GUARANTY TRUST BANK PLC: ONE LITTLE ITCH.

Perhaps it is too early to judge but it looks like Guaranty Trust Bank PLC (GTB), the Nigerian bank with eyes well fixed on tomorrow's few that will control the most, is having a little itch in its legs presently.
The bank's figures for nine months to September, show that its bottom line ( profit margin) not only eased to 40.1 per cent from 40.5 per cent, there was also a slight drop in deposits to N1634176m from N1649869.8m.
Its gain on each N100 income decreased principally because loan loss provision developed wings  and interest expense rose by 23.1 per cent to N52834m to generate a fairly healthy but lower 16.7 per cent increase in interest income to N172963.7m.
The bit about koan loss was more irritating as the provision ended September at N8515.6m compared to N6286.9m previously.
GTB's gross earnings had increased by only 15.1 per cent to N229372m from N199138m as investment income grew by lesser 9.56 per cent to N54288m from N48551.6m.
HENCE:
* GTB will still end 2015 with  comfortable double digit profit margin but the little itch must not be allowed a major ache.
* Naturally loan loss provision follows clear guidelines but this leap reminds of 2008 when the weight of such provisions helped drag banks and the stock market into a crash.

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