Mr. Segun Agbaje, GMD, GTBank
Guaranty Trust Bank Plc -the highest-priced equity in the banking sub-sector of the Nigerian Stock Exchange- Thursday reported a profit after tax of N63 billion for the third quarter (Q3) ended September 31, 2012.
Details of the result released on the floor of the NSE, showed that the bank posted gross earnings of N45.64 billion in Q3, up by 22 per cent from the N126.895 billion in the corresponding period of 2011.
Profit before tax rose by 48.6 per cent from N50.988 billion in 2011 to N75.581 billion, while profit after tax recorded a higher growth of 59 per cent from N39.69 billion to N63 billion.
In their assessment of the results, analysts at Cordros Capital Limited, an investment bank said, GTBank’s costs were up just 2.45 per cent year-on-year (YoY) and declined 13.45 per cent quarter-on-quarter (QoQ).
“Cost to income ratio (CIR) declined marginally from 41 per cent in Q2’12 to 39 per cent in Q3’12. In terms of efficiency, GTBank is, in relative terms, the most efficient bank among its peers; with the resources available to it,” they said.
In terms of asset quality, they noted that the bank’s impairment expenses were down 79.64 per cent YoY while net impairment loss for the period was nil. The bank ended the Q3 with total assets of N1.510 trillion.
The analysts noted that the bank had a healthy balance sheet, saying “GTBank is a well funded, strongly capitalised bank. Its lending, we believe, is focused on several niches in the Nigerian corporate banking market.”
Meanwhile, it was exactly one month yesterday since the market-making commenced on the Nigerian bourse commenced. And analysis of the market performance within the period showed a growth of 7.6 per cent in market capitalisation, while NSE All-Share Index rose by 7.5 per cent.
Specifically, the market grew by N612 billion from N8.077 trillion, while index rose from 25,373.83 to close at 27,271.50.