Agbaje, GTB: Still competitively ambitious, with eyes on earnings

• Payment Service Banking • Pension Fund Administration • Asset Management … 3 areas to drive new earnings

GUARANTY TRUST BANK (GTB) and Segun Agbaje, its managing director/CEO, are experts when it comes to lean and mean management. They have done this for years. The bank was once a universal bank, with subsidiaries, but when banks were asked to choose between being just a bank and keeping subsidiaries, GTB sold its subsidiaries and became just a bank.

The other day when he shared with senior journos the whole idea about the new push for a holding company structure (HoldCo) that the bank is now putting in place, he said selling then, was the right thing to do at the time. “At the time because the competitive landscape was very different from what it is today we decided that we were going to focus on our banking business, and it was the right decision for us then. We went from being number seven in profitability to number one,” Agbaje said.

Now, here is a bank CEO with eyes well trained on profit. For many, upon hearing that a solid bank like GTB was looking to go HoldCo raised an eyebrow, and even mistook the decision as typical of the ‘Nigerian Way,’ the bandwagon effect if you like, it become clearer having these exchanges with Agbaje, that this CEO still has his eyes on the earnings.

Because when I had the chance, I reminded him how we used to see the bank as ruthlessly efficient in the application of the ‘lean and mean’ management principle, and then turning up with yearly announcement of N100 billion profits, and even more; and when I wondered if taking on subsidiaries again through business diversity would affect that, Agbaje simply said: “We will remain a lean and mean organisation”. I could see a twinkle in his eyes when he said that.

At the heart of the matter though is that Agbaje finds himself leading an institution where the landscape of his core business is been crowded in and he sounded like a man who truly doesn’t want the GTB to be crowded out under his watch. But it is the competitive spirit in him that shines through when you listen to him talk, you could tell that he loves what he does, especially as he seems to suggest he can’t wait to get started, for the new competition that the diversification play would bring on to roll in.

Agbaje is quick to let you know that this is not about size. “We never look at size. [When we started out] Our plan was to be in the top five in Africa in terms of earnings, in terms of profitability. You need to create a diversity of earnings [now to keep that going],” he said, suggesting clearly that earnings are still the drivers of the move.

But he knows he faces competition as he arrives late in a couple of places to the dinner table. He replies that he is ready; because when he then narrows down to the sectors he is eyeing with his diversification plan in the form of Payment Service Banking (PSB); Asset Management business; and Pension Fund Administration, Agbaje then says:

“We look at some sectors which we think today create great synergies for us and create great opportunities. We think we should compete with FinTech. We like asset management. The reason we like asset management is that it complements our business. We have grown a very good retail business today. Sometimes, when people want a higher yield, then we lose their money to institutions like StanbicIBTC Asset Managers.” I believe you read that and now, you know that Agbaje means business and isn’t going to give up on his drive to grow earnings for that the institution, for shareholders. But it will still be lean and mean.