GTBank records revenue of N75.4bn for 1Q 2016
Guaranty Trust Bank plc has released its unaudited financial results for the first quarter ended March 31, 2016 to the Nigerian and London Stock Exchanges.
A review of the 1Q 2016 result shows that the Bank continued to consolidate on its position as one of the most profitable and well managed financial institutions in Nigeria, recording moderate growth from its core banking activities. However, decline in trading and revaluation gains occasioned by scarcity of FX robbed off on the impressive performance recorded with a 4.6 percent decline in gross earnings to N75.39 billion against N79.02 billion recorded for the first quarter of 2015.
Profit Before Tax likewise declined by 6.1 percent to N30.68 billion versus N32.65 billion in Q1, 2015 and Profit After Tax (PAT) fell 3.6 percent to N25.61 billion from N26.56 billion.
The Bank also reported a post-tax ROAE of 24.19 percent and ROAA of 3.96 percent respectively, while Shareholders’ funds closed at N433.41 billion.
The bank’s Balance Sheet remained strong with 5.2 percent growth in Total Assets to N2.66 trillion (FY 2015: N2.52 trillion). Loan book declined slightly by 0.7 percent to close at N1.36 trillion (FY 2015: N1.37 trillion). Customer’s Deposit grew by 10.3 percent to N1.78 trillion (FY 2015: N1.61 trillion).
In line with the bank’s Risk Management strategy, the bank approached its loan growth with disciplined strategy, thus Non Performing Loans (NPL) of the bank for the period under review is still well within range at 3.51 percent and Net Interest Margin (NIM) for the period under review declined marginally by 9bps to 8.12 percent from 8.21 percent in Q1 2015.
Commenting on the financial results, Segun Agbaje, the Managing Director and Chief Executive Officer of Guaranty Trust Bank plc stated that “Despite a slow start in economic activity in 2016 and the extremely challenging business environment, the Bank recorded decent performance across key financial indices during the period.”. He added that “We understand that there’s a lot more work to be done, we are however prepared for the challenges and opportunities that lie ahead the 2016 financial year”.
