BreakingNews 15/3/16 - GTBank: Non-performing Loan Grows N3.99Billion in 2015 as Total Assets Hit N2.13Trillion

[ Masterweb Reports: Bamidele Famoofo reports ] - GTBank Plc, one of Nigeria’s leading commercial Banks with total assets worth over N2trillion about $10billion, recorded a 12.23 percent increase in non-performing loan otherwise known as impaired loans in the financial year ended December 31, 2015.
The figure increased from N32.62billion in December 31, 2014 to N36.61billion in the review financial period.

Impaired loans and advances compared to total loans and advances in the review financial year increased by 0.13 basis points from 2.70 percent in 2014 to 2.83 percent in 2015.

The Bank however made a provision of N11.77billion representing an increase of N5.59billion or 90.45 percent above the N6.18billion provided for loans in the preceding financial year ended December 31, 2014.

A direct impact of increased provisioning for loan was seen on retained earnings of the Bank which dropped from N48.82billion in 2014 to N46.05billion representing N2.77billion or 5.67 percent.

Notwithstanding the setback due to growing impaired loans and drop in retained earnings, shareholders of the bank may likely enjoy good dividend as earnings per share rose by 10.56 percent from N3.03 per share in 2014 to N3.35 per share in 2015.

Obviously management of the bank was able to curtail cost as profit after tax increased by 13.26 percent from N85.66billion in 2014 to N97.02billion while gross earnings only grew 7.98 percent to N268.88billion from N249.01billion in 2014.
Breakdown of income in the review period shows that bulk of the bank’s earnings came from interest charging services as N206.48billion accrued to the bank from interest income. It represents 76.79 percent of gross earnings for the financial year ended December 31, 2014. Comparatively, interest income grew 14.72 percent from N179.98billion recorded in 2014.

GTBank’s balance sheet as at December 31, 2015 appears attractive to investors with total assets increasing from N1.90trillion in 2014 to N2.13trillion.


*Photo Caption - Segun Agbaje, Group Managing Director, GTBank Plc

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