GTB’s half-year profit drops to N94bn as COVID-19 worsens spending

Guaranty Trust Bank (GTB) Wednesday said its half-year 2020 profit stood at N94.271 billion, 5% weaker than the figure it reported in the same period of last year as the coronavirus pandemic escalates cost of doing business.

“We were able to manage our controllable cost prudently even though we incurred some unexpected Covid-19 related costs some of which include additional investment in technology, to enable staff work from home, cost associated with implementing enhanced safety procedures and other COVID 19 protocols.

“In addition, the impact of inflation was also pronounced in the first half of the year. Overall, operating expense grew by ₦13.44bn (19.2%) from ₦69.87bn in June 2019 to ₦83.31bn in June 2020,” the lender said in its 2020 audited financial statement posted by the Nigerian Stock Exchange (NSE).

Gross Earnings rose to N225.139 billion from N221.870 billion, indicating a 1.47% growth.

Net Interest Income jumped by 9.67% to N127.615 billion, up from N116.365 billion.

However, Net Fees and Commission Income plunged from N33.844 billion to N22.294 billion, meaning a 34.13% decline.

Pre-tax profit was 5.25% weaker, falling from N115.747 billion to N109.714 billion.

Profit for the period came to N94.271 billion from N99.133 billion, translating to 4.9% decrease.

Earnings Per Share (EPS) contracted by 5.14% from N3.50 to N3.32.

Read also: GTB grows profit to N196.9bn, proposes N2.50 final dividend

The outstanding shares of GTB currently total over 29.431 billion with a market capitalisation of N754.910 billion, making it Nigeria’s biggest bank by market value.

Its EPS is currently N6.80 while its price-to-earnings ratio is 3.78.

The company’s board has announced an interim dividend payout of N0.30 per every 50 kobo share subject to the deduction of appropriate withholding tax for shareholders whose names appear on the register of members at the close of business on 15^th September.

The payment date is 21^st September.

Shares in GTB opened trade on the floor of the NSE on Thursday at N25.65 per share.

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