How a Nigerian bank quietly raised raises employee's salaries by 40 per cent

• Guaranty Trust Bank has reportedly raised the wages of its employees by 40% amid a platform upgrade
• The bank quietly raised the salaries as Nigerian workers battle unprecedentedly high living costs 
• An employee of the bank reportedly said that he now earns about N720,000 after the raise

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Guaranty Trust Bank, one of Nigeria’s most efficient deposit money banks, quietly increased staff salaries by 40% in September 2024 amid the ongoing cost-of-living crisis.

Four bank employees reportedly disclosed no prior communication before the raise. However, there were expectations among the staffers.

Guaranty Trust Bank increases staff salaries amid high cost of living Credit: Novatis
Source: UGC

GTBank maintains the lowest staff costs

TechCabal said that one of the employees, an assistant banking officer who now earns N720,000, disclosed that the position is just one level above the entry-level in the bank’s employee structure.

According to reports, GTBank has one of the lowest cost-to-ratio among Nigeria’s tier-1 banks and has spent N0.25 to earn N1 in 2023, maintaining its stance as Nigeria’s most profitable Tier-1 bank.

The report said the salary raise will not affect the bank’s standing among the top-tier banks, as it now spends N0.26 to make N1.

Last year, GTBank spent N45.1 billion on salaries, three times lower than other tier-1 banks.

Despite increasing salaries by almost half, GTBank's total personnel cost is N63.1 billion, the cheapest among tier-1 banks.

The bank reportedly doubled the salaries of its tech workers in 2022 when several employees left for other banks and countries.

Over 3,000 employees affected

The team still earns more than other employees in other divisions, with the assistant banking officer earning about N1 million monthly.

The recent rise affected about 3,300 of the bank’s employees, a departure from prior practice.

GTBank completes migration to another platform 

Legit.ng reported that the development comes as the bank announced that its digital banking channels are online following a system upgrade.

In a statement released on X, the bank reassured customers that all branches across Nigeria are also now operational and ready to serve. 

GTBank transitioned to a new and robust Finacle Core Banking Application Systems suite. 

The transition affected customer electronic banking services and continued even after its completion. 

However, it has assured that the system upgrade is complete and all digital services are back online. 

List of Nigeria's most profitable banks in 2024

Legit.ng earlier reported that Nigerian financial institutions have recorded impressive numbers despite the challenging economy in the first half of 2024.

Analysis by Legit.ng showed that the total profit after tax (PAT) of the 11 banks listed on the Nigerian Exchange increased by 68.21% year-on-year, from N1.67 trillion in H1 2023 to N2.82 trillion in H1 2024.

Fitch Ratings explained that Nigerian banks' strong performance is due to the sharp devaluation of the official exchange rate, which has led to significant FX revaluation gains.

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Source: Legit.ng