GT Bank Plc released its 2013 Q1 unaudited results with Gross Earnings increasing 20.83% over the same period last year to N63.5billion. Net Interest Income, the core revenue streams for banks, increased 6.34% to N33.4billion. Pre-tax profits at the end of the period was N28.5billion (2011:N24.3billion).
The above results while better than last year’s, is a reflection of shrinkage now being experienced as yields on government securities start to drop. Net Interest Margins which was 81% in 2011 dropped to 77.3% and 73.9% in 2012 and 2013 respectively. Whilst this is pretty much the trend now, the large increase of loan losses is a worry. Could it be a one time write off, or beginning of several write offs that may occur during the course of the year? It will be interesting to see where this takes us to.
Loans and advances increased 5.4% year on year though, some might expect that it should have been more. . Deposits also grew 4.7% to N1.2tr . GT Bank share price at the close of business 18/4/2013 was N23.7.
GT Bank Q1 Earnings Report was posted on the website of the NSE
