Guaranty Trust Bank (GTBank) Plc, Nigeria’s largest lender by market value, has once again surmounted the tough and volatile macroeconomic environment as first quarter profit increased, thanks to foreign exchange revaluation gains.
For the year ended December 2017, GTBank’s net income increased by 7.71 percent to N44.67 billion in December 2017, from N41.67 billion the previous year.
The growth at the top line (profit) was largely due to foreign exchange gains of N5.23 billion in the period under review.
Operating profit, which comprises net fees and commission income, other income and net gains on financial instrument, increased by 41.34 percent to N27.45 billion in December 2017, from N19.42 billion the previous year.
Gross earnings increased by 4.54 percent to N108.32 billion in December 2017, from N103.52 billion as at December 2016.
GTBank’s has been utilising the resources of shareholders in generating higher profit more than any other lender in the country.
Its net margins of 44.67 percent in the period under review are the highest in the industry, based on data compiled by BusinessDay. This means it has turned each Naira invested in sales into higher profit.
GTBank’s loans and advances contracted by six percent to N1.41 trillion in the period under review from N1.50 trillion as at March 2017, due to cautious effort to de-risk the balance sheet, repayment of US Dollar term loans and unwinding of USD trade obligations.
Deposits form customers were up 7.94 percent to N2.31 trillion in March 2017, from N2.14 trillion as at December 2016.
Inspite of the decline in risk assets, net fees and commission income improved by 10.69 percernt to N14.48 billion from improved level of activity evidenced by growth in transactional volumes on the back of our strong retail franchise as well as improved innovation across all the lender’s electronic channels.
GTBank’s other operating expenses increased by 3.06 percent to N32.25 billion in the period under review from N31.29 billion as at March 2017, lower than March inflation figure.
The lender is known for its cost control strategy that has helped strength cost to income ratio.
GTBank’s share price closed at N44.35 as of 2:00 pm April 18, valuing it at N1.30 trillion.