GT Bank Hits $324m Profit

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 percent dip from the N57.4 billion (about $348 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 GT Bank’s laid down corporate governance practices.

In a statement issued recently and signed by Ben Ackah-Mensah, Group Head, Corporate Affairs & Administration, the bank said a review of its 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, Managing Director/CEO of Guaranty Trust Bank plc, 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.

A major objective for the bank this year, as mentioned by 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, 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 GT Bank 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.

A business desk report

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