively across all of its income generating segments, despite the plausible and obvious hindrances. This is a testament to its superiority, and sponsors its claim for supremacy.

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The bank made N22billion from foreign exchange revaluation gains and despite evidence to the contrary, it endeavored in operating expenditure (OPEX). OPEX may have grown by 7.7%, but disclosures and note to the accounts shows that in virtually every expense head, costs dropped. The 7.7% was triggered majorly by Information Technology related costs, fuel and maintenance, and an increase in the compulsory banking cost fund, set up for the Asset Management Company of Nigeria (AMCON) by the CBN.

Now, like every hero susceptible to their hubris, Zenith has its own problems, which questions its position at the top. Yes, the bank may have an amazing and constantly improving interest expense to interest income ratio, but it does not possess the finest result in this regard as of yet. HY 2019 interest expense took as much as 33.6% of its income, while HY 2020 dropped to 27.4%. This is good, but still considerably high, if we carry out a peer-to-peer analysis with Guarantee Trust Bank Plc (masters of low-interest expenses), whose ratio stands at 16% for HY 2020.

However, Zenith has sustained the momentum of positioning itself as the crème de la crème in the Nigerian Banking Industry for quite some time. The bank’s pattern of growth and performance, strongly indicates its capabilities to manage its interest expense in subsequent quarters. It will be interesting to see how this pans out by year end.

In summary, despite economic difficulties this year, with most bank’s bottom-line at a worse position than the corresponding period last year, Zenith posted improved profit yet again. Could this be enough to portray supremacy?

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UBA Plc H1’2020 results, a true reflection of its rightsizing decision? 

UBA’s H1 2020 result is yet another demonstration of the resilience of its business model.

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UBA

The upward review in benefits of some employees and directors this year, coupled with the rising operational costs, constitutes the hot topics from the 2020 semi-annual results released by UBA Plc. 

Widely regarded as the banking sector’s largest employer of labour in Nigeria, the bank in December 2019, embarked on a ‘rightsizing’ exercise, which partly resulted in new hires, as well as promotions, improved remunerations, and benefits for existing employees.

READ: Zenith Bank’s Profit After Tax in H1,2020 rises by 16.8% to N103.8 billion

The Group Head, Media and External Relations, UBA Plc, Nasir Ramon commenting on this said, over 5000 staff of UBA Plc, started the new year with a lot of cheer, as the bank promoted to new grades, coupled with salary upgrades. Beneficiaries of this exercise will receive up to 170% increase in their salaries and benefits, whilst a good number have been moved to higher grade levels.” 

Directors saw their emoluments amplify by 177.7% (Fees and Sitting allowances) as demonstrated in the financial statements of the bank. Rising to N50million in June 2020, from N18million in 2019 y/y. 

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READ: Access Bank posts Profit Before Tax of N74.31 billion in H1 2020

Now, Deposit Money Banks (DMB’s) might be adjudged to be honorable in all of their objectives, but the truth is they are neither self-sacrificing nor are they expected to be. DMB’s are established for profit, and would incessantly prioritize business good sense over social empathy, for the sake of their owners The import of this is, UBA Plc expects its colossal investments in employees and directors to overwhelmingly reflect in its bottom-line. 

Half-year 2020 results is clearly not in sync with this philosophy, as it reflects a weakened position compared to the corresponding period last year, despite the investments in human capitalProfit before tax dropped by 18.7%, from N70.3billion recorded in HY’2019 to N57.1billion in the current period. Profit after tax waned as well by 21.7% to N44.4billion from N56.7billion in HY’2019. 

READ: Are tech talents Africa’s ‘new export’?

Interestingly enough, the top-line fared pretty well. Interest income and fee income showed improvements, albeit marginally by 0.3% and 6.7% respectively. This makes it illogical to attribute the entirety of the decline in profit to the recent austerity measures put in place by the CBN, reducing funds transfer fees and card maintenance charges 

The Coronavirus pandemic played a big role too, by widely stunting the economy in the second quarter of 2020, and negatively impacting profit. But even these do not provide substantial and sufficient convictions as to why the Tier-one bank did not hit the profit-bar it set for itself, from its truly emphatic 2019 financial year. Does this mean that UBA Plc got the decision wrong at the start of the year? 

READ: FUGAZ; Nigerian banks considered too big to fail

Six months seem too short a period to immediately class management’s decision to jack up the benefits and emoluments of its internal customers as a failed one. Although, no one anticipated the travails of COVID-19 and its resulting consequences, investments in human capital is widely proven to yield tremendous growth in the long haul. Besides the fact that it has given UBA Plc a solid reputation in the market place, it also makes the company very attractive to the very best of industry talents. Furthermore, employee engagements of this nature, foster brand loyalty which ultimately trickles down to how passionately these personnel undertake their tasks and deliverables. The true bearing of this investment is expected to reflect in due course, in subsequent quarters.  

Commenting on the result, UBA’s Group Managing Director/Chief Executive Officer, Mr Kennedy Uzoka said, “Our H1 2020 results is yet another demonstration of the resilience of our business model in an extremely uncertain and tough operating environment. We recorded commendable growth in our underlying business in terms of customer acquisition, transaction volumes, and balance sheet whilst inflation, depressed yield environment and exchange rate volatility impacted our net earnings as anticipated.” 

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READ: GTBank, Access Bank, 11 others pay workers N271.64 billion in H1 2020

Rising cost

In today’s increasingly aggressive marketplace, where consistently generating revenue, is paramount to preserving the longevity and going-concern status of any establishments, costs must also be accorded as much attention and significance. Tightening and managing costs with the aim to improve and generate profit is genius strategy especially in today’s banking industry. The banking industry is under threat from ruthless competitions. Multifarious streams that had hitherto been available for generating income for DMB’s are being severely hindered by the ‘austere’ policies (from the perspective of commercial banks) from the apex bank, making effective cost management a survival mechanism. 

