Insight Details
GTBank Plc – Foreign Exchange Revaluation Gain Drives Earnings
The first quarter result released by Guaranty Trust Bank shows a setback in its core operations of the bank as gross earnings increased by 4.56% to ₦108.97 billion in Q1’18 from ₦104.13 billion reported in Q1’17. The growth in gross earnings was majorly triggered by non-interest income as it increased by 40.83% to ₦28.20 billion in Q1’18 (vs. ₦20.02 billion in Q1’17).
The growth in non-interest income can be attributed mainly to massive increase in foreign revaluation exchange gain as it grew to ₦5.46 billion in Q1’18 from a loss of ₦0.31 billion reported in Q1’17.
However, non-interest expenses increased by 3.95% to ₦33.62 billion in Q1’18 (vs. ₦32.35 billion published in Q1’17) due to increase in personnel expenses, operating lease expenses, among others.