Connect with us


GTBank Declares Profit After Tax of N142 Billion



  • GTBank Declares Profit After Tax of N142 Billion

The Guaranty Trust Bank Plc has declared its unaudited Financial Results for the third quarter of 2018.

The leading lender announced gross earnings of N337.22 billion for the nine months ended September 30, 2018, representing 9 percent increase from the N309.16 billion recorded in the corresponding period of 2017.

According to the report filed through the Nigerian Stock Exchange, net interest income dropped by 10 percent to N170.6 billion from N189.7 billion achieved during the same period of 2017.

Profit before tax (PBT) climbed 9 percent to N159.032 billion, up from N164.245 billion. However, ten percent tax reduction boosted proft after tax by 13 percent from N125.578 billion filed in the third quarter of 2017 to N142.224 billion.

Analysts at Crodros Capital Limited said gross earnings stood at N110.59 billion in the third quarter of 2018, which is 16 percent above the figures of 2017 but 6 percent lower when compared to the previous quarter.

“Interest income declined in the quarter by seven per cent q/q, as against the marginal growth recorded in Q2. Interest on customer loans in the Q3 declined by four q/q, amidst the continued decline in the bank’s loan book. Coupled with an increased interest expense (+3 per cent y/y, flat q/q) in the quarter, net interest income was lower by nine per cent q/q and 12 per cent,” they said.

They further explained that positive loan recoveries in the quarter led to a net gain in loan impairment charges, even as the bank’s loan book (-2 q/q) continued to contract.

“Also, NPL ratio decreased to 5.57 per cent vs. 7.66 per cent . It is also worth stating that the continued decline in loans (-12 per cent YtD), coupled with sustained increase in deposits (+9 per cent ), has contributed to the decline in loan-to-deposit ratio to 48.21 per cent vs. 58.91 per cent in FY-17,” Cordros Capital said.

The analysts said overall performance of the bank was impressive, with top and bottom lines posting 16 percent and 11 percent year-on-year, respectively.

“The N142.2 billion net profit reported as at 9M-18, on an annualised basis, is above consensus’ estimate for the full year by seven. GTBank’s stock closed positive in yesterday’s trading session, but has lost 10 per cent YtD. We do not expect negative reaction to the bank’s result in tomorrow(today)’s session. GTBank remains among our top picks, with a target price of N52.45, 42 per cent above closing price of N37,” they said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

Banking Sector

Peter Obaseki Retires as Chief Operating Officer of FCMB Group Plc




The Board of Directors of FCMB Group Plc has announced the retirement of Mr. Peter Obaseki, the Chief Operating Officer of the financial institution, with effect from March 1, 2021. He was also an Executive Director of the Group.

His retirement was approved at a meeting of the Board of the Group on February 26, 2021. This has also been announced in a statement to the Nigerian Stock Exchange (NSE) by the financial institution.

The Chairman of FCMB Group Plc’s Board of Directors, Mr Oladipupo Jadesimi, thanked Mr. Obaseki for his valuable service and excellent support to the Board for many years.

FCMB Group Plc is a holding company divided along three business Groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); as well as Asset & Wealth Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

The Group and its subsidiaries are leaders in their respective segments with strong fundamentals.

For more information about FCMB Group Plc, please visit

Continue Reading

Banking Sector

COVID-19: CBN Extends Loan Repayment by Another One Year




Central Bank Extends One-Year Moratorium by 12 Months

The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.

The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.

In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.

The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.

“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.

“Following the expiration of the above timelines, the CBN hereby approves as follows:

“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.

“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”

It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.

To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.

Continue Reading


MTN Nigeria Generates N1.35 Trillion in Revenue in 2020




MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020

Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.

The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.

Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.

This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.

MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.

MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.

The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.

Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.

MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.

While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.

The number of shares issued and fully paid as at year-end stood at 20.354 million.

MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.

Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.

“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.

Continue Reading