As part of efforts aimed at expanding its continental footprints, Nigeria’s biggest lender by market value, Guaranty Trust Bank (GTB) plans to acquire a Kenyan bank to deepen its foothold in the East African region. The move which forms part of its overall post Covid-19 recovery strategy will help grow the bank into a leading lender in the continent.

According to the Bank’s Managing Director Segun Agbaje “I think the place we will still like to do business or do an acquisition is Kenya,” though he did not reveal the time-line for the acquisition, inside sources say that efforts are on top gear for the process. Guaranty Trust Bank already has offices in 10 countries outside Nigeria including Kenya. It wants to increase the contribution of African subsidiaries to the bank’s income to about 30% of profit before tax in the next three years from 15.3% in 2020.

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Banks in Africa’s most populous country are expanding on the continent and diversifying outside their core operations as they seek to grow after the coronavirus pandemic and two economic contractions in four years shuttered businesses and limited lending opportunities at home.

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Guaranty Trust is expecting the approval by regulators of a move to transition into a financial holding company in the second half, which will enable it start payments and asset management units, Agbaje said. It targets 10% growth in the loan book this year and pre-tax profit of 243 billion naira from 238.1 billion naira.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry