Guaranty Trust Bank plc has released its unaudited financial results for the period ended March 31, 2020.
The results at both the Nigerian and London Stock Exchanges show positive performance across all financial indices, reaffirming the Bank’s position as one of the most profitable and well managed financial institutions in Nigeria.
Meanwhile, stock investors are not pricing in this positives lately as the share price remained at record low of N19.90 on Tuesday April 21 representing negative year to date return of about 38.2percent.
The share price went further down to N18.6 on Wednesday April 22 nearing is 52-week low of N16.70 as against its 52-week high of N34.65.
Profit before tax stood at N58.2billion, representing a growth of 2.1percent over N57.0billion recorded in the corresponding period of March 2019.
The Bank’s Loan Book grew by 8percent from N1.502trillion as at December 2019 to N1.622trillion in March 2020, while customers’ deposit increased by 9.3percent to N2.768trillion from N2.533trillion in the same period.
GTBank maintained a well-structured and diversified balance sheet with Total assets and Shareholders’Funds closing at N4.057trillion and N661.1Billion respectively. Full Impact Capital Adequacy Ratio (CAR)remained very strong, closing at 23.5percent.
In terms of Assets quality, NPL ratio and Cost of Risk (COR)improved to 6percent and 0.1percent in March 2020 from 6.5percent and 0.3percent in December 2019 respectively.
Loan Loss coverage also improved to 130.5percent for Lifetime Credit Impaired Loans (NPLs) compared to 126.6percent in December 2019.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, SegunAgbaje, said; “These are very difficult and uncertain times, not just for the financial services sector and the economy as a whole, but also for hundreds of millions of people around the world whose lives and livelihoods have been put at risk by the COVID-19 pandemic.
“At GTBank, we know that the impact of thispandemic may sustain for months to come, but we remain positive that, by staying nimble and continuingto build on the strength of our businesses, we are appropriately positioned to cope with emerging economic realities, as reflected in our first quarter result.”
He further stated that, “As a platform for enriching lives, our focus is on safeguarding lives and livelihoods.That is why we are working round the clock to keep all our members of staff and customers safe,supporting the government in combatting the pandemic and being there for our customers in every way that they may need our support at this time,”, the CEO said.
Over all, Guaranty Trust Bank plc continues to be best-in-class in the Nigerian banking industry in termsof financial ratios i.e. Post-Tax Return on Equity (ROAE) of 29.7percent, Post-Tax Return on Assets (ROAA) of 5.1percent, and Cost to Income ratio of 40.6percent.
These ratios reflect the Management stability and well-structured Balance sheet coupled with operational efficiency. In recognition of the Bank’s bias for world class corporate governance standards, excellent service delivery and innovation, GTBank has been a recipient of numerous awards over the years. Some of the awards include Best Bank in Africa and Best Bank in Nigeria, by the Euromoney Magazine (2019), Best Banking Group and Best Retail Bank Nigeria from World Finance Magazine (2019), Bank of the Year -Nigeria from the Banker Magazine (2018), Most Innovative Bank from the African Investor (2018), and Best Digital Banking Brand in Nigeria from the Global Brands Magazine (2018).
Iheanyi Nwachukwu
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