GT Bank – Result Meets Expectation as Non-Interest Income Lifts Earnings
May 10, 2018
In line with our projection, the H1’18 audited report published by Guaranty Trust Bank shows an improvement in its top-line as gross earnings increased by 5.58% to ₦226.63 billion in H1’18 from ₦214.10 billion reported in H1’17.
The growth was driven mainly by non-interest income as it improved by 34.30% to ₦64.75 billion in H1’18 (vs. ₦48.21 billion in H1’17). Non-interest income was boosted by significant improvement in fee and commission income, income on financial assets held for trading, gain on disposal of fixed assets, foreign revaluation exchange gain and dividend income and recoveries.
However, interest income of the bank reduced slightly by 2.41% to ₦161.88 billion in H1’18 (vs. ₦165.89 billion in H1’17) due to declining interest rates and dip in loan volume. With 17.28% increase in total deposit, interest expense rose by 20.92% to ₦43.95 billion in H1’18 (vs. ₦36.35 billion recorded in H1’17). Non-interest expenses increased by 3.24% to ₦71.02 billion in H1’18 (vs. ₦68.79 billion in H1’17). The increase in non-interest expenses was triggered by increase in fee and commission expense and personnel expenses as they increased by 49.81% and 13.49% respectively.
The bank made a lower provision for loan impairment charge as it reduced by 71.83% to ₦2.03 billion in H1’18 billion, from ₦7.21 billion.