As shareholders received a total of N58.89 billion as dividend for the 2016 business year, directors of Guaranty Trust Bank (GTBank) Plc have assured that the bank has been well positioned to continue to deliver strong and sustainable returns.
Addressing shareholders at the Annual General Meeting (AGM) in Lagos, its Chairman, Mrs Osaretin Demuren, said the bank has been well positioned to leverage existing and emerging opportunities in the industry to continue to deliver strong and sustainable returns.
She pointed out that GTBank has not only established itself as the dominant bank in the country, but its subsidiaries in Gambia and Sierra Leone have also emerged the most profitable bank in their domains, adding that the bank would continue to maintain its leadership in its areas of operations.
GTBank Group Managing Director, Mr. Segun Agbaje, Agbaje said the bank looks to delivering better returns in this business year.
“Going into 2017, we know that challenges in our macro-economic environment are likely to persist, but our commitment to staying positive, delivering exceptional financial services to our customers and adding value to all stakeholders has never been stronger,” Agbaje said.
According to him, while the year ahead will present its challenges and uncertainties with regards to the political, regulatory, economic and business environment, the bank is facing 2017 with a strong foundation and excellent franchise built to serve her customers.
Agbaje noted that the GTBank has emerged as the leader of the future of payments and service delivery with its ‘737’ platform introduced, a USSD-based service delivery channel that provides simple banking for every Nigerian through mobile phones.
He pointed out that within a year of the introduction of the ‘737’service, the bank recorded an uptake of over three million customers, with over N1 trillion in transactions on the platform, while the platform has gained ubiquitous acceptance and global recognition.
“Our performance in 2016 not only reflects the resilience of our franchise, it demonstrates the fundamental strength of our businesses to deliver sustainable long-term growth,” Agbaje assured.
Shareholders of the bank would receive a total dividend per share of N2, including final dividend per share of N1.75 and interim dividend of 25 kobo.
Key extracts of the audited report and accounts of GTBank for the year ended December 31, 2016 showed that gross earnings rose by 37 per cent to N414.62 billion in 2016 as against N301.85 billion in 2015. The top-line was primarily driven by growth in interest income as well as foreign exchange income.
Interest income rose by 14.5 per cent to N262.5 billion, from N229.2 billion, while net interest income stood at N195.4 billion in 2016, up from N159.9 billion, showing an increase of 22.2 per cent. Investment and other operating income jumped by 109 per cent from N72.61 billion, to N152.1 billion. Operating expenses rose by 17.9 per cent to N113.6 billion, from N96.4 billion. Profit before tax stood at N165.14 billion, representing a growth of 37 per cent over N120.69 billion recorded in 2015, while profit after tax rose from N99.436 billion in 2015 to N132 billion in 2016.
Balance sheet analysis showed that loan book grew by 16 per cent from N1.373 trillion in 2015 to N1.590 trillion in 2016. Total deposits grew by 29 per cent to N2.111 trillion in 2016 as against N1.637 trillion in 2015. Total assets and contingents stood at N3.70 trillion in 2016 while shareholders’ funds stood at N504.9 billion.
