GTBank reports 8.3% increase in Profit Before Tax to N57bn

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By Kayode Tokede

Guaranty Trust Bank (GTBank) plc has released its unaudited Financial Results for the first quarter (Q1) ended March 31, 2019 to the Nigerian and London Stock Exchanges.

The Bank recorded positive performance across all financial metrics with profit before tax improved to N57billion in 2019 from N52.6billion recorded in the corresponding period of March 2018, representing a growth of 8.3per cent.

Also from the income statement, gross earnings for the period rose by 1.2per cent to N110.3billion from N109.0billion posted in March 2018.

Customers’ deposits also rose by six per cent to N2.410trillion in March 2019 from N2.274trillion in December 2018, whilst the Bank’s Loan book grew by 1.6per cent from
N1.262trillion as at December 2018 to N1.282trillion in March 2019.

Balance sheet remained strong with the Bank closing the quarter ended March 31, 2019 with Total Assets of N3.556trillion and Shareholders’ Funds of N627.2Billion. In terms of Assets quality, NPL ratio and Cost of Risk closed 7.03 per cent and 0.05per cent in March 2019 from 7.30per cent and 0.34per cent in December 2018 respectively.

In addition, coverage for NPL stood at 90.12per cent while Full Impact Capital adequacy ratio remained very strong, closing at 22.25per cent. On the backdrop of this result, Post Tax Return on Equity (ROAE) and Return on Assets (ROAA) closed at 32.79per cent and 5.76per cent respectively.

Commenting on the first quarter results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun  Agbaje, said, “Going into 2019, we knew that it would be a challenging year, but our strategy and unwavering focus on delivering value for our customers and shareholders continues to underpin our ability to consistently deliver solid results despite changing market variables.

“We carried on the momentum of the previous year, posting strong growth in earnings, effectively managing costs and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”

He further stated that; “Whilst ensuring the long-term growth of our business is the greatest value that we can create for our communities, we are also leveraging our resources, expertise and network to help people thrive. That’s why, from April 28 to May 1, 2019, we are organizing the biggest food and drink festival in Africa to give small businesses in the food industry the platform, network and access to the markets that they need to grow.”

GTBank has continued to be best in class in terms of Profitability, Efficiency and Capital among Peers and other Financial Institutions in Nigeria. This is evidenced by its Earnings per Share of N1.74, Return on Equity (ROAE) of 32.79per cent, Cost to Income Ratio of 38.64per cent and Capital Adequacy of 22.25per cent.

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