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10 years on, Agbaje raises GTBank profit by N1.305 trillion, expands balance sheet by 12.07% on average annual growth

GTBank’s audited financial statement for the last 10 years shows that Agbaje delivered N1.305 trillion cumulative profits for the bank.

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GTBank Sponsors 2020 Lagos International Polo Tournament, Buying opportunity as GTB share price falls to 2 year low, GTBank releases 2019 full year audited results, Guaranty Trust Bank Plc to consider a holding company structure, GTBank launches Beta Health, expands access to health insurance for low-income Nigerians

Appointed in June 2011 to lead what has today become one of Africa’s best run and most profitable financial institution, Segun Agbaje’s leadership and steering of GTBank management in the past 10 years has truly seen the bank grow in all assessment indices into becoming not just an enviable financial institution in Nigeria but the whole of Africa.

Figures they say do not lie, analysis of GTBank’s audited financial statement for the last 10 years shows that Agbaje delivered N1.305 trillion cumulative profits for the bank, as lender bottom line expanded 15.47% on the average per annum in a decade.

In addition, the bank balance sheet expanded significantly as total assets increased at least by 12.07% annually in the last 10 years, from N1.598 billion when Agbaje emerged as Chief Executive to N4.944 trillion in 2020.

Shareholders wealth was widely expanded with total equity boosts of 13.46% average growth per annum in a decade, rising from N230.393 billion in 2011 to N814.395 billion.

Leading the list of sky-high performers, earnings per share expanded at 15.45% on the cumulative average growth rate, from N1.69 earned on share outstanding in 2011 to N7.11 in 2020.

This performance indices largely explains the manner of praise and commendations from shareholders during the bank’s 31st Annual General Meeting held recently in Lagos.

Speaking at the meeting, a shareholder, Mr. Tunji Bamidele, commended the bank’s board and management for sustaining profit and dividend payment in spite of the harsh and challenging economy experienced in the year 2020 as a result of the pandemic that challenged the world.

Applauding the Managing Director’s leadership acumen and dexterity, Bamidele noted that the MD/CEO’s steering of the bank in the past 10 years has been a blessing to shareholders and the bank’s well-meaning stakeholders.

Recall that after the bank’s former Managing Director, Tayo Aderinokun’s demise in 2011, Agbaje emerged from within to lead the bank. In about a decade, GTBank has recorded big and heavy lift under his leadership.

GTBank balance sheet has expanded significantly as a result of cutting edge retail banking strategy and service excellence.

GTBank’s 10 Years Growth Trajectory under Agbaje’s Leadership.

When Agbaje took over the leadership baton at GTBank in 2011, the bank’s total balance sheet size according to the bank’s 2010 audited financial results stood at N1.08 trillion.

By the end of 2014, GTBank has N2.126 trillion in total assets after rising from N1.904 trillion in 2013, N1.620 trillion in 2012 and N1.523 trillion at end of Agbaje first anniversary as Chief Executive.

By the year-end 2015, GTBank total assets expanded to N2.524 trillion.  Between 2011 and 2014, Agbaje expanded loans and advances to customers the same way he doubled customers’ deposits.

In 2011, the bank’s loan to customers expanded from N574.255 billion to N679.358 billion, then to N742.436 billion in 2012, N926.967 billion in 2013 and the first trillion mark in 2014 when loan to customers upped at N1.182 trillion.

By the year-end 2015, loans to customers had swelled up to N1.371 trillion.

Following the same growth trajectory, Agbaje grew customers deposit to N1.439 trillion in 2014, from N962.486 billion in December 2011. As at year-end 2010 result signed off by his predecessor, customers deposit book was N711.038 billion.

As at 2015, the bank has increased its customers’ deposit liabilities to N1.610 trillion.

GTBank’s total equity also expanded fast and furiously as the need to grow balance sheet increase amidst its industry players.

Equity capital base of the lender upped from N216.445 billion in 2010 to N369.530 in 2014 having expanded from N329.646 billion in 2013, N286.539 billion in 2012 and N234.180 billion in 2011.

By the year end 2015, GTBank total equity had surged to N413.562 billion.

The 2020 Audited Financial Result

GTBank’s gross earnings expanded 4.58% year on year to NGN455.23 billion in 2020 on the back of a relatively strong growth in non-interest income.

In the year, the bank non-interest income swelled up 11.06% above the amount reported in financial year 2019. Interest related income surged marginally at 1.53% as a result of low-interest rates environment that underscores the Nigerian economy.

The bank’s net interest margin (NIM) contracted, albeit slightly, to 9.26% from 9.28% in 2019, supported by efficiency in deposit mix. In 2020, the Bank reported Profit before tax of ₦238.1billion, representing a growth of 2.8% over ₦231.7billion recorded in the corresponding year ended December 2019.

The Bank also continues to post the best metrics in the Nigerian Banking industry in terms of key Financial Ratios i.e. Post-Tax Return on Equity (ROAE) of 26.8%, Post-Tax Return on Assets (ROAA) of 4.6%, Full Impact Capital Adequacy Ratio (CAR) of 21.9% and Cost to Income ratio of 38.2%.

GTBank shareholders have approved for the bank’s metamorphosis into a financial conglomerate with a Holdco Structure. However, the Bank noted that the process is in the final stage of regulatory approval, as such, operations in 2021 will run as HoldCo for at least half of 2021.

