Banking
High Credit Risk, FX Income Dominate GTBank Performance
By Modupe Gbadeyanka
One of the foremost financial firms in Nigeria, Guaranty Trust Bank Plc (GTBank) delivered an impressive performance in FY 2016, inspite of the low pace of credit expansion that characterized the year amid the heightened credit risk environment.
The bank, since its inception, has been dominating the sector in Nigeria, growing its customers’ base and delivery impressive performances.
After reviewing the FY 2016 earnings release and the expected performance of the bank, Wstc Financial Services Limited assigned a BUY rating on the stock, with a fair value of N29.74 implying that the current market price is trading at a 19.4 percent discount to fair value.
GTBank currently trades at a forward P/E multiple of 6.34x and P/B of 1.36x
Gross earnings grew by 37.4 percent to N415 billion (FY 2015: N301 billion), primarily on account of a significant FX revaluation gain of N87 billion (FY 2015: N5 billion) recorded in the year.
This was characteristic of the industry and akin to other players with foreign currency net asset exposure, in the light of the currency depreciation recorded in Q2 & Q3 2016.
Interest income grew by 14.5 percent to N262 billion (FY 2015: N229 billion), reflecting the impact of the elevated interest rate environment, while Interest expense declined by 3.2 percent to N67 billion (FY 2015: N69 billion).
GTBank recorded a lower interest expense which primarily resulted from the early redemption of $500 million out of the outstanding November 2013 $902 million 5-year Eurobond.
A sinking fund has also been set up towards the redemption of the remaining $402 million with no plans of refinancing, according to guidance from management. A combination of the remarkable growth in interest income and contraction in interest expense led to a 22.2 percent growth in Net interest income to N195 billion (FY 2015: N160 billion).
The deterioration in the macro environment stressed asset quality and caused a sharp rise in non-performing loan (NPL) to N61 billion (FY 2015: N45 billion) with an NPL ratio of 3.66 percent (FY 2015: 3.21 percent).
Consequently, the bank recorded a significant impairment charge of N65 billion, representing a 426.0 percent surge from FY 2015 levels of N12 billion. The bulk of the impairment charge reported was largely driven by increase in provision on FX denominated facilities due to the currency depreciation.
In line with the elevated inflationary environment, operating expense (Opex) increased by 17.9 percent to N114 billion (FY 2015: N96 billion). The key Opex drivers were fuel cost & translation differences from foreign subsidiaries.
In tandem with the impressive performance from top line, profit before tax increased by 36.8 percent to N165 billion (FY 2015: N120 billion), while profit after tax increased by 33.0 percent to N132 billion (FY 2015: N99 billion).
The Bank proposed a total dividend of N2.00, representing a payout ratio of 43 percent (FY 2015: 51 percent).
Wstc Financial Services Limited says it expects high yield on government securities to continue to support growth in interest income in FY 2017, as it expects a marginal expansion in loan book size.
Also, barring significant volatility in the FX market, the firm said it does not expect the level of FX gains recorded in FY 2016 to recur in FY 2017.
“Thus, we expect a 12.6 percent decline in gross earnings in FY 2017.
“We expect cost of funds to increase in reflection of the high interest rate environment. Also, we believe the newly introduced FGN savings bond may somewhat crowd-out the bank’s retail deposits and impact negatively on interest expense,” Wstc Financial Services Limited said.
In view of the bank’s significant loan book exposure to the oil & gas sector and the weak outlook of oil price as well as management’s recent disclosure that the Etisalat Nigeria loan (N42 billion) is expected to be restructured sometime in Q2 2017, and Wstc Financial Services Limited still expects a high impairment charge on risk assets to be recorded in FY 2017.
“Thus, we estimate that the bank’s ROAE will decline to 22.5 percent by FY 2017 (from 29.1 percent in FY 2016) as the cost to income ratio increases to 45.1 percent from 40.8 percent which resulted from FX income in FY 2016.
“We expect a FY 2017 PBT of N142 billion (more conservative than management’s guidance of N168 billion),” it added.
In estimating the fair value of GTBank, Wstc Financial Services Limited adopted a blended valuation methodology using the residual income and dividend discount valuation approaches.
