Tag: GTBank

  • Family buries Nigerian banker ‘murdered’ in Liberia, calls for Justice

    Amid tears,the remains of a Nigerian banker, Daniel Orogun, who died in Liberia was at the weekend interred at the Ikoyi Vaults, Lagos.
    Orogun who was Managing Director (MD) of Guarantee Trust Bank’s (GTB) Liberia branch was said to have drowned in a Liberia river on January 24, while on a boat cruise with his wife, three children as well as a bank customer, George Kailondo who invited them for dinner and three others.
    But Orogun’s family who spoke last Thursday for the first time since he died, said the deceased was murdered by Kailondo and his accomplice identified as Michael.
    They want the federal government to prevail on its Liberian counterpart to ensure justice was served, insisting that Kailondo had motives to kill the deceased.
    The spokesperson for the family, Pastor Felix Orogun who stated their position, described as untrue, reports that the deceased was celebrating his wedding anniversary when he fell into the water and drowned.
    Pastor Orogun said the family took time to investigate the circumstances that led to the death of his younger brother, adding that it was a clear case of murder.
    “It is not true that my brother was celebrating his wedding anniversary when he drowned in the water. Besides, my brother was a very good swimmer and there was no way he would have drowned in that water which is calmer than the Lagos lagoon.
    “I was in Liberia for two weeks investigating my brother’s death. And the true position is that George Kailondo had a motive to kill him. He wanted to float an airline across the west coast (Kailondo airline), and wanted the bank (GTB) to fund it.
    “But my brother refused because after investigation by an aviation expert, it was discovered that Kailondo was not ready to float an airline. Because he had gone on air to say he was starting an airline and my brother told him the things he needed to do before the bank will fund the project, he saw my brother as a stumbling block.
    “It was not the first time he invited him for dinner. He has been inviting him since last year but my brother never honoured it. He was to go last November but as he was about to enter his car, the door accidentally chopped off his thump and he was flown to Ghana for surgery. Maybe, that was the day he would have been dead.
    “But this time around, Kailondo invited my brother and his family for dinner. It was a Sunday and by the time he returned home after church service, he received three phone calls in quick succession from Kailondo on the invitation.
    “My brother reluctantly told his wife, Isioma of the need to honour the invitation from Kailondo, a major customer of the bank. He was reluctant because he does not like missing football matches involving Arsenal and the team was to play with Chelsea that day.
    “So, he phoned a friend of his to keep him informed of developments in the match, and then he took a bottle of wine and some soft drinks for the children to Kailondo’s place. On getting to the host’s house, the man offered them drink, but Daniel went to his vehicle and brought the drinks he had brought from home.
    “Kailondo then suggested that they should go for a boat ride so that by the time they returned, dinner would be ready. He took them to the boat, Daniel and his children first entered. His wife was a bit sceptical at first, but eventually entered, not wanting to stay away from her family.
    “They all entered the boat only to discover that there was no life jacket. In the boat that was steered by Kailondo, Daniel’s wife said there were two other men seated at the rear. There was also a diver named Micheal, who was following them on Jet Skii.
    “Isioma said she demanded for life jacket and other safety procedure before the boat drove off but they were assured there was no cause for alarm as expirienced divers were with them.”
    Continuing, Pastor Orogun said his brother’s wife disclosed that the journey was smooth until Kailondo suggested that they go into the high sea, which she and her late husband refused.
    “They then stopped, relaxed and were chatting while Dan was responding to news on football game going on through his phone. Music was on in the boat. Dan was on the back seat. Kailondo emptied part of his whiskey into Dan’s cup but my brother saw him and reminded him that it was his own cup, at which point his wife took it away to prevent him from drinking from it.
    “While everyone was relaxed, Kailondo was dancing and watching Dan who was busy on his phone. Then, unexpectedly, Kailondo started the engine with high speed and made an almost 360 degrees turn anti-clockwise. The children and Isioma lost balance and fell inside the boat, while Dan was thrown inside the river. But the two young men who were at the nose of boat did not fall. It shows they were prepared for the move.
