GT Bank’s profit rises by 33 per cent to N132.28 billion

09 Mar 2017
Financial Nigeria


GT Bank recorded FX revaluation gains of N87.29 billion.

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

Guaranty Trust Bank, one of Nigeria’s largest banks, has reported that its 2016 after-tax profit rose by 33 per cent, driven mainly by foreign exchange revaluation gains on foreign currency deposits, according to a statement released on Wednesday.

GT Bank said after-tax profit rose to N132.28 billion in 2016 from N99.44 billion reported in the previous year. The growth in profit was supported by a stratospheric rise in FX revaluation gains of N87.29 billion, up from N5.2 billion reported in 2015.

The Nigerian lender said its revenue rose by 37 per cent to N414.62 billion from N301.85 billion in 2015. The bank’s top-line growth was driven mainly by a rise in both interest income as well as FX income.

“The Bank’s financial performance in 2016, does not only reflect the resilience of our franchise, it demonstrates the fundamental strength of our businesses to deliver sustainable long-term growth,” said Segun Agbaje, GT Bank’s Managing Director/CEO. “We successfully navigated the heightened economic uncertainty and regulatory headwinds which dominated the year to deliver a solid performance across all financial and non-financial indices.”

GT Bank said its total assets grew by 19.7 per cent to N3.13 trillion compared with N2.52 trillion a year earlier owing to an increase in loans and advances to customers, partly resulting from the impact of the devaluation of the naira.

Loan impairment charges rose by 426 per cent to N65.29 billion from N12.41 billion in 2015 as the bank’s non-performing loan ratio rose to 3.66 per cent from 3.21 per cent a year earlier.

For the period under review, GT Bank said its basic earnings per share rose to N4.67 per share from N3.51 per share in 2015. The bank has declared a final dividend of N1.75 per share, taking total dividend to N2 per share for the 2016 financial year.

“We are transforming our organization into a platform for enriching lives by positioning ourselves at the centre of an extended ecosystem that offers our stakeholders, benefits beyond banking,” Agbaje said. “We also remain committed to maximising shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity.”

As at 12.17 pm on Thursday, GT Bank’s stock traded at N25.87 per share, down 0.31 per cent from the previous day’s close.

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