Its initial year cost of equity (COE) estimate of 21.3 percent was computed using a 10-yr risk-free rate of 15.89 percent, beta of 0.74 (relative to the NSE ASI) and an equity risk premium of 5.69 percent.
Wstc Financial Services Limited says it arrived at a Fair value estimate of N29.74 per share, pointing out that its fair value estimate implies justified forward P/E multiple of 7.57x and P/BV multiple of 1.62x, while the current market price is at an 19.4 percent discount to its fair value; “hence, we rate the company’s stock a BUY.”
By Adedapo Adesanya
Top financial services provider in Nigeria, Stanbic IBTC, has reiterated its commitment to empowering businesses, strengthening key sectors and positioning Nigeria as a competitive player in the global economy.
This came on the back of the 2026 edition of the Nigeria Business Summit from Wednesday, April 1 to Thursday, April 2, 2026, at the Landmark Event Centre, Victoria Island, Lagos. The two-day summit brought together industry leaders, policymakers, entrepreneurs and stakeholders across multiple sectors to explore sustainable business practices, foster economic growth and unlock global trade opportunities.
With the theme, Nigeria Means Business: Powering Sectors, Growing Sustainable SMEs & Unlocking Global Trade, the summit addressed critical issues across key sectors, including agribusiness, renewable energy, trade and Africa–China banking, as well as ICT and telecommunications. Additional sessions covered areas such as family business sustainability, artificial intelligence, employee value banking, insurance, pension and wealth management.
The event featured a keynote address by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who emphasised the urgent need for Nigeria to reposition itself as a leading export-driven economy to achieve sustained growth.
“Our true potential lies in becoming a leading export economy,” Edun stated. “Increased participation in regional and global trade will be critical to diversifying foreign exchange earnings and driving inclusive growth.”
He noted that while Nigeria’s GDP growth has improved to approximately 4 per cent, it remains below the level required to significantly reduce poverty. According to him, the country’s economic strategy is now shifting from stabilisation to growth acceleration, with trade expansion playing a central role.
Mr Edun highlighted ongoing reforms, including improved foreign reserves, rising non-oil revenues and renewed investor confidence, as indicators of a more resilient economy. However, he stressed that enhancing trade competitiveness would require continued investment in infrastructure, logistics and policy coordination.
He also highlighted the importance of small and medium-sized enterprises (SMEs), which account for over 90 per cent of businesses, noting that inclusive growth will depend on stronger collaboration between the public and private sectors.
Participants engaged in a rich line-up of activities, including expert presentations, panel discussions and high-level networking opportunities. Highlights of the summit included the Africa Trade Barometer presentation, client testimonial showcases and insightful discussions on the state of the African economy and intra-African trade opportunities.
Breakout sessions on agribusiness, ICT and healthcare, Africa-China banking and trade, as well as renewable energy, provided attendees with deeper, practical insights into some of the most critical sectors driving Nigeria’s economic future.
Speaking at the event, Mr Chuma Nwokocha, chief executive of Stanbic IBTC Holdings, represented by the organisation’s Chief Finance and Value Management Officer, Mr Kunle Adedeji, emphasised the importance of collaboration and innovation in driving sustainable growth.
“This summit has reinforced the importance of creating platforms where ideas can flourish, and businesses can grow sustainably. By working together, we can unlock new opportunities and drive economic advancement across Nigeria and the African continent,” he said.
The summit also spotlighted practical strategies for integrating sustainability into business operations, encouraging organisations to adopt environmentally conscious practices while maintaining profitability and competitiveness.
Mr Remy Osuagwu, Executive Director, Business & Commercial Banking, expressed satisfaction at the level of interest from participants, a critical element for a successful summit.
“From our conversations on energy and healthcare to the deep dives into trade, Africa-China relations, and agribusiness, Day 1 has offered perspectives that were both insightful and practical. I believe we’re all leaving with a stronger understanding of the opportunities emerging across our industries,” he said.
He acknowledged the level of engagement, questions, contributions and willingness of participants to share experiences, describing this as the real power of the Nigeria Business Summit, and a solid foundation for tomorrow.
The Chief Executive of Stanbic IBTC Bank, Mr Wole Adeniyi, who was represented by Mrs Bunmi Dayo-Olagunju, Deputy Chief Executive of Stanbic IBTC Bank, opened Day Two of the Nigeria Business Summit by highlighting the focus of the summit’s SME Day.
