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  • Court restores GTBank’s appeal against Innoson Motors on N2.4bn judgment debt

    Court restores GTBank’s appeal against Innoson Motors on N2.4bn judgment debt

    The Supreme Court has reversed its earlier decision which dismissed an appeal by Guaranty Trust Bank (GTB) against a N2.4 billion judgment given in favour of Innoson Motors Nigeria Limited by the Court of Appeal in Ibadan, Oyo State.

    A judgment delivered on Friday by a five-member panel, led by Justice Olukayode Ariwoola held unanimously that the Supreme Court erred when, in a ruling on February 27, 2019, it erroneously dismissed the appeal marked: SC/694/2014 filed by GTB.

    In the lead judgment, written by Justice Tijani Abubakar, but read on Friday by Justice Abdu Aboki, the court held that it was misled by its Registry, which failed to promptly bring to the notice of the panel that it sat on the case on February 27, 2019, and that GTB had already filed its appellant’s brief of argument.

    The judgment was on an application by GTB seeking the re-listing of the appeal on the grounds that it was wrongly dismissed.

    The Supreme Court said had the panel that sat on the case on February 27, 2019, been notified of the existence of the appellant’s brief of argument, it would not have given the ruling which dismissed GTB’s appeal on grounds of lack of diligent prosecution.

    Relying on Order 8 Rules 16 of the Supreme Court’s Rules, Justice Abubakar, in the lead judgment, held that the apex court has the power to set aside its decision in certain circumstances, like any other court.

    He added that such circumstances include where there is any reason to do so, such as where any of the parties obtained judgment by fraud, default or deceit; where such a decision is a nullity or where it is obvious that the court was misled into giving a decision.

    Justice Tijani held that the circumstances of the GTB case fall into the category of the rare cases where the Supreme Court could amend or alter its own order on the grounds that the said order or judgment did not present what it intended to record.

    “I am convinced that at the material time that the appellant’s appeal was inadvertently dismissed by this court, there was in place, a valid and subsisting brief of argument filed by the applicant.

    “It will be unjust to visit the sin of the court’s Registry on an innocent, vigilant, proactive and diligent litigant.

    “It is obvious from the material before us, that there were errors committed by the Registry of this court, having failed to bring to the notice of the panel of Justices that sat in chambers on the 27th February 2019 that the appellant had indeed filed its brief of argument.

    “This is a case deserving of positive consideration by this court.

    “Having gone through all the materials in this application, therefore, I am satisfied that the appellant/applicant’s brief of argument was filed before the order of this court made on the 27th of February 2019 dismissing the applicant’s appeal.

    “The order dismissing the appeal was therefore made in error. It ought not to have been made if all materials were disclosed. The application is, therefore, meritorious and hereby succeeds,” Justice Abubakar said.

    He proceeded to set aside the court’s ruling of February 27, 2019, dismissing GTB’s appeal and ordered that the appeal marked 694/2014 “be relisted to constitute an integral part of the business of the court until its hearing and determination on the merit.”

    Other members of the panel – Justices Ariwoola, John Okoro, Helen Ogunwumiju, Aboki – agreed with the lead judgment.

  • Miriam Olusanya takes charge at GTBank to face emerging competition

    Miriam Olusanya takes charge at GTBank to face emerging competition

    The appointment of Miriam Olusanya, as the managing director of Guaranty Trust Bank (GTBank) by the parent company, GTCO Plc has broken the bank’s gender leadership structure for being the first female managing director ever since the bank existed.

    With over 23 year’s banking experience that cuts across transaction services, asset and liability management, financial markets, investment banking and investor relations, Olusanya has positioned herself to deal with emerging competition in the industry.

    Guaranty Trust Bank remains the most attractive way to gain exposure to Nigerian banks, even as the landscape becomes increasingly competitive, according to Coronation Asset Management.

    Olusanya holds a Bachelor of Pharmacy (B. Pharm) degree from the University of Ibadan, Nigeria And a Master of Business Administration (Finance and Accounting) from the University of Liverpool, United Kingdom. Olusanya has also attended several executive management and banking specific developmental programs in leading educational institutions around the world.

