GTBank PLC’s Q3 Net Profit Rose By 60%

Triple Gee

GTBank PLC might be the only tier 2 bank with the best third quarter result. The bank has just released result showing its Q3 net profit rose by 60% year on year.

The bank said its net profit for the third quarter was NGN119,9 billion compared to NGN75,1 billion reported within the same quarter last year.

The bank reported that its interest income increased to NGN181 billion. Last year GTBank made a total of NGN172 billion in interest income.

The bank has further cut down its interest expenses to NGN49 billion versus NGN52,8 billion for last year. This might also be an indication that it is reducing its loan exposure to certain sectors.

GTBank’s Q3 result also accentuated the signs of the times. The bank said impairment charges rose by 570%. The rate of default on loans has since skyrocketed since Nigeria’s public revenue fell due to the crash in global oil price.

As a result of the harsh economic condition, the bank said it made a provision of NGN 57 billion for impairment compared to NGN8,5 billion.

GTBank is also doing well with its revenue from fees and commission. With a very vibrant digital transfer portfolio, the bank recorded a total of NGN 50,4 billion compared to NGN39,6 billion recorded last year.

The bank did not really downsize during the gail of layoff that befell the banking sector. As a matter of fact, personnel expenses rose to NGN21,7 billion compared to NGN21,4 billion expended last year.

The report also shows that the bank has grown its deposit from customers to NGN2,0 trillion compared to NGN1,6 trillion recorded within the same quarter last year. Total asset at the end of the quarter has grown to NGN3,0 trillion versus NGN2,5 trillion last year.

Total liabilities has also grown to NGN2,6 trillion compared to NGN2,1 trillion.