Access, Zenith, GT Bank Stay On Top
By Fola James
Guaranty Trust Bank has not left anyone in doubt of its readiness to consolidate its position among Nigeria’s top three commercial banks, following the release of the 2021 Half Year Result.
According to the audited results submitted to the Nigerian Stock Exchange, the commercial bank which recently transformed to a holding company, alongside Zenith and Access Bank declared a cumulative profit of more than N270 billion within the half year, thereby retaining their top three positions.
The Herbert Wigwe-led Access Bank Plc had earlier declared a mid-year profit after Tax, PAT of N86.9 billion while Zenith Bank Plc declared N106 billion PAT.
Other tier 1 banks such as the UBA and First Bank trailed behind their competitors, as commercial banks in the country struggled for recovery following the COVID 19 headwinds.
Experts insist that many banks are not doing badly in terms of profitability considering the economic situation in the country, particularly as the Central Bank of Nigeria, CBN tightens belts to maintain sound monetary policy.
In the face of the COVID 19 pandemic which has greatly impacted the operations of the banks, CBN measures such as raising the Cash Reserve Ratio, CRR to 27.5 per cent- necessary measure to combat rising inflation, experts say- has hindered commercial banks’ ability to maximise profit, according to financial experts who said the banks will get better as the country gradually recovers from economic recession.
They, however, insist that some banks have shown through their results that they are more resilient in surviving the challenging business environment compared to their competitors.
Segun Agbaje, the chief executive officer of GTCO agrees that commercial banks will need to do more to show strong performance in key indices as the year winds down.
The 2021 Half Year results indicate that the Group recorded profit before tax of ₦93.1billion, representing a dip of 15.2 per cent compared to ₦109.7billion recorded in the corresponding period of June 2020.
Speaking on his company’s Half Year result, the former Managing Director of Guaranty Trust Bank Plc said it took serious innovation, in terms of customer service and employee dedication for the bank to survive under the current hostile economic conditions.
According to him “the results reflect our commitment to building on our track record of solid financial performance, and our capability to constantly innovate will ensure we stay ahead of the curve at all times.
“We are counting on the enduring support of our loyal customers and the hard work of our dedicated staff to continually make end-to-end financial services easily accessible to everyone and to create the best outcomes for all our customers and the communities in which we operate.”
On the future of GTCO Agbaje said “we are focused on bringing to bear the full benefits of our new corporate structure by consolidating our leading position in all the economies where our franchise operates.
“We will also diversify our earnings from core banking, continue to empower businesses across Africa and beyond, and generate long-term returns for our shareholders.”
On his part, Access Bank Managing Director Herbert Wigwe said the bank’s dynamism in expanding to key markets in the continent has enabled it to stay ahead of others in terms of performance.
He said “Over the last few months, we have successfully completed acquisitions in South Africa, Mozambique, and Zambia, emphasising our footprint in key markets around the globe.
“To further enhance our operating efficiency and ensure strong returns on invested capital, we will bring the best of our group assets, specifically our digital banking capabilities that support individuals and businesses, enhance financial inclusion, and deliver the benefits of a strong network effect across our enlarged Group”.
Wigwe explained further that customer satisfaction and strong community relations are the driving force behind the bank’s performance.
“Throughout the pandemic, we have been able to demonstrate our ability and willingness to support our customers, our communities, and our colleagues.
“As the outlook improves, and as business returns to a new normal, we will continue to support our communities in order to stimulate growth and create new opportunities.
“To accomplish our vision to be the World’s Most Respected African Bank, we are working together across the Group on the back of our robust balance sheet, increased retail momentum and efficiency”, the bank’s chief executive said.
According to the H1 2021 results released by UBA Plc, last month, the lender declared profit after tax of N60 billion while First Bank Ltd declared N30 billion profit in the report submitted to the Nigerian Stock Exchange.
