News Column

GT Bank Completes Takeover of Finabank's 70 Percent Stake

May 20, 2014

Ben Gasore

Any financial institution that wants to succeed in the banking industry must treat its customers well and develop client-oriented products and policies, Segun Agbaje, the GT Bank group managing director, has said.

"How well you deliver a service and how close you are to customers is what matters in banking since all banks operate using the same concept," he said.

Agbaje was speaking during the official launch and rebranding of GT Bank Rwanda, a subsidiary of Nigerian Guaranty Trust Bank, on Friday at the Kigali Serena Hotel.

GT Bank recently completed the acquisition of a 70 per cent stake in former FinaBank Group last year through a combination of capital injection as well as the acquisition of shares from the previous shareholders for a total cash consideration of $100m (about Rwf67.5b).

As regards the market share, GT Bank Rwanda is ranked sixth among commercial banks in Rwanda with an average of 40,000 active customers, according to Rao Balivada, the GT Bank Rwanda managing director.

"Despite the fact that many new banks have entered the market over the past three years, our profit has been at an average of Rwf1.1b per annum," he said.

He added that the bank recorded Rwf67b in customer deposits last year and loans issued were at Rwf42b.

"This acquisition makes strategic sense for our combined customers and shareholders.

"FinaBank had over the years built an enviable banking institution in East Africa. So, our combined strengths will help us build an attractive portfolio of products, services and market capabilities," Segun said.

He added that the FinaBank takeover provides them with an attractive foothold in Kenya and Uganda.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: AllAfrica

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