GTBank Earnings Up 37%, Nets N132.28bn, Offers N1.75 Final Dividend

GTBank Earnings Up 37%, Nets N132.28bn, Offers N1.75 Final Dividend

Directors of Guaranty Trust Bank Plc, on Wednesday presented its audited result for the financial year ended December 31, 2016, indicating that it reclaimed the position of Nigeria’s most profitable bank, with a net profit rising by N32.844bn or 33.03% from N99.436bn in the corresponding period of 2015 to N132.28bn.
The board has recommended a final dividend of N1.75 per share, which brings total dividend payout of the year to N2.00 from Earnings Per Share N4.67; as against the payout of N1.77 each from N3.51 EPS in 2015, translating to dividend yield of 6.84%.
Details of the result showed that gross earnings for the year climbed by 37% from N301.85bn in 2015 to N414.615bn, helped by interest income of N262.494bn, as against the previous N229.236bn and interest expense of N67.093bn, compared to N69.289bn, resulting in net interest income of N195.29bn from N159.947bn in 2015.
Loan impairment charges jumped 426% from N12.408bn to N65.29bn, bringing net interest income after impairment to N130.109bn from N147.538bn. The bank also recorded net fee and commission income of N57.817bn, as against the previous N48.786bn. Other income for the period rose from N8.51bn to N95.629bn, personnel expenses rose from N27.721bn to N29.453bn; and other expenses rose to N67.56bn from N54.937bn, following which profit before tax stood at N165.136bn, an increase of N44.442bn or 36.82% from N120.694bn in 2015. Profit before tax growth for the year was despite a N32.855bn income tax expense, which rose by N11.598bn or 54.56% from N21.257bn.
However, helped by a positive foreign currency translation differences for foreign operations of N22.134bn, up from N1.653bn deficit, total comprehensive income for the year jumped to N144.644bn, as against N101.222bn.
Total assets for the year grew by N591.8bn or 23.44% to N3.116tr from N2.524tr, with customer loans and advances of N1.589tr, compared to the previous N1.371tr; while total liabilities rose from N2.111tr to N2.611tr, as customer deposit of N1.986tr, which grew from N1.61tr. Shareholders’ fund for the year rose to N496.06bn from N407.173bn