GTBANK, THE OVERCOMER

Overcomers, they say, never remain the same after they over come whatever challenge tested their patience and ability in whatever way.

If true, then rest assured that Guarantee Trust Bank PLC (GTBank) is not likely to remain the same come the end of this financial year. Or so says nine months results to September released recently.

According to the figures, the main challenge for GTB was 19.8% deccline in gross earnings to N309.9bn despite 36.5% increase in interest income to N248.3bn and mainly because Other income tumbled by 87.2% to N12bn from N93.95bn and fee and commission decreased by 21.3% to N39.676bn.

GTB took the challenge in its stride like an overcome would and ended the nine months with 8.73% increase in profit before tax to N150bn. How come?

Firstly, GTB feared far less for its customers loan portfolio and so, depressed impairment provision by 85.4% to just N8.356bn from N50.4bn previously. Amidst far higher provisions by some other banks, this was impactful especially since loans and advances to customers only dropped by 10.1% to N1428.2bn within the nine months and as customers deposits declined by 4.46% to N1897.6bn.


So many other factors helped GTB to overcome the challenge and they include 229.8% increase in trading income to N9.939bn; lower 19.3% increase in interest expense to N58.7bn compared to the 36.5% rise in interest income; faster 25.3% drop in fee and commission expense to N1.699bn compared to 21.3% decrease in fee and commission to N39.676bn and single digit growth in Operating lease expense and Other operating expenses to N1.45bn and N53bn respectively.

It was also a bit helpful that personnel cost grew by only 13.1% to N24.629bn

In the end, in spite of gross earnings decrease, GTB made N48.4 profit on each N100 income within the period compared to N35.7 at the same time in 2016.

Now all that is left are a couple of ifs that could make more difference in the last three months of the year like if only income streams from non-interest sources can be boosted some more; if only personnel cost growth could be capped to single digit; and if only customers deposits could stop dropping, oh sure the smiles will be better earned.

GUARANTEE TRUST BANK: NBn Nine months.
                                    2017.         2016
Gross earnings.      309.9.          386.4
Interest income      248.3.          181.9
Interest expense.     58.7.             49.2
Impairment              8.356.          57.083
Fee & Commission 39.676.        50.410
        " Expense.          1.699.          2.275
Trading gain.             9.939.          3.014
Other income           12.027.       93.950
Personnel cost        24.629.       21.772
Lease expense.         1.450.         1.324
Other op. expense   53.021.      48.713
Profit before tax     150.032.    137.991
Profit margin %.         48.4.          35.7
Loans & Advances 1428.3.     1589.4
Deposits.                 1897.6.     1986.2

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