Shareholders laud the performance and returns posted by GTBank in its 2011 financial result recently
Guaranty Trust Bank, GTBank, has again demonstrated its strength in the nation’s financial industry with its 2011 scorecard as at December 2011. The profit after tax, PAT, of the bank grew from N38.3 billion in 2010 to N49.8 billion in 2011, an increase of 37.3 per cent. Its income from investment increased from N720 million it recorded in 2010 to N1.5 billion during the review period, representing an increase of 111.7 per cent. Similarly, the bank’s total assets grew to N1.6 trillion from N1.1 trillion. To the delight of its shareholders, the bank has approved payment of N1.10 dividend per share, from N1 the previous year.
Apparently satisfied with the banks' financial performance, Bisi Bakare, national co-ordinator, Pragmatic Shareholders Association of Nigeria, lauded the efforts of the management of the bank to post such a high level of profit and reward investors despite the harsh business environment it operates in without compromising on its core value of integrity, professionalism and service excellence. “We really appreciate the development and hope to receive higher returns next year,” Bakare says.
The bountiful return also excites Funke Taiwo, another investor, who believes shareholders of the financial institution are in for a good time. Her reasons: “The share price has been the highest in the banking sub sector for about one year.” She also predicts that the share price will soar higher by the end of the year based on facts that the bank is constantly improving in a competitive operating environment.
Another factor driving the shares of the bank is its array of innovations. Kole Olaniyi, a stockbroker, explained that the bank would benefit from e-branch innovation and healthy competition within the sector. “I predict a booming market for investors of the bank,” he said. According to him, Asset Management Corporation of Nigeria, revealed recently that the banking crisis is over. “This along with a youthful population who are technology savvy enmeshed in a culture in which e-banking has gained a foothold, presents key drivers for the GTBank and some of its counterparts. A growing, largely youthful population, with increased e-transactions is expected to drive the bank’s products, leading us to estimate that its profit will grow further over the next one year,” he argued.
Segun Agbaje, managing director, GTBank, attributes the good outing of the bank to a concerted effort by the financial institution to improve efficiency in an increasingly competitive operating environment, growth witnessed in customer base and increase in transaction fees. He added that the use of technology and innovation in servicing the bank’s expanding customer base has been another driving force of the bank. “We are well positioned to take advantage of business opportunities that may arise in the short to medium term,” he said.
To decongest the banking hall in the light of the Cash-Lite Policy of the Central Bank of Nigeria, Agbaje assured last week that the bank would address the problem by increasing its e-branches 22 to 76 before end of the year. He further reiterated that the bank would continue instituting innovative channels and products in the future, as part of efforts to position it as the bank of choice in Nigeria and provide its stakeholders with convenient, safe and efficient banking experiences. “Our customers should sign on for the bank’s Internet banking service and enjoy the opportunity of conducting most of their transactions from the comfort of their homes, offices or from anywhere in the world,” he said.