    Olusanya serves as a non-executive director on the Board of Guaranty Trust Bank (Gambia) Limited. She is also a member of the financial markets sub-committee of the bankers’ committee, the primary interactive policy platform made up of the Central Bank and banks.

    Olusanya was the group treasurer and head, wholesale banking division, responsible for balance sheet and financial markets activities of the bank and its African subsidiaries, corporate finance as well as investor relations.

    Olusnay joined GTBank as an executive trainee and rose through the ranks until her appointment as an executive director in 2018, a position she held until her appointment as managing director.

    Though not immune from Nigeria’s macro challenges, the company has delivered consistently strong results and superior returns compared with peers.

    “The bank is currently being restructured into a Holdco, which we think will provide strategic flexibility and the opportunity to diversify the group’s revenues and better position the bank to deal with emerging competition,” Ope Ani and Guy Czartoryski of Coronation Research, said in a recent published banking sector report.

    Guaranty Trust Bank has maintained strong asset quality consistently during the last four years and, in the analysts view, has the capital buffers to withstand significant shocks.

    The bank’s Non-Performing Loan (NPL) ratio ranged from 6.4 percent to 7.4 percent in full year (FY) 2017-2020, with substantial loan growth, and in the case of FY20, regulatory forbearance offset[1]ting the increase in gross NPLs.

    In the 2021 estimate (2021E), the analysts do not anticipate a significant deterioration in asset quality, with the cost of risk expected to print 1.1 percent and NPL ratio to come in at 6.3 percent.

    “We do not expect aggressive risk-asset creation in the near term due to the current weak macro environment. However, with Guaranty’s strong capital capacity, it is well-positioned to grow quality loans. We forecast loan growth of 9.0 percent in 2021E (2022E-2024E: 5.7 percent on average), which we expect to support interest income”.

    Guaranty Trust Bank reported its FY2020 numbers in March 2021 with a 4.6 percent Year-on-Year (YoY) growth in gross earnings to N455.2 billion compared to N435.3 billion in FY2019. The robust growth in gross earnings was principally driven by a 37.7 percent YoY spurt in other income offset by a decline in interest income on cash and cash equivalent (by 56.3%) and a 14.8 percent drop in fee and commission income. Net interest income rose 9.6 percent YoY, primarily driven by interest income on financial assets at Fair Value through Profit or Loss (FVPL) (+174.0% YoY) and reduced interest expense (-27.4% YoY).

    Aiming to strengthen its long-term competitiveness and growth prospects, Guaranty Trust Bank plc has completed its re-organisation to a Holding Company Structure.

    Under the terms of the re-organisation, a new operating company has been established and amendments made to the articles of incorporation for a corporate name change. The corporate name of Guaranty Trust Holding Company Plc and GTCO Plc will be used by the newly established operating company.

    The newly established Guaranty Trust Holding Company Plc is also pleased to announce its new Board of Directors as well as changes to the Board of its banking subsidiary, Guaranty Trust Bank Limited. All the appointments have been approved by the Central Bank of Nigeria and disclosed to the Securities and Exchange Commission and the Nigerian Exchange Group.

    Guaranty Trust Holding Company Plc (GTCO Plc) will be governed by a Board of Directors comprising, Sola Oyinlola as Chairman of the Board and Segun Agbaje as the Group Chief Executive Officer, Adebanji Adeniyi as Executive Director, Cathy Echeozo as Non-Executive Director, Suleiman Barau and Helen Bouygues as Independent Non-Executive Directors.

    The Banking subsidiary, Guaranty Trust Bank Limited will be governed by a Board of Directors comprising, Ibrahim Hassan as Chairman of the Board, Miriam Olusanya as managing Director, Jide Okuntola as Deputy Managing Director, Haruna Musa as Executive Director, Olabode Agusto as Independent Non-Executive Director, Imoni Akpofure and Victoria Adefala as Independent Non-Executive Directors.

