Guaranty Trust Bank Declares N103bn Profit Before Tax

Guaranty Trust Bank Plc has declared a N103 billion profit before tax for the financial year ended December 2012, representing 66 per cent growth compared to the N66.08 billion recorded in 2011, the highest for any Nigerian bank.

The financial result which was declared to operators of the Nigerian Stock Exchange (NSE) showed improved gross earnings of N221.9 billion, and N87.3 billion profits after tax, a growth of 69 per cent over the N51.7 billion declared in 2011.

“The bank closed the 2012 financial year with an on-balance sheet size of N1.73 trillion an improvement of N1.608 trillion in 2011, while total assets and contingents stood at N2.26 trillion representing a growth of 8 per cent and 6 per cent respectively,” statement made available to LEADERSHIP yesterday, said.

A further breakdown of the result showed that deposit liabilities of the group grew by 12 per cent to 1.15 trillion in 2012, reflecting a decent growth of N120 billion from the N1.03 trillion closing position in the corresponding period of 2011.

“This growth in customer deposits fuelled the increase in the loon book as net loans and advances closed at N783.9 billion, translating to a growth of 11 per cent over the N707.05 billion in the comparative period of 2011. Shareholders’ funds increased from N230.4 billion in 2011to N283.4 billion in 2012,” the statement added.

According to analysts, the performance confirmed GTBank as the first and only Nigerian bank to cross the N100 billion profit before tax milestone.

Further analysis showed non-performing loans ratio standing at 3.4 per cent compared to 3.5 per cent in 2011, while cost-to-income ratio improved to 42.7 per cent from 52.9 per cent in 2011.

The bank’s 2012 tax liabilities was over N16.3 billion, while total dividend payment for the financial year is projected at N45.62 billion (N1.55 per ordinary share of 0.50 kobo each).

The Chief Executive Officer of Guaranty Trust Bank, Segun Agbaje, attributed the success to its adherence to a defined growth plan, high corporate governance standards and the cultural values for which it was known.