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GTBank records 21% drop in pre-tax profit



Guaranty Trust Bank plc (GTBank) on Tuesday joined the list of banks that have released their audited results in line with the common financial year end for banks as it reported 21 percent drop in pre-tax profit for the year ended December 31, 2009.


The result, which was released to the stock market during trading, showed a drop in profit before tax (PBT) from N35.32 billion in 2008 to N27.963 billion in 2009. However, there was an improvement in gross earnings which grew by 61.57 percent to N162.550 billion as against N100.605 billion in 2009. Profit after tax stood at N23.686 billion in 2009 compared with N28.315 billion in the previous year. This shows a decline of 16.35 percent.


The directors of the bank proposed a dividend of 75 kobo per share and bonus of 1 for 4 to the shareholders whose names appear on the register of members as at April 20, 2010 while payment date is May 5, 2010.  Dealers said a positive reaction trailed the full year results released by the bank as the share price jumped 5 percent from N21.60 to N22.68, subsequently trading at the upper end of the market. It would be recalled that the shareholders of the bank received a dividend of N1.00 per share and bonus of 1 for 4 in 2008 financial year.


The bank’s total assets and contingents grew by 30 percent from N1 trillion to N1.37 trillion, while shareholders’ funds increased by 11 percent from N160 billion as at February 2008 to N178 billion by December 31, 2008.


Tayo Aderionkun, managing director, GTBank, had told shareholders at the last annual general meeting that “management shall remain attentive to possible challenges and seek creative ways of turning every challenge into an advantage.”


Meanwhile, Mobil Oil has proposed a dividend of N7.00 per share to its shareholders for the same period. Mobil also realised a 5.0 percent gain, from N107.64 to close at N113.02 as investors reacted to the dividend declared by the company. 


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