Business

Miriam Olusanya’s ‘incompetence’ Is Crumbling GTBank

Published

9 months ago

March 11, 2023

Editor

Miriam Olusanya’s ‘incompetence’ Is Crumbling GTBank

Miriam Olusanya’s ‘incompetence’ crumbling GTBank, customers dump bank, shareholders blame Segun Agbaje…

Naijanewsngr reports that since Miriam Olusanya assumed the contentious position of Managing Director of Guaranty Trust Bank Ltd (GTBank Ltd) in July 2021, the once-dominant bank has continued to spiral into crises and financial losses, losing customers and shareholders in the process.

It is rather frustrating that despite the naira shortage problem, the bank has continued to put Nigerians who trusted them with their money through subpar services and fraud through further problems.

It is important to highlight that GTBank has enjoyed patronage not only due to its historically respectable numbers, but also due to its outstanding service orientation and purposeful specialized market positioning. As a result, GTBank Plc had consistently shown that it was better than its competitors in the banking sector. The bank has previously maintained its position as the banking stock with the highest valuation.

For instance, GT Bank’s shares increased by 21.06 percent from N29.20 per share on January 2, 2020, to N35.35 per share on November 20, 2020, despite the market’s persistent volatility. When compared to N34.657 billion in 2008, its profit before tax increased by 587.636% to N234.095 billion by 2020. The entire asset increased by 437.174% from N920.493 billion in 2008 to N4.944 trillion in 2020 at the same time, or in parallel. Moreover, its net interest income increased by 503.999% during the course of the same 12-year period, from N50.311 billion in 2008 to N253.668 billion in 2020.

Several businesses attempted to replicate their operations after GTBank as a result of its successes. Its compact nature seemed to have borne fruit. Some people think that the bank’s managerial approach even caused jealousy among its competitors. Every time the banks were compared, the reasoning tended to favor GTBank more.

Over time, this genuinely mystified the company’s operations and brand identity. As a result, leading business schools including Harvard Business School and Cranfield Management School conducted extensive research on the potency and distinctiveness of the GTBank brand.

The bank worked relentlessly to set the bar for other financial institutions in Nigeria starting in the early 1990s in terms of service quality, product functionality, and superior customer care.

Ironically, Naijanewsngr has learned from a number of publications that all these things have altered about the GTBank brand since Miriam Olusanya recently assumed the position of the bank’s CEO. The story has since turned nasty, sour, irritating, and nose-diving.

It was learned that Miriam Olusanya’s claimed 23 years of banking experience have, however, been called into question due to the bank’s deteriorating financial situation, confirming the concerns of shareholders and the business community who had expressed concern over the forceful installation and appointment of Olusanya by Segun Agbaje, the bank’s most recent CEO and the current group chief executive officer of GTBank’s parent company, Guaranty Trust Holding Company Plc (GTCo).

The decision by Agbaje to select Olusanya over the array/forays of more qualified hands in the bank has been criticized by shareholders. Olusanya has less administrative experience and expertise. They had also raised concern about Miriam’s ability to run a large organization like GTBank while dealing with a failing marriage.

Recall how a boardroom crisis broke out at GTBank after Segun Agbaje fired three capable executive directors and six general managers as part of a reorganization plan to make room for his nominee, Olusanya. Agbaje is alleged to have supported Olusanya, who is thought to be a close friend of his, above the other bank directors who were the most qualified.

Olusanya, who was then in head of the bank’s Wholesale Banking Division, had been informed by reliable sources and shareholders that she lacked the necessary experience and technical expertise to manage the institution.

Olusanya was reportedly older than the three executive directors and general managers who were compelled to retire by the Agbaje.

Yet in the year and eight months that Olusanya has been in charge, the bank has begun to feel the pressure from investors and industry observers. This is due to the bank’s ongoing inability to recover from crises, which have cost billions of naira while driving away consumers due to subpar services.

According to insiders who spoke to BUSINESS LIVE, the GTCo board is starting to lose faith in Olusanya’s leadership and ability as a result of her failure to improve the bank’s fortunes.

Olusanya, who is divorced but still responds to her ex-name, husband’s has been unable to produce.

The problems at GTBank began as soon as Olusanya assumed control in July 2021. For the third quarter of 2021 (months after Olusanya took leadership), the bank reported a profit before tax of N151.91 billion, a 9.23% decrease from N167.35 billion in the corresponding period of 2020.

