By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Guaranty Trust Bank Plc (GTBank) has increased its profit after tax (PAT) by 9.06 percent (9.06%) in its half year 2013 financial report.
To record the 9.0% PAT, GTBank recorded N44.943 billion in the half year of 2012 compared to N49.105 billion recorded in the review period of 2013.
Also, profit before tax (PBT) grew by 6.95% as the bank declared N57.364 billion in the half year period of 2013 compared to N53.636 billion in the same period of 2012.
Gross earnings also increased from N113.527 billion in the half year of 2012 to N124.202 billion in the review period of 2013; indicating an increase in gross earnings of 9.40%.
Analysts at Investment One Financial Services in reviewing the banks half year 2013 report said their reading is in line with expectation. Growth pattern across major performance indicators fell in the high end of the single digit.
The Investment One analysts affirmed that the 9.06% growth in PAT of GTBank was boosted by a 10.61% interest income, increased income, continued efficiency and yields on investment securities (majorly fixed income assets).
The report further affirmed that the attainment of a 14.56% effective tax rate compared with 20.83% in the first quarter (Q1) of 2013 and 16.21% half year 2012 contributed to the profitability growth.
According to Investment One analysts, the above numbers shows GTBank’s ROaE expanded by 69 basis points to 31%. “This expansion was moderately driven by the 9.06% growth in profitability and 4.77% growth in shareholders funds as at HI 2013 from 2012 financial year end level.
On August 98, 2013, UK Financial Conduct Authority (FCA) imposed a financial penalty of £525,000 on Guaranty Trust Bank (UK) Ltd (GTBUK) for failing to take ‘reasonable care’ to establish and maintain effective Anti-Money Laundering (AML) systems and controls, and consequently breaching Principle 3 of the FCA’s Principles for Businesses (FCA Principles).
The penalty was issued following the FSA’s review of GTBUK’s management of AML controls of higher risk customers, including customers deemed to be a ‘politically exposed person’ (PEP), between the period of 19 May 2008 and 19 July 2010 (Relevant Period).
