LAGOS : The foremost institutional Bank, Guaranty Trust Bank plc has posted a profit after tax of N44.670 billion for the first quarter ended March 31, 2018 as against N41.477 billion posted in 2017, accounting for a growth of 7.7 per cent.
The audited financial results for the Q1 released to the Nigerian and London Stock Exchanges showed profit before tax stood at N52.624 billion, representing a growth of 4.4 per cent over N50.392 billion recorded in the corresponding period of 2017. Further review of the results showed gross earnings for the year grew by 4.6 per cent to N108.970 billion from N104.130 billion reported in March 2017.
The bank posted a profit after tax of N170.469 billion for the full year ended December , 2017 as against N132.281 billion posted in 2016, accounting for a growth of 28.9 per cent.
The financial result showed profit before tax stood at N200.242 billion, representing a growth of 21.3 per cent over N165.136 billion recorded in the corresponding period of December 2016. Further review of the results showed positive performance across all financial indices.
Gross earnings for the year grew by 1.1 per cent to N419.2 billion from N414.6 billion reported in the December 2016; driven primarily by growth in interest income as well as e-payment revenues. The bank’s loan book dipped by 8.9 per cent from N1.590 trillion recorded as at December 2016 to N1.449 trillion in December 2017 while customer deposits increased by 3.8 per cent to N2.062 trillion from N1.986 trillion in December 2016.
According the lender, the bank’s balance sheet remained strong with a 3.9 per cent growth in Total Assets and Contingents as the bank closed the year ended December 2017 with Total Assets and Contingents of N3.845 trillion and Shareholders’ Funds of N625.2 billion. In terms of assets quality, NPL ratio increased to 7.7 per cent in December 2017 from 3.7 per cent in December 2016 largely as a result of classification of a single exposure within the Nigerian Telecommunications Industry.
“However, non-performing loans would moderate to 4.6 per cent, which is below regulatory threshold, if we exclude this name from NPL ratio computation.
Overall, asset quality remains stable with adequate coverage of 119.6 per cent, while Capital remains strong with CAR of 25.7 per cent.
On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) closed at 35.4 per cent and 6.2 per cent respectively,” the bank noted.
The bank is proposing a final dividend of 240k per unit of ordinary share held by shareholders in addition to interim dividend of 30k per unit of ordinary share bringing total dividend for 2017 financial year to N2.70 per unit of ordinary share. Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; “2017 was a pivotal year for the bank.