GTBank post impressive HY1 2016 results, declares N77bn profit

 

One of the leading lenders in Nigeria, Guaranty Trust Bank Plc today released its financial statements for the half year ended 30 July, 2016 to the Nigerian Stock Exchange (NSE) in Lagos with profit after tax of N77.461 billion. The group results shows that the profit after tax rose by N24.087 billion represented 45.13 per cent when compared with N53.374 billion recorded during the same period of 2015.

GTBank gross earnings at the end of half year 2016 added N56.877 billion, from N152.996 billion in half year 2015 to end review period with N209.873 billion. This translated to N37.18 per cent which is one of the best in the industry.

When compared its profit after tax with the gross earnings, the bank impressively retained 36.91 per cent of its half year 2016 gross earnings as against 34.89 per cent retained during the same period of 2015.

It’s interest income rose by N4.106 billion or 3.61 per cent from N113.884 billion in 2015 to end half year 2016 with N109.778 billion. Similarly it reduce the interest expense from N33.768 billion to N30.663 billion, this represent N3.105 billion or 9.20 per cent drop.

The bank made a difference in deposits from customers in 2016 half year which reflected in its bottom line results as it increased by N124.867 billion or 199.74 per cent, from N62.514 billion to end half year 2016 with N187.381 billion.

The earnings per share of the bank jumped by 45.74 per cent to 274 kobo at the end of review period from 188 kobo recorded in correspondence period of 2015.

Further analysis revealed that the bank closed the half year ended June 2016 with total assets and contingents of N3.42 trillion and shareholders funds of N453 billion.

The bank’s non-performing loans remained low and within regulatory threshold at 4.39 per cent (Bank:3.54 per cent) with adequate coverage of 170.1 per cent (Bank: 214.8 per cent).

Increase in collective impairment was borne out of the prudent stance of the bank, while capital remains strong with Capital Adequacy Ratio (CAR) of 18.25 per cent. On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) closed at 35.8 per cent and 5.7 per cent respectively.

The bank is proposing interim dividend of 25 kobo per unit of ordinary share held by shareholders.

Commenting on the financial results, Managing Director/CEO of the bank, Segun Agbaje, 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, Segun 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”.