" />
Published On: Thu, Oct 19th, 2017

Growth in interest income, FX push GTBank PAT Up 7.26% in Q3

GTBank MD, Segun Agbaje,

Nigeria’s most capitalized commercial lender, Guarantee Trust Bank (GTBank) Plc reported a single digit upswing in its profit-after-tax in the third quarter 2017 financial result, buoyed by improved interest income and investment in securities.
The bank financial statement released on Wednesday showed that its PAT climbed 7.26 per cent to N125.58 billion from N117.08 billion in the reversed period in 2016.
GTBank interest income was up 36.48 per cent to N248.27 billion, influenced by 76.59 per cent growth in revenue from loans and advances to customers, though income from loans and advances to banks dropped -39.61 per cent during this period.
Improved earnings from treasury bills and foreign exchange also helped revenue from trading activities grow significantly by 229.78 per cent to N9.94 billion from N3.01 billion in Q 3 last year.
The lender’s performance was hampered by -21.29 per cent in its fees and commission income to N39.68 billion against N50.41 billion in Q3 2016, attributable largely to a whopping -60.58 per cent decline earnings from E-business.
GTBank made significant progress in cutting down its impairment provision, reducing it -85.36 per cent to N8.36 billion (Q3 2016: N57.08 billion).
Rising non-performing has been a major challenge in Nigeria’s banking industry as it has gone above the regulatory five per cent threshold when the country’s economy entered into recession in Q1 2016, following significant dip in crude oil prices.
The International Monetary Fund (IMF) had recently warned Nigeria over spiking NPLs in the financial sector.
Interest expense and personnel costs were up 19.41 per cent and 13.12 per cent respectively in Q3 2017, but expectedly, fees and commission expenses reduced -25.31 per cent during this period.
GTBank’s earnings per share was 7.25 per better to N4.44 compared to N4.14 in Q3 2016.

© 2017, Hallmarknews. All rights reserved. Reference and link to this site is required if you wish to reuse any article.

Reactions from Facebook

comments and opinions

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>