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GTBank records N200bn profit before tax for 2017

GTBank records N200bn profit before tax for 2017

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Stanley Opara

Guaranty Trust Bank Plc has recorded a profit before tax of N200.2bn for the 2017 financial year, representing a growth of 21.3 per cent over 165.1bn posted in the corresponding year ended December 2016.

This was contained in its audited financial results for the year ended December 31, 2017 filed with the Nigerian and London Stock Exchanges on Wednesday.

A review of the results showed positive performance across all financial indices as its gross earnings for the year grew by 1.1 per cent to N419.2bn from N414.6bn reported in the December 2016; driven primarily by growth in interest income as well as e-payment revenues.

The bank’s loan book dipped by 8.9 per cent from N1.590tn recorded as at December 2016 to N1.449tn in December 2017 while customer deposits increased by 3.8 per cent to N2.062tn from N1.986tn in December 2016.

Its balance sheet remained strong with a 3.9 per cent growth in total assets and contingents as the bank closed the year ended December 2017 with total assets and contingents of N3.845tn and shareholders’ funds of N625.2bn.

In terms of assets quality, the non-performing loans ratio increased to 7.7 per cent in December 2017 from 3.7 per cent in December 2016 largely as a result of classification of a single exposure within the Nigerian telecommunications industry.

“However, non-performing loans would moderate to 4.6 per cent, which is below regulatory threshold, if we exclude this name from NPL ratio computation. Overall, asset quality remains stable with adequate coverage of 119.6 per cent, while capital remains strong with Capital Adequacy Ratio of 25.7 per cent,” the lender explained.

On the backdrop of this result, Return on Equity and Return on Asset closed at 35.4 per cent and 6.2 per cent, respectively. The bank is proposing a final dividend of 240k per unit of ordinary share held by shareholders in addition to interim dividend of 30k per unit of ordinary share bringing total dividend for 2017 financial year to N2.70 per unit of ordinary share.

Commenting on the financial results, the Managing Director/Chief Executive Officer, GTBank, Mr. Segun Agbaje, said, “2017 was a pivotal year for the bank. We delivered a strong result in a challenging environment; achieving record growth in earnings, carefully managing cost margins and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”

“The result demonstrates the fundamental strength of our franchise as well as the progress we are making in transforming our organisation into a platform on which our customers could build their businesses, connect with their consumers and access all the resources that they need to make their lives better,” he added.

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