GTBank's Profit Before Tax Hits N103bn

By The Citizen

Guaranty Trust Bank plc has released its audited financial results for the December 2012 financial year to operators of the Nigerian Stock Exchange and reported a Profit Before Tax of N103 billion, the highest for any Nigerian Bank.

The Group's results also show improved Gross Earnings of N221.9 billion, 66% growth in Profit Before Tax to N103 billion (2011: N66.08 billion) and 69% improvement in Profit After Tax to N87.3 billion; (2011: N51.7 billion),

The Bank closed the 2012 financial year with an On-Balance Sheet size of N1.73 trillion (2011: N1.608 trillion) while Total Assets and Contingents stood at N2.26 trillion (2011: N2.14 trillion) representing a growth of 8% and 6% respectively.

Further analysis shows that deposit liabilities of the Group grew by 12% to N1.15 trillion in 2012, reflecting a decent growth of N120 billion from the N1.03 trillion closing position in the corresponding period of 2011. This growth in customer deposits fuelled the increase in the loan book as Net loans and Advances closed at N783.9 billion, translating to a growth of 11% over the N707.05 billion in the comparative period of 2011. Shareholders' funds increased from N230.4 billion in 2011 to N283.4 billion in 2012.

In terms of asset quality, the bank also impressed as Non Performing Loans (NPL) ratio stood at 3.4% compared to 3.5% in 2011, while Cost-to-Income ratio improved significantly to 42.7% from 52.9% in 2011. On the backdrop of this strong operating performance, Return on equity (ROE) and Return on Assets (ROA) closed at 33.9% and 5.2% from the 23.2% and 3.7% recorded in 2011, respectively.

The Bank's stance as an upstanding social citizen and commitment to full disclosure was further evidenced by its 2012 tax liabilities, which came to over N16.3 billion. The total dividend payment for the financial year is projected at N45.62 billion (N1.55 per ordinary share of 0.50 kobo each).

Commenting on the results, Mr. Segun Agbaje, Chief Executive Officer of Guaranty Trust Bank plc, attributed the Bank's success to its adherence to a defined growth plan, high corporate governance standards and the cultural values for which it is known. He said these factors, coupled with a resourceful board, an in-depth understanding of the market and the passion of GTBank employees have enabled the Bank grow market share and continue to avail its stakeholders with value adding services.