Guaranty Trust Bank racked in a profit after tax (PAT) of N184.640 billion at the close of trading on December 31, 2018. This is 10 per cent higher than the N167.913 billion PAT the bank earned in 2017.
Profit before tax (PBT) was N215.587bn, 9.1 per cent higher than the N197.685 billion earned in the corresponding period of 2017. This came in well ahead of management’s guidance of N205.0bn and consensus 2018 PBT forecast of N213bn.
PBT was up 8 per cent year on year driven by declines of -17 per cent year on year and -29 per cent year on year in provisions and opex respectively. The results show cost-of-risk and cost-to-income ratios of 0.4 per cent and 37 per cent respectively.
The bank’s PAT also translates to a healthy Return on Average Earnings of 31.7 per cent. GTbank will pay its shareholders N2.45k on April 18, 2019.
The bank’s gross earnings hit N434.699 billion as against N419.226 billion or 3.7 per cent grossed in2017. The bank’s net assets however, fell by -7.1 per cent to N575.567 billion as against N619.400 it earned in 2017.
Funding income fell by -9 per cent year on year and missed a forecast by 4 per cent, reflecting lower yields on earnings assets and elevated funding costs.
Year-to-date, GT Bank shares have outperformed the index. The shares have gained +10.0 per cent compared with +2.2 per cent for the NSE ASI.