Guaranty Trust Bank Plc (GTBank) expects profit growth to slow in 2019 from last year.
The bank in its full year 2018 financial performance review posted on its website, disclosed that its balance sheet is well structured, with strong earnings capacity as interest earning assets and non-interest earning assets accounted for 70 per cent and 30 per cent respectively.
It pointed out that has a well-diversified and improved funding source with low cost deposits accounting for 84 per cent of its deposit base.
“Contribution of fixed income securities (FIS) to total assets improved to 21.3 per cent, from 20.7 per cent in full year 2017.
Its loan book contracted by 12.9 per cent due to scheduled pay-downs by some FX loan customers on account of improved FX liquidity in the market as well as impact of IFRS 9 implementation.
The bank disclosed that its dollar loan repayments resulted in a 24.5 per cent growth in money market placements. “The dip in loan book also enabled the group to redeem its Eurobond. Retail strategy premised on focused innovative digital solutions provided the needed stimulus for consistent low cost deposits mobilisation resulting in 10.3 per cent growth in customers’ deposits with low cost mix improving by 170 basis points from 82.3 per cent in full year 2017, to 84 per cent in full year 2018.
“Strong liquidity position backed by robust capital buffers with full Impact IFRS 9 Capital Adequacy Ratio (CAR) of 23.4 per cent well above regulatory requirement of 16 per cent,” the report added.