Shareholders Receive 30k Interim Dividend as GTBank Posts N84bn Profit

Goddy Egene

Guaranty Trust Bank Plc has put a smile on the faces of its shareholders as it declared an interim dividend of 30 kobo per share for the half year ended June 30, 2017, showing an increase from 25 kobo paid in the corresponding period of 2016.

According to the audited H1 results, GTBank posted positive growth across all key financial metrics and improved strategic positioning of the brand. Gross earnings for the period grew by two per cent to N214.1 billion, from N209.9 billion in 2016, driven primarily by growth in investment securities income as well as income from risk assets.

Net interest income rose from N79.1billion to N129.5 billion. Loans impairment charges fell from N37.5 billion to N7.2 billion, while net fee and commission income fell from N34.8 billion to N27 billion in 2017.

GTBank ended the H1 of 2017 with profit before tax (PBT) of N101 billion, up representing a growth of 18 per cent over N85.69billion recorded in the corresponding period of June 2016. Profit after tax stood at N83.6 billion compared with N71.7 billion in 2016.

The bank’s loan book dipped by six per cent from N1.590trillion recorded as at December 2016 to N1.491trillion in June 2017 while customer deposits decreased by one to N1.966trillion from N1.986trillion in December 2016.

Also, the bank closed the half year ended June 2017 with total assets and contingents of N3.75trillion and shareholders’ funds of N538 billion. GTBank’s Return on Equity (ROAE) and Return on Assets (ROAA) stood at 38.8 per cent and 6.4 per cent respectively. Hence, the directors have recommended an interim of 30 kobo per share.

Commenting on the results, the Managing Director/CEO of GTBank Plc, Mr. Segun Agbaje, said: “Our strong performance in the first half of 2017 reflects the strength of our businesses, the quality of our past decisions and the success of our efforts towards becoming a digital-first customer-centric Bank that offers simple and easily accessible products and services.”

He said despite the challenging environment of slow economic growth, “we focused our resources on strengthening relationships with our customers, creating business platforms that seek to add value across all customer segments, whilst consolidating our leading position in all the economies in which we operate.”

The bank has continued to report the impressive financial ratios for a financial institution in the industry with a return on equity (ROE) of 38.8 per cent and a cost to income ratio of 40.2 per cent indicating the efficient management of the banks’ assets.