Ag­baje, GT­Bank boss harps on dig­i­tal, cus­tomer­fo­cused ap­proach for im­proved share­holder re­turns

Business a.m. - - FINANCE & INVESTMENT - Ades­ola Afo­labi

SE­GUN AG BAJE, MD/CEO Guar­anty Trust Bank Plc. (GT­Bank) has said that in a bid to cre­ate more value for its stake­hold­ers the bank will con­tinue to drive its dig­i­tal­first cus­tomer-cen­tric strat­egy and ex­pand its range of ser­vice of­fer­ing whilst con­stantly dif­fer­en­ti­at­ing it­self by main­tain­ing a high stan­dard in ser­vice de­liv­ery and putting customers at the heart of ev­ery­thing the bank does.

Ag­baje who was com­ment­ing on the re­cently re­leased nine months (Q3) re­sult of the firm also noted that the busi­ness en­vi­ron­ment in which the bank op­er­ates re­mains very chal­leng­ing, how­ever the re­sult which shows pos­i­tive per­for­mance across all fi­nan­cial in­dices, is “a re­flec­tion of how we have ap­pro­pri­ately po­si­tioned our bal­ance sheet to cope with eco­nomic re­al­i­ties.”

The unau­dited fi­nan­cial re­sults for the pe­riod ended Septem­ber 30, 2018 re­leased to the Nige­rian and Lon­don Stock Ex­changes showed that gross earn­ings for the pe­riod grew by 8.8 per­cent to N337.3bil­lion from N309.9bil­lion re­ported in Septem­ber 2017.

Profit be­fore tax stood at N164.2bil­lion, rep­re­sent­ing a growth of 9.5 per­cent over N150.0bil­lion recorded in the cor­re­spond­ing pe­riod of Septem­ber 2017. The Bank’s Loan Book dipped by 12.3 per­cent from N1.449tril­lion recorded as at December 2017 to N1.270tril­lion in Septem­ber 2018, while customers’ de­posit grew by 8.6 per­cent to N2.239tril­lion from N2.062tril­lion in December 2017.

The Bank’s bal­ance sheet re­mained re­silient with to­tal as­sets and share­hold­ers’ funds clos­ing at N3.433tril­lion and N534.3Bil­lion re­spec­tively, a 2.4 per­cent growth from to­tal as­set po­si­tion of N3.351tril­lion as at December 2017, Cap­i­tal Ad­e­quacy Ra­tio (CAR) how­ever dipped by 300 ba­sis points to 22 per­cent de­spite the im­pact of IFRS 9 im­ple­men­ta­tion.

In terms of As­sets qual­ity, NPL ra­tio and Cost of Risk (COR) im­proved to 5.6 per­cent and 0.1 per­cent in Septem­ber 2018 from 7.8 per­cent and 0.5 per­cent po­si­tion in December 2017 re­spec­tively.

Com­ple­ment­ing the im­prove­ment noted in NPLs and COR, the bank noted that it main­tained ad­e­quate Loan Loss cov­er­age of 180.6 per­cent for life­time Credit Im­paired Loans (NPLs).

On the back­drop of this re­sult, Post- Tax Re­turn on Eq­uity (ROE) closed at 32.7 per­cent while Re­turn on As­sets (ROA) stood at 5.6 per­cent.

Over­all, GT­Bank tops the Nige­rian bank­ing in­dus­try in terms of all fi­nan­cial ra­tios i.e.

Post-Tax Re­turn on Eq­uity (ROE) of 32.7 per­cent, Post-Tax Re­turn on As­sets (ROA) of 5.6 per­cent, Cost to In­come ra­tio of 38.3 per­cent and PBT mar­gin of 48.7 per­cent, tes­ti­fy­ing to ex­pe­ri­enced man­age­ment, ef­fi­cient bal­ance sheet struc­ture cou­pled with op­er­a­tional ef­fi­ciency of the bank.


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