Dipo Olowookere
By Dipo Olowookere
The audited financial results for the year ended December 31, 2016 released by Guaranty Trust Bank Plc (GTBank) to the Nigerian and London Stock Exchanges revealed that the financial institution grew its gross earnings by 37 percent to N414.6 billion from N301.9 billion reported in December 2015.
In the financial statements, the firm had positive performance across all financial indices, reaffirming its position as one of the most profitable and well managed financial institutions in Nigeria.
It was observed that its performance was driven primarily by growth in interest income as well as foreign exchange income.
Profit before tax stood at N165.14 billion, representing a growth of 37 percent over N120.69 billion recorded in the corresponding period of December 2015.
During the year under review, the bank paid a tax of N32.9 billion against N21.3 billion it paid in December 2015, leaving its profit after tax at N132.3 billion in 2016 compared with N99.4 billion it recorded two years ago.
Also, the bank’s loan book grew by 16 percent from N1.373 trillion recorded as at December 2015 to N1.590 trillion in December 2016 with corresponding growth in total deposits which increased by 29 percent to N2.111trillion from N1.637 trillion in December 2015.
GTBank’s balance sheet remained strong with a 19.7 percent growth in total assets and contingents as the bank closed the year ended December 2016 with Total Assets and Contingents of N3.70 trillion and Shareholders’ Funds of N504.9 billion.
Its non-performing loans remained low and within regulatory threshold at 3.66 percent (Bank: 3.29 percent) with adequate coverage of 131.79 percent (Bank: 150.80 percent).
Increase in collective impairment was borne out of the prudent stance of the bank, while capital remains strong with CAR of 19.79 percent.
On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) closed at 35.96 percent and 5.85 percent respectively.
The bank is proposing final dividend of 175k per unit of ordinary share held by shareholders in addition to interim dividend of 25k per unit of ordinary share bringing total dividend for 2016 financial year to N2 per unit of ordinary share.
Commenting on the financial results, Managing Director of GTBank, Mr Segun Agbaje, said that, “The bank’s financial performance in 2016, does not only reflect the resilience of our franchise, it demonstrates the fundamental strength of our businesses to deliver sustainable long-term growth.
“We successfully navigated the heightened economic uncertainty and regulatory headwinds which dominated the year to deliver a solid performance across all financial and non-financial indices.”
He further stated that, “We are transforming our organization into a platform for enriching lives by positioning ourselves at the centre of an extended ecosystem that offers our stakeholders, benefits beyond banking.
“We also remain committed to maximising shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity.”
GTBank has continued to report the best financial ratios for a financial institution in the industry as revealed by its return on equity (ROE) of 35.96 percent and cost to income ratio of 40.76 percent evidencing the efficient management of assets and operational efficiency.
Overall, the bank has enshrined its position as a clear leader in the industry.
In recognition of its innovation and hard work, GTBank received over 20 international awards in 2016.
