GT Bank grows profit by 60 per cent on FX revaluation gains

20 Oct 2016
Financial Nigeria


The bank's after-tax profit rose to N119.93 billion in the first nine months of this year.

Segun Agbaje, Managing Director/CEO, Guaranty Trust Bank Plc

Guaranty Trust Bank, one of Nigeria’s largest banks, has reported that its after-tax profit for the nine months period ended on September 30, 2016 rose by 59.6 per cent year-on-year. The bank said after-tax profit rose to N119.93 billion in the first nine months of this year from N75.16 billion recorded in a comparative period of last year.

According to a statement released at the Nigerian Stock Exchange on Wednesday, the sharp rise in GT Bank’s profit is attributable mainly to a 1,282 per cent increase in foreign exchange revaluation gains from N6.78 billion recorded a year earlier to N93.64 billion in the nine months ended on September 30, 2016.

GT Bank said gross earnings rose by 43.6 per cent to N329.3 billion. Interest income rose by 5.2 per cent from N172.96 billion posted a year earlier to N181.91 billion reported this year, while non-interest income rose by 161.3 per cent to N147.4 billion from N56.4 billion posted a year earlier.

The bank’s after-tax profit and revenues exceeded analysts’ expectations of N80.1 billion and N301 billion respectively, according to CardinalStone Partners, a Lagos-based investment advisory firm.

Even though non-performing loans rose by 57.2 per cent to N70.83 billion from N45.06 billion reported a year earlier, such loans accounted for 4.13 per cent of total loans compared to 3.16 per cent in the same period of last year. Loan impairment charges rose by 570 per cent to N57.08 billion from N8.52 billion a year earlier.

GT Bank’s total assets rose by 22.5 per cent to N3.09 trillion from N2.52 trillion posted a year earlier mainly due to the impact of the naira devaluation on foreign currency denominated loans to customers.

For the period under review, GT Bank said basic earnings per share rose to N4.24 compared with N2.65 declared a year earlier. The bank’s stock price fell by 3 per cent to close at N23.3 on the NSE on Wednesday.

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