Friday, March 13, 2015 5:14 PM / Research
In the face of growing macro-economic instability, Guaranty Trust Bank Plc closed the turbulent year with a more robust and sustainable revenue position- all the core revenue streams recorded impressive growth- This was the key observation during the Q4’14 earnings report presentation, just concluded today.
The tight regulatory environment, which was aimed at curbing excess liquidity and protecting the value of Naira- this, was compounded by the pressure from devaluation of Naira. Though, according to the management, this was well curtailed.
Apart from the moderate growth in both top-line and bottom-line, the bank grew its loan book by 27.12% (yoy) with a corresponding growth in deposit position by 14.36% (yoy). The interest and non-interest income closed positive by 8.21% and 35.27% on year on year basis respectively.
Summarily, below are the key takeaways from the financial year earnings presentation as presented by the management of the bank;
• Impact of Naira devaluation was well curtailed
• No plans to raise fresh fund for recapitalization
• No exposure to state government loans
• No impact of devaluation on its capital adequacy ratio
• effective management of the Bank’s fx position
• GTBank is not pursuing a Pan African expansion strategy
• Management’s aim is to increase foreign subsidiary contribution to PBT to 10% by 2016
Source: Proshare
