[upme_private]GTB Plc released its 2013 H1 results showing a 9% increase in Gross Earnings to N124billion compared to N113.5billion posted a year earlier. Net Interest Income also rose 6.4% to N68.54billion compared to N64.39billion posted same period a year ago. Operating expenses rose 9.65% t0 N41.5billion (2012 H1: N37.9billion). Pre-tax profit at the end of the period was N57.3billion a 7% rise from N53.6billion posted a year earlier. Earnings per share will also rise 17% to N1.77 at the end of the first half of 2013.
key Highlights
- Net Interest Income rose by 5% to N35billion in the three months running up to June 2013 compared to N33.4billion between January and March 2013.
- However operating income dropped 2% this quarter (April to June) to N48.9billion compared to the same period last year (N49.9billion).
- This was mainly due to massive 24% drop in Commission fees, Investments and other income. Other income dropped to N13.6billion this quarter compared to N18billion in Q1.
- On a Year on Year basis Other income did rise 7% to N31.7billion.
- As expected the bank continued with its remarkable trend of cutting cost to the minimum. Operating expenses actually decreased by a whopping N1.4billion this quarter compared to the previous quarter. One wonders how far this cost cutting can keep going as revenue would have to improve at some point.
- For example, despite rising operating expenses QoQ Zenith Bank post a 9.5% rise in pre-tax profits to N25billion compared to GTB’s 1.32% growth.
- It is important to note though, that GTB did grow its loan book and Deposit base by N72.7billion and N44.7billion respectively QoQ 2013.
- GTB shares rose just 1.12% to N25.4 after the result was announced. They also announced an interim dividend of 25kobo same with what was declared a year earlier.
