Business
GTBank Records N215.6bn Profit Before Tax In 2018
GTBank
Guaranty Trust Bank Plc has recorded 9.1 percent increase in its profit before tax which grew to N215.6 billion in the financial year ended December 31, 2018 from N197.7 billion in 2017.
The bank disclosed this in its audited financial results for the year ended December 31, 2018 released to Nigerian and London Stock Exchanges.
According to the statement, gross earnings for the year grew by 3.7 percent to N434.7 billion from N419.2 billion reported in the December 2017.
The bank’s customer deposits increased by 10.3 percent to N2.274 trillion from N2.062 trillion in December 2017, however, loan book dipped by 12.9 percent from N1.449 trillion recorded as at December 2017 to N1.262 trillion in December 2018.
In view of the above, the bank closed the 2018 financial year with total assets of N3.287 trillion and shareholders’ funds of N575.6 billion. In terms of assets quality, Non Performing Loans (NPL) ratio and Cost of Risk improved to 7.3 percent and 0.3 percent in December 2018 from 7.7 percent and 0.8 percent in December 2017 respectively.
In addition, coverage ratio for NPL stood at 105.1 percent and Capital adequacy ratio remained very strong, closing at 23.4 percent despite the implementation of IFRS 9. On the backdrop of this result, Post Tax Return on Equity (ROAE) and Return on Assets (ROAA) closed at 30.9 percent and 5.6 percent respectively.
The Bank is proposing final dividend of N2.45 per unit of ordinary share held by shareholders in addition to interim dividend of 30 kobo per unit of ordinary share bringing total dividend for 2018 financial year to N2.75 per unit of ordinary share.
Commenting on the financial results, Managing Director/Chief Executive Officer of Guaranty Trust Bank Plc, Mr Segun Agbaje, said: “In 2018, our focus on staying nimble, strengthening customer relationships and driving our digital-first strategy paid off.
“We successfully navigated the pressures of our challenging and radically changing business environment, recorded growth across key financial indices and reaffirmed our position as one of the best performing and well managed financial institutions in Africa.
‘This result reflects, not just the fundamental strength of our brand, but also our commitment to our values of excellence, creating value for all stakeholders and putting our customers first in everything that we do.
‘’Driven by these values, we are building the bank of the future by pairing the best of our business with the massive potential of digital technologies to create Africa’s first integrated and trusted platform; Habari.
“GTBank has continued to report the best financial ratios in terms of profitability, efficiency and capital for a Financial Institution in Nigeria as revealed by its return on equity (ROAE) of 30.9 percent, cost to income ratio of 37.1 percent and capital adequacy of 23.4 percent.
These ratios are a testament to the efficient management of the bank. In recognition of the bank’s bias for world class corporate governance standards, excellent service delivery and innovation, GTBank has been a recipient of numerous awards over the years. Some of the bank’s awards in 2018 include Bank of the Year – Nigeria from the Banker Magazine, Best Banking Group and Best Retail Bank Nigeria from World Finance Magazine, Most Innovative Bank from the African Investor, and Best Digital Banking Brand in Nigeria from the Global Brands Magazine.
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