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GTBank declares N120.7bn profit, proposes N1.52 dividend

By Peter Egwuatu

Guaranty Trust Bank, (GTBank )Plc has recorded N120. 7 billion Profit Before Tax, PBT and proposed dividend of N1.52 per share for the financial year ended December 2015.

Nigerian Stock Exchange
Nigerian Stock Exchange

A review of the bank’s 2015 results shows positive performance across most financial indices, reaffirming its position as one of the most profitable banks, posting N120.7billion PBT , an increase of N4.3billion or 3.7% over the N116.4billion reported in the preceding year, 2014 and gross earnings of N301.9billion an increase of 8.4% from the N278.5billion recorded in the same period of 2014. In terms of value creation for its shareholders, the Bank recorded pre-tax Return on Assets and Equity, ROAE of 31.0% and Return on Average Assets, ROAA of 5.0% respectively.

Furthermore, the Bank’s balance sheet remained strong with 7.2 per cent growth in Total Assets, from N2.36 trillion in 2014 to N2.52trillion in the year under review. Loans to customers grew by 7.5 per cent to close at N1.37trillion from N1.28 trillion in 2014.

Despite the implementation of the Treasury Single Account (TSA) by the Federal Government, customer deposits remained relatively stable with a marginal year-on-year decline of 0.49 per cent from N1.62 trillion in 2014 to N1.61trillion in 2015.

The bank continued to maintain a disciplined and prudent approach to loan growth in line with its Risk Management framework. The bank’s non-performing loans (NPL) ratio remained low at 3.21 per cent; up slightly from 3.15 per cent in the comparative period of 2014.

Against this back drop of strong financial showing, the bank has proposed N1.52 dividend, making a total-year dividend of N1.77 per share (inclusive of the 25 kobo interim dividend paid at half year 2015).

Commenting on the financial results, Segun Agbaje, the Managing Director/CEO of Guaranty Trust Bank Plc, said the bank’s financial performance in 2015 is an  indication that we have earned the loyalty of our customers and an attestation of the hard work and dedication of our staff, management and Board.

The group has delivered a respectable Profit Before Tax of N120.7 billion despite  an  extremely challenging business environment  in 2015.

He further stated: “As a bank, we will continue to actively partner with our customers and grow our business in a sustainable manner that is not only driven by profit objective, but with an increased focus on empowering our customers with a view to growing Nigerian economy.”

Also, we remain committed to maximising shareholders’ value and delivering superior and sustainable returns whilst actively expanding our franchise in select, high growth African markets where we believe we have a competitive advantage.

The bank has continued to report the best financial ratios for a Financial Institution in the industry with a return on equity (ROE) of 31.0% and a cost to income ratio of 44.4% evidencing the efficient management of the banks’ assets. Overall, the Bank has enshrined its position as a clear leader in the industry.

In due recognition of the Bank’s leading role in Africa’s banking industry, owing to its bias for world class corporate governance standards and excellent service delivery and innovation, GTBank has been a recipient to numerous awards over the course of the year. They include  best bank in Nigeria  by Euromoney,  2015 Bank of the Year  by African Investor and  Best Banking Group Nigeria  by World Finance.

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