GTBank Declares N142bn Profit in 9 Months as Customer Deposits Reach N3.2trn

GTBank

By Dipo Olowookere

The board of GTBank Plc has released the financial statements of the company for the first nine months of 2020, recording a mixed performance as a result of the global crisis and the situations in Nigeria.

According to the analysis of the results by Business Post, the net profit, which is the profit after tax, reduced to N142.3 billion from N147.0 billion achieved in the same period of 2019.

Also, the pre-tax profit went down 2 per cent to N167.4 billion from N170.7 billion recorded in the nine months of last year, while the earnings per share (EPS) decreased to N5.02 from N5.19.

During the period under review, the lender had an interest income of N219.5 billion compared with N219.4 billion achieved in 2019, while the interest expense stood at N38.5 billion, lower than N51.3 billion of the same period of last year, leaving the net interest income at N189.7 billion as at September 30, 2020, versus N172.9 billion as at September 30, 2019.

With loan impairment charges of N10.2 billion in the reporting period as against the N2.8 billion in the same period of 2019, GTBank declared net interest income after loan impairment charges of N179.6 billion in contrast to M170.2 billion recorded in 2019.

In the first nine months of this year, the financial institution said it raked N37.4 billion as fee and commission income, lower than N48.4 billion a year ago and this was because of the reduction in e-business income, credit-related fees and commissions, corporate finance fees as well as Account services, maintenance and ancillary banking charges.

However, the fee and commission expense rose to N4.7 billion from N1.9 billion due to the spike in bank charges and loan recovery costs. The consequence of this was a decline in the net fee and commission income, which stood at N32.7 billion as against N46.5 billion in 2019 when the operating environment was better.

The bank found solace in other income, which increased to N45.3 billion from N43.8 billion as a result of foreign exchange revaluation gain, which rose to N21.6 billion from N12.4 billion.

There was also a significant rise in the net trading income to N19.0 billion from N9.6 billion due to the spike in the foreign exchange trading gain of N12.1 billion in the period under review compared with N4.0 billion in the corresponding period of last year.

On the balance sheet, the total assets rose to N5.6 trillion from N3.8 trillion in December 2019, with the loan to customers accounting for N1.6 trillion as against N1.5 trillion in the full year of 2019.

For the total liabilities, these stood at N3.8 trillion as against N3.1 trillion in December 2019, with deposits from customers taking N3.2 trillion compared with N2.5 trillion in December 2019.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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