Guaranty Trust Bank on Wednesday announced N44.670 billion profit after tax (PAT) for the first quarter of 2018. This was higher than the N41.471 billion filed in the corresponding quarter of 2017.
The report released through the Nigerian Stock Exchange (NSE) showed the lender ended the quarter with net interest income of N59.689 billion, lower than the N66.129 billion from 2017. Loans impairment charges declined from N3.412 billion in 2017 to N1.639 billion.
Incomes from fees and commission grew from N13.68 billion to N15.22 billion in the quarter, while profit before tax improved to N52.624 billion in 2018 from N50.392 billion in 2017. The report also showed deposits from customers increased from N2.062 trillion to N2.214 trillion. While, loans and advances moderated from N1.449 trillion to N1.354 trillion.
Speaking on the report, experts at FBN Quest said the single-digit in profit before tax growth was driven by the 52 percent year-on-year decline in loan loss provisions and a 41 percent growth in non-interest income.
“The growth in non-interest income was largely underpinned by foreign exchange (FX) revaluation gains of N5.5 billion (vsN306.4 million Q1 2017). In contrast, funding income declined by 10 percent. Further down the PAT grew by eight per cent to N44.4 billion, thanks to a lower effective tax rate of 15.1 percent vs. 17.7 percent Q1 2017. Sequentially, PBT grew five percent quarter on quarter (q/q), again, the reduction in loan impairment charges was the major driver. However, PAT fell by 13 percent q/q because of a 50 percent q/q spike in taxation. Compared with our forecasts, PBT and PAT beat by six percent and eight percent respectively, because non-interest income surprised positively.”
GTBank is the first bank to release its financial performance this year.
