GTBank advanced Earnings by 26.29%

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

Here is a list of all Microfinance Banks’ USSD Codes in Nigeria.

A Microfinance bank is a type of bank that offers small loans, or microloans, to individuals, entrepreneurs and small...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -

Guaranty Trust Bank PLC (GTBank) posted an impressive topline as gross revenues advanced by 26.29% in Q3-2020. This was majorly driven by improved interest income and lower interest expenses despite the surge in impairment charges and drop in net fees and commission income.

Notably, net interest income advanced by 9.71% from N172.94bn to N189.74bn buoyed by a 1.80% increase in interest income and a 24.90% reduction in interest expenses.

The surge in impairment charges dragged net interest income

An unsurprising 267.40% surge in loan impairment charges motivated by CBN push on loan to deposit ratios and COVID-19 impacts on the credit quality of businesses reduced Net interest income to 5.53%. Specifically, impairment charges increased from N2.76bn to N10.14bn amid growth in private sector credit among major banks in Nigeria.

In a similar fashion, Net fees and commission income waned by 170.38% to N32.725bn from the N46.50bn recorded in Q3-2019 with major drag coming from lower credit-related fees and commissions, corporate finance fees and e-business income even with the slight increase recorded in account maintenance charges.

Declined cost management effectiveness and tax burden pressured bottom-line

Following the drag on fees and commission income, GTBank’s total operating income only advanced by 3.52% tolled by a 12.85% increase in operating expenses, this leads to a 1.93% drop in profit before tax.

Read Also:  GTBank Posts N58bn Pre-Tax Profit In Q1 2020
- Advertisement -

GTBank advanced Earnings by 26.29% Brandspurng
SOURCE: NSE, PFI Capital

Notably, Operating income moved from N270.25bn to N279.75bn while profit before tax (PBT) declined from N170.65bn to N167.35bn in the current period.

However, tax expenses advanced by 5.95% despite a fall in PBT leading to a 3.2% fall in Profit After Tax. In summary, GTBank made N142.28bn PAT compared to the N146.99bn generated in Q3-2020 with earnings per share (EPS) dropping from N5.19 to N5.02 in the current period

- Advertisement -
GTBank advanced Earnings by 26.29% - Brand SpurGTBank advanced Earnings by 26.29% - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

GTBank advanced Earnings by 26.29% - Brand SpurGTBank advanced Earnings by 26.29% - Brand Spur

Latest News

CBN Introduces the “Naira 4 Dollar Scheme” for Diaspora Remittances

In an effort to sustain the encouraging increase in inflows of diaspora remittances into the country. the Central Bank...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -GTBank advanced Earnings by 26.29% - Brand SpurGTBank advanced Earnings by 26.29% - Brand Spur