Guaranty Trust Bank has emerged as Nigeria’s Bank of the Year 2017

Guaranty Trust Bank on the 30th November 2017 emerged as the winner of the Bankers Award for Nigeria. GTBank as its fondly called is the 2017 Nigeria’s Bank of the Year. The Leadership led by Segun Agbaje chaired the group operations through a 2016 review period with a surge in net profits by 37% while total assets and tier capital rose by 23%. In a sign of just how well the Guaranty Trust Bank performed in the review period, its Return on Equity rose to 28% from 25% while its Cost to Income Ratio fell to 40% from 44% thanks to its commitment to business process re-engineering as GTBank is the only Nigerian that is credited with having a full department focused on BPR processes for the Total Quality Management of the Organization.

In a statement issued by the Chief Executive, Segun Agbaje accepting the award, he said “The year 2016 was particularly challenging given the weakness of the naira, depressed oil earnings and inadequate supply of foreign exchange, all of which culminated in the eventual slide of the Nigerian economy into recession. However, we played to our strength by leveraging technology to deliver superior payment solutions, grow our customer base and enhance our service delivery channels to make banking with us simpler, faster and better,”

The bank’s outstanding success in the e-payments space is an example of the role that market-beating innovations are playing in its longer term growth story. About 10% of Guaranty Trust Bank’s 2016 profit before tax came from e-payment services, of which ‘Bank 737’, a USSD delivery channel, has played no small part. This service allows any Nigerian to open an account without a minimum balance requirement and to execute transfers and pay bills remotely. Since its launch, the service has gained 3 million customers and facilitated N1000bn ($2.77bn)-worth of transactions.

“We are transforming our organization into a platform for enriching lives by positioning ourselves at the centre of an extended ecosystem that offers our stakeholders benefits beyond banking,” says Mr Agbaje

Kelvin Emmanuel

About Kelvin Emmanuel

The Oil producing Angola in the Southern part of Africa faces what Nigeria faced 12months ago; a distortion in its exchange rate with a difference between the official markets and the parallel black markets. One dollar through the official window buys you 166 kwanza, while one dollar through the black market buys you 400 kwanza. Nigeria faced the same challenge 12months ago, when the distortion between the official and black markets was as much as the official markets trading at 306 with the parallel market ranging from 450 through to 510. The Central Bank Governor of Angola, Jose de Massano Junior announced in Luanda “We will stop having a fixed foreign exchange, we will adopt a floating regime of foreign exchange”. Angola faces exactly the same challenges and has been applying the exact same responses to an exchange rate crisis like using its foreign reserves that was sitting at $26bn to defend the currency kwanza, with no success so far, even though the external reserves has dropped to $14bn. Angola relies on Oil receipts for 80% of its government revenue, 90% of its inflow and 50% of its GDP. Angola is a $194bn economy that has been growing at an average of 10% on the back of rising oil prices since 2002 when its 27 year old civil war that started in 1975 ended. The state national oil company Sonangol reports that it produces up to 1.8m barrels of crude oil daily, however the government that until now has being led by the family dynasty Jose Eduardo dos Santos until recently when succession saw power transferred to Joao Lourenco, reports that the oil price rout in 2015/2016 that saw prices drop to as low as $28 per barrel caused ripples across the economic structures of the government, upsetting government revenues, its ability to fund its budget, capital project funding, foreign direct investments into the economy as a result of a currency crisis that was driven by the widening of gap between the official and street window of the kwanza, that until now has been pegged in a fixed exchange rate regime to the US Dollar.