I am thrilled to announce that I will deliver the 2020 Africa Business Conference keynote at the Lagos Business School, of Pan-Atlantic University. LBS, as we all know, is a leader when it comes to business education in Nigeria. Nigeria will rise in markets before it can improve its public sector since the taxes and fees from markets would be needed to make those public institutions better. (GTBank’s profit before tax, in 2 months, is more than the whole annual budget of Abia state).
Guaranty Trust Bank Plc (GTBank) has returned the unaudited numbers for Q3 2020: they look really good. Profit before tax is N167.4 billion. Yes, GTBank made more than the 2020 budget of Abia state in 9 months as profit; in 2020, Abia State has planned to spend N137. 419 billion but of course the actual expenditure would be off by billions due to revenue issues. Update: the state revised the budget to N102 billion.
Of course, while we desire for a more efficient use of our factors of production, in governments, the wealth of modern Nigeria lies in our capabilities to build new constructs in business systems which can fix market frictions, unlock value, and deliver shared prosperity for ALL citizens. So, going to a business school to speak takes that message to the mountaintop because the future high priests of markets, to make use of them, are there. It would be a great one.
This conference is an initiative of the Africa Business Club student-led activity. Date is Nov 28, 2020; more details are coming.
Today at Tekedia Mini-MBA Live, two industry veterans and Faculty at Tekedia Institute will take us on an academic excursion on capital markets and fundraising for startups. Azeez Lawal, CEO of Trustbanc Capital and Ibraheem Babalola, CEO of Clane will lead the session. Zoom link in the Board.
Saturday (Nov 21)| 7pm-8pm WAT | Capital Market Operations & Startup Funding | Azeez Lawal, Trustbanc Capital & Ibraheem Babalola, Clane
To join the next edition of Tekedia Mini-MBA, register here.
It was a highly well received course. And it is coming out as a book. Tekedia Faculty, Japheth Jev, ACMA, CGMA, ACA, is finalizing a new book, titled Personal Finance and Wealth Management. This book is an expanded version of a course he developed for Tekedia Institute’s Mini-MBA.
In our second edition, we reached out to Aba and Onitsha traders through our grassroots networks: we focused on impacting knowledge and skills on personal finance and wealth management. Many responded and enrolled. And then asked for the course written material in the form of a book. Books look better on the table than printed materials especially in stores! We are responding to that market need.
Once everything is done, the book would be available in stores in Nigeria, and other places where books are sold. It joins “Seizing our Singularity Future”, another Tekedia Mini-MBA course ,which is becoming a book, to be co-published by Tekedia Institute and TAFFDs USA.
It is raining competition for some challenger fintechs as Google goes closer into quasi banking operations. Yes, while Google will not be the bank (it has to partner with banks), it will take out the shine which has made some digital banks preferable to the traditional banks. So, if an old century bank gets the blessing of Google, and people can access its services via Google, the acceleration of some digital banks may be muted.
Yes, Citi can send Google to go and battle the digital competitors while it stays at the back handling the regulatory paperworks. This is a new order with a massive new basis of competition. As I noted in this Harvard Business Review piece, Google and Facebook are out for dominance and you need to compete through the flanks. Never, I repeat, go frontally in this battle. CNBC summarizes this new Google playbook.
Google will let users open a bank account through its Google Pay app, in a partnership with Citi and Stanford Federal Credit Union beginning next year.
The tech giant is relaunching the payments app to allow people to pay friends, similar to PayPal’s popular Venmo and Square’s Cash App.
“It’s going to have a broad appeal, but especially among the younger population, Gen Z, that are more tech-driven and mobile-focused,” said Anand Selva, CEO of U.S. consumer banking at Citi.
“Along with our bank partners, we were looking to make banking more relevant for the mobile-first generation,” Caesar Sengupta, general manager of payments at Google, told CNBC in a video interview. “It will help our partners make banking more approachable to that generation, and not only make it more relevant, but make it more fun.”
As you can see here, Citi is already having fun: Paypal, Venmo, etc, we have help now! Hahaha.
Incoming CEO of Citibank Jane Fraser also appeared on Google’s virtual event, saying the Citi Plex account is “a new way to bank.” Today’s customer is of a new generation that wants a “fresh, relevant and better relationship with their money,” Fraser said. “We want to empower them with an account that provides smart very smart financial services built from the ground up with financial wellness and mobile functionality at the very core of the design.”
You’ll create an account from your phone, and “within minutes your whole bank is on your phone,” Fraser said. There are no monthly fees or minimum balance requirements, and the app offers “AI-powered insights to help users save more and set their saving goals.” You’ll get a digital Mastercard debit card instantly and a physical contactless card upon request.
Guaranty Trust Bank plc has released its unaudited financial results for the period ended September 30, 2020 to the Nigerian and London Stock Exchanges.
The 3rd Quarter result shows improved performance across key financial metrics, reaffirming the Bank’s capability to navigate the current economic challenges occasioned by impact of COVID 19 on World economies. The performance reflects its position as one of the leading and best managed financial institutions in Africa.
The Group reported Profit before tax of N167.4billion, representing a decrease of 1.9% over N170.7billion recorded in the corresponding period of September 2019 and an improvement on the 5.2% dip posted in H1-2020 relative to H1-2019.
Loan and Deposit book however grew by 4.5% and 25.1% from N1.502trillion and N2.640trillion recorded as at December 2019 to N1.569trillion and N3.303trillion in September 2020 respectively.
Guaranty Trust Bank’s Balance sheet remained well structured, diversified and resilient with Total assets and Shareholders’ Funds closing at N4.574trillion and N755.5billion respectively. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 23.9%, while Asset quality was sustained as NPL ratio and Cost of Risk (COR) closed at 6.5% and 0.6% in September 2020 from 6.5% and 0.3% in December 2019 respectively.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; “Our 3rd Quarter result is a reflection of how we have appropriately positioned our balance sheet to cope with current economic realities and the challenging business environment.
The CEO of GTBank
“It is also testament to the enduring loyalty of our customers, the hard work and dedication of our staff and the unwavering support we continue to enjoy from all our stakeholders in our drive to deliver best-in-class financial services and superior and sustainable returns.”
He further stated that; “As an organization, we will continue to build on our commitment to enriching lives by leveraging our digital-first customer-centric strategy to improve customer experience and maintain a high standard in service delivery, and going beyond banking to create and drive innovative financial solutions that add value to our customers in all aspects of their lives.”
Overall, Guaranty Trust Bank plc continues to be best in the Nigerian banking industry in terms of all financial ratios i.e. Post-Tax Return on Equity (ROAE) of 26.3%, Post-Tax Return on Assets (ROAA) of 4.6%, and Cost to Income ratio of 40.2%.
Renowned for its forward-thinking approach to financial services and customer engagement, GTBank was recently ranked Africa’s Most Admired Finance Brand in the 10th-anniversary rankings of Brand Africa 100: Africa’s Best Brands, the pre-eminent survey and ranking of the Top 100 admired brands in Africa.
GTB was also awarded the Best Bank in Nigeria by Euromoney Magazine for a record-extending tenth time and the Euromoney Excellence in Leadership Africa Award for its swift reaction in responding to the Covid-19 crisis and for addressing the impact of the pandemic on its customers and communities.
The Bank has been proactive in innovation and diversification, investing in a range of industries, from insurance to asset management, until 2010, when the Central Bank of Nigeria (CBN) stopped banks from running non-banking subsidiaries. Early in the year, GTB announced its intention torestructure as a holding company to enable it to delve into fintech.
