GTB declares N7.36b dividend as profit rises to N91.4b in first half

The board of directors of Guaranty Trust bank (GTB) Plc has recommended distribution of about N7.36 billion to shareholders as interim dividend for the first half of this year. The dividend recommendation was part of the highlights of the audited report and accounts of the bank for the period ended June 30, 2016 released on Wednesday.
The breakdown of the gross dividend recommendation indicates that shareholders would receive an interim dividend
per share of 25 kobo.

The six-month report showed that the bank recorded considerable growths in the top-line and bottom-line as pre-tax profit rose by 45 per cent to N91.4 billion. Gross earnings rose by 37 per cent to N209.9 billion in first half 2016 as against N153 billion recorded in comparable period of 2015. Profit before tax rose from N63.11 billion to N91.38 billion. After taxes, net profit stood at N77.46 billion in first half 2016 compared with N53.37 billion
recorded in first half of 2016.

Total assets rose to N2.93 trillion by June 2016 as against N2.52 trillion recorded by December 31, 2015. The bank’s loan book grew by 14 per cent from N1.37 trillion recorded as at December 2015 to N1.56 trillion by June 2016. Total deposits also increased by 23 per cent to N2.01 trillion by June 2016 as against N1.64 trillion by
December 2015.

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However, the proportion of non-performing loans to gross loans and advances spiked up slightly to 4.39 per cent but the group made coverage of 170.1 per cent to cushion the bad assets. The bank’s capital adequacy remains strong with capital adequacy ratio of 18.25 per cent while return on equity (ROAE) and return on assets (ROAA) stood at 35.8 per cent and 5.7 per cent respectively.

Managing director, Guaranty Trust Bank (GTB) Plc, Mr Segun Agbaje said the bank had prepared well for the challenges in the industry by focusing on effective management of the balance sheet and adapting its business model
to changing market variables.

“The quality of our past decisions enabled us navigate the challenges that persisted in the business environment most of the half year period,” Agbaje said.

According to him, while the current economic realities present some challenges to growth, the bank remains committed to its ideals of staying positive, delivering exceptional service to its customers and adding value to all stakeholders.

He noted that with this solid financial result in the first half, GTB has continued to enshrine its position as a clear leader in the banking industry in Nigeria, with strong showing in Africa, a position validated by numerous awards and accolades received by the bank during the course of the year in recognition of its leading role in Africa.

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