Guaranty Trust Bank Plc (GTB), has unfolded plans to expand its operations to the rest of Africa over the next three years in a bid to triple the pace of earnings growth.
“The bank plans to open in one other country, probably Tanzania, Mozambique or Angola to deepen its retail banking in that region, to give the bank a critical mass of population to drive a very profitable franchise, Segun Agbaje, managing director/chief executive officer of the Bank, said in Lagos.
The expansion would support a target for accelerating profit growth to 15 per cent a year in 2016 from four per cent, said Agbaje.
“Acquisitions would also help boost the contribution of earnings outside Nigeria to 10 percent of the total by that date”, he said.
GTB bought 70 per cent of Fina Bank Group two months ago to gain entry to markets in Kenya, Rwanda and Uganda, adding to its presence in five West African nations aside from Nigeria.
The bank also plans to open 25 more branches in the country this year, said Agbaje, adding to the 211 it has in the country. The bank wants to increase retail deposits by 20 percent to help offset tougher regulatory requirements, he said.
Retail customers in Nigeria have increased 21 per cent to 5.2 million since the beginning of last year, Agbaje said.
“The bank has put in place adequate structures to accommodate twice the current retail customers,” he said.
The CEO said GTB’s earnings were crimped by N15 billion last year after the central bank increased cash reserve requirements on deposits made by government ministries, agencies and state-owned companies and instructed lenders to cut the fees and commissions they charge customers. Net income climbed nine per cent to N92.6 billion in 2013.