Explore the Nairametrics Research Website for Economic and Financial Data

Employee benefits rose by 20% from N37.2billion in HY’2019 to N44.6billion in HY’2020, while Directors’ emoluments (Fees and Sitting Allowance) as earlier stated, surged by 177% from N18million in 2019 to N50million in 2020 y/y. The total operating expenses increased 22.6% in 2020UBA Plc, unavoidably expended N22.4billion on Banking Sector Resolution cost trust fund, in compliance with the CBN’s requirement to contribute to the cause of the Asset Management Company of Nigeria (AMCON). Security and other payments for core services experienced increase as well compared to the preceding year. 

Avoidable expenses like Penalties and Premises Maintenance Charge, should be extensively reviewed and extinguished wherever possible, to improve bottom line. UBA plc has forked out N565million in penalties so far in 2020representing 6177.7% increase from just N9million in 2019 y/y. This is a prime example of the operational brick walls, UBA Plc must properly address to improve its fortunes in subsequent quarters. 

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Blurb

Finding Balance: GTB’s impeccable gains versus its notable losses

Bank’s strategy of increasing gains while seeking out ways to decrease its losses is on a true course to growth.

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Finding Balance: GTB’s impeccable gains versus its notable losses, GTB donates medical facility for COVID-19, GTBank, others have begun fulfilling pledges towards fight against Covid-19 (coronavirus), COVID-19: GTBank suspends loan repayment for small businesses, GTBank Releases Q1 2020 Unaudited Results…….. Reports Profit Before Tax of ₦58.2Billion

Guarantee Trust Bank Plc (GTBank), over the past few years, has taken the Nigerian banking industry by storm, particularly through the foresight and strategic actions of its management.

The bank has, over time, tactically built its operations and expanded its market share, earning its spot as one of the credible names in the Nigerian banking space.

Faced with challenges like increase in the loan-to-deposits ratio (LDR) instituted by the CBN, and the COVID-19 pandemic that got companies in the financial sector thinking of new ways to survive, GTB may have found its way out.

READ: Nigeria’s inflation rate hits 13.22% in August 2020, highest in 29 months

Overview of its half-year results

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Net interest income increased by 9.7% to N127.6 billion in H1 2020, compared with N116.4 billion in H1 2019. Its Profit before income tax stood at N109.7 billion in H1 2020, compared with the N115.8billion in the corresponding period in 2019 – a decrease of 5.2%.

Somewhere in-between the good and the not-so-good, the bank has been able to round off its earnings to a balanced output for H1 2020.

READ: Even with a 939% jump in H1 Profit, Neimeth still needs to build consistency

The good: Foreign Exchange gains

One of the best happenings to investors this year, is the extreme volatility of the forex market – among other currency and commodity plays. In H1 2020 period, the company’s financial assets at fair value through profit or loss, was up by 91.6% to N140.8 billion, when compared with N73.5 billion in H2 2019.

Interestingly, this was due to 129.2% increase in treasury bills from N56.9 billion in H1 2019 to N130.5 billion in H1 2020. Through forward foreign exchange contracts and currency swaps, they were able to increase derivative assets by 49% from N188.6 billion (notional contract amount) in H1 2019 to N280.9 billion in H1 2020.

Explore the Nairametrics Research Website for Economic and Financial Data

Foreign exchange revaluation gain in the half-year period was significantly boosted, from N2.6 billion in H1 2019, it attained 723% growth to N21.9 billion H1 2020, and it was a major reason for the 28% increase in other income within the period under review. Deposits from customers were also higher by 18.5% to N3 trillion. While loans and advances to customers increased in line with the apex’s bank directive. This could be both a bad thing and a good thing, depending on the level of credit risk.

(READ MORE:GTBank, Dangote Cement, CAP record gains, Investors post N7 Billion gain)

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The not-so-good: Impairment losses, CBN’s penalties

Following CBN’s issuance mandating commercial banks to increase the percentage of customer deposits that were loaned to 65%, so as to effectively stimulate the economy, stringent penalties had been imposed on non-compliant banks by the apex bank.

Consequently, the company’s restricted deposits had increased to N1.054 trillion, owing to its limitations in full compliance. While its increased cash balance of 27.8% in the period under review, could signify that the worst of the challenge is over (particularly following the comparative reduction in cash in Q1 2020), a cursory look at the reason for the strengthened cash position, is the 75.7% increase in money market placements to N333.5 billion – another positive for the bank.

READ: Jaiz Bank reports 45.3% profit increase in H1 2020, involved in 21 litigations

Loan impairment charges in the half-year period, increased by 209.7% from N2.1 billion to N6.8 billion, and this was as a result of increased provisions for expected credit losses on financial assets extended to its customers, no doubt as a result of the economic uncertainties, synonymous with the period under review.

Commenting on the half-year results, the CEO, Segun Agbaje, noted that; “Going forward, our focus is not just to survive this pandemic, but to thrive beyond it. That is why we are going ahead with our plans to re-imagine how we create value for all our stakeholders.

“We know that making financial services work for customers goes beyond banking, and in line with our long-term strategy, we will seek to create and drive innovative financial solutions that go beyond banking.”

READ: Access Bank posts Profit Before Tax of N74.31 billion in H1 2020

The bank’s Return on Equity (ROE) of 26.8% is currently one of the best in the industry, and a testament to this promise. Its strategy of increasing gains by focusing on its strengths, while also seeking out ways to decrease its losses, is one that will set any organization on a true course for growth. GTBank is certainly on that path.

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