According to GTCo, their revenue fell by 3.46 percent to N214.77 billion in Q3 2021 from N222.47 billion in the same period of 2020.

Its reported unaudited financial results for the third quarter of 2021 revealed that its earnings per share decreased as well, from N5.02 to N4.54.

Several bank depositors have started emptying their accounts.

The bank’s once-active digital platforms are now somewhat lifeless.

The bank’s “GTWorld” internet banking app and its “*737# Smart Code” Unstructured Supplementary Service Data (USSD) banking platform aren’t exactly shining stars, since users continue to have issues using the services. It has been frustrating for the bank’s clients.

Some shareholders of the bank who spoke to BUSINESS LIVE on the condition of anonymity, however, blamed Segun Agbaje for the bank’s woes for appointing Olusanya. They called on the board to sack Olusanya immediately and bring in a more competent hand to save the bank from imminent collapse.

Oyinade Adegite, GTBank’s head of Corporate Communications did not respond to our inquiries as at press time.

Several angry bank customers have resorted to Twitter to bemoan the terrible burden GTBank has placed upon them. See Posts Below:

Related Topics:GTBank Mariam Olusanya Naijanewsngr Segun Agbaje

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ZENITH BANK SIGNS MOU WITH CFA INSTITUTE TO BOOST FINANCIAL EXPERTISE

Published

2 hours ago

December 1, 2023

Editor

ZENITH BANK SIGNS MOU WITH CFA INSTITUTE TO BOOST FINANCIAL EXPERTISE

Zenith Bank Plc has signed a Memorandum of Understanding (MoU) with the Chartered Financial Analyst (CFA) Institute to promote efforts and activities that support the formation, training, and updating of human capital in finance and investment for the overall development of the Nigerian financial services sector. The MoU, was signed by the Group Managing Director/CEO of Zenith Bank Plc, Dr. Ebenezer Onyeagwu; the President/CEO of the CFA Institute, Margaret Franklin; and the President of CFA Society Nigeria, Ibukun Oyedeji on Tuesday, November 28, 2023.
Speaking at the MoU signing ceremony, the Group Managing Director/CEO of Zenith Bank Plc, Dr. Ebenezer Onyeagwu commended the CFA Institute and the CFA Society, Nigeria for their laudable programmes in developing finance and investment professionals in Nigeria. According to him, your Women in Investment Management Initiative, CFA Institute Research Challenge, CFA Society Nigeria Ethics Challenge and University Affiliation Program are very laudable, and Zenith Bank will continue to partner with the CFA Institute and the CFA Society Nigeria to ensure that young finance and investment professionals get the needed support for their career development. In his words, “As a good corporate citizen, Zenith Bank remains committed to furthering the economic, cultural and social development of the society. As such, we continue to support projects and initiatives that have long-term social and economic benefits for our various publics and stakeholders. Partnering with the CFA Institute and the CFA Society Nigeria is therefore a demonstration of our commitment to building professional excellence in the finance services industry in Nigeria”.
At the CFA Institute Africa Investment Conference, during the ‘Journey to the Top: A Discourse with CEOs’ segment, Dr. Onyeagwu inspired future finance and investment professionals to uphold the highest standards of integrity. He stressed the importance of making difficult yet high-quality decisions, building robust networks, and dedicating themselves to hard work for career success. In his words, “as upcoming professionals, the opportunities are immense for you. Africa doesn’t get bigger than Nigeria. There is scarcity of the right kind of people that have the talent, that have the character and the leadership to provide leadership in organizations. Make a decision to be one of those, make a decision to be different. You must be driven by your passion; you must delay gratification. In Zenith what is driving us is the strive for excellence. It is not about who you are and where you come from. We have the best class of talents you can think of anywhere in the world.” He assured the young finance and investment professionals that Zenith Bank will offer immediate employment opportunity to CFA Charter Holders and those who qualify as Chartered Accountants.
Also speaking on the MoU, the President/CEO, CFA Institute, Margaret Franklin reiterated the Institute’s commitment to the professional development of students and upcoming professionals. In her words, “there are many things that we do for students, we invest heavily in students and why is that? Because they are our future. The mission of the CFA Institute is to lead the investment industry with the highest standards of ethics, education and professional excellence for the ultimate benefit of society and that starts with our CFA programme”. She commended Zenith Bank for its continued support to the CFA Society Nigeria and sponsorship of the CFA Institute Research Challenge over the years. She also commended the bank for being one of the top employers of CFA members in the country. She expressed her admiration of the culture of excellence in Zenith Bank. Also speaking at the MoU signing ceremony, the President of CFA Society Nigeria, Ibukun Oyedeji commended Zenith Bank for its partnership with CFA Society Nigeria and its commitment to the development of young finance professionals in the country.
The the CFA Institute Africa Investment Conference is being hosted by the CFA Institute and CFA Societies from Ghana, East Africa, South Africa and Mauritius. The conference has representatives from over 20 universities in Nigeria (members of their investment clubs being supported by CFA Society).

Business

Fidelity Bank Plc Signs the UN Principles for Responsible Banking

Published

10 hours ago

December 1, 2023

Editor

Fidelity Bank Plc Signs the UN Principles for Responsible Banking

30 Nov. 2023, Lagos, Nigeria – Fidelity Bank Plc has become an official signatory of the UN Principles for Responsible Banking (PRB) – a single framework for a sustainable banking industry developed through a collaboration between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI).

The Principles are the leading framework for ensuring that banks’ strategy and practice align with the vision society has set out for its future in the UN Sustainable Development Goals and the Paris Climate Agreement. Banks who have signed the Principles commit to be ambitious in their sustainability strategies, working to mainstream and embed sustainability into the heart of their business, while allowing them to remain at the cutting-edge of sustainable finance.

Under the Principles, signatory banks identify and measure the environmental and social impact resulting from their business activities, set and implement targets where they have the most significant impact, and regularly report publicly on their progress. The Principles provide a framework for banks to systematically understand the risks and seize the opportunities arising from the transition to more sustainable economies.

“As long-time signatories to UNEPFI, signing onto the PRB is the next step to show our commitment to sustainability. Sustainability is central to our corporate strategy as a bank and joining the Principles further affirms our determination to increasing our positive impacts in all aspects of sustainability. The PRB aligns with our sustainability principles and the bank is delighted to join the global community of signatories championing sustainable development around the world”, commented Dr Nneka Onyeali-Ikpe,OON, Managing Director/Chief Executive Officer, Fidelity Bank Plc.

Signatories to the Principles take on a leadership role, demonstrating how banking products, services and relationships can support and accelerate the changes necessary to achieve shared prosperity for both current and future generations, building a positive future for both people and planet. These banks also join the world’s largest global banking community focused on sustainable finance, sharing best-practice, and working together on practical guidance and pioneering tools of benefit to the entire industry.

This is a journey of unprecedented scale and scope at a time when such ambition is urgently needed to address the major planetary crises of climate change, nature loss, pollution and social issues. Together, these collective efforts will ensure that profitability goes hand in hand with a sense of purpose.

Business

FCMB’s profits surged by 108% in the first nine months of 2023.

Published

2 days ago

November 29, 2023

Editor

FCMB’s profits surged by 108% in the first nine months of 2023.

FCMB Group Plc posted a pre-tax profit of N55.1 billion in the nine months ending September 2023, marking a year-on-year growth of 108% from the corresponding period in 2022.

During Q3 2023, the group achieved a pre-tax profit of N16.9 billion, representing 52.7% year-on-year growth from the same quarter in 2022.

In the nine months, the group achieved a profit after tax of N49.15 billion, representing a YoY growth of 114.4% from the corresponding period in 2022.

Key Highlights: Q3 2023 vs. Q3 2022

Net interest income: N48.16 billion, +46.42% YoY
Net fee and commission income: N9.26 billion, -8.94% YoY.
Net trading income: N1.12 billion, -54.05% YoY.
Net impairment losses on financial instruments: N9.91 billion, +23.72% YoY
Personnel expenses: N12.85 billion, +52.56% YoY
General and administrative expenses: N16.11 billion, +33.23% YoY
Profit before taxation: N16.91 billion, +52.68% YoY
Profit for the period: N13.74 billion, +48.44% YoY.
Total assets: N3.88 trillion, +30.03% YTD
Return on Equity: 15.13% (Q3 2023)
Insights

FCMB Group’s financial performance in the nine months of 2023 is reflective of the remarkable performances Nigerian banks have put up within the same period. However, the group’s return on equity of 15.1% ranks it low among the banks.

Year-on-year, the group’s loan position increased by 34.3% to N1.19 trillion within the nine months, while its customer deposits grew by 39.1% year-on-year to N2.53 trillion within the same period.