GTBank delivers strong H1 performance, declares N110b profit before tax

GTBank delivers strong H1 performance, declares N110b profit before tax

Guaranty Trust Bank (GTBank) Plc on Wednesday released its audited financial results for the period ended June 30, 2018 to the Nigerian and London Stock Exchanges.

A review of the results showed positive performance across all financial indices, reaffirming the bank’s position as one of the most profitable and well managed financial institutions in Nigeria.

In the results analysed, GTBank reported gross earnings N226.6 billion versus N214.1billion reported in June 2017, indicating a 5.9 percent growth.

Also profit before tax stood at N109.6 billion, representing a growth of 8.4 percent over N101.1 billion recorded in the corresponding period of June 2017.

In the results, GTBank’s loan book dipped by 10.8 percent from N1.449 trillion recorded as at December 2017 to N1.293 trillion in June 2018, while customers’ deposit grew by 10 percent to N2.269 trillion from N2.062 trillion in December 2017.

Furthermore, the bank’s balance sheet remained strong with a 5.9 percent growth in total assets as the financial institution closed the period ended June 2018 with total assets of N3.549 trillion and shareholders’ funds of N497.1 billion.

In terms of assets quality, the NPL ratio improved to 5.8 percent in June 2018 from 7.7% in December 2017. 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. 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.

Commenting on the financial results, Managing Director/CEO of GTBank, Mr Segun Agbaje, said, “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.”

He further stated that, “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.”

GTBank continues to be best in class in terms of all financial ratios posted by financial institutions in the industry as indicated by its Post-Tax Return on equity (ROE) of 34.1 percent, Post-Tax Return on Assets (ROAA) of 5.5 percent, Cost to Income ratio of 38.8 percent, NIM of 9.6 percent and PBT margin of 48.4 percent.

These ratios are testament to competent and experienced management and work-force, efficient balance sheet structure complemented with operational efficiency of the bank.

In recognition of the bank’s bias for world class corporate governance standards, excellent service delivery and innovation, GTBank has been a recipient of numerous awards over the years.

These include Africa’s Best Bank for SMEs and Best Bank in Nigeria from Euromoney Magazine, African Bank of the Year from African Banker Magazine, Best Banking Group and Best Retail Bank from World Finance Magazine, Best Bank in Africa for Corporate Governance from Ethical Boardroom Magazine.

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