GTBank Suffers Business Decline As Loan Book Stagnant In 9 Months, Deposits Drop

                                                       Mr Segun Agbaje, CEO Gtbank

 

There appears to a lull in business for Guaranty Trust Bank Plc with its loans and advances to customers’ unchanged throughout the first nine months of its 2015 financial year ended September 30, even as the bank’s deposits slipped during its third quarter performance.

 

The bank’s deposit base, Leadership reports, is falling in a period when banks are being urged to mobilise more deposits from the public following the implementation of the Treasury Single Accounts (TSA). GTBank’s deposit base dropped slightly from N1.64 trillion to N1.63 trillion even as its loans and advances to customers remained stagnant at N1.28 trillion.

 

But its gross earnings had risen by 15 per cent during the nine months period, while loan loss expenses grew by 35 per cent from N6.28 billion to N8.51 billion. Gross earnings for the period ended September 30, 2015 stood at N229.37 billion compared to N199.23 billion which it recorded in the comparable period of 2014.

 

Interest expense however grew faster than interest income which rose by 17 per cent to N172.96 billion compared to the 2014 nine months figure of N148.187. Interest expense had risen by 23 per cent to N52.83 billion from N42.85 billion.

 

Operating expenses rose by nine per cent to N73.84 billion as against N67.9 billion which it spent on running costs in the nine months period of the 2014 financial year. Profit before tax was also up by 14 per cent from N80.69 billion to N92.06 billion, while profit after tax stood for the nine months period ended September 30, 2015 stood at N75.16 billion compared with the N66.74 billion profits made in the comparable period of 2014.