GTB posts N150b pre-tax profit in 9 months

Guaranty Trust Bank (GTB) Plc, rode on the back of improvement in core banking operations to record a pre-tax profit of N150.03 billion by the end of third quarter 2017.

Highlights of the nine-month earnings report submitted by GTB to the Nigerian Stock Exchange (NSE) showed that while decline in non-interest and fee incomes depressed the top-line marginally, considerable improvement in core lending activities impacted positively on the bottom-line.

The report for the period ended September 30, 2017 showed that profit before tax rose to N150.03 billion in third quarter 2017 as against N137.99 billion recorded in corresponding period of 2016. Profit after tax also increased from N117.08 billion in third quarter 2016 to N125.58 billion in third quarter 2017. Earnings per share consequently improved from N4.14 in 2016 to N4.44 in 2017.

Group gross earnings however declined from N329.28 billion in third quarter 2016 to N309.91 billion in third quarter 2017. The decline in the top-line was due to decline in non-interest and other incomes. Interest income had grown from N181.91 billion to N248.27 billion.

Group balance sheet size increased to N3.2 trillion by September 2017 compared with N3.12 trillion recorded at the beginning of this year. Deposits from customers declined marginally from N1.99 trillion to N1.9 trillion. Shareholders’ funds meanwhile increased from N496.06 billion to N571.62 billion.

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Analysts at FBN Capital said they expected positive reaction to the third quarter results noting that despite the decline in earnings, the market will rather focus on the broad positives, particularly the decreases in operating expenses and loan loss provisions.

According to analysts, although the bank’s shares have gained 65 per cent year-to-date compared with 36 per cent by the benchmark All Share Index of the Nigerian Stock Exchange (NSE), there should be a slight positive reaction from the market to the third quarter results.

 

 

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