GTB records 45% increase in half-year Pre-tax profit

…recommends 25kobo interim dividend

By Odunewu Segun

GTBank has posted an impressive growths in income and profitability in the first half of 2016 as its Profit before tax rose from N63.11 billion to N91.38 billion at the end of June, 2016.

In the audited half-year report of the bank for the period ended June 30, 2016 released yesterday at the Nigerian Stock Exchange, gross earnings leaped by 37 per cent to N209.9 billion in first half 2016 as against N153 billion recorded in comparable period of 2015.

After taxes, net profit stood at N77.46 billion in first half 2016 compared with N53.37 billion recorded in first half of 2016.The bank balance sheet also emerged stronger.

Total assets soared o N2.93 trillion by June 2016 as against N2.52 trillion recorded by December 31, 2015. The bank’s loan book grew by 14 per cent from N1.37 trillion recorded as at December 2015 to N1.56 trillion by June 2016.

Total deposits also increased by 23 per cent to N2.01 trillion by June 2016 as against N1.64 trillion by December 2015. However, the proportion of non-performing loans to gross loans and advances spiked up slightly to 4.39 per cent but the group made coverage of 170.1 per cent to cushion the bad assets.

ALSO SEE: CBN increases dollar sales to BDCs by $20,000

The lender’s capital adequacy remains strong with capital adequacy ratio of 18.25 per cent while return on equity (ROAE) and return on assets (ROAA) stood at 35.8 per cent and 5.7 per cent respectively.

Meanwhile, the board of directors of the bank recommended the payment of interim dividend per share of 25 kobo to shareholders for the half-year results.

Commenting on the report, Managing Director of the bank, Mr. Segun Agbaje said the bank had prepared well for the challenges in the industry by focusing on effective management of the balance sheet and adapting its business model to changing market variables.

He said while the current economic realities present some hitches to growth, GTB remains committed to its ideals of staying positive, delivering exceptional service to its customers and adding value to all stakeholders.

Agbaje disclosed that the quality of the bank’s past decision has enabled it navigate the challenges that persisted in the business environment in the last six months.