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GTBank Nets N8.8bn Profit in Q1


By Goddy Egene, 04.18.2010

Guaranty Trust Bank Plc last week raised the competition bar in the banking industry  by announcing a profit after tax of N8.847 billion for the first quarter ended March 31, 2010.

The bank, which is fast assuming the leadership  of the banking industry, reported this Q1 profit on the heels of an impressive  2009 impressive performance.GTBank had recently reported gross earnings of N162.55 billion for the year ended December 31, 2009, up from N100.6 billion in 2008. While two other banks that had announced their results for 2009 witnessed significant dip in their profit after tax, GTBank posted a reassuring profit after tax of N24 billion in 2009, showing a drop of  15 per cent from N28 billion in 2008.

The bank also declared a dividend of 75 kobo and a bonus of one new share for every four shares already held, which is also the best returns so far declared by any bank.
While investors are still celebrating the impressive 2009 performance,  GTBank raised investors’ hope for a better 2010 with an equally impressive Q1 results.

According to the unaudited results made available by the  Nigerian Stock Exchange (NSE) last Friday,  GTBank reported gross earnings of N26.75 billion million, as against N24.1 billion in corresponding period of  2009. Profit after tax stood at N8.847 billion, from N8.5 billion in 2009. Market analysts said the N8.8 billion Q1 profit is something to cheer about, adding that it points to where the bank would be at the end of the year.

“It is difficult to beat this performance. If a bank can post a profit of N8.8 billion in the period that lending is not taking place. You can imagine what will happen if lending resumes. Even let us  assume that the situation continues and GTBank maintains this profit level for the remaining three quarters, this will give a profit of over N35 billion at the end of the year,” a stock dealer said.

GTBank has been investors’ toast as a result of the impressive performance with investors staking N2.096 billion on 90.671 million units in 3,391 deals at the stock market last week. The bank's management has always been extolled by many. Its operational model has been consistent and focused while analysts had said that the management team, which is led by Mr. Tayo Aderinokun has shown “focus, quality and experience.”

The performance of the bank has attracted  reputable Harvard Business School in United States of America (USA) and Crainfield Business School , United Kingdom to carry out a deep research on the effectiveness and uniqueness of the  bank’s brand.From the early 1990's the bank has tirelessly set the pace for other Nigerian financial institutions in terms of service quality, products and excellent customer service delivery.

After listing at the Stock Exchange in 1996, GTBank was the first Nigerian financial institution to undertake $350 million Eurobond issue and a $750 million Global Depository Receipts (GDR) offer.The listing of the GDRs on the London Stock Exchange in July 2007 made the bank the first Nigerian company and African bank to attain such a landmark achievement.


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