NIGERIA -Guaranty Trust Bank Plc (GTB) has announced an increase in its gross earnings posting a N455.229 billion (US$1.11bn) in 2020, a 4.6 per cent from N435.307 billion (US$1.06bn) recorded in 2019.
Net interest income grew by 9.6 per cent from N231.363 billion (US$0.56bn) to N253.668 billion (US$0.62bn), while net fee and commission income fell from N59.444 billion (US$0.14bn) to N46.935 billion (US$0.11bn).
Loan impairment charges soared by 298 per cent to N19.573 billion (US$48m), from N4.912 billion (US$12m) in 2019. Personnel expenses witnessed a marginal increase from N37.284 billion (US$91m) to N37.606 billion (US$92m), while other expenses rose by 14.2 per cent from N68.879 billion (US$0.17bn) to N78.677 billion (US$0.19bn).
“The result is a reflection of how we have appropriately positioned our balance sheet to cope with current economic realities and the challenging business environment.”Segun Agbaje – CEO, GTBank
Profit before tax rose to N238.095 billion (US$0.58bn), indicating a growth of 2.8 per cent compared with N231.708 billion (US$0.56bn) in 2019. Profit after tax grew by 2.3 per cent to N201.439 billion (US$0.49bn) from N196.708 billion (US$0.48bn) in 2019.
A further breakdown of the results showed that GTBank grew its deposits from N2.532 trillion (US$6.17bn) to N3.509 trillion (US$8.55bn), while loans and advances improved from N1.501 trillion (US$3.66bn) to N1.662 trillion (US$4.05bn).
It also recorded a final dividend of N2.70 dividend per share for the year ended December 31, 2020, following the release of its audited results for the year.
The dividend, added to the 30 kobo interim dividend paid last year, brings the total dividend to N3.00 per share. According to the results, GTBank recorded increases in all performance indicators despite the challenging operating environment that prevailed in 2020.
The Group Managing Director/CEO of GTBank, Mr. Segun Agbaje, had last November said the continued resilient performance of the bank despite the headwinds was due to the positioning of its balance sheet to cope with the economic realities.
“The result is a reflection of how we have appropriately positioned our balance sheet to cope with current economic realities and the challenging business environment,” Agbaje said.
It is also a testament to the enduring loyalty of our customers, the hard work and dedication of our staff and the unwavering support we continue to enjoy from all our stakeholders in our drive to deliver best-in-class financial services and superior and sustainable returns.”
He had assured stakeholders that the bank would continue to build on its commitment to enriching lives by leveraging its digital-first customer-centric strategy to improve customer experience and maintain a high standard in service delivery and going beyond banking to create and drive innovative financial solutions that add value to customers’ lives.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE