Guaranty Trust Bank (GT Bank) said it expects a pre-tax profit of N125 billion this year, a 3.6 per cent increase from N120.7 billion last year.
The bank said profit could exceed its target assuming that monetary policy tightening resumed by the central bank on Tuesday continues and that currency devaluation materialised this year. Rising interest rates would boost yields on assets.
“A devaluation will push up our capital base because of the structure of our capital,” GT Bank’s chief executive Segun Agbaje, told an analysts’ call.
He said the top-tier bank had about $700 million of cash on its balance sheet, implying that any currency devaluation would boost profit, though he added he expected no devaluation in the first-half of the year.
Agbaje said the bank was looking to raise $200 million debt from multilateral institutions with a tenor of up to eight-years.
Meanwhile, the lender has announced the introduction of a new service delivery channel known as “Bank 737” through which its customers can perform banking functions such as transfers to all banks in Nigeria, check account balance, open a GTBank account, buy airtime, pay bills, BVN linking, token code generation, card less withdrawals and lots more from their mobile phones.
According to the bank, the new product works on any type of mobile phone and does not require Internet access or registration protocols. Commenting on the launch of the product, the Managing Director and Chief Executive Officer of Guaranty Trust Bank plc, Agbaje, said, “The launch of this product marks another milestone in our quest to make banking truly simple for our customers.
We remain firm on our objective to deliver banking products and services tailored to meet the diverse needs of our ever-growing customer base by leveraging technology to make banking faster, safer and more accessible for all our customers.