The Guaranty Trust Bank on Wednesday surprised investors with an impressive performance in the first quarter (Q1) of the year.

The bank’s gross earnings rose from N73.4 billion recorded in the first quarter of 2016 to N104.7 billion in Q1 of 2017. Up by 38.8 percent.

Net interest income also improved by 62.1 percent to N66.1 billion from N40.8 billion recorded in 2016, while credit impairment surged 12.6 percent from N3.4 billion recorded in 2016 to N3.8 billion in 2017.

However, the bank recorded N50.4 billion profit before tax in the first quarter of 2017, which is 64.3 percent higher than N39.7 billion recorded in 2016. Profit after tax stood at N41.5 billion, up from N25.6 billion recorded in the same quarter in 2016.

Commenting on the results, analysts said: “Q1 2017 PBT of N50 billion grew by 64 per cent while PAT more than doubled to N41billion, thanks to a positive result on the other comprehensive income line of N568 million (compared with a sizeable loss of N5.3 billion a year earlier).”

According to the analysts at FBN, the main factor behind the strong performance was the net interest income. “Although loan loss provisions of N3.8 billion and opex of N32 billion both grew by 13 per cent and 24 per cent respectively, these increases were not sufficient to make any material impact on the results. Sequentially, the non-interest income result stood out because the Q4 result had been negatively impacted by reversals of FX gains and one-offs. In contrast, non-interest income (which had boosted the bank’s results through most of 2016 on the back of FX-related gains) was up only five per cent,” they said.

They further stated that “Both PBT and PAT were 17-18 per cent ahead of our forecasts because of the strong net interest income result which surprised positively by 15 per cent. The only other notable positive surprise was loan loss provisions. GTBank booked 16per cent less in provisions than we had forecast. Having said that, given the volatility that is inherent on this line, and that this is only the first quarter of the year, we would not make too much of this variance. Non-interest income and opex were close to our forecasts.”

http://investorsking.com/gtb-beats-expectations-posts-n42bn-profit-q1/

see another evidence recession is gone for good. Make me too rise up and tap into the abundance.

Thats y i luv dem

Most of the profits come from the interest generated, the high-interest rate is killing small businesses. Until our monetary and fiscal policy are structured to aid ease of doing business, new job creation we continue to suffer.

It is not low tax-rate that is hurting revenue generation but lack of job creation and high poverty rate. The FG in its NERGP stated the need to up tax to gdp ratio to 15% from the current 6%, this is counter-productive in a nation where unemployment is high.

Donald Trump just released the highest tax cut plan in the history of the U.S, cutting federal tax to 15% for businesses to further aid productivity and achieve 3% economic growth rate target at 4.7 percent unemployment (full employment). Yet, in a nation where unemployment is 13.9% and youth unemployment/underemployment currently stood at 45.7%, the government is looking to raise tax with interest rate at 16%.

These commercial banks will continue to profit from these lapses, both at the capital market and from the masses.

989900 , Truth234

In you gentlemen's sustained position about my negative/pessimistic view concerning the CBN's unstable & market destablizing FX policies, I believe I have to bring a recent development to your notices...

I hope you both are aware that CBN has instructed GTB & Access banks do not process card transactions at less than 375 , FCMB then decided to add extra 5 naira for the sheer hell of it..... It used to be 320-325...

Care to explain why that is?

modath:


989900 , Truth234

In you gentlemen's sustained position about my negative/pessimistic view concerning the CBN's unstable & market destablizing FX policies, I believe I have to bring a recent development to your notices...

I hope you both are aware that CBN has instructed GTB & Access banks do not process card transactions at less than 375 , FCMB then decided to add extra 5 naira for the sheer hell of it..... It used to be 320-325...

Care to explain why that is?

The message might have been passed across wrongly. The directive stated that commercial banks should not sell dollar more than 20% above the official bank rate. The current official rate is N306 and it changes. I am yet to see where the CBN forced them to sell at 375. The 20% was around 375-378 when the official bank rate was 315 a week ago. The 320-325 was when forex liquidity was better than what we have now. These banks need to be checked.

And PTA/BTA is fixed at N360 to the dollar.
The Apex bank is trying all it could to ensure the country comes out of recession. I think we should cut them some slack.

Truth234:


The message might have been passed across wrongly. The directive stated that commercial banks should not sell dollar more than 20% above the official bank rate. The current official rate is N306 and it changes. I am yet to see where the CBN forced them to sell at 375. The 20% was around 375-378 when the official bank rate was 315 a week ago. The 320-325 was when forex liquidity was better than what we have now. These banks need to be checked.

You do realise i am not wet behind the ears ? so i know what I'm talking about... The message wasn't passed wrongly, it's clear as clear can be... CBN gives them the forex to settle this transactions so they dictate the tune since they pay the piper...

