Guaranty Trust Bank plc, parent company of Guaranty Trust Bank (Ghana) Limited has announced a 2014 half year profit before tax of about $324 million, equivalent to N53.40 billion.
The amount represents a 7 per cent dip from the N57.4 billion (about USD348 million) recorded in the corresponding year 2013, due to loan impairment charged to the Profit and Loss account during the period.
This impairment charge was as a result of a significant loan that the Bank decided to provide for following the demise of the obligor in line with GTBank’s laid down corporate governance practices.
A review of the audited financial results for the half year ended June 30, 2014 released to the Nigerian and London Stock Exchanges shows positive performance across key financial indices, despite extremely challenging business environment and increasing regulatory headwinds.
Gross earnings for the period grew by 7% to N132 billion (about USD801 million) from the N124 billion (USD753 million) reported for the same period in 2013.
The Bank’s loan book also grew by 16% from N899billion (about USD5.5 billion) recorded in June 2013 to N1.04 trillion (about USD6.3 billion) in June 2014 and total customer deposits increased by 8% to N1.54 trillion (about USD9.4 billion) as at June 2014.
Commenting on the results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje attributed the Bank’s performance for the 2014 half year period to the hard work of its staff across all subsidiaries of the Bank, commitment of its Management Team and more importantly, continued support from its customers.
He further stated that the second half of the 2014 financial year will be a stronger period during which the bank will make positive improvements in its market positions across its key products and business segments.
A major objective for the Bank this year, as mentioned by Mr. Segun Agbaje, is to offer customers greater convenience and accessibility to the Bank’s services using internet and mobile solutions. “We have, to date achieved over a million downloads of our mobile banking app and experienced a 25% increase in active internet banking users in Nigeria alone”, he stated.
The Managing Director of Guaranty Trust Bank (Ghana) Limited, Mr. Lekan Sanusi, also commenting on the release of the group’s results stated that, “It is always a delight to see that our Bank is doing well, despite challenging business operating environments. This performance goes to once again assure customers and other stakeholders that they are doing business with a strong brand”.
The GTBank group has always been at the forefront of industry service innovations within markets wherein it operates, having successfully replicated its culture for excellence in banking subsidiaries in Cote D’ Ivoire, The Gambia, Ghana, Kenya, Liberia, Rwanda, Sierra Leone, Uganda and United Kingdom.
In recognition of its high service standards, sound management quality and strong financial performance, the Bank has been the recipient of numerous awards over the years that most recently include: the African Bank of the Year from African Banker, 2014 Best Banking website by Phillips consulting, 2014 Best Bank in Nigeria from Business Day, 2014 Best Bank in Nigeria and Best Bank in Africa from Euromoney Magazine.
It is noteworthy to mention that the Bank is the 1st Bank in Nigeria to receive the Euromoney Best Bank in Africa award.
In a related development, Guaranty Trust Bank Plc has boosted the liquidity position of its shareholders by announcing an interim dividend of N7.357 billion (about USD44.7 million) for the half year ended June 30, 2014.
The Bank has been consistent with its policy of paying shareholders interim and final dividends.
The current dividend, which translates into 25 kobo dividend per share, is similar to what was paid last year.
Signed by:
Ben Ackah-Mensah
Group Head, Corporate Affairs & Administration
