GTB records N91.38bn half year pre-tax profit

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Foremost banking institution, Guaranty Trust Bank plc on Wednesday announced that it released its audited financial results for the half year period ended June 30, 2016 to the Nigerian and London Stock Exchanges.

The results published at the Nigerian Stock Exchange (NSE) for investors and shareholders showed gross earnings for the period grew by 37% to N209.9billion from N153billion reported in the June 2015; driven primarily by growth in fee and commission income as well as foreign exchange income.

Profit before tax (PBT) stood at N91.38billion, representing a growth of 45% over N63.11billion recorded in the corresponding period of June 2015.

GTBank closed the half year ended June 2016 with total assets and contingents of N3.42trillion and shareholders’ funds of N453 billion.

Further review of the half year performance shows that the Bank recorded positive growth across all key financial metrics, a testament to the cutting edge strategy of the bank.

The bank’s loan book grew by 14% from N1.373trillion recorded as at December 2015 to N1.562trillion in June 2016 with corresponding growth in total deposits which increased by 23% to N2.008trillion from N1.637trillion in December 2015.

The Bank’s non-performing loans remained low and within regulatory threshold at 4.39% (Bank: 3.54%) with adequate coverage of 170.1% (Bank: 214.8%). Increase in collective impairment was borne out of the prudent stance of the Bank, while Capital remains strong with CAR of 18.25%.

On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) closed at 35.8% and 5.7% respectively. The Bank is proposing interim dividend of 25k per unit of ordinary share held by shareholders.

Segun Agbaje, Managing Director/CEO of Guaranty Trust Bank plc, while commenting on the results said that “Going into the year, we knew it would be a challenging year and we prepared for it by focusing on effective management of the balance sheet and adapting our business model to changing market variables. The quality of our past decisions enabled us navigate the challenges that persisted in the business environment most of the half year period”

Whilst expressing his sincere appreciation to customers for their loyalty, and to staff for their hard work and commitment, Agbaje added that “While the current economic realities present some challenges to growth, we remain committed to our ideals of staying positive, delivering exceptional service to our customers and adding value to all stakeholders”.