Modupe Gbadeyanka
By Modupe Gbadeyanka
In the first half of 2019, Guaranty Trust Bank (GTBank) Plc ensured that its bad debts were reduced as the loan book grew by 1.0 percent from N1.262 trillion recorded as at December 2018 to N1.274 trillion in June 2019.
Last Friday, the lender released its audited financial results for the half year ended June 30, 2019 to the Nigerian and London Stock Exchanges.
The half year result showed positive growth across key financial metrics and reflects GTBank’s leading position as one of the best managed financial institutions in Africa.
In terms of asset quality, the non-performing loan (NPL) ratio and Cost of Risk improved to 6.8 percent and 0.2 percent in June 2019 from 7.3 percent and 0.3 percent in December 2018 respectively.
Overall, asset quality remains stable with adequate coverage of 84.7 percent, while capital remains strong with CAR of 23.5 percent.
On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) stood at 33.7 percent and 5.8 percent respectively.
In the period under review, the financial institution grew its customer deposits by 6.3 percent to N2.418 trillion from N2.274 trillion in December 2018.
In addition, the profit before tax improved by 5.6 percent to N115.8 billion from N109.6 billion recorded in the corresponding period of 2018, while the total assets closed at N3.598 trillion and the shareholders’ funds at N603.0 billion.
In continuation with its tradition, the bank proposed an interim dividend of 30 kobo per ordinary share of 50 kobo each for period ended June 30, 2019.
In his views, CEO of GTBank, Mr Segun Agbaje, said, “We have delivered a good result in spite of a challenging market, characterized by varying degrees of uncertainty and a rapidly changing competitive landscape.
“Our strong financial performance is underpinned by our unwavering focus on delivering value for our shareholders and reimagining the role we play in our customers’ lives.”
He further stated that “In a rapidly changing world and increasingly unpredictable environment, we are committed to building a long-term business that is both nimble and focused on flawless execution. The progress that we have made over the past six months demonstrates that we have the right strategy and the dedicated team to deliver for all our stakeholders, even in difficult conditions.”
The bank has continued to report the best financial ratios for a financial institution in the industry with a return on equity (ROE) of 33.7 percent and a cost to income ratio of 37.6 percent evidencing the efficient management of the banks’ assets.
These ratios are a testament to the competent and experienced management and work-force, efficient balance sheet structure and operational efficiency of the bank.
In recognition of the bank’s bias for world class corporate governance standards, excellent service delivery and innovation, GTBank has been a recipient of numerous awards over the years. Some of these include Africa’s Best Bank and Best Bank in Nigeria from Euromoney Magazine, and Best Banking Group and Best Retail Bank by World Finance Magazine
