GT Bank released its 2012 audited accounts with Gross Earnings rising 21% to N221.9billion. Net Interest Income also rose 32% to N130.6billion representing an interest margin of 76.7% (77.9% 2011) and further highlighting the cheap direct cost of funds available to the banks for the period. Interestingly the bank reduced its loan losses from N20.6billion in 2011 to just about N836million this year indicating either a write back or a spill over effect of the transfer of bad loans to AMCON.
Operational Profit for the period was also N103billion (2011: N62billion) and represents about 46.4% of Gross Earnings (2011: 34%) taking in the positive impact of the reduction in loan losses. The bank known for managing operating expenses, spent N43 (2011: N53) for every N100 of Net Operating Income generated (that is after deducting interest expense and loan losses) on overheads. Personnel Cost increased 16% to N25.billion but represented just about 14% (2011:17%) of Net Operating Income.
Profit after tax was N86.6billion an 81% increase from the N47.8 billion posted in 2011.The bank ended the year with an impressive Return on average equity of 33.7% . GTB has proposed a dividend per share of N1.3 representing a yield of about 4.7% (based on todays share price of N27.45). Investors reacting to the results with share price rising 5.17%. The current share price of N27.45 gives the share price a 9.15x premium on earnings per share, a relatively cheap proposition. Expect this share price to double by year end. It currently has a 101% return over the last one year