Guaranty Trust Bank (GTB) released is 2015 Q1 results showing gross profits rose 17% year on year to N79billion. Here are the highlights of the result.
- Net interest income rose 13% to N39billion (2013: N34.7billion)
- Operating expenses also rose 9.7% to N26billion (2013: N23.8 billion)
- Investment and other income rose 26% to N23.2billion (2013: N18.4 billion)
- Loan losses also rose 176% to N3.5billion (2013: N1.2billion)
- Pre-tax profits rose 16.6% to N32.6billion (2013 N28 billion)
- Profit after tax rose 15% to N26.5billion (2013: N23.1billion)
- Earnings per share rose 16% to 94 kobo (2013: 81 kobo)
- Cost to income ratio by our estimate is between 41% and 43%.
- Their share price closed at N28.35 on Wednesday April 15.
Overall the results look impressive considering the negative headwinds associated with the industry and the macro side of the larger Nigerian economy. The bank continues to milk all it can from not interest revenue sweating out incremental revenue from gains on financial instruments.
This quarter just like in Q4 2014, GTB raked in N11.6 billion in revenues from Forex represing a 74% increase from the N6.6billion reported same period last year. Forex income thus played its part in boosting non interest revenues contributing about 36% of pre-tax profits.
A worrying sign however is the increase in loan impairment for the quarter. That figure of N3.5billion is the second highest since 2013 (last 9 quarters) just coming short of N3.8billion recorded in 2014 Q2.