    “Before this happened, Micheal, the diver who was following them on Jet Skii and and displaying some acrobatics had disappeared. The young men who Kailondo had also said were divers did not make any attempt to save Dan.
    “Instead of Kailondo to stop after realising that Dan was in the water, he rode for few minutes even as Isioma and the children were screaming that they should stop and rescue him or throw a rope towards Dan who was already swimming in the boat’s direction.
    “Isioma was fighting hard to prevent their young children who wanted to jump into the river to help Dan and at the same time, begging Kailondo and the other men to assist her husband by throwing the rescue rope to him but they all refused.
    “At this point, the wife who sensed foul play, started making telephone calls to other boat owners they know, to come and help her husband. When Kailondo saw what was happening, he reluctantly removed his shirt, jumped into the river, swam towards Dan and held him from behind, apparently to incapacitate him.
    “The next thing my brother’s wife and children noticed was that both men sank, they were under water for sometime and later Kailondo came out of the water from another side without Dan. Shortly after, the said Jet Skii diver, Micheal, resurfaced from another end of the water too. But Dan was not seen again.
    “At this time, those Isioma called with her telephone, including some members of the United Nations Peace Keeping corps in Liberia had arrived and were looking for Dan. Isioma challenged Kailondo before them and told them that he took her husband under water but he claimed that a force pulled Dan down, that he saw blood and that the river was boiling so he left Dan and fled. He claimed it was witchcraft and that Dan was gone,” he said.
    The family wondered where Micheal was while the incident lasted? Why Kailondo refused all appeal to throw the rescue rope to Dan who was swimming towards the boat, but instead went into the water and held him from the back with his hands clipped to his body to prevent him from swimming?
    It accused Kailondo of plotting the death of their brother as well as motive to kill his wife and children to erase all suspicion.
    It described the reappearance of Michael, shortly after Kailondo came out of the water as “no coincidence”, just as they expressed fears of getting justice since Liberia’s chief of Police was Kailondo’s in law.
    “While we are grateful to the Liberian government for the actions they have taken since they came into the picture, I want to appeal to the Director, Liberia’s National Police, Clarence Massquol to not allow his family ties with George Kailondo affect justice in the case. The suspects ought to have been in police custody, not to be roaming the streets of Monrovia with impunity.
    “We are also appealing to the Nigerian government to take steps to ensure that the death of its citizen under suspicious circumstances is not thrown under the carpet. We believed perhaps the death of our brother has not been taken seriously by Nigeria because of the ineffectiveness of the Nigeria mission in Monrovia following the recall of the former High Commissioner.
    “We are willing to drag this matter to the International Criminal Court (ICC) to get justice for our brother.
    “We are also appealing to the bank to consider giving all his four children scholarship to the university level, since he dedicated over 24 years of his life in their service and was a committed employee,” said Pastor Orogun.
    According to Pastor Orogun, the suspect ‘s plan to kill the banker and his family could not materialise because of the rescue teams that were called by his wife Isioma, adding that Michael acted as his accomplice in Dan’s murder.
    “Our position is that Kailondo never knew Dan was a good swimmer. This fact complicated his plan of killing Dan and his entire family, as well as made his intention of inviting the entire family clear. Another thing he did not know was that Dan did not drink the whiskey he poured into his cup to get him drunk.
    “We are aware that George Kailondo has been sponsoring all the lies that were being fed to the Liberia press. I must put on record that Daniel knew how to swim; he did not go to Kailondo’s house to celebrate any wedding anniversary but himself and his family were invited by George Kailondo.
    “In his desperation to cover up his evil, Kailondo has gone to put life jackets in his boat. We know that he is desperate to escape justice, but he is under a divine woe and judgment already.
    “This incident happened less than half nautical mile from Kailondo’s compound. While rescue efforts were still ongoing at about 8:30pm, Kailondo went to bed and told some of the rescuers that my brother was gone.
    “It is also curious that all efforts to find Daniel under water that day failed. It was until the morning of the third day that his body resurfaced at the very place it all happened. The clothe he was wearing, which I saw at the murtuary had mud stains, not white sand.