"NM Partners" represent articles published in partnerships with Corporate Organisations, Government and Non-Governmental Institutions, and other stakeholders seeking to publish content on Nairametrics. Content includes Press Releases, Targeted content, and other forms of corporate communications targeted at our readers. Some of these content are paid for.

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Key learnings from the Fintech Rising webinar with SEC

The main benefit of being regulated has to do with investor confidence, security, and scale.

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Nairametrics to host fintech webinar on synergy between players and regulators

Last week, Nairametrics hosted a webinar tagged “Fintech Rising: Creating synergy between fintech players and regulators” to discuss the regulatory environment within which the wealth-tech ecosystem operates and how it is transforming the sector.

The recent announcement by the SEC about its first license for Fintechs – Digital Sub-broker license – has led to several questions being asked about what this type of registration would mean for players within the space. Tosin Osibodu of Chaka, a digital trading platform for local and foreign stocks, who was present on the panel, provided insights into what being regulated by SEC means, and the benefits to the sector.

  • Being regulated does not limit your business:

He highlighted that from the start, Chaka has been extremely focused on being regulator friendly, explaining that being regulated does not mean that one’s business would be limited. Regulators are committed to ensuring development and innovation within the ecosystem but will first make sure that businesses are aligned with their goals and are beneficial to the public.

  • SEC’s intention for creating this new license:

The regulators’ intention is to make sure that everyone participating is registered and structured in line with set guidelines, and it is incumbent for players to engage SEC to do that. The right approach to take is to engage regulators, show the benefits of your business to the economy as being an enabler of digital investing, making sure it is easier for people to tap into the markets, and so on; then get requisite registration.

  • The importance of regulation:

Tosin further highlighted that the main benefit of being regulated has to do with investor confidence, security, and scale. When a wealth-tech company just starts out, it is exciting both for the operators and the customers, but as it grows, it is necessary to scale, and that would require business and regulatory compliance according to set guidelines that obtain within the sector. Customers would want to know that in the long-term their money is safe, which the SEC is trying to ensure.  The disadvantage of not having regulation in this sector is the uncertainty for the investing public, which the SEC is guarding against.

With this new license, which Chaka is in line to receive, the SEC is ensuring that only compliant platforms would be allowed to operate so that investors will be more confident knowing that their assets are safe and stable. It would further encourage more people to invest, and encourage more players to enter the market, therefore spurring innovation.

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SalesRuby to gather over 300 revenue leaders from Nigeria, Kenya, South Africa, Ghana at the Africa Revenue Summit (AFRES2021)

The event which holds at The Campbell Centre, Marina, Lagos will feature 25+ Speakers, 25+ Sessions across several distinct tracks.

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The Africa Revenue Summit formerly known as Sales Leadership Conference (SLC) has evolved over the past four years as the largest convergence for revenue leaders across corporate Africa. The first, second and third editions hosted by SalesRuby held in Lagos, Nigeria in 2018, 2019 and 2020 respectively welcoming over 400 participants each year.

This year’s edition intends to gather over 500 participants from across Africa including Kenya, Ghana, Nigeria and South Africa to discuss modern strategies, processes and techniques for driving the growth of companies and organizations. This year’s event; up from just focusing on sales; would be taking a deep-dive review of themes across the entire revenue value chain which would include sales, marketing, culture, people leadership etc.

The event which holds on Friday & Saturday, June 4th & 5th, 2021 at The Campbell Centre, Marina, Lagos will feature 25+ Speakers, 25+ Sessions across several distinct tracks. The theme of the summit is “Scaling Growth, Optimizing Margins”

Some of the speakers at AFRES 2021 include:

  • Motayo Latunji – Sales Director, Hayat Kimya
  • Bunmi Jembola – CEO, SaleRuby
  • Olutayo Latunji – Head of Sales Operation, Nestle Nigeria
  • Winston Nolan – CEO, Sales Machine (South Africa)
  • Sam Kariuki – Sales Trainer, Growth Partners (Kenya, East Africa)
  • Mawuli Ocloo – Chief Sales Partner, Salesmark Services (Ghana)
  • Yewande Akomolafe-Kalu – Head, Branding & Storytelling, Flutterwave
  • Ose Osundeko – Group Head, Digital Marketing, Fidelity Bank
  • Kenechi Eneh – Divisional CEO, ipNX 
  • Adenike Lucas – VP, Sales & General Manager – West Africa, Upstream
  • Fikayo Akeredolu – Head of Growth, Stears
  • Ibiyinka Dada – Digital Marketing Manager, Airtel
  • and 13+ more industry leaders

What to expect at the Africa Revenue Summit:

The speakers and leaders, which were selected from across four countries in Africa and across multiple fields related to the theme, will offer invaluable insights and actionable strategies to CEOs, Executive Directors, Head of Sales, Marketing Directors and associated stakeholders on such topics as:

  • Designing a modern sales process for growth
  • How to shorten deal cycles
  • Telling brand stories that cut through the noise
  • Strategic interventions for growing key accounts
  • Culture as a force for growth
  • Best class content strategies for today’s buyers
  • Understanding the core principles and practice of sales enablement
  • Designing a winning inside sales strategy
  • Go to market strategies fit for these times
  • Leading a product-led growth strategy
  • Recruiting, onboarding & retaining exceptional sales talents
  • and many more sessions

Interested in participating in this event, visit https://afres.africa/get-ticket/

Call 09070047684, 09070048214. You can also send an email to [email protected]

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https://www.linkedin.com/showcase/afres/?viewAsMember=true

Follow on Instagram

https://www.instagram.com/afresummit/

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