By Dipo Olowookere
Shareholders of Guaranty Trust Bank (GTBank) Plc will receive a higher dividend for the 2020 financial year despite the harsh challenges faced by the business environment in the year.
On Thursday, the lender released its much-awaited audited results for 2020 full-year and the board recommended the payment of N2.70 final dividend, higher than N2.50 paid in the same period of last year.
The GTBank dividend would be paid to shareholders whose names appear on the register of members at the close of business on Wednesday, March 31, 2021, while the payment would be made on Friday, April 9, 2021, after approval at the Annual General Meeting (AGM) fixed for the same day at the Oriental Hotel, Lagos by 10.00am.
Review of GTBank 2020 results
A look into the results showed improved performance across all key financial metrics in the face of the unprecedented challenges brought on by the COVID-19 pandemic, reflecting the quality of past decisions and reaffirming its position as one of the best managed financial institutions in Africa.
GTBank reported profit before tax of N238.1 billion, 2.8 per cent higher than N231.7 billion recorded in the corresponding year ended December 2019, while the profit after tax marginally grew by 2.3 per cent to N201.4 billion from N196.9 billion a year earlier.
Also, the net loan book of the lender grew by 10.7 per cent from N1.502 trillion recorded as at December 2019 to N1.663 trillion in December 2020, while customers’ deposits increased by 38.6 per cent from N2.533 trillion in December 2019 to N3.509 trillion in December 2020.
Its balance sheet remained well structured, diversified and resilient with total assets and shareholders’ funds closing at N4.945 trillion and N814.4 billion respectively.
Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 21.9 per cent, while asset quality was sustained as NPL ratio and Cost of Risk (COR) closed at 6.4 per cent and 1.2 per cent in December 2020 from 6.5 per cent and 0.3 per cent in December 2019 respectively.
GTBank MD/CEO comments
Commenting on the financial results, the Managing Director/CEO of GTBank, Mr Segun Agbaje, said, “2020 was arguably the most challenging year that the world has faced in decades.
“In such unprecedented times, we sought to live out the full extent of our values; safeguarding lives and livelihoods for our people, our customers and across the communities where we operate.
“We were on solid footing going into 2020; the strength, scale and liquidity of our balance sheet, coupled with the quality of our past decisions and the efficacy of our digital-first customer-centric strategy gave us the resilience and flexibility to navigate the economic shocks and market volatility that dominated the year.”
He further stated that, “Amidst the many challenges that persist, we remain ardent believers in Africa’s growth potential. Our world is increasingly digital, and we see it opening new and exciting opportunities for empowering people and uplifting our communities.
“With our commitment to deepening customer relationships and intense focus on delivering innovative financial solutions, we enter 2021 well-positioned to lead this new world.”
GTBank financial ratios
GTBank continues to post the best metrics in the Nigerian banking industry in terms of all financial ratios i.e. Post-Tax Return on Equity (ROAE) of 26.8 per cent, Post-Tax Return on Assets (ROAA) of 4.6 per cent, Full Impact Capital Adequacy Ratio (CAR) of 21.9 per cent and Cost to Income ratio of 38.2 per cent.
Renowned for its forward-thinking approach to financial services and customer engagement, GTBank 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 Bank 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