  • GTBank announces final tender results

    GTBank announces final tender results

    Guaranty Trust Bank Plc yesterday announced the expiration and final tender results of the any and all cash tender offer (the “Tender Offer” or “Offer”) with respect to the $500 million  7.50 per cent. Notes due 2016 (the “Securities”), which Securities were issued by its wholly owned subsidiary – GTB Finance B.V. (the “Offeror”) – and unconditionally and irrevocably guaranteed by the Bank.

    As the expiration deadline for the Tender Offer was February 10,  the deadline for tendering the Securities under the Offer has now passed.

    An aggregate principal amount of $126,586,000 of the Securities that were validly tendered on or prior to the Expiration Deadline and not validly withdrawn were accepted. No Securities were tendered through the guaranteed delivery procedures described in the Tender Offer Memorandum dated February 4, 2016 (the “Tender Offer Memorandum”). The Settlement Date for the Tender Offer is February 16, 2016.

    The tender offer is consistent with GTBank’s liability management strategy and reflects the Bank’s ongoing efforts to enhance the efficiency of its funding and capital structure as it seeks to reduce its overall funding costs.

    Subject to applicable law, the Offeror or any of its affiliates may at any time and from time to time following completion of the offer, purchase the remaining outstanding Securities by tender, in the open market, by private agreement or otherwise on such terms and at such prices as the offeror or, if applicable, its affiliates may determine. Such terms, consideration and prices may be more or less favorable than those offered under the tender offer.

    According to the Bank’s CEO – Segun Agbaje, “we are pleased at the outcome of this exercise. The Offer, which is the first of its kind involving a Nigerian corporate in the international financial markets, has enabled us achieve the objective of reducing some of the Bank’s borrowing costs ahead of the maturity of the Eurobond in May of this year.

  • GTBank, Zenith Bank too cheap to ignore, says Exotix

    Two Nigerian tier 1 banks- Guaranty Trust Bank (GTBank) Plc and Zenith Bank International Plc, have become too cheap to ignore by any value-minded investor, Exotix, an international finance firm has said.

    Exotix Partners LLP, a global finance and investment firm coordinates its global operations through five major offices in London, New York, Lagos, Dubai and Nairobi.

    In a review of the frontier equities, Exotix grouped the two Nigerian banks –GTBank and Zenith Bank, among six stocks in three countries which share prices are currently attractive buy opportunities for investors. GTBank is Nigeria’s most capitalised bank and the third most capitalised quoted company.

    The report was signed by Hasnain Malik, Head of Frontier Markets Strategy and South Asia Research, Exotix Partners LLP.

    According to the report, the six stocks that have become too cheap to ignore, although with catalysts on an indeterminate timeframe, include Egypt’s large-cap stocks-COMI, ETEL; Nigeria’s GTBank and Zenith Bank and United Arab Emirates’ EMAAR and ARMX.

    The report however placed other major Nigerian banks and building and consumer goods stocks in its list of unattractive stocks. The report categorised Nestle Nigeria, Unilever Nigeria, Access Bank, Diamond Bank, Dangote Cement and Lafarge Africa among stocks to avoid.

    The report outlined that GTBank and Zenith Bank stand the chance to weather Nigeria’s tough operating environment, especially in the aftermath of devaluation of Naira, because they are adequately capitalised noting that their relative cheap valuation is an added advantage to investors.

    Exotix noted that non-performing loans and capital adequacy were considerations for the low-ranking of tier two banks while increased competition, slowdown and project delays could hamper growths in the fast moving consumer goods and building materials sectors.

    “All of frontier is cheap relative to history but the risks are stacked high. Across the frontier and smaller emerging markets, equity valuations are cheap relative to history. But the risks are also stacked high,” the report pointed out.

    The review noted that large parts of the asset class in the frontier markets are trapped in more state-led development models with greater obstacles to currency convertibility, more ad hoc and punitive regulation and crowding out of the private sector.

    It outlined that the regions have been characterised by elevated geopolitical risk as local powers compete in the vacuum left by the end of US hegemony with domestic regimes grappling with succession or eroded social contracts.

    The report identified low oil and commodity prices, United States Dollar strength, US rate increases, anaemic developed market growth, China deceleration and funds’ outflow from perceived riskier assets as risks militating against frontier and emerging markets.

    In an earlier report, Exotix had noted that 2016 could be challenging for Nigerian banks citing further downside risks materialising with the continued fall in oil prices and foreign exchange uncertainties.

    The report titled “Nigerian Financials: Oil prices and FX constraints pressure metrics”, was signed off by Nashwa Saleh, a chartered financial analyst and director, head of financials credit research, Exotix Partners LLP.

    “We expect both banks’ asset quality metrics and foreign exchange liquidity to be negatively impacted,” Exotix stated.

    According to the report, the latest analysts’ report is an update on the credit, market, operational and system risks for the Nigerian banking system using a traffic light signals model calibrated to nine-month results for this year.

    The report noted that credit risk is a slow-bleed process and market risk is a fast-bleed process, with the former impacted  more by structural macro issues and stocks, and the latter more affected by flows and current exposures.

