GTBank reports 30% increase in total assets to N4.57trn

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By Kayode Tokede

Guaranty Trust bank Plc (GTBank) has reported 30 per cent increase in total assets to N4.57trillion as at September 30, 2020 from N3.5billion reported in full year ended December 31, 2019.

Key drivers to GTBank’s growth in total assets include 4.6 per cent increase in loans and advances to customers to N1.57 trillion as at September 30, 2020 from N1.5 trillion reported in full year ended December 31, 2019 and 26 per cent increase in deposits from customers to N3.19 trillion as at September 30, 2020 from N2.5 trillion reported in full year ended December 31, 2019.

However, from the profit & loss figures, GTBank reported 3.20 per cent decline in profit for nine months ended September 30, 2020 unaudited result and accounts.

The result and accounts to the Nigerian Stock Exchange (NSE) on Thursday disclosed that GTBank reported N142.3billiion profit in nine months of 2020 as against N147 billion reported in nine months of 2019.

The lender also reported 1.93 per cent decline in profit before tax to N167.4 billion in nine months of 2020 as against N170.7 billion reported in nine months of 2019.

The decline in profits can be attributable to the management provision for bad loans and increasing operating expenses.

GTBank for the period reported 267 per cent increase in loan impairment charges to N10.14 billion in nine months of 2020 as against N2.76 billion reported in nine months of 2019. Also, total operating expenses grew by 13 per cent to N112.4 billion in nine months of 2020 compared to N99.6 billion reported in nine months of 2019.

The financial institution thus reported 32.45 per cent increase in total assets to N3.82 trillion as at September 30, 2020 from N2.88 trillion reported in full year ended December 31, 2019.

The share price of GTBank closed on Thursday at N35.80 on the trading floor of the NSE.

Commenting on the financial results, the Managing Director/CEO of GTBank, Mr. Segun Agbaje, said; “Our 3rd Quarter result is a reflection of how we have appropriately positioned our balance sheet to cope with current economic realities and the challenging business environment. It is also testament to the enduring loyalty of our customers, the hard work and dedication of our staff and the unwavering support we continue to enjoy from all our stakeholders in our drive to deliver best-in-class financial services and superior and sustainable returns.”

He further stated that; “As an organization, we will continue to build on our commitment to enriching lives by leveraging our digital-first customer-centric strategy to improve customer experience and maintain a high standard in service delivery, and going beyond banking to create and drive innovative financial solutions that add value to our customers in all aspects of their lives.”

Overall, Guaranty Trust Bank plc continues to be best in the Nigerian banking industry in terms of all financial ratios i.e. Post-Tax Return on Equity (ROAE) of 26.3 per cent, Post-Tax Return on Assets (ROAA) of 4.6 per cent, and Cost to Income ratio of 40.2per cent

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