In 3 Months, GTB Records N52.6b Profit
Nigeria’s most capitalised financial institution, Guaranty Trust Bank (GTB) Plc recorded modest growths in key performance indicators in the first quarter of this year with pre-tax profit for the three-month period rising to N52.62 billion.
Key extracts of the interim report and accounts of GTB for the first quarter ended March 31, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose to N108.97 billion in first quarter 2018 as against N104.13 billion recorded in first quarter 2017. Profit before tax also improved from N50.39 billion in first quarter 2017 to N52.62 billion in first quarter 2018. After taxes, net profit rose from N41.48 billion in first quarter 2017 to N44.67 billion in first quarter 2018. Earnings per share thus increased from N1.47 to N1.58.
The report showed that the balance sheet of the bank-the second most capitalised quoted company in Nigeria, after Dangote Cement, expanded further to N3.507 trillion by March 2018 as against N3.351 trillion recorded at the beginning of this year.
Market analysts have commended the performance of the bank noting that it indicates that the bank could surpass projections
“GTB’s first quarter 2018 results are tracking slightly ahead of consensus 2018 estimated profit before tax forecast of N203 billion. Consequently, we expect to see modest upward revisions to consensus 2018 estimated profit before tax forecasts and a positive reaction from the market,” FBN Quest, the investment banking arm of FBN Holdings Plc, stated.
GTB’s share price rose by 0.57 per cent or 25 kobo to close at N44.35 per share yesterday at the NSE, playing the contrarian stock against the market’s average overall decline of 0.04 per cent.
GTB had recorded a pre-tax profit of N200 billion in 2017, prompting the bank to distribute N79.5 billion as cash dividend to shareholders. Shareholders received a final dividend of N2.40 per share, in addition to interim dividend of 30 kobo per share, bringing total dividend per share for 2017 N2.70 per share.
Latest audited report and accounts of GTB for the year ended December 31, 2017 showed that profit before tax rose by 21 per cent from N165.1 billion in 2016 to N200.2 billion in 2017. Profit after tax also increased from N132.28 billion in 2016 to N170.47 billion in 2017. Earnings per share improved to N6.03 in 2017 compared with N4.67 in 2016. Gross earnings had increased marginally from N414.6 billion in 2016 to N419.2 billion.
The balance sheet showed that the bank’s loan book dipped by 8.9 per cent from N1.59 trillion in 2016 to N1.449 trillion in 2017 while customer deposits increased by 3.8 per cent to N2.062 trillion in 2017 as against N1.986 trillion in 2016. Total assets and contingents grew by 3.9 per cent to N3.845 trillion in 2017 while shareholders’ funds increased to N625.2 billion.
Managing Director, Guaranty Trust Bank (GTB) Plc, Mr. Segun Agbaje, said the immediate past year was a pivotal year for the bank as it was able to deliver a strong result in a challenging environment.
According to him, the bank achieved record growth in earnings, carefully managed cost margins and leveraged its digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.
“The result demonstrates the fundamental strength of our franchise as well as the progress we are making in transforming our organization into a platform on which our customers could build their businesses, connect with their consumers and access all the resources that they need to make their lives better,” Agbaje said.