Sometime mid last year, banks were settling card transactions @ 410-460 (i have alerts to prove my claim) till october that CBN directed that all card transactions should not be settled at more than a certain % above the CBN rate which they will provide the fx.... So many banks dropped card transactions with just GT & Access forging on with GT maintaining a 100$ limit @ 320... Access was 200$ @ 325 till January that the limit was lowered to $100....

Leave banks need to be checked... This directive came from CBN!!! They just need to make it an official confirmation & stop hiding behind walls...

BTW... Are you really talking about "liquidity"? I thought we were invincible & could do "anyhow" with reserves with no repercussion? Issokay!!!



Cc 989900

modath:




You do realise i am not wet behind the ears ? so i know what I'm talking about... The message wasn't passed wrongly, it's clear as clear can be... CBN gives them the forex to settle this transactions so they dictate the tune since they pay the piper...

Sometime mid last year, banks were settling card transactions @ 410-460 (i have alerts to prove my claim) till october that CBN directed that all card transactions should not be settled at more than a certain % above the CBN rate which they will provide the fx.... So many banks dropped card transactions with just GT & Access forging on with GT maintaining a 100$ limit @ 320... Access was 200$ @ 325 till January that the limit was lowered to $100....

Leave banks need to be checked... This directive came from CBN!!! They just need to make it an official confirmation & stop hiding behind walls...

BTW... Are you really talking about "liquidity"? I thought we were invincible & could do "anyhow" with reserves with no repercussion? Issokay!!!



Cc 989900

Madam, banks dropped card transactions because there was no liquidity to offset those payments. Deposit money bank through the CBN instituted withdrawal limit to curtail excesses of certain people's activities impacting forex liquidity after global oil prices reached a record low of 26/barrel in February 2016 and our foreign reserves plunged.

If you look at GTB 2016 statement, most of their profits came from the high foreign exchange rate, it was their abuse that led to the restriction last year and of course massive profit declaration. Now, take a look at this first quarter statement, most of the profits comes from interest, why? because the naira has improved. This is our argument that the new forex policy is working and needs time.

It is wrong to assess current situation based on past occurrence. The directive released by the CBN on their website is different from what you were told by your bank. I repeat those banks need to be checked, they not doing anything rather profiting from the system and exploiting people as explained above. Good morning.

They forgot to add "allegedly buoyed by round tripping and FX back deals"

Thieves... After all the Fraudulent Charges.
GTB makes N117(N100 - interbank, N5-VAT, and N4 each for N100, N5, and the main Transaction alert =N12) for Each Transfer one makes. I'm being charged as high as N1, 800 monthly

Banks declaring false profits since 2015, fcmb do their own, gtb wan follow

Mynd44:
They forgot to add "allegedly buoyed by round tripping and FX back deals"

Exactly what is aiding these commercial banks.

as soon as their monthly charges went up, I left GT Bank for my kolo cos no one will charge me for any alert when I save or withdraw from it. If you wanna send me cash, use my bro's account. The only problem is whistle blowers (like the one below) but who cares. You can send them to raid my house and collect my 1k

Recession is Profits

Why won't banks make excess profits, when they will charge you twice or even more for a transaction. ATM maintenance fee, SMS charges, exhorbitant inter bank transfers, 'this and that' charges. Gone are the days when savings account yield more interest, na charges they will use to empty the account self.

All the profit they are supposed to be adding people's account is what they are claiming abi, God is watching you people.

[colney

Oh yeaaa!

They make money from Forex shaddy deals.... Continue!

Nice one

Mynd44:
They forgot to add "allegedly buoyed by round tripping and FX back deals"

Don't forget unnecessary text messages! !!! I don't blame the banks, i blame the administrators that put CBN in the hands of former heads of DMBs... what else would a vulture beside prey on dead meat!!!!

Regulators ought to be NEUTRAL.

Yahoo bank. Like some people would say.

my people recession is nt gone oo as long as the masses just dey suffer and ppl committing suicide godwin emefieles policies are nt in favour of the masses buh the banks , the banks benefit from his policies more than any other person

corporate robberz

This is massive!

Ole after deducting money from people acc illegally

WHy won't THey?

no wonder i get deducted anyhow and i never get 1naira addition on savings acct

Truth234:


The message might have been passed across wrongly. The directive stated that commercial banks should not sell dollar more than 20% above the official bank rate. The current official rate is N306 and it changes. I am yet to see where the CBN forced them to sell at 375. The 20% was around 375-378 when the official bank rate was 315 a week ago. The 320-325 was when forex liquidity was better than what we have now. These banks need to be checked.

Somehow I have a feeling CBN is secretly responsible for this mess. Are they telling us they don't know selling for 375 at 306 interbank rate is higher than 20%?

modath:

Don't forget unnecessary text messages! !!! I don't blame the banks, i blame the administrators that put CBN in the hands of former heads of DMBs... what else would a vulture beside prey on dead meat!!!!
Regulators ought to be NEUTRAL.

Anything that will profit these thieves, they don't care. Corporate armed robbers.

They made huge profit from round tripping!

Profit Profit Profit Nothing Else