Wednesday, Dec 1st 2021 12:17 PM

Market Digest Nigeria


GT Banks Balance Sheet grows by 12.07% annually under Agbaje

Appointed in June 2011 to lead what has today become one of Africa’s best run and most profitable financial institutions, 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 an icon on the continent of Africa.

An 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 the lender’s bottom line expanded 15.47 per cent on the average per annum in a decade.

In addition, the bank’s balance sheet expanded significantly as total assets increased by at least 12.07 per cent 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 per cent 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 15.45per cent on cumulative average growth rate, from N1.69 earned on share outstanding in 2011 to N7.11 in 2020.

This performance indices underscores the praises, encomiums and commendations showered on the board and management by 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 economic situation 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 thrived, flourished, prospered and soared under his leadership. Under Agbaje, GTBank’s balance sheet has expanded significantly as a result of cutting edge retail banking strategy, innovation, deployment of latest technology 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 had 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 of 2015, the bank had 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 per cent 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’s non-interest income swelled up 11.06 per cent above amount reported in financial year 2019. Interest related income surged marginally at 1.53 per cent as a result of low interest rates environment that underscored the Nigerian economy.

The bank’s Net Interest Margin (NIM) contracted, albeit slightly, to 9.26 per cent from 9.28 per cent in 2019, supported by efficiency in deposit mix. In 2020, the bank reported Profit Before Tax of ₦238.1 billion, representing a growth of 2.8 per cent over ₦231.7 billion 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 such as Post-Tax Return on Equity (ROAE) of 26.8 per cent, Post-Tax Return on Assets (ROAA) of 4.6 per cent, Full Impact Capital Adequacy Ratio (CAR) of 21.9 per cent and Cost to Income ratio of 38.2 per cent.

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.


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