Nigeria’s biggest bank by market value, Guaranty Trust Bank Plc. says it plans to acquire a Kenyan lender as part of its expansion efforts on the African continent.
The acquisition would see the Lagos-based bank extend a foothold on the continent where it already has offices in 10 countries.
The bank’s chief executive officer, Mr. Segun Agbaje who made the disclosure During an investor call in Lagos, suggested that the idea is to increase the contribution of African subsidiaries to the bank’s income to about 30% of profit before tax in the next three years from 15.3% in 2020.
“I think the place we will still like to do business or do an acquisition is Kenya,” Agbaje said, without giving a time-line for the acquisition.
Nigerian banks are expanding on the continent and diversifying outside their core operations in race for new markets.
Agbaje said the bank is expecting the approval by regulators of a move to transition into a financial holding company in the second half, which will enable it start payments and asset management units, noting that it targets 10% growth in the loan book this year and pre-tax profit of 243 billion naira from 238.1 billion naira.