GTBank Posts N99bn Profit for H1, 2019

• GTBank Posts N99bn Profit for H1, 2019

Guaranty Trust Bank Plc, one of Nigeria’s largest lenders, generated N99.13 billion in the first half of the year.

In the financial statements released through the Nigerian Stock Exchange, the bank’s profit rose by 3.6 percent from N95.58 billion realised in the same period of 2018 to N99.133 billion.

The lender net interest income declined by 1.33 percent to N116.4 billion, down from N117.9 billion generated in the same period of 2018.

Net fee and commission income grew by 23.4 percent from N25 billion in the first half of 2018 to N33.843 billion in the same period of 2019.

A further breakdown of the report showed the increase was as a result of the surge in the fee and commission income realised during the period, fee and commission jumped from N27.36 billion to N35.347 billion.

Total liabilities expanded by 9.48 percent to N2.995 trillion, up from N2.711 trillion filed in the first half of 2018.

Accordingly, GTBank’s total equity gained 4.6 percent from N575.56 billion in the H1 2018 to N603.01 billion H1 2019.

While customers’ deposits grew by 5.8 percent from N2.27 trillion recorded during the same period of 2018 to N2.417 trillion.

The bank’s total assets (equity and liabilities) rose from N3.29 trillion in value to N3.598 trillion during the period under review, representing an increase of 8.35 percent.

Overall, the bank financial position remained healthy despite headwinds. However, it is uncertain if the lender can sustain the trend in the fourth quarter when the 60 percent loan to deposit ratio directive would have been enforced by the central bank.

Also in an effort to compel banks to increase credit facility to the economy, the apex bank capped deposit money banks’ investments in the fixed income market, their main source of profit since the recession.

All these are expected to impact profitability going forward.