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Guaranty Trust Bank profit climbs 9 per cent

By The Rainbow
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Guaranty Trust Bank Plc has announced a 9.1 per cent climb in first-half profit .

Net income rose to N49 billion from N45.55 billion a year earlier as bad-loan provisions fell to 1.3 billion naira, while lending increased 15 percent to 899 billion naira.

The result was published on the Nigerian Stock Exchange website.

A review of Q2 result shows positive performance across all financial indices. Gross Earnings for the half year period of 2013 stood at N124.20 billion an increase of N10.68 billion from the N113.53 billion reported for the corresponding period in 2012. Profit Before Tax was N57.36billion, up from N53.64 billion recorded in June 2012.

The Bank closed the half year ended June 2013 with Total Assets and Contingents of N2.50trillion, customer deposits of N1.25 trillion and Shareholders' Funds of N296.95 Billion. The Bank's non-performing loans remained low at 3.41%. On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) closed at 33.78% and 5.45% respectively for period ended June, 2013. The Bank is proposing interim dividend payment of N7.36 billion to Shareholders (N0.25 per ordinary share of 50 kobo each).

For Mr. Segun Agbaje, the Managing Director/CEO of Guaranty Trust Bank plc,  the bank's success during the half year period was achieved sue to the continued support of its customers, hard work of its dedicated staff and strong corporate governance standards.

A major objective for the Bank this year, he said, was adding value to its stakeholders through excellent customer service delivery, innovative products and value adding services.

It is the bank's beliefs that success on these fronts would enable it deepen its share of market across all sectors and improve profitability, despite today's extremely challenging business environment. He also thanked the customers for their loyalty and staff for their continued hard work and dedication.

Guaranty Trust Bank plc has always been at the forefront of industry service innovations in markets where it operates, having successfully replicated its culture for excellence in its subsidiaries in Ghana, Gambia, Sierra Leone, Liberia, Cote d'Ivoire and the UK.

The Bank also recently commenced the process of acquiring a 70% stake in Fina Bank of Kenya to enable it extend its reach to East Africa. The acquisition, which is subject to customary regulatory approvals in Kenya, Nigeria, Rwanda and Uganda will see us expand our geographical footprint into three East African Countries; Kenya, Uganda and Rwanda.

Guaranty Trust plans to almost double loan growth to 20 percent this year and boost investments in oil and manufacturing companies, Chief Executive Officer Segun Agbaje said in April. The lender, which operates in six other countries on the continent, agreed last month to pay about $100 million for 70 percent of Kenya's Fina Bank Ltd. to tap growth in East Africa.

'Profit after tax came in much better than expected,' FBN Capital analysts led by Olubunmi Asaolu in Lagos, wrote in an e-mailed note. FBN Capital, which has a neutral recommendation on Guaranty Trust shares, cited the bank's lower-than-expected tax rate of 8.4 percent.

Guaranty Trust shares advanced 1.1 percent to N25.3 at 2:45 p.m. in Lagos, bringing this year's gain to 10 percent. That compares with the 17 percent increase in the 10-member Nigerian SE Banking Index.