GTBank’s annual profit rises to N238bn

GTBank’s annual profit rises to N238bn

Guaranty Trust Bank Plc has reported a profit before tax of N239.09bn for the 2020 financial year, up from N231.71bn in 2019.

GTBank, which released its audited financial statements on Thursday, said its profit after tax rose to N201.44bn last year from N198.85bn in 2019.

Its gross earnings increased by 4.58 per cent year-on-year to N455.23bn from N435.31bn.

Deposits from customers surged by 38.74 per cent to N3.51tn in 2020 from N2.53tn a year ago, while loans and advances to customers rose to N1.66tn from N1.50tn.

GTBank said during the 2020 financial year, its directors declared and paid an interim dividend of 30 kobo per ordinary share on the issued capital of 29,431,179,224 ordinary shares of 50 kobo each, for the half-year period ended June 30, 2020.

“The directors recommend the payment of a final dividend of N2.70k per ordinary share of 50 kobo (bringing the total dividend for the financial year ended December 31, 2020 to N3.00k (2019: N2.80K per share). Withholding tax would be deducted at the point of payment,” it added.

Analysts at Cordros Capital Limited said despite weaker performance in the third and fourth quarters of 2020 and as the performance came under pressure as expected, the bank managed to record a relatively stronger performance primarily due to a 30.8 per cent quarter-on-quarter decline in interest expense.

“In conjunction with sustained efficiency and performance across key lines, FX revaluation gains, this strong balance sheet management was responsible for the performance recorded. Our estimates are under review,” they said in an emailed note on Thursday.

Commenting on the financial results, the Managing Director/Chief Executive Officer, Guaranty Trust Bank Plc, Mr Segun Agbaje, said, “2020 was arguably the most challenging year that the world has faced in decades.

“In such unprecedented times, we sought to live out the full extent of our values; safeguarding lives and livelihoods for our people, our customers and across the communities where we operate.

“We were on solid footing going into 2020; the strength, scale and liquidity of our balance sheet, coupled with the quality of our past decisions and the efficacy of our digital-first customer-centric strategy gave us the resilience and flexibility to navigate the economic shocks and market volatility that dominated the year.”

He added, “Amidst the many challenges that persist, we remain ardent believers in Africa’s growth potential. Our world is increasingly digital, and we see it opening new and exciting opportunities for empowering people and uplifting our communities.

“With our commitment to deepening customer relationships and intense focus on delivering innovative financial solutions, we enter 2021 well-positioned to lead this new world.”s.