Awards for Excellence 2019
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In recent years, the headlines have been dominated by stories about global banks pulling out of Africa to focus on their businesses back home.
Local banks are taking advantage of the trend, investing and growing their banking operations across the continent to fill the gaps left by the departure of international firms.
Banks once considered local players are increasingly becoming regional champions, looking beyond national borders to reap the benefits of the growing middle class and strong economic growth across much of the continent.
Some of the most bullish of these banks come from Nigeria, sub-Saharan Africa’s largest economy. The outstanding performer is Guaranty Trust Bank (GTB), which is Africa’s best bank this year.
Although the bank is relatively young – it was established in 1990 – it has quickly become a regional force under chief executive Segun Agbaje’s leadership. Today, the bank has over 12,000 employees across Nigeria, Côte d’Ivoire, the Gambia, Ghana, Liberia, Kenya, Rwanda, Uganda, Sierra Leone, Tanzania and the UK.
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Segun Agbaje |
In December 2018, group profit after tax rose 10% year on year to reach N184.6 billion ($511 million). Return on equity and return on assets were strong at 30.9% and 5.6% respectively. The bank maintained a healthy balance sheet with non-performing loans at 0.3%, down from 0.8% in 2017.
GTB’s results are remarkable given the economic pressures that the country has been under, with slower economic growth and lower international oil demand, as well as the political uncertainty surrounding the general election earlier this year.
As with all African banks, mobile banking is essential to reaching the mass market and GTB has launched a number of initiatives in this area. Using Quick Credit, customers are now able to apply for short-term loans online in less than two minutes, while small businesses with online storefronts can access inventory financing via Hub Advance.
In November last year, the bank launched Habari, an online market place and payments app open to all.
