GT Bank seeks funds for expansion from Nigeria

NAIROBI, KENYA: GT Bank, formerly Fina Bank, is seeking funds from its Nigerian parent company to fund its expansion programme that will see it increase the number of branches from 14 to 60 in the next five years.

Managing Director Adekunle Sonola, however, said the Kenyan subsidiary of the Nigerian owned Guaranty Trust Bank is still in the process of determining how much capital injection they need.

“The parent is in the process of injecting new capital,” Mr Sonola told journalists yesterday. “Capital is not a problem...the board has approved that they are willing to inject more capital.”

The MD said this year alone, ten new branches are in the line-up in a growth plan that will see the bank open two branches every month. Some of the branches in places like Nakuru and Eldoret will also be relocated as the bank tries to change its image from the former Fina Bank.

Earlier this year, GTBank acquired a 70 per cent stake in mid-sized lender Fina Bank Group through a combination of capital injection as well as the acquisition of shares from its shareholders for a total cash consideration of Sh8.6 billion.

Sonola said the transition period has now been concluded, with the bank now expected to become more vibrant and visible in the Kenyan market. The bank has completed the upgrading of its core banking system in Kenya, Uganda, Rwanda and Uganda at a cost of Sh870 million in a record six months as opposed to two years in most cases.

“The things that we used to do manually are now automated.” New products and services are also in the offing including services through a comprehensive mobile application.

“We have been quiet but deliberate ...now we need to go the market,” he said.

The bank has been boosted by a recent assessment by the Central Bank of Kenya that raised its rating from ‘satisfactory’ to ‘strong’.

GT Bank also operates in Nigeria, Rwanda, Cote d’Ivoire, Gambia, Ghana, Liberia, Sierra Leone and the United Kingdom.