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Business > Money Market
GTbank boss sets N125b profit target for 2016, predicts tougher year for banks
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By Segun Adeleye
March 31, 2016 13:16:16pm GMT      |      Views: 6755
Segun Agbaje

WorldStage Newsonline-- The Chief Executive of GTBank, Nigeria’s leading bank, Mr Segun Agbaje has forecasted that 2016 will be tough for the banking sector in view of the state of the economy, external factors among others, but he ruled out possible banks failure.

He told Business Editors in Lagos on Thursday that banks’ profit will be under pressure, a development that could only make the strong banks to be stronger.

Dropping a hint of a possible acquisition of a new bank in another African country this year, the MD projected a profit before tax of N125 billion for the GTB group, a 3.57 per cent growth over 2015 of N120.7 billion.

In 2016 he said the bank would still sustain profitability and returns on equity (ROE) at above 25 per cent.

Other projections for 2016 include cost-to-income ratio (CIR) below 45%; leverage technological advancement to keep cost low; increase subsidiaries’ contribution to group’s PBT from 7.6 per cent in 2015 to 10 per cent.

Besides Nigeria that generates 92.4 per cent of the profit in 2015, the bank operates in Cote D'Ivoire, Gambia, Ghana, Liberia, Sierra Leone, United Kingdom and Kenya.

The Ghana unit even at N4.71 billion PBT in 2015 was 17.9 per cent short of previous year's performance, so also UK unit at N18 million PBT, a 72.6 per cent short and Kenya at N885 million PBT, a 18.9 per cent short of 2014 level.

Despite that the asset of the Cote D'Ivoire unit grew by 6.5 per cent at N5.96 billion in 2015, loan up 172.1 per cent at N1.98 billion, deposit up 52 per cent at N3.85 billion, it still recorded a loss before tax of N558 million, a 22.6 per cent decline.

But, Agbaje said with new management set up at the Cote D'Ivoire unit, it should be able to make profit in 2016, saying the focus was on optimizing revenue and minimizing cost of all subsidiaries.

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