Guaranty Trust Bank Plc has said that it plans to sell about N30bn ($192m) of its non-performing loans to the Asset Management Corporation of Nigeria in the next phase of purchase by the asset management company.

Bloomberg quoted the bank as saying, “It sold N1.7bn toxic assets to AMCON in the first phase in 2010, which is relatively immaterial compared to N41bn in non-performing loans on the bank’s books.”

The statement by the bank added that it reduced its non-performing loan ratio to 6.79 per cent last year, from 12.2 per cent a year earlier, due to strong recovery efforts.

Bloomberg also quoted the Deputy Managing Director, GTB, Mr. Segun Agbaje, as saying in a conference call that, “GTB plans to expand its loan book by 15 per cent this year. That compares with loan growth of 4.7 per cent in 2010.”

Agbaje added that GTB would complete the sale of its non-banking units by May or June this year, in line with the new directives of the Central Bank of Nigeria.

AMCON said on Wednesday that it had bought about N1tn non-performing loans of 22 rescued and non-rescued banks in the second phase of its rescue programme in the banking sector.

The Managing Director, AMCON, Mr. Mustafa Chike-Obi, added that the corporation had also put plans in place to issue N1.7tn bonds at its completion board meeting in Abuja on April 6, noting that there would be a road show for investors in the Federal Capital Territory on Thursday, and in Lagos on Friday.

Source: Punch