  • GTBank launches  innovative payment solution

    GTBank launches innovative payment solution

    Guaranty Trust Bank plc has reaffirmed its position as a leading provider of e-payment solutions with the introduction of a new service that allows customers receive Western Union funds directly into their GTBank account via any of the Bank’s Automated Teller Machines (“ATMs”) in Nigeria. The service is also available on the Bank’s Internet Banking platform (www.gtbank.com).

    The introduction of this service coincides with a time when the need to move money quickly, reliably and much more conveniently across international borders has risen rapidly. This has necessitated an increased demand for digital solutions to aid payments, transfers, and remittances. As a Bank renowned for innovative solutions, GTBank takes pride in leveraging technology to make life better for its customers by creating value oriented products suited to their varied needs.

    To receive Western Union funds via any GTBank ATM nationwide, customers simply need to press any key on the ATM; click the Western Union option; agree to terms and conditions; select account type; select the country where the funds were sent from (sending country); and where country is not available, enter the sending country code / ISO Code; enter the expected amount in Naira; enter the GTBank NUBAN account of the receiving party; and enter the 10-digit Money Transfer Control Number (“MTCN”). Upon confirmation of the transaction, the transfer amount will be credited into the receiving GTBank account. This service does not require a GTBank debit or credit card, or a security token device.

    GTBank has consistently played a leading role in Africa’s banking industry. The GTBank brand is regarded by industry watchers as one of the best run financial institutions across its subsidiary countries and serves as a role model within the financial service industry due to its bias for world class corporate governance standards, excellent service quality and innovation. The Bank operates from over 230 branches within the country and has banking subsidiaries in Kenya, Rwanda, Uganda, Cote D’Ivoire, Gambia, Ghana, Liberia, Sierra Leone and the United Kingdom

     

  • GTBank unveils  virtual MasterCard

    GTBank unveils virtual MasterCard

    Guaranty Trust Bank Plc has reaffirmed its position as a leading provider of e-payment gateway solutions with the recent launch of its Virtual Prepaid MasterCard.

    The card, which is issued instantly via Internet banking, provides an added comfort for security conscious online shoppers who prefer not to use their regular debit/credit cards when making online payments.

    The GTBank Virtual card has all the security features of a physical card and can be used to make both international and local online payments. It also serves as a fall back option for customers who have forgotten or lost their card, but need to perform urgent online purchases.

    The introduction of the virtual card has bridged the gap between traditional e-wallets and bank accounts by providing a low cost alternative to physical debit cards. Customers also have the option of converting the virtual card to a physical card.

    The bank’s Managing Director / Chief Executive Officer, Segun Agbaje said: “This marks another milestone in our quest to make banking more seamless for our customers. As a bank, we remain firm on our objective to deliver value adding services that are tailored to meet the diverse needs of our ever-growing customer base by leveraging technology to make banking more convenient for all our customers.”

    He further stated that “the launch of this product, attests to our commitment towards encouraging a cashless culture in our country by promoting the use of alternative payment channels for transacting both locally and internationally. Our desire to be at the frontier of banking excellence enables us to pioneer innovative products aimed at making banking more simple and attractive to the unbanked and unserved.”

     

  • GTBank wins Bank of the Year award

    Guaranty Trust Bank Plc (GTBank) has once again reaffirmed its position as a leading global brand with its recent recognition as the ‘Bank of the Year’ during the Banker Awards held in London, United Kingdom.

    The Banker, a publication of the Financial Times, is the world’s leading monthly journal of records for the banking Industry, with over 90 years expertise in publishing development in the banking industry both Africa and on the global scale.

    The Banker Awards is regarded as the industry standard for banking excellence, recognising and celebrating the achievements of individuals and financial institutions within the global banking sector.

    According to Brian Caplen, Editor of The Banker Magazine, “The banking and financial services industry continues to develop rapidly, with a few financial institutions cementing their positions as market leaders, pushing the boundaries of innovation and excellence. GTBank has over the years maintained a reputation for delivering notable financial success hinged on world class corporate governance standards and excellent service delivery.”

    Receiving the award on behalf of the bank, Managing Director/CEO of GTBank, Segun Agbaje, said: “We are delighted and proud to be recognised as the 2015 Bank of the Year. Our vision has always been to create an oasis and an African institution that can operate anywhere in the world.

    “We strive to achieve this by adopting global best practices in all our business processes while conducting ourselves in a manner required of an institution with high corporate governance standards. For us, winning this award for a second consecutive year is an attestation of our long-standing commitment to doing things right.”

