Managing Director/CEO, Guaranty Trust Bank, Mr. Segun Agbaje, has said the bank’s impressive performance in 2016, despite the current state of Nigeria’s economic was a demonstration of the fundamental strength of the bank’s businesses to deliver sustainable long-term growth.
He said the lender would keep up the resilience, momentum and flexibility to better meet growing customer expectations.
“The bank’s financial performance in 2016, does not only reflect the resilience of our franchise, it demonstrates the fundamental strength of our businesses to deliver sustainable long-term growth.
“We successfully navigated the heightened economic uncertainty and regulatory headwinds which dominated the year to deliver a solid performance across all financial and non-financial indices”, Agbaje said while commenting on the results.
Guaranty Trust Bank recorded a profit before tax of N165.14 billion, in its 2016 operating year.
Analysing the results, Agbaje said the profit represented a growth of 37 per cent over the N120.69 billion recorded in the corresponding period of December, 2015.
According to him, the bank’s loan book grew by 16 per cent from N1.373 trillion recorded as at December 2015 to N1.59trillion in December 2016, with corresponding growth in total deposits, which he noted, increased by 29 per cent to N2.111 trillion from N1.637 trillion in December 2015.
Agbaje stated that the bank’s balance sheet remained strong with a 19.7 per cent growth in total assets and contingents, as it closed the 2016 financial year with Total Assets and Contingents of N3.70 trillion and shareholders’ funds of N504.9 billion.
“We are transforming our organisation into a platform for enriching lives by positioning ourselves at the centre of an extended ecosystem that offers our stakeholders, benefits beyond banking. We also remain committed to maximising shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity.”
Agbaje said the bank’s priority to simpler and faster banking helped it grow and retain its customers, adding the lender has in the last five years, tripled its customer base to 9.68 million as at December 31, 2016.
“As part of our strategy to grow our retail business, we are continuously making our banking processes and touch points simple, easier, and faster irrespective of where our customers choose to bank,” he said.
He also said the bank has expanded the range of functionality it offers on internet, mobile and USSD banking platforms, ensuring better experience in its branches and providing more intelligent Automated Teller Machines (ATMs) to allow customers save time through efficient self-service.
The lender, he further noted, has also seen tremendous growth in customer adoption of its digital services.
He added: “We are investing and building our digital capabilities, and also actively seeking to collaborate with FinTech companies.
“Whether we compete or collaborate, we will be aggressively pursuing these digital opportunities, to strengthen our traditional businesses, and going beyond being a bank to becoming a platform that enriches the lives of all customers that it serves.”
GTB posted N165 billion Profit Before Tax (PBT) in its audited financial results for the year ended December 31, 2016.
Further analysis of the results showed positive performance across all financial indices, reaffirming the bank’s position as one of the most profitable and well managed financial institutions in Nigeria.
Gross earnings for the period grew by 37 per cent to N414.62 billion from N301.85 billion reported in the December 2015 review period. The performance was driven primarily by growth in interest income as well as foreign exchange income, Agbaje said.
According to Agbaje, the bank’s non-performing loans remained low and within regulatory threshold at 3.66 per cent, with adequate coverage of 131.79 per cent. Increase in collective impairment was borne out of the prudent stance of the Bank, while Capital remains strong with CAR of 19.79 per cent.
On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) closed at 35.96 per cent and 5.85 per cent. The bank is proposing final dividend of 175 kobo per unit of ordinary share held by shareholders in addition to interim dividend of 25 kobo per unit of ordinary share, thus bringing total dividend for 2016 financial year to N2 per unit of ordinary share.