GTBank Profit Falls More than 9% in Q1 2021

GTBank Profit Falls More than 9% in Q1 2021

Guaranty Trust Bank Plc (GTBank) profit falls more than 9% in the first quarter (Q1) of financial year 2021, according to the bank recent unaudited financial statement.

This Q1-2021 result signal that pandemic-induced stress impacted the bank earnings profile as analysts noted lender’s significant exposure to oil and gas sectors.

It is noted GTBank profit slides occurred as a result of pressure in its core earnings line, as interest income plunged by 27% to N55.127 billion from N75.36 in the comparable period.

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This was further explained by the bank quiet credit expansion as loans to customers printed lower at N1.638 trillion from N1.662 trillion at the beginning of the year.

The bank interest income earned from financial assets at fair value through income statement expanded significantly to N5.181 billion from N1.677 billion.

Due to pressure on asset quality, GTBank booked more than 52% increase in impairment charge to N1.86 billion from N1.223 billion in the comparable period in 2020.

Increased fee and commission expenses doused growth in fee and commission income which came at N17.573 billion from N14.462 billion in Q1-2020.

Net fee and commission income settled at N114.608 billion, representing about 8% increase when compare with N13.553 billion achieved in the comparable period.

Personnel expenses expanded to N9.97 billion from N9.240 billion as other operating expenses line slowed down to N22 billion in Q1-2021 from N22.949 billion in Q1-2020.

GTB profit after tax printed at N53.683 billion in Q1-2021, which happens to be about 8% lower when compare with N58.204 billion recorded in Q1-2020.

The bank total assets increased to N4.992 trillion year to date from N4.944 billion at the end of financial year 2020, supported majorly by fair valuation of its financial assets to N168.609 billion from N67.535 billion. The income from which was recognised via income statement.

GTBank Profit Falls More than 9% in Q1 2021

Editor’s Note: Detail analysis coming next week