By Odunewu Segun
With a profit before tax at N200.2bn in 2017, a growth of 21.3% over N165.1bn recorded in 2016, GTBank sits favourably among top Nigeria’s profitable financial institutions.
While many banks groan under the weight of excruciating exposures to the power sector privatization programme, GTBank has remained strong, taking the initiative to keep its loan books down from what it recorded in 2016.
The Bank’s loan book dipped by 8.9% from N1.590trillion recorded as at December 2016 to N1.449trillion in December 2017 while customer deposits increased by 3.8% to N2.062trillion from N1.986trillion in December 2016.
In terms of Assets quality, NPL ratio increased to 7.7% in December 2017 from 3.7% in December 2016 largely as a result of classification of a single exposure within the Nigerian Telecommunications Industry. However, non-performing loans would moderate to 4.6%, which is below regulatory threshold.
The profits, according to its Group Managing Director, Segun Agbaje was driven by its 12 million retail customers spread across the country, and a decision to stay clear off the power privatization programme of the Federal Government.
He expressed his satisfaction that GTBank was not enmeshed in the toxic assets trap arising from the programme.
“Right from the beginning, we took a position that what was needed for the programme was equity and not debt. And when we saw they were bent on driving the process with debt, we stayed off which is the reason we are not exposed to the sector today,” Agbaje disclosed.
He said 2017 was a pivotal year for the bank. “We delivered a strong result in a challenging environment; achieving record growth in earnings, carefully managing cost margins and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”
He further stated that, “The result demonstrates the fundamental strength of our franchise as well as the progress we are making in transforming our organization into a platform on which our customers could build their businesses, connect with their consumers and access all the resources that they need to make their lives better.”
The bank which recently released its Q1 2018 financial statements results posts a profit before tax of N52.62 billion as against N50.39 billion recorded in Q1 2017.
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