“Today, we build on Day One’s momentum with conversations that are equally critical for the future – from the dynamics of family businesses to the growing influence of artificial intelligence; the evolution of insurance, and the emerging space of electric vehicle banking.”
She further added, “Our goal on Day Two is simple: to explore what’s next. To understand how these developments will shape our businesses and how we can position ourselves ahead of the curve.”
By Dipo Olowookere
Tech enthusiasts interested in participating in the Take on Squad Hackathon, organised by Guaranty Trust Holding Company (GTCO) Plc, can now enter the contest via the official portal at https://squadco.com/hackathon.
The programme enters its third edition in 2026, and the theme for this year is Smart Systems: The Intelligent Economy, according to a statement issued by the organisers.
The hackathon brings together developers, designers and entrepreneurs across Nigeria in a collaborative environment to build practical solutions across key sectors, including financial services, healthcare, commerce and digital inclusion.
Participants are challenged to design and build intelligent, data-driven solutions that transform how communities engage with money.
It is part of the organisation’s commitment to fostering innovation, empowering talent, and supporting the development of technology-driven solutions that address real-world challenges across Africa.
“Today’s dynamic, digitally driven world demands continuous innovation, which is shaping how economies grow, how businesses scale, and how societies evolve.
“Through Take on Squad Hackathon, we are deliberately investing in the ideas and talent that will define the future.
“Our objective is not simply to encourage innovation, but to enable its translation into scalable solutions that deliver real and measurable impact.
“This reflects GTCO’s role as a financial services platform that connects capital, capability, and creativity to drive sustainable progress,” the Managing Director of HabariPay, Ms Eduofon Japhet, stated.
The social coding event remains a cornerstone of HabariPay’s mission to foster creativity and problem-solving among emerging tech talents. Competing teams will leverage Squad’s advanced APIs to create scalable digital tools that address everyday challenges faced by businesses and individuals.
Through initiatives such as this, GTCO continues to position itself at the intersection of finance, technology and enterprise, actively shaping the future of digital transformation in Africa.
By Dipo Olowookere
Banking services will not be interrupted throughout the Easter public holidays, from Friday, April 3, to Monday, April 6, 2026, for any reason, Ecobank Nigeria has assured its customers.
In a message over the weekend, the member of Africa’s leading pan-African banking group, Ecobank Transnational Incorporated, said customers would continue to enjoy quality service delivery during the period.
It noted that its secure and robust digital platforms would remain fully operational to support financial activities during the festive period.
All digital channels, including the Ecobank Mobile App, Ecobank Business App, USSD *326#, Ecobank Online, OmniPlus, Omnilite, EcobankPay, Ecobank Cards, ATMs, PoS terminals, and over 35,000 Ecobank Xpress Point agent locations nationwide, will remain accessible throughout the holiday, the financial institution further said, urging customers to conveniently conduct transactions at any time using this wide range of digital solutions.
Ecobank customers were encouraged to maximise the bank’s alternative channels for transfers, bill payments, airtime purchases, card services, and account management.
They were also advised to stay vigilant by shopping only on trusted websites; avoiding the sharing of PINs, passwords, and one-time passwords (OTPs); refraining from banking on public Wi-Fi networks; being cautious of urgent or emotionally charged messages; and regularly monitoring their account activity.
“Customers will continue to enjoy a full bouquet of services during the holiday, including local and international funds transfers, bill payments, airtime top-ups, merchant payments, balance enquiries, account statements, and cardless cash withdrawals via ATMs,” the Head of Products & Analytics, Consumer & Commercial Banking at Ecobank Nigeria, Mr Victor Yalokwu, stated.
“We understand that festive seasons come with increased financial activity, and our priority is to ensure our customers enjoy fast, reliable, and secure banking wherever they are.
“Our digital channels are designed to support uninterrupted transactions, and we have strengthened our systems to guarantee optimal performance throughout the Easter break,” he added.
Mr Yalokwu noted that, “Ecobank remains committed to providing innovative financial solutions and exceptional customer service. We wish all our customers and partners a peaceful and joyful Easter celebration.”
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