Guaranty Trust Bank Posts N120bn Pre-Tax Profit In 2015

Guaranty Trust Bank Posts N120bn Pre-Tax Profit In 2015
Oladejo Amos
Guaranty Trust Bank Plc yesterday announced a profit after tax of N99.4 billion for the financial year ended December 31, 2015, an increase of 5.3 per cent when compared to N94.4 billion recorded in the same period of 2014.
The bank’s return on average equity ratio rose 25.6 per cent, from N27,1 per cent in 2014, while loan to deposit ration increased to 85.1 per cent, from 78.8 per cent recorded in the corresponding period of 2014.
Analysis of the results shows positive performance across all financial indices, reaffirming the bank’s position as one of the most profitable and well managed financial institutions in the country.
It delivered a profit before tax of N120.7billion, an increase of N4.3billion or 3.7 per cent, from N116.4billion reported in December 2014.
The bank’s gross earnings stood at N301.9billion, an increase of 8.4 per cent, from the N278.5billion recorded in the same period of 2014.
Also, the bank’s balance sheet remained strong with 7.2 per cent growth in total assets, from N2.36trillion 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 N1.28trillion 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 N1.62trillion 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, as its non-performing loans 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 the results, the bank is proposing total-year dividend of N1.77 per share (inclusive of the 25kobo interim dividend paid at half year 2015).
Commenting on the financial results, the Managing Director of the bank, Mr. Segun Agbaje, said that 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.
He said, “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.”