GTBank Says 2017 H1 Pretax Profit up 8.4% to N109.6 Billion

Segun Agbaje, Managing Director/CEO of Guaranty Trust Bank Plc

August 8, 2018

By Investadvocate

Lagos (INVESTADVOCATE)-Nigeria’s top tier lender, Guaranty Trust Bank Plc (GTBank) said on Wednesday its pretax profit for the half-year (H1) period ended June 30, 2018 climbed up 8.4 percent to N109.6 billion from N101.10 billion recorded a year ago.

Similarly, profit after tax (PAT) increased 14.2 percent to N95.6 billion in H1 2018  from N83.7 billion reported the same period of 2017.

Gross earnings grew from N214.1 billion in the H1 of 2017 to N226.6 billion in the review period of 2018; indicating a growth of 5.9 percent, the lender said in a filing with the Nigerian Stock Exchange (NSE).

According to the dual listed bank, loan book dipped by 10.8 percent from N1.449 trillion recorded as at December 2017 to N1.293trillion in June 2018, while customers’ deposit grew by 10.0 percent to N2.269 trillion from N2.062 trillion in December 2017. 

GTBank’s balance sheet remained strong with a 5.9 percent growth in total assets as the the lender closed the period ended June 2018 with total assets of N3.549 trillion and shareholders’ funds of N497.1Billion.

In terms of assets quality, non performing loans (NPLs) ratio improved to 5.8 percent in June 2018 from 7.7 percent in December 2017.

The lender said overall, asset quality improved with Cost of Risk of 0.1 percent and adequate coverage of 167.5 percent for lifetime credit impaired loans i.e. NPLs.

GTBank says capital remains strong with CAR of 22.04 percent in spite of the implementation of IFRS 9. “On the backdrop of this result, Post- Tax Return on Equity (ROAE) and Return on Assets (ROAA) closed at 34.1 percent and 5.5 percent respectively,” the lender affirmed. 

“These ratios are testament to competent and experienced Management and work-force, efficient Balance sheet structure complemented with Operational efficiency of the Bank,” GTBank said in a statement.

 “In spite of declining yields and the challenges in the operating environment, we have delivered a decent half year result. The quality of this result is built on the strength of our businesses as well as the success of our digital-first customer-centric strategy in delivering financial services that are simpler, cheaper and more valuable to our customers’ everyday lives,” Segun Agbaje, managing director/CEO of the bank said while commenting on the financial results. 

 “We will continue to focus on consolidating our leading position in all the economies in which we operate by staying committed to building a business that is both nimble and efficient whilst strengthening relationships with our customers and creating business platforms that provide them with additional benefits beyond banking,” he added.

 

 

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