Guaranty Trust Bank Plc, now Guaranty Trust Holding Company has recorded a profit before tax of N93.1 billion, representing a drop of 15.2 per cent compared to N109.7 billion which the bank reported in the corresponding period of June 2020.
According to the six months results which the bank released to the Nigerian and London Stock Exchanges, the results show a decent performance across key financial metrics against the challenging business environment.
According to a statement from the bank’s corporate Head Office, this performance reaffirms GTBank’s ability to cope effectively in depressed times, and as one of the most profitable and well managed financial institutions in Nigeria.
However, the Group’s transactional income maintained an upward trajectory as shown in fees and commission income which grew by 44.7 per cent from N26.5 billion in H12020 to N38.3 billion in H1 2021.
The structure and earning capacity of the Group’s balance sheet remains resilient with total assets closing at N5.017trillion, primarily driven by a 4 per cent increase in deposit liabilities from N3.611 trillion in December 2020 to N3.755trillion in June 2021 and a slight dip in loans (net) by 1.8 per cent from N1.663trillionas at December 2020 to N1.632trillion in June 2021.
However, the dip in profit can be attributed to thepresent realities of the operating environment.
Full Impact Capital Adequacy Ratio remained verystrong, closing at 24.0 per cent while Asset quality was sustained as NPL ratio and Cost of Risk closed at 6.0 per cent based on IFRS (6.8 per cent based on CBN Prudential Guidelines) and 0.27 per cen in June 2021 to 6.4 per cent and1.18 per cent in December 2020, respectively.
Commenting on the financials, Mr Segun Agbaje, Group Chief Executive Officer of Guaranty TrustHolding Company Plc said: “The results reflect our commitment to building on our track record of solidfinancial performance, and our capability to constantly innovate will ensure we stay ahead of the curve at all times.
“We are counting on the enduring support of our loyal customers and the hard work of our dedicated staff to continually make end-to-end financial services easily accessible to everyone and tocreate the best outcomes for all our customers and the communities in which we operate.”
Agbaje said; “Looking forward, we are focused on bringing to bear the full benefits of our new corporate structure by consolidating our leading position in all the economies where our franchise operates.
“We will also diversify our earnings from core banking, continue to empower businesses across Africa and beyond, and generate long-term returns for our shareholders.”