Guaranty Trust Bank Plc rode on the back of the country’s economic recovery to grow its profit-before-tax (PBT) by 21.3 per cent to ₦200.2 billion in 2017 and investors will be smiling to the bank with a better dividend of N2.40 per share compared to N2.00 they got in 2016. It had declared a 30 kobo interim dividend in June 2017.
A review of the bank’s 2017 financial statement released on Wednesday showed a marginal growth in its gross earnings by 1.1 per cent to ₦419.2 billion from ₦414.6 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 ₦1.590 trillion recorded as at December 2016 to ₦1.449 trillion in December 2017 while customer deposits increased by 3.8 per cent to ₦2.062 trillion from ₦1.986 trillion in December 2016.
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 ₦3.845 trillion and Shareholders’ Funds of ₦625.2 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.
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. We delivered a strong result in a challenging environment; achieving record growth in earnings, carefully managing cost margins and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”
He further stated that “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.”
GTBank has continued to report the best financial ratios for a Financial Institution in the industry as revealed by its return on equity (ROE) of 35.4% and cost to income ratio of 38.1% evidencing the efficient management of assets and operational efficiency. Overall, the Bank has enshrined its position as a clear leader in the industry. In recognition of its innovation and hard work, the Bank received over 20 international awards in 2017.