By Kayode Tokede
Guaranty Trust Bank plc (GTBank) has released its unaudited Financial Results for the period ended March 31, 2021 to the Nigerian and London Stock Exchanges.
A review of the result shows a resilient performance across all key financial metrics in the face of the unprecedented macroeconomic challenges, reflecting the quality of past decisions and reaffirming its position as one of the best managed financial institutions in Africa.
The Group reported Profit before tax of N53.7billion, representing a drop of 7.8per cent over N58.2billion recorded in the corresponding period of March 2020.
Deposit Liabilities increased by three per cent from N3.611trillionin December 2020 to N3.717trillion in March 2021, whilst the Group’s Loan book (Net) dipped by 1.4 per cent from N1.663trillion recorded as at December 2020 to N1.639trillion in March 2021.
GTBank’s Balance sheet remained well structured and diversified with Total assets and Shareholders’ Funds closingat N4.993trillion and N837.2billion respectively.
Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 26.1 per cent, while Asset quality was sustained as NPL ratio and Cost of Risk (COR) closed at 6.1 per cent (Bank: 5.6 per cent) and 0.11% (Bank: 0.02 per cent) in March 2021 from 6.0 per cent (Bank: 5.9per cent) and0.08 per cent (Bank: 0.01 per cent) in March 2020 respectively.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; “We have started off the 2021 financial year on a fair footing, and our first-quarter results demonstrate our ability to continue delivering strong and sustainable returns, despite the macroeconomic uncertainties that persist in our business environment.
“This is a reflection of the resilience of our franchise, our prudent approach to risk management and the efficacy of our digital-first customer-centric business strategy.”
He further stated that; “Looking forward, we are optimistic about the long-term value that we will continue to create as an organization.
“We strongly believe that our new growth strategy, together with the enduring loyalty of our customers, the hard work and dedication of our staff and the unwavering support we continue to enjoy from our shareholders, will enable us drive and deliver best-in-class financial solutions for people, businesses and communities across Africa and beyond.”
GTBank continued to post one of the best metrics in the Nigerian Banking industry in terms of all Financial Ratios i.e. Return on Equity (ROAE) of 26.0 per cent, Return on Assets (ROAA) of 4.3 per cent, Full Impact Capital Adequacy Ratio (CAR) of 26.1 per cent and Cost to Income ratio of 42.6 per cent.