Do not give up on Nigeria: GTBank’s parent company reports for the period ended September 30, 2023 a profit before tax of N433.2 billion, representing about 155% over N169.7 billion recorded in the corresponding period ended September 2022.
“Our 3rd Quarter performance underpins our strategic positioning as a leading Financial Holding Company and reaffirms our strong capabilities to successfully navigate the challenges in our operating environment.
Going into the final quarter of the year, we will continue to leverage the strengths within our growing financial services ecosystem to improve our products and service offerings, enhance customer experience, and maximise shareholder value” – Segun Agbaje, Group CEO of Guaranty Trust Holding Company Plc
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These results were predicted and expected. Though GTCO is a rainmaker when it comes to making profits, part of this profit is vapour profit due to the floating of Naira; each US dollar gain is increased by about 2x. Yet, it is key to understand that value remains in Nigeria, if you position yourself at the appropriate portion of the Smiling Curve. GTCO has strategically positioned at the edges of the smiling curve even as it solidifies its position at the center.
My video explains…
You can explain what is happening in a curve: the smiling curve. The companies which are at the center capture least value, and most times, there are the ones which support the ecosystem the most. But those at the edges capture the most value even though they do not provide a lot of catalytic support in the ecosystem.
Sometimes sir, i feel, which might be flawed, we celebrate the wrong figures in a nation that desperately needs more innovation and businesses.
banks must satisfy their investors, but 10% or 15% of this profit re-invested in Education, health and startups. is also good.— Tochi Adesanya (@fibre005) October 27, 2023
My Response: Until you close all your bank accounts and go bank-less, that fact will remain. In other words, you make this huge profit possible. Allow us to report when it happens because you are part of the reason it does. Reporting news is not a celebration.
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What strategic thing did the bank do that resulted in 155% growth in profit? The distortion of reality is part of the problem. Profit skyrocketed because of exchange rate adjustments, it did not require telling lies to validate the obvious. You can be profitable without doing anything extra, and when such happens, you don’t need to claim that you did something extraordinary.
We will believe in Nigeria, but facts matter.