     

     

     

     

  • GTBank unveils  virtual MasterCard

    GTBank unveils virtual MasterCard

    Guaranty Trust Bank Plc has reaffirmed its position as a leading provider of e-payment gateway solutions with the recent launch of its Virtual Prepaid MasterCard.

    The card, which is issued instantly via Internet banking, provides an added comfort for security conscious online shoppers who prefer not to use their regular debit/credit cards when making online payments.

    The GTBank Virtual card has all the security features of a physical card and can be used to make both international and local online payments. It also serves as a fall back option for customers who have forgotten or lost their card, but need to perform urgent online purchases.

    The introduction of the virtual card has bridged the gap between traditional e-wallets and bank accounts by providing a low cost alternative to physical debit cards. Customers also have the option of converting the virtual card to a physical card.

    The bank’s Managing Director / Chief Executive Officer, Segun Agbaje said: “This marks another milestone in our quest to make banking more seamless for our customers. As a bank, we remain firm on our objective to deliver value adding services that are tailored to meet the diverse needs of our ever-growing customer base by leveraging technology to make banking more convenient for all our customers.”

    He further stated that “the launch of this product, attests to our commitment towards encouraging a cashless culture in our country by promoting the use of alternative payment channels for transacting both locally and internationally. Our desire to be at the frontier of banking excellence enables us to pioneer innovative products aimed at making banking more simple and attractive to the unbanked and unserved.”

     

  • GTBank gets corporate governance recognition

    Guaranty Trust Bank Plc has been recognised for good corporate governance during this year’s African Business Awards held on the sidelines of the United Nations General Assembly in New York.

    Launched in 2008 by African Business magazine, the African Business Awards has become the deûnitive business awards in Africa, recognizing leadership and excellence on the continent.

    The objective of the Awards is to highlight a successful and vibrant Africa that is open to local, regional and global business ventures. Now in its seventh year, the African Business Awards has grown into a platform that celebrates excellence in African business by recognising the individuals and companies that are driving Africa’s rapidly transforming economy and creating new economic opportunities for citizens and communities all over the continent.

    According to Omar Ben Yedder, Publisher & Managing Director of IC Publications: “We are proud of all our winners, their work and accomplishments in various sectors show what can be achieved on the African continent with hard work and single minded determination. In winning this year’s award, GTBank stands out in Africa and the rest of the world as a benchmark for good corporate governance, business ethics and adherence to international best practices.”

    On the award, Managing Director/CEO of GTBank, Segun Agbaje, said: “We operate in challenging business environments, but we believe that our stakeholders should be better off for partnering with us. Thus, we set high goals and benchmark ourselves against global standards which influence our service culture and product offerings, thereby enabling us to remain relevant to our customers while adding value to all stakeholders. For us, winning this award is an attestation of the hard work and dedication of our staff, management and Board towards conducting business in a manner that typifies our adherence to global best practices. It also is an indication that our business model, systems and management are recognised globally as a benchmark for good corporate governance.”

    He further stated: “Earlier this year, we became the first financial institution in Nigeria to obtain and fully implement the triple International Organisation for Standardisation certification by the British Standard Institute (BSI) as required by the Central Bank of Nigeria. As a bank, we will continue to ensure conformity of our processes with international best practices and global standards.

  • GTBank declares N7.35b interim dividend

    GTBank declares N7.35b interim dividend

    The board of directors of Guaranty Trust Bank (GTBank) Plc, Nigeria’s most capitalised bank, has earmarked N7.35 billion as interim cash dividends to shareholders. In the dividend recommendation, shareholders would receive a dividend per share of 25 kobo. Earnings per share had grown by 22 per cent from N1.55 to N1.88.

    The dividend recommendation was one of the highlights of the first-half audited earnings report of the bank. The six-month report for the period ended June 30, 2015 showed that gross earnings increased by 15 per cent to N152.99 billion in first half 2015 as against N132.98 billion recorded in the comparable period of 2014. Profit after tax rose by 21 per cent to N53.37 billion in 2015 as against N44.01 billion in 2014. The growth in bottom-line was driven by interest and other operating income. Interest income grew by 12 per cent to N80.11 billion, while the investment and other operating income contributed an increase of 18 per cent, rising to N38.02 billion from N32.30 billion.

    Growth of loans and advances was however moderated as it only grew by one per cent to N1.299 trillion from N1.281 trillion. The bank’s deposits grew by five per cent from N1.649 trillion to N1.725 trillion. Shareholders’ funds also increased marginally from N374.33 billion to N384.99 billion. Total assets increased by eight per cent from N2.355 trillion to N2.544 trillion.

