GTCO’s GTBank cost-to-income ratio:
2023 half year: 27.7%
2024 half year: 16.7%
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Outcome: most profitable bank in Nigeria, with a recorded profit-before-tax of ?1.004 trillion in 6 months. This institution is also the most valuable bank in Nigeria.
In Nigerian banking, the average cost-to-income ratio (CIR) is about 60%, but one bank runs at 16%. CIR is the gold standard for measuring efficiency in banking. It tells you how much a bank spends to generate an income. For GTBank, it spends N16.70 to generate an income of N100! One bank in Nigeria spends close to N80 to generate N100 income.
GTbank’s numbers are better than most leading banks in the world. Also, it is better than most fintech companies which hover around 30-40%. Simply, GTbank makes tons of profits because it is super-efficient.
Good People, efficiency wins the race, for companies and nations! GTBank should hold a seat to teach the Nigerian government how to improve productivity. In GTBank, we have the most efficient institution and it is time, we bring it to help. I am looking at the Nigerian budget, and I am struggling to reconcile how the relatively huge expense is generating paltry revenue! Here the cost to income ratio (excluding crude income) is more than 100%!
On that, I recommend the boss of GTBank’s GTCO as the nation’s Chief Productivity Officer. If he can improve the CIR (lol with all those political mafias), good things will happen.
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