Guaranty Trust Bank’s aggressive cost-cutting strategy failed to defend profit in the second quarter. The bank recorded the first drop in profit in many years at the end of half-year operations in June 2020. Cost-cutting has been the management’s response to the inability to improve revenue since 2017. It isn’t working for the bank this year.




The bank’s audited accounts for the half-year in June 2020 show that management could not contain operating expenses during the period. Operating cost grew by 19 percent year-on-year – the highest growth record for the bank since the beginning of the current decade.

Also, loan impairment charges went out of control and multiplied three times year-on-year. This is the highest increase in loan loss expenses for GTB in four years, after massive cut downs for two years to 2018 and a flat position in 2019.

This is the manifestation of the signals of a change in pattern for the bank as observed at the end of the first quarter – that the bank was shifting from growing profit ahead of non-growing revenue to losing profit per naira of gross income. This is a reflection of weakening the ability to keep cutting costs in the face of persisting revenue weakness.

Earnings' weakness has been on since 2017. The bank’s gross income at the end of 2019 was only 5 percent above the 2016 revenue figure. The earnings weakness has sustained into the current financial year so far with gross earnings only marginally improved at the end of June.

The mild strength in interest earnings seen in the first quarter was sustained in the second. The bank closed the half-year with interest earnings up by 3 percent year-on-year to N153.7 billion, turning around from two years of decline.

The bank’s management pulled back from the expansion of earning assets recorded in the first quarter. Net credit volume to customers dropped from over N1.6 trillion in the first quarter to N1.4 trillion at half-year. Also, the investment portfolio of N865 billion at the end of March, thinned down to N501 billion at the end of June.

The drop in earning assets may worsen the bank’s earnings records for the year. The cut down may have been induced by rapid growth in non-performing loans, as reflected in loan loss expenses. The indication is that interest income could still lose the moderate improvement record in the first half of the financial year.

A loss of momentum in non-interest income ruled the half-year operations of the bank. From a sharp slowdown in non-interest revenue in 2019, a marginal decline occurred at the end of June 2020.


Only one cost-cutting line remained available to the bank over the period, which is the cost of funds. Interest expenses went down by 20 percent year-on-year to N26 billion against the increase in interest income.

The development involves a cost-saving of over N6 billion that reinforced the moderate improvement in interest income. Net interest income grew by close to 10 percent to N127.6 billion at half-year. The cost of funds is dropping for the second year after a 23 percent drop in 2019.

GTB closed half year operations with gross earnings of N225 billion, which is a marginal increase of 1.5 percent year-on-year. The improvement was accounted for exclusively by interest income, which improved by 3 percent to N153.7 billion. This is the first improvement in interest income for the bank since 2017 while non-interest earnings slipped to N71 billion during the period.

The cost of funds provided the only cost-saving area for the bank, claiming a reduced share of interest income during the period at 17 percent at half-year compared to 22 percent in the same period last year.

The drop of 20 percent in interest expenses is against an increase of 18.5 percent in customer deposits over the first six months of the year, meaning a significant decline in the average cost of funds. The bank ended the first six months of the year with customer deposits of over N3 trillion.

Prospects are good for the bank closing the 2020 full year operations with the lowest interest expenses in several years. A good part of the cost-saving from interest expenses is being consumed by rising loan impairment expense, which soared by 210 percent year-on-year to N6.8 billion at the end of June. This is already more than the N4.9 billion loan impairment charges recorded for the entire 2019 financial year.

The bank closed half year operations with an after-tax profit of a little over N94 billion, which is a drop of 5 percent year-on-year. Profit margin slipped further from 44.4 percent in the first quarter to 41.8 percent at half-year and from 44.7 percent in the same period in 2019.

Earnings per share amounted to N3.32 for GTB at the end of half-year, down from N3.50 per share earned in the half-year of 2019.

Beautiful and delectable actress, Funmi Zaccheaus a.k.a. Magbe is one of the talented and dedicated actresses in the Yoruba movie industry. She joined the industry in 2005 after training under veteran actor, Adeshina Adesanya popularly known as Great Value, and she has featured in movies such as Senami Kerewa, Owukikan, Asiri Obinrin, Iya Ni Iyami, Aye Opo, Fowosre, Iya Okomi, Ewuro to mention a few. As a producer, she has produced movies such as Magbe which shot her to the limelight, Oronro, Majenjiyayigbe amongst others.

She just produced her latest movie titled “Erelu Okin” directed by Muyideen S. Ayinde and it features stars like Akin Lewis, Sanyeri, Madam Saje, Bukky Fagbuyi, Remi Surutu, Shola Kosoko and so many others.

