I was discussing with a neighbor few minutes ago on GTBank raking in more profits of N99.1bn an more other banks especially firstbank who appeared 7th on the chat with a profit margin of N31.7bn.

Zenithbank came 2nd with a profit of N88.9bn, follow by Access bank 3rd with a profit of N63bn, Ecobank 4th with a profit of N59.5bn, UBA 5th with a profit after tax of N56.7bn and then StanbicIBTC smashing the 6th position with a profit of N36.2bn before Firstabank came 7th according to a post by NairaMetrics

I was sharing with him what could be responsible for a bank as Firstbank which I think has more branches and a fair larger banking networks which is supposed to have made them at least top 2 - 3 position in profits before tax and he replied subconsciously with an answer as - "why won't GTB rake in more profits when contract staff are way more than full time staff?"

Could there be other reasons for GTB success in scoring the highest position ranking in profits after tax?

I would like to hear from other Nairalanders, what you guys think could be the reason why all these top banks ranking position of profits is so.


Source - NairaMetrics.com

I suppose what you mean by profit is NET PROFIT and not GROSS PROFIT.

If that's the case, a lot of factors can be responsible for it:

1. It costs the bank so much money to service a branch. While First Bank sees branch as channels for taking their services closer to the people, GTBank sees a branch as an independent bank that must be independently run. This explains why Gtbank has fewer branches

2. GTBank is a lot more lenient to do business with than First Bank. The latter insists that customers follow stringent rules - something you may never see happening at GTBank

3. GTBank IT-powered banking services are topnotch. It means that Nigerians living aborad can conveniently transact with the bank, including repatriating funds.

I can go on and on. But one thing is certain: First Bank has to step up its game because Sanusi is no longer around to pamper them.