By Dipo Olowookere
The management of Guaranty Trust Bank (GTBank) Plc has expressed optimism that the company will deliver strong and sustainable returns to shareholders in the midst of the macroeconomic uncertainties that persist in the business environment.
This assurance was given by the Managing Director/CEO of GTBank, Mr Segun Agbaje, while reacting to the financial results of the firm released last week.
Many businesses across the world are gradually getting back on the feet as a result of the devastating effect of the coronavirus disease last year.
In Nigeria, there was an economic recession in the third quarter of 2020 influenced by the pandemic but luckily for the country, it exited in the fourth quarter of the year.
However, the effect of the economic crisis is still being felt and in the first quarter of this year, GTBank did not have good as its profit before tax went down by 7.8 per cent to N53.7 billion from N58.2 billion recorded in the corresponding period of March 2020.
Its deposit liabilities increased by 3.0 per cent from N3.611 trillion in December 2020 to N3.717 trillion in March 2021, whilst the net loan book reduced by 1.4 per cent from N1.663 trillion in December 2020 to N1.639 trillion in March 2021.
However, the balance sheet of GTBank remained well structured and diversified with total assets and shareholders’ funds closing at N4.993 trillion and N837.2 billion respectively.
The full impact Capital Adequacy Ratio (CAR) remained very strong, closing at 26.1 per cent, while asset quality was sustained as NPL ratio and Cost of Risk (COR) closed at 6.1 per cent and 0.11 per cent in March 2021 from 6.0 per cent and 0.08 per cent in March 2020 respectively.
It is important to note that GTBank continues to post one of the best metrics in the Nigerian banking industry in terms of all financial ratios as the Return on Equity (ROAE) stood at 26.0 per cent, Return on Assets (ROAA) at 4.3 per cent and cost to income ratio at 42.6 per cent.
“We have started off the 2021 financial year on a fair footing and our first-quarter results demonstrate our ability to continue delivering strong and sustainable returns, despite the macroeconomic uncertainties that persist in our business environment.
“This is a reflection of the resilience of our franchise, our prudent approach to risk management and the efficacy of our digital-first customer-centric business strategy,” Mr Agbaje stated.
“Looking forward, we are optimistic about the long-term value that we will continue to create as an organization.
“We strongly believe that our new growth strategy, together with the enduring loyalty of our customers, the hard work and dedication of our staff and the unwavering support we continue to enjoy from our shareholders, will enable us drive and deliver best-in-class financial solutions for people, businesses and communities across Africa and beyond,” the banker further said.
GTBank, renowned for its forward-thinking approach to financial services and customer engagement, was recently ranked Africa’s Most Admired Finance Brand in the 10th-anniversary rankings of Brand Africa 100: Africa’s Best Brands, the pre-eminent survey and ranking of the Top 100 admired brands in Africa.
The lender was also awarded the Best Bank in Nigeria by Euromoney Magazine for a record-extending tenth time and the Euromoney Excellence in Leadership Africa Award for its swift reaction in responding to the COVID-19 crisis and for addressing the impact of the pandemic on its customers and communities.
Adedapo Adesanya