A Review of the Nigerian Energy Industry

GTBank grosses N79bn in three months

20 April 2015, Lagos – Guaranty Trust Bank (GTBank) Plc recorded double-digit growths in the top-line and bottom-line in the first quarter, a strong start that triggered a rally on the share price of the stock at the weekend.

gtbank-logoKey extracts of the unaudited report and accounts of GTBank for the period ended March 31, 2015 showed that gross earnings and pre-tax profit rose by 17 per cent each. After tax, net profit rose by 15 per cent.

Gross earnings rose to N79.02 billion in first quarter 2015 as against N67.58 billion recorded in comparable period of 2014. The top-line performance was driven by strong growth in interest income and effective management of operating expenses and cost of risk. Profit before tax rose from N28.01 billion to N32.65 billion. After taxes, net profit increased to N26.56 billion in first quarter 2015 compared with N23.11 billion recorded in first quarter 2014. Earnings per share improved from 81 kobo in first quarter 2014 to 94 kobo in first quarter 2015.

The balance sheet remained strong with total assets of N3.15 trillion. Customer deposits rose to N1.69 trillion in March 2015 as against N1.65 trillion by the year ended December 31, 2014. Shareholders’ funds however slipped marginally from N374.33 billion in December 2014 to N357.59 billion in March 2015.The bank continued to improve on its credit asset management. The proportion of gross loans and advances to non-performing loans improved to 3.06 per cent as against 3.40 per cent in the comparative period of 2014. Loan book grew by 28 per cent to N1.30 trillion in 2015 as against N1.02 trillion in corresponding period of 2014.

Managing director, Guaranty Trust Bank (GTBank) Plc, Segun Agbaje, said the major focus for the bank going forward is to strengthen market positions with distinctive customer propositions in chosen segments in order to deliver long-term sustainable and efficient growth as well as strong shareholder returns.

He noted that as a financial institution with a bias for industry leadership, exceptional service delivery and innovation, GTBank has experienced tremendous growth since its inception in Nigeria in 1990. Now, the bank presently employs over 10,000 peoples in Cote d’Ivoire, Kenya, Gambia, Ghana, Liberia, Sierra Leone, Rwanda, Uganda and the United Kingdom.

GTBank recently distributed N44.15 billion as final dividend, representing a dividend per share of N1.50 kobo. Total dividend per share for 2014 stood at N1.75 as against N1.70 paid for the 2013 business year. It had paid interim dividend per share of 25 kobo. This brought total payout to N51.5 billion for the 2014 business year as against N50.03 billion in 2013.

Key extracts of the audited report and accounts for the year ended December 31, 2014 showed that GTBank grew its top-line by 15 per cent with gross earnings of N278.52 billion in 2014 compared with N242.67 billion in 2013. Profit before tax rose by nine per cent from N107.09 billion to N116.39 billion. Profit after tax grew by 10 per cent from N90.02 billion to N98.69 billion. Earnings per share consequently rose by 10 per cent to N3.47 in 2014 as against N3.17 in 2013.

Balance sheet analysis showed that deposits base expanded by 14 per cent to N1.65 trillion in 2014 compared with N1.44 trillion in 2013. Shareholders’ funds also rose by 13 per cent from N332.35 billion to N374.33 billion. Total balance sheet size rose by 12.4 per cent from N2.10 trillion in 2013 to N2.36 trillion in 2014.

GTBank also continued to maintain disciplined and prudent approach to loan growth as the proportion of non-performing loans to total loans dropped from 3.58 per cent in 2013 to 3.15 per cent in 2014.



– The Nation

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