    Prior to its corporate reorganization to Guaranty Trust Holding Company Plc, Guaranty Trust Bank Plc has been at the forefront of delivering innovative banking products and services to customers and best-in-class Return-on-Equity to shareholders.

    It is widely regarded as the best managed financial institution in Nigeria and has, over the past decade, embarked on a period of unparalleled growth, growing its customer base from less than 3 million customers in 2011 to over 24million customers in 2020, and profit before tax from N45.5 billion at the end of the 2010 financial year to N238.1billion at the end of the 2020 financial year.

    Commenting on the completion of the corporate reorganization, Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, said: We believe that a Holding Company Structure will allow us to take advantage of new business opportunities in the emerging competitive landscape and strengthen our earnings base. We are very excited to get started on the next phase of our incredible journey to driving Africa’s growth by making end-to-end financial services easily accessible to every African and African Businesses by leveraging Technology and Strategic Partnerships. As a bank, we were always looking to meet every customer need; with our corporate reorganization, we will be able to do more to help our customers thrive in this new world of digital technologies and unprecedented possibilities.

    He further stated that, “whilst we are evolving as an organization, we remain committed to our founding values which have endeared our brand to millions of people across Africa and beyond, and which continues to drive our financial success. As a Proudly African and Truly International band, we will continue to live by these values of excellence, hard work and integrity, even as we create faster, cheaper, safer and more diverse products for people and businesses of varied types and sizes’

  • GTBank record extending 10 Times Best Bank in Nigeria

    GTBank record extending 10 Times Best Bank in Nigeria

    By Musa Isa Ahmed

    Record has been regarded by industry watchers as one of the best run financial institutions in Africa, a reputation that has been further buttressed by its recent recognition as the Best Bank in Nigeria by the renowned business and finance magazine Euromoney, for a record-extending ten times between 2010 and 2020. The foremost African financial institution was also recently awarded 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.

    Euromoney’s Awards for Excellence is one of the most coveted accolades in the global financial services sector. The Magazine’s Awards for Excellence celebrates the best banks around the world by recognizing institutions that have demonstrated leadership, innovation, and momentum in the markets they operate. Key to GTBank’s dominance as the Euromoney’s Best Bank in Nigeria is the Bank’s consistency in driving new innovations in financial services, championing community development programs that uplift the most vulnerable in society, and delivering the best performance across several key financial indices. The Euromoney awards also reflects the efficacy of the Bank’s long-term strategy and the dedication of a senior management team that abhors complacency, puts a premium on excellent service quality and keeps the business in a constant state of innovation.

    Regarding GTBank’s Excellence in Leadership Award, Euromoney said; “One of the first things Nigeria’s Guaranty Trust Bank did with the onset of the Covid-19 pandemic was to get in touch with local authorities to see how the bank could help. Recognizing that the pandemic would stretch the public healthcare system, the Bank partnered with local authorities to set up a care facility for people with Covid-19. “GTBank also granted small and medium-sized enterprises a grace period of 90 days [which has since been extended by a further 3 months] on all loan payments. It is also developing other resources to help SMEs better understand and navigate the impact of the pandemic,” the magazine added.

    Commenting on the Bank’s Euromoney Awards, the Chief Executive Officer of GTBank, Segun Agbaje, said; “We feel very humbled to be awarded the Excellence in Leadership in Africa Award and immensely proud to be named Nigeria’s Best Bank for a record tenth time. These awards reflect what we are all about at GTBank—giving back to society and adding value to people’s lives. They are also testaments to our commitment to always be there for our customers and communities as a beacon of hope, an engine of progress and a platform for enriching lives.”

    He further stated that; “As we continue to navigate the fallout of this pandemic, the imperative of our time as an organization remains safeguarding our lives and livelihoods. This means that we will continue to lead from the frontlines by protecting our employees, serving our customers wherever they may be, helping businesses make it through these uncertain times and supporting public authorities in combatting the pandemic.”

    GTBank serves as a role model within the financial service industry due to its bias for world class corporate governance standards, excellent service quality and innovation. Renowned for its forward-thinking approach to financial services and customer engagement, the Bank 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.