GTBank sparkles again, wins Euromoney Award

… emerges Best Bank in Nigeria for a record 9th time

By OKEY ONYENWEAKU

Winning awards may have become a routine to GT Bank Plc. Not even the recent award can push GT Bank to roll out drums though it is the cherished thing to do. This notwithstanding, it is to be noted that the bank’s winning streak in Nigeria, Africa and beyond has persisted since its establishment in the late 80’s.
This time around it has once again clinched Africa 2019 by Euromoney at its annual Awards for Excellence, which held Wednesday, July 10, 2019 at the London Hilton Hotel, Park Lane. In the course of that outing, the foremost African financial institution was named the Best Bank in Nigeria for a record ninth time, reflecting the Bank’s position as one of the best managed financial institutions in the country, with a strong and focused leadership that keeps the business in a constant state of re-invention and innovation.
Indeed the spate of its winning strike registers one point: its competitors are still awed by the magic wand of the bank’s leadership.
Now in its 50th year, Euromoney is the leading publication for covering the growth of international finance. Euromoney’s Awards for Excellence are some of the star awards in the planet today that matter to the bank and bankers who matter. This year, Euromoney received almost 1,500 submissions from banks in an awards programme that covers 20 global awards, more than 50 regional awards, and best bank awards in close to 100 countries. The Magazine’s Awards for Excellence celebrates the best banks around the world by recognizing institutions that have demonstrated leadership, innovation, and momentum in the markets they operate. In selecting its award recipients, Euromoney combines quantitative and qualitative data to honor institutions that have brought the highest levels of service, innovation and expertise to their customers.
Key to the emergence of GTBank as the Best Bank in Africa and the Best Bank in Nigeria are the Bank’s acknowledged digital drive and its clarity of vision in reimagining the future of banks and banking, BH glimpsed. The Euromoney awards also recognized GTBank’s commitment to leading the future of banking as well as its consistent long-term strategy led by a senior management team that abhors complacency and keeps the business in a constant state of innovation.
Commenting on the Bank’s Euromoney awards, the Chief Executive Officer of GTBank, Segun Agbaje, said; “We are delighted and proud to win the Euromoney Awards for Africa’s Best Bank and Nigeria’s Best Bank. These awards reflect the progress we are making in delivering the best banking experience that captures what customers want in the world of today and tomorrow. They are also a testament to our leading role in driving world class corporate governance standards, excellent service quality and innovation in Africa’s banking industry.”
He further stated that; “At GTBank, we are passionate about building the bank of the future by leveraging the best of technology to add real value to our customers’ lives, and these awards illustrate the hard work and commitment of our staff, management and board towards achieving this goal.”
A reflection of the bank’s goal oriented performance is seen in its first quarter 2019 performance.Guaranty Trust Bank Plc reported a profit before tax of N57 billion in the first three month of the year, 2019
Its unaudited financial results for the first quarter ended March 31, 2019 which was released to the investing public on the Nigerian Stock Exchange (NSE) and London Stock Exchange showed positive performance across all financial measurement with gross earnings for the period growing by 1.2 per cent to N110.3 billion from N109 billion posted in March 2018.
The Bank which is reputed for impressive customer service delivery had its Profit before tax improve to N57 billion from N52.6 billion recorded in the corresponding period of March 2018, representing a growth of 8.3 per cent.
Whilst the bank’s loan book grew by 1.6 per cent from N1.262 trillion as at December 2018 to N1.282 trillion in March 2019, Customers’ deposits also rose by six per cent to N2.410 trillion in March 2019 from N2.274 trillion in December 2018
Accordingly then, the Bank displayed a strong balance sheet, closing the quarter ended March 31, 2019 with total assets of N3.556 trillion and shareholders’ funds of N627.2 billion.
Correspondingly, its assets quality, non-performing loan (NPL) ratio and Cost of Risk closed 7.03 per cent and 0.05 per cent in March 2019 from 7.30 per cent and 0.34 per cent in December 2018 respectively.
At the close of the business quarter, its coverage for NPL stood at 90.12 per cent while Full Impact Capital adequacy ratio remained very strong, closing at 22.25 per cent.
Given this result, Post Tax Return on Equity (ROAE) and Return on Assets (ROAA) closed at 32.79 per cent and 5.76 per cent respectively .Speaking on the first quarter results, the managing director/CEO of Guaranty Trust Bank, Mr Segun Agbaje, said: “Going into 2019, we knew that it would be a challenging year, but our strategy and unwavering focus on delivering value for our customers and shareholders continues to underpin our ability to consistently deliver solid results despite changing market variables.
“We carried on the momentum of the previous year, posting strong growth in earnings, effectively managing costs and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”
“Whilst ensuring the long-term growth of our business is the greatest value that we can create for our communities, we are also leveraging our resources, expertise and network to help people thrive. That is why, from April 28 to May 1, 2019, we are organising the biggest food and drink festival in Africa to give small businesses in the food industry the platform, network and access to the markets that they need to grow.” He stated
He explained that GTBank has continued to be best in class in terms of profitability, efficiency and capital among peers and other financial institutions in Nigeria.
Agbaje notes that the result is evidenced by its earnings per share of N1.74, Return on Equity (ROAE) of 32.79 per cent, Cost to Income Ratio of 38.64 per cent and Capital Adequacy of 22.25 per cent. These metrics are a testament to the efficient management of the bank.
These ratios are a testament to the efficient management of the Bank. In recognition of the Bank’s bias for world class corporate governance standards, excellent service delivery and innovation, GTBank has been a recipient of numerous awards over the years. Some of the Bank’s awards in 2018 include Bank of the Year – Nigeria from the Banker Magazine, Best Banking Group and Best Retail Bank Nigeria from World Finance Magazine, Most Innovative Bank from the African Investor, and Best Digital Banking Brand in Nigeria from the Global Brands Magazine.
G T Bank Plc has been consistent in demonstrating its superiority over its peers in the banking industry. The bank, in fact, has sustained its position as the highest valued banking stock. Even though, the bears have a stronghold on the market, G T bank stock which is trading at N29.90 per share on Friday July 12, 2019 is the second highest priced on the price chart on NSE.
As a result of its successes, many organizations have tried to model their operations after G T Bank. Its compact disposition appears to have yielded fruit. Some believe that the bank’s management style has even generated envy among its peers. Any time there is comparison among the banks, the argument tends to favour G T Bank more. This has truly mystified its operations and brand name over the years. Curiously, the reputable Harvard Business School in United States of America (USA) and Crainfield Business School had as a result carried out a deep research on the effectiveness and uniqueness of the G T brand.
Its modest success has shown that quality actually pays in the long-run. This may be the reason why the bank has run a modest, focused, tight and qualitative organization. In fact, the bank believes in doing its own thing rather than join the fray of aggressive competition that pervades the Nigerian banking industry.