In this chat with City People Senior Showbiz Reporter, BIODUN ALAO she talked about her journey into the movie industry 15 years ago, how her first movie titled “Magbe” shot her to limelight and why it is difficult to quickly attain fame in the industry if you don’t belong to the ruling caucus.

Take us through how acting started for you?

I used to have flair for the entertainment industry while I was very young, it was this in-born talent that made me to start believing I can make it a career, so, I joined a group in the industry to learn more about acting. I was trained under Adesanya Adeshina popularly known as great value, a veteran actor in the industry.

How long have you been in the industry?

I have been in the industry for about 15 years.

Who are your contemporaries in the industry and who do you look up to?

The likes of Shola Kosoko, Bimbo Akinsanya, Sindodo and so many of them in the industry. I look up to living legends like Mama Rainbow, Madam Saje and so on.

Take us through the movies you have featured in?

I have featured in so many, let me see the ones I can remember. I have featured in “Senami Kerewa, Owu Kikan, Asiri Obinrin, Iyani Iyami, Aye Opo, Fowosere, Iya Okomi, Ewuro and lots of others.

Have you produced any?

Yes, I have produced Maje Njiyayigbe, which I produced in 2007. I produced “Magbe” in 2011 and that is where I got my stage name. I produced “Oronro in 2016, which was a tragic movie explaining to the public the evil in man’s heart and life generally, then my current movie titled “Erelu Okin”.

What is Erelu Okin all about?

“Erelu Okin”, the movie talks about the consequences of arrogance and immoral behaviour of a young lady who wanted to acquire power by all means in order to get to the top, it is a tragic comedy movie and it features stars like Olanrewaju Afonja, Akin Lewis, Madam Saje, Yinka Smart, Arowosegbe Bosede, Shola Kosoko, Adesanya Adeshina, Ladi Folarin, Remi Surutu, Baba Atolly and myself, directed by Muyideed S. Ayinde, edited by Akeem Lawal Olayede and coordinated by Adesanya Adeshina. We just finished from the location, and once it is out, I will let you know.

Can you talk about the challenges you have been faced with in the industry?

There are so many challenges. First and foremost, if you are not connected to the ruling caucus in the industry, then getting to the top will be somehow difficult, but I give God all the glory he has been very faithful and I believe and know by the special grace of God, I will get there.

Then the issue of getting money to produce movies is not easy considering the state of the economy.

National co-ordinator of the trending Arise Nigeria Project 720, Yemisi Subair has stated that the vision of Project 720 is beyond converging intercessors to pray and disperse afterward, but more of a divine instruction to raise God's soldiers through the building of 720 oaks and multiply for intercessory purposes.


The Arise Nigeria Project 720 has gathered huge momentum in the last one week and has been a subject of discussion in the print newspapers, tabloids, and social media, as over one million twitter users, connect with the prayer chain daily to pray with the hashtag #AriseNigeriaProject720.


Speaking on a live radio program on Monday, September 22, 2020, the national coordinator of Project720 Yemisi Subair stated that Arise Nigeria- Project 720 is an Apostolic Instruction received by Apostle Obii Pax-Harry to gather 720 Christians together to pray with the same vision under one banner ‘Arise Nigeria- Project 720’ for transformational leadership that will take Nigeria into her redemptive purpose as a nation.


Recall that, Obii Pax-Harry, who received the Apostolic Instruction from God said in an interview on Friday, September 18. 2020 that the key to reaching Nigeria’s full potential is to recognize and elect transformational leaders:

“The scripture given me with the instruction is Matthew 7:20 - By their fruit, you shall know them


“This translates to ethical leaders whose character will speak for them, whose moral standard, values system will attest for them when called upon to serve.


“It relates to men and women whose proven and untainted track record and evidenced productivity qualify them to be appointed into public service in Nigeria.", Obii stated.





Speaking on Radio One, FRCN. Yemisi noted;


“There have been perceptions that we are only praying for 720 oaks, or that God is only looking for 720 oaks


“The instruction from the Lord was to gather “720” to pray, for the raising of oaks of righteousness




“The idea is to keep praying for there to be the initial 720, and thereafter cycles of 720 persons per time to pray to God for the raising and rising of oaks of righteousness




“Arise Nigeria- Project 720 is an Instruction from God to mobilize 720 Christians to pray TOGETHER with same VISION under one banner ‘Arise Nigeria- Project 720 for transformational leadership that will take Nigeria into her redemptive purpose as a nation, even now as the country turns 60 since independence.




“God’s part is to cause stirrings in the hearts of the Oaks Of Righteousness, also known as Plantings of the Lord (Isaiah 61:3) to offer themselves for service to the nation.




Yemisi Subair is heading the Strategy team mandated to executive the divine instruction, through the Watchmen and Intercessors Network Nigeria (WINN).