Guaranty Trust Bank to Deepen SME Banking In 2013
Banking - Outgoing Chairman of Guaranty Trust Bank Plc, Mr. Oluwole Oduyemi, said that the bank would witness the emergence of a virile small and medium scale banking business in 2013. Speaking at the Annual General Meeting of the bank in Lagos, he said, "This will support entrepreneurship in various sectors which will drive the expected growth in the local economy. We will also seek to convert more of the unbanked population in Nigeria through increasing accessible mobile money services."
He however said that the recent revision of Asset Management Company of Nigeria, AMCON Debt Redemption Sinking Fund from 0.3 per cent to 5 per cent of total asset effective January, 2013, is expected to impact on the cost to income ratio of banks.
Commending the Board of Directors of the Bank for this feat, the shareholders unanimously approved the payment of N45.62 billion as total dividend for the Bank's financial year ended 2012.
This represents 43.3 per cent of the profit figure of N103 billion declared by the bank at the end of December, 2012.
This translated into a dividend of N1.30 per 50 kobo share held and brought total shareholder receipts for the year to N1.55 per share, when added to the interim dividend payout of N0.25 per share the Bank made last year.
Key highlights of the AGM which took place in Lagos were the announcement of the retirement of the incumbent Chairman of the Bank, Mr. Oluwole Oduyemi in compliance with the bank's code of corporate governance which stipulates a retirement age of 70 years for Non-Executive Directors of the Bank and the presentation of Mr. Egbert Imomoh as the new Chairman of the Bank.
The shareholders applauded the strong corporate governance of the Bank and expressed optimism over the ability of the management team to position GTBank as the 'preferred bank' within the country and continue to generate positive returns for shareholders in the future.
The Group's financials for the 2012 financial year showed Gross Earnings of N221.9 billion and a profit before tax of N103 billion, the highest in the industry. In addition, the Bank's total assets and contingents increased by 6 per cent to N2.26 trillion as against N2.14 trillion recorded in 2011, and it closed the year with an on-balance sheet size of N1.73 trillion. Profit after tax for the period was N87.3 billion compared to N51.7 billion in 2011 representing a 69 per cent improvement.
Addressing reporters after the meeting, Mr. Segun Agbaje, Managing Director of Guaranty Trust Bank Plc said "we have declared the best results in the industry in the last few years and provided shareholders the best return on equity for any financial institution in Africa". We intend to continuously reward our shareholders for the confidence they have in us and remain committed to teamwork, integrity and customer satisfaction as a bank. "
He further stated that the Bank intends to consolidate its position in 2013 by pioneering service innovations, developing alternate banking channels, promoting excellence and creating role models for society.
GTBank’s Profit Before Tax Hits N103bn
April 05, 2013
Nigeria’s foremost financial institution, Guaranty Trust Bank Plc, has released its audited financial results for the December 2012 financial year to the Nigerian Stock Exchange (NSE) and reported a profit before tax (PBT) of N103 billion, the highest feat to be attained by any bank in the country.
According to analysts at the Nigerian bourse, this performance and an in-depth analysis of the results, which were recently approved by the Central Bank of Nigeria (CBN), confirmed GTBank as the first and only Nigerian bank to cross the N100 billion PBT milestone from continuing operations at both bank and Group levels.
The group’s results also show improved gross earnings of N221.9 billion, 66 per cent growth in PBT to N103 billion (2011: N66.08 billion) and 69 per cent improvement in profit after tax (PAT) to N87.3 billion; (2011: N51.7 billion),
The bank closed the 2012 financial year with an on-balance sheet size of N1.73 trillion (2011: N1.608 trillion) while total assets and contingents stood at N2.26 trillion (2011: N2.14 trillion) representing a growth of eight and six percentage level respectively.
Further analysis shows that deposit liabilities of the Group grew by 12 per cent to N1.15 trillion in 2012, reflecting a decent growth of N120 billion from the N1.03 trillion closing position in the corresponding period of 2011.
This growth in customer deposits fuelled the increase in the loan book as net loans and advances closed at N783.9 billion, translating to a growth of 11 per cent over the N707.05 billion in the comparative period of 2011. Shareholders’ funds increased from N230.4 billion in 2011 to N283.4 billion in 2012.
In terms of asset quality, the bank’s performance was also outstanding as non-performing loans (NPL) ratio stood at 3.4 per cent compared to 3.5 per cent in 2011, while cost-to-income ratio improved significantly to 42.7 per cent from 52.9 per cent in 2011. On the backdrop of this strong operating performance, return on equity (RoE) and return on assets (RoA) closed at 33.9 per cent and 5.2 per cent from the 23.2 per cent and 3.7 per cent recorded in 2011, respectively.
The bank’s stance as an upstanding social citizen and commitment to full disclosure was further evidenced by its 2012 tax liabilities, which came to over N16.3 billion.
The total dividend payment for the financial year is projected at N45.62 billion (N1.55 per ordinary share of 0.50 kobo each).
Commenting on the results, the Chief Executive Officer, GTBank, Mr. Segun Agbaje, attributed the bank’s success to its adherence to a defined growth plan, high corporate governance standards and the cultural values for which it is known.
He said these factors, coupled with a resourceful board, an in-depth understanding of the market and the passion of GTBank employees have enabled the bank grow market share and continue to avail its stakeholders with value-adding services.
GTBank was established in 1990 and is regarded by industry watchers as the best run financial institution within the Nigerian financial services space, due to its bias for world class corporate governance standards, excellent service quality and innovation.
The bank operates from over 200 branches within the country and has banking subsidiaries in Cote D’Ivoire, Gambia, Ghana, Liberia, Sierra Leone and the United Kingdom.
In recognition of it service standards, management quality and financial performance, the bank has been the recipient of numerous awards over the years that most recently include the Best Bank in Nigeria Award for the fourth consecutive year from Euromoney magazine and the Best Bank in Nigeria Award from EMEA Finance.
Agbaje was also lately recognised as 2012 African Banker of the Year.