By Chioma Obinagwam
Guarantee Trust Bank (GTBank) has said that it’s Gross Earnings for the first quarter (Q1) unaudited results for period ended March 31, 2017 grew by 39 per cent to N104.66 billion from N75.39 billion reported in March 2016; driven primarily by growth in interest income
Extracts from the result showed that Interest Income jumped by N28.28 billion or 50.64 per cent from the N55.83 billion earned in the prior year to N84.11 billion achieved in the review period.
Interest Income is earned from investments that pay interest such as in a savings account or certificate of deposit.
In the same vein, the lender’s Profit Before Tax (PBT) stood at N50.39 billion, representing a growth of 64 per cent over N30.68 billion recorded in the corresponding period of March 2016.
Deposit from customers grew marginally by 1 per cent from N1.99 trillion in December 2016 to N2.01 trillion in March 2017.
The Bank’s balance sheet remained strong with a 1.6 per cent growth in Total Assets as the Bank closed the quarter ended March 2017 with Total Assets of N3.16 trillion and Shareholders’ Funds of N546.9 billion.
However, the bank’s loan to customers dipped marginally by 2 per cent from N1.59 trillion recorded in December 2016 to N1.56 trillion as at March 2017.
Moreover, the Bank’s non-performing loans remained low and within regulatory threshold at 3.62 per cent (Bank: 3.27 per cent) with adequate coverage of 231.6 per cent (Bank: 266.6 per cent).
Capital remains strong with Capital Adequacy Ratio (CAR) of 20.03 per cent. On the backdrop of this result, Return on Average Equity (ROAE) and Return on Average Assets (ROAA) closed at 31.55 per cent and 5.28 per cent respectively.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr Segun Agbaje, said,“Given the significant progress we made in 2016, we came into the year better equipped to navigate any further economic headwinds, and our performance in the first quarter demonstrates our ability to deliver sustainable long-term growth. We remain committed to maximizing shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity.”
“As we transform our organization into a platform for enriching lives, we are providing our customers with information and access they need to thrive. We are also leveraging our brand and networks to support small businesses through free business platforms and capacity building initiatives,” he continued.
Gtbank, he said, has consistently played a leading role in Africa’s banking industry and reported the best financial ratios for a Financial Institution in the industry with a Return On Equity (ROE) of 31.55 and a per cent cost to income ratio of 38.75 per cent, evidencing the efficient management of the banks’ assets.
Overall, the Bank has enshrined its position as a clear leader in the industry.
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