GTB grosses N437bn revenue in FY2018
Guaranty Trust Bank Plc has released its audited financial results for the year ended December 31, 2018 to the Nigerian and London Stock Exchanges which shows that gross earnings for the year grew by 3.7% to N434.7 billion from N419.2 billion reported in December 2017
A review of the results shows positive performance across all financial metrics and improved strategic positioning of the brand.
Profit before tax stood at N215.6bn, representing a growth of 9.1% over N197.7bn recorded in the corresponding year ended December 2017.
The bank’s customer deposits increased by 10.3% to N2.274 trillion from N2.062 trillion in December 2017.
However, loan book dipped by 12.9% from N1.449tn recorded as at December 2017 to N1.262tn in December 2018.
In view of the above, the bank closed the 2018 financial year with Total Assets of N3.287trillion and Shareholders’ Funds of N575.6bn.
In terms of Assets quality, NPL ratio and Cost of Risk improved to 7.3% and 0.3% in December 2018 from 7.7% and 0.8% in December 2017 respectively.
In addition, coverage ratio for NPL stood at 105.1% and Capital adequacy ratio remained very strong, closing at 23.4% despite the implementation of IFRS 9.
By this result, Post Tax Return on Equity (ROAE) and Return on Assets (ROAA) closed at 30.9% and 5.6% .
The bank is proposing final dividend of 2.45k per unit of ordinary share held by shareholders in addition to interim dividend of 30k per unit of ordinary share bringing The Nigerian Content Development and Monitoring Board (NCDMB), yesterday, said it is working on a new blueprint on the assessment of the $200 million the Bank of Industry (BOI) has set aside as Nigerian Content Intervention Fund (NCI Fund).
The facility was launched in 2017 to provide loans to Nigerian companies involved in manufacturing in the oil and gas industry. Beneficiaries will get $10m, repayable after five years at eight per cent interest rate.
Only three companies out of 100 applicants have secured the fund. But speaking in Lagos on the 2019 Nigerian Oil and Gas Opportunity Fair (NOGF), scheduled for Yenagoa, Bayelsa State April 4-5, NCDMB Executive Secretary, Mr. Simbi the total dividend for 2018 financial year to 2.75k per unit of ordinary share.
The Managing Director/CEO of Guaranty Trust Bank Plc, Mr Segun Agbaje said, “In 2018, our focus on staying nimble, strengthening customer relationships and driving our digital-first strategy paid off. We successfully navigated the pressures of our challenging and radically changing business environment, recorded growth across key financial indices and reaffirmed our position as one of the best performing and well managed financial institutions in Africa. Wabote, said the board will, in a couple of weeks, come up with a new strategy that will help indigenous oil companies have access to the $200 million fund with less stress.
He said: “The board is actively looking into it. Today, almost 100 applicants have applied for the fund. But only three companies have succeeded in securing from the facility. Most of the applications are still hanging.”
He said most of the companies cannot meet the conditions put forward by BoI. “However, the board is actively reviewing the process to see what can be done to change that narrative. I am sure in the next couple of weeks, a new blue print on the assessment of the loan will be made public to address the challenge and ensure the fund is strategically utilized,” he said.
He noted that indigenous operators should know that the N200 billion credit is not free money hence the borrower must have capacity to pay back for others to benefit.
One percent of all contracts, subcontracts, projects and activities in the upstream sector of the Nigerian oil and gas industry is statutorily to be deducted and remitted to the NCDF, as stipulated by Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.