Guaranty Trust Bank yesterday announced a profit after tax of N90.02bn for the financial year ended December 30, 2013, an increase of 3.1 per cent when compared to N87.3bn recorded in the same period of 2012.
The bank’s profit before tax rose 3.9 per cent to N107.09bn in 2013, from N103.03bn posted in 2012, while return on average equity was up 29.3 per cent. Earnings per share stood at 317 kobo and total dividend for the year at 170 kobo.
Analysis of the result showed a loan book of N1.007trn, up 28.6 per cent when compared to N783.9bn recorded in the corresponding period of 2012.
According to the result presented to the Nigerian Stock Exchange, customers deposit stood at N1.44trn in 2013, up 23.1 per cent from N1.17trn recorded in 2012.
The bank’s non-performing loan dropped to 3.58 per cent in 2013, from N3.75 per cent in 2012, while net interest margin stood at 8.87 per cent in the review period, from N9.46 per cent in 2012.
Speaking on the result, the bank’s Managing Director, Mr. Segun Agbaje attributed the drop in the margin to a reflection of robust revenue generation and balance sheet efficiency in era of declining yields and regulatory headwinds.
He explained that the bank current drive is for sustainable efficiency in operations with an aim to achieve 40 per cent cost to income ration by 2016.
In 2013, Agbaje said the bank successfully completed its acquisition of Fina Bank and its subsidiaries, saying that Fina Bank has now been rebranded to Guaranty Trust Bank, Kenya, Rwanda and Uganda.
He said, “Fina Bank was already a profitable venture prior to its acquisition and we are confident that it will be a lot more profitable, efficient and innovative under the Guaranty Trust Bank umbrella.”
Agbaje said that the bank will recoup losses from reduced tariff and charges by growing its volumes in the coming years.
He said that bank had built robust technology infrastructure to drive its mobile and electronic banking channels pointing out that the growth prospects in the retail space were enormous.
Pointing out that Nigeria had a young and large population many of which remain unbanked or under banked, Agbaje predicted that the mobile phone was going to be the dominant banking channel in the near future and that the bank had developed world-class applications that offered as wide range of services for users.
He also said that the bank was focussing more on small and medium enterprises which now account for 10 per cent of its loan portfolio and that such entities stood to benefit from institutional support such as GTB’s online market hub that would soon be launched.
