Guaranty Trust Bank plc is a foremost Nigerian financial institution with vast business outlays spanning Anglophone/Francophone, West Africa, East Africa and the United Kingdom.
The Bank presently has an asset base of over N2.54 trillion, shareholders funds of over N385 billion and employs over 10,000 people in Nigeria, Cote d’Ivoire, Gambia, Ghana, Kenya, Liberia, Rwanda, Sierra Leone, Uganda and the United Kingdom.
The Bank has a strong service culture that has enabled it record consistent year on year growth in clientele base and key financial indices since its inception in 1990.
Evidence is its audited financial results for the year ended December 2015 released to the Nigerian and London Stock Exchanges last week. A review of the 2015 results shows positive performance across all financial indices, reaffirming the Bank’s position as one of the most profitable and well managed financial institutions in Nigeria.
Apart from the financial performance, GTB last month, mopped up efficiency awards for Electronic Payment Incentive Scheme (EPIS) given by the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement system (NIBSS) plc, winning in six different categories of the awards.
The participants who gathered at that award night doff their hats as GTbank took the lead in the cashless driver awards for banks, winning the cashless driver instant payment in 2015, cashless driver Pos issued cards transactions and instant payment transaction efficiency award, among others. Late last year, the bank was recognised as the ‘Bank of the Year’ during the Banker Awards held in London, United Kingdom.
When one begins to look at the success story of Guaranty Trust Bank Plc (GTBank), one will imagine the kind of magic the banks is using to maintain its position as the leading global brand.
Nevertheless, it is not magic but about quality service, ethics, professionalism, integrity, innovation and internationally accepted corporate governance standards.
However, the financial result for 2015 shows that the Group delivered an impressive Profit Before Tax of N120.7billion, an increase of N4.3billion or 3.7 percent over the N116.4billion reported in December 2014 and Gross Earnings of N301.9billion- an increase of 8.4 percent from the N278.5billion recorded in the same period of 2014.
In terms of value creation for its shareholders, the Bank recorded pre-tax ROAE of 31.0 percent and ROAA of 5.0 percent respectively.
The Bank’s balance sheet remained strong with 7.2 percent growth in Total Assets, from N2.36trillion in 2014 to N2.52trillion in the year under review. Loans to customers grew by 7.5 percent to close at N1.37trillion from N1.28trillion in 2014. Despite the implementation of the Treasury Single Account (TSA) by the FGN, customer deposits remained relatively stable with a marginal year-on-year decline of 0.49 percent from N1.62trillion in 2014 to N1.61trillion in 2015.
The Bank continued to maintain a disciplined and prudent approach to loan growth in line with its Risk Management framework. The Bank’s Non-Performing Loans (NPL) ratio remained low at 3.21 percent; up slightly from 3.15 percent in the comparative period of 2014. Against this backdrop of strong financial showing, the Bank is proposing a Total-Year Dividend of N1.77k per share (inclusive of the 25kobo interim dividend paid at half year 2015).
Commenting on the financial results, Segun Agbaje, the managing director/CEO of Guaranty Trust Bank plc, said the Bank’s financial performance in 2015 is an indication that “we have earned the loyalty of our customers and an attestation of the hard work and dedication of our staff, management and Board. The Group has delivered a respectable Profit Before Tax of N120.7billion, despite an extremely challenging business environment in 2015.”