    Managing director, Guaranty Trust Bank (GTBank) Plc, Segun Agbaje, had after the first quarter earnings report, said the major focus for the bank going forward is to strengthen market positions with distinctive customer propositions in chosen segments in order to deliver long-term sustainable and efficient growth as well as strong shareholder returns.

    He noted that as a financial institution with a bias for industry leadership, exceptional service delivery and innovation, GTBank has experienced tremendous growth since its inception in Nigeria in 1990. Now, the bank presently employs over 10,000 peoples in Cote d’Ivoire, Kenya, Gambia, Ghana, Liberia, Sierra Leone, Rwanda, Uganda and the United Kingdom.

    GTBank earlier this year distributed N44.15 billion as final dividend, representing a dividend per share of N1.50 kobo. Total dividend per share for 2014 stood at N1.75 as against N1.70 paid for the 2013 business year. It had paid interim dividend per share of 25 kobo. This brought total payout to N51.5 billion for the 2014 business year as against N50.03 billion in 2013.

    Key extracts of the audited report and accounts for the year ended December 31, 2014 showed that GTBank grew its top-line by 15 per cent with gross earnings of N278.52 billion in 2014 compared with N242.67 billion in 2013. Profit before tax rose by nine per cent from N107.09 billion to N116.39 billion. Profit after tax grew by 10 per cent from N90.02 billion to N98.69 billion. Earnings per share consequently rose by 10 per cent to N3.47 in 2014 as against N3.17 in 2013.

    Balance sheet analysis showed that deposits base expanded by 14 per cent to N1.65 trillion in 2014 compared with N1.44 trillion in 2013. Shareholders’ funds also rose by 13 per cent from N332.35 billion to N374.33 billion. Total balance sheet size rose by 12.4 per cent from N2.10 trillion in 2013 to N2.36 trillion in 2014.

    GTBank also continued to maintain disciplined and prudent approach to loan growth as the proportion of non-performing loans to total loans dropped from 3.58 per cent in 2013 to 3.15 per cent in 2014.

     

     

  • GTBank’s second quarter non-interest income drops

    GTBank’s second quarter non-interest income drops

    • Operating expenses up eight per cent

    Guaranty Trust Bank (GTBank) Plc recorded a drop in its non-interest income in its second quarter 2015 earnings.

    Analysts at FBN Capital, an investment and research firm, said the bank’s non-interest income dropped to seven per cent year-on-year from 26 per cent in the first quarter of this year. Non-interest income comes from service and penalty charges and, to a much less extent, from asset sales and property leasing. Unlike interest income, this income is largely unaffected by economic and financial market cycles and is usually not controlled by law or regulation.

    However, GT Bank’s result for the second quarter showed that profit before tax and profit after tax grew by 20 per cent year-on-year and 34 per cent year-on-year to N30.5 billion and N27.4 billion respectively.

    Although profit before provisions advanced by 10 per cent to N55.8 billion, the double-digit growth on the PBT line was mainly driven by 40 per cent decline in loan loss provision to N2.4 billion and an operating expenses growth of eight per cent year-on-year.

    “Further up the profit and loss, both revenue lines contributed to pre-provision profits. However, funding income which grew by 11 per cent was the stronger of the two. In contrast, the non-interest income line grew by seven per cent year-on-year, visibly weaker than the 26 per cent year-on-year growth that we saw in first quarter of 2015,” it said.

    “Lower effective tax rate of 12 per cent against 17.6 per cent second quarter of last year and N666 million on the other comprehensive income line (OCI), PAT growth came in faster at 34 per cent year-on-year, compared with the 20 per cent year-on-year growth on the PBT line. Sequentially, PBT declined by seven per cent quarter-on-quarter due to an 11 per cent quarter-on-quarter reduction in pre-provision profits”.

    Although the lender’s funding income grew by five per cent quarter-on-quarter, 36 per cent quarter-on-quarter decline in the non-interest income was the major driver behind the decline in profit before provisions.

    Compared with our estimates, while PBT was came in five per cent ahead of our N29.1 billion forecast, PAT beat by 15 per cent mainly because the bank’s actual effective tax rate of 12 per cent was 500 basis points lower than tax rate forecast. “A positive surprise on the OCI line also contributed to the variance. On an annualised basis, GT Bank’s first half PBT of N63.1 billion is tracking slightly ahead of management’s full year PBT guidance of N120 billion and consensus’ forecast of N122 billion,” it said.