Guaranty Trust Bank plc has reported a 4.6 percent decline in gross earnings to N75.39 billion, a 6.1 percent decline in Profit Before Tax to N30.68 billion and 3.6 percent decline in Profit After Tax (PAT) to N25.61 billion in the first quarter of 2016.
The unaudited financial results for the first quarter ended March 31, 2016 released to the Nigerian and London Stock Exchanges, was affected by decline in trading and revaluation gains occasioned by foreign exchange paucity.
The Bank also reported a post-tax ROAE of 24.19 percent and ROAA of 3.96 percent respectively, while Shareholders’ funds closed at N433.41 billion.
The bank’s Balance Sheet had a 5.2 percent growth in Total Assets to N2.66 trillion (FY 2015: N2.52 trillion). Loan book declined slightly by 0.7 percent to close at N1.36 trillion (FY 2015: N1.37 trillion), while customer’s deposit grew by 10.3 percent to N1.78 trillion.
The bank said that it approached its loan growth with disciplined strategy, in line with its Risk Management strategy, thus Non Performing Loans (NPL) of the bank for the period under review is still well within range at 3.51 percent and Net Interest Margin (NIM) for the period under review declined marginally by 9bps to 8.12 percent from 8.21 percent in Q1 2015.
Segun Agbaje, the Managing Director and Chief Executive Officer of the bank stated that “Despite a slow start in economic activity in 2016 and the extremely challenging business environment, the Bank recorded decent performance across key financial indices during the period.”.
He added that “We understand that there’s a lot more work to be done, we are however prepared for the challenges and opportunities that lie ahead the 2016 financial year”.
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