Dipo Olowookere
By Dipo Olowookere
Managing Director/CEO of Guaranty Trust Bank (GTBank) Plc, Mr Segun Agbaje, has assured shareholders that the financial institution will grow its earnings in the fourth quarter of this year by improving customer experience and expanding its range of service offering.
Mr Agbaje gave this assurance while commenting to the third quarter financial results of the pan-African bank released recently to the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE).
A review of the results shows positive performance across all financial indices, reaffirming the lender’s position as one of the most profitable and well managed financial institutions in Nigeria.
For example, the gross earnings for the period grew by 8.8 percent to N337.3 billion from N309.9 billion reported in September 2017, while the profit before tax stood at N164.2 billion, representing a growth of 9.5 percent over N150.0 billion recorded in the corresponding period of September 2017.
Business Post reports that during the period under review, GTBank’s Loan Book dipped by 12.3 percent from N1.449 trillion recorded as at December 2017 to N1.270 trillion in September 2018, while customers’ deposit grew by 8.6 percent to N₦2.239 trillion from N2.062 trillion in December 2017.
Furthermore, the bank’s balance sheet remained resilient with total assets and shareholders’ funds, closing at N3.433 trillion and N534.3 billion respectively, a 2.4 percent growth from total assets position of n3.351 trillion as at December 2017, Capital Adequacy Ratio (CAR) however dipped by 300 basis points to 22 percent despite the impact of IFRS 9 implementation.
In terms of assets quality, NPL ratio and Cost of Risk (COR) improved to 5.6 percent and 0.1 percent in September 2018 from 7.8 percent and 0.5 percent position in December 2017 respectively.
Complementing the improvement noted in NPLs and COR, the lender maintained adequate Loan Loss coverage of 180.6 percent for Lifetime Credit Impaired Loans (NPLs).
On the backdrop of this result, Post-Tax Return on Equity (ROE) closed at 32.7 percent while Return on Assets (ROA) stood at 5.6 percent.
For Mr Agbaje, “Despite operating in a very challenging business environment, our 3rd quarter result is a reflection of how we have appropriately positioned our balance sheet to cope with economic realities.”
“It further demonstrates the strength of our business strategy to deliver financial services that enriches the lives of our customers and creates more value for all our stakeholders,” he added.
The bank chief said, “Going into the final quarter of the year, the bank will continue to drive its digital-first customer-centric strategy to improve customer experience and expand its range of service offering whilst constantly differentiating itself by maintaining a high standard in service delivery and putting customers at the heart of everything that we do.”
In recognition of the bank’s stance on world class corporate governance standards, excellent service delivery and innovation, GTBank has been a recipient of numerous awards in the course of the year. They include Africa’s Best Bank for SMEs and Best Bank in Nigeria from Euromoney Magazine, African Bank of the Year from African Banker Magazine, Best Banking Group and Best Retail Bank from World Finance Magazine, Best Bank in Africa for Corporate Governance from Ethical Boardroom Magazine.
