GTBank 9M 2020 profit down by 3% YonY to N142.3bn, on rise in Impairment Charges, Opex


GTBank Plc, Q3 2020 Unaudited Financial statement shows a 3 percent Year-on-Year (YonY) drop in Profit After Tax (PAT) for the period ended September 2020. Analysis of the result revealed that a 13 percent YonY rise in Operating Expenses (Opex) to N112.4 billion and a 267 percent YonY increase in Credit Impairment Charges to N10.14 billion fueled the dip in the Bank’s bottom-line Profit for the nine months ended September 2020.

The Bank’s Net Interest Income grew by 10 percent YonY to N189.7 billion. The growth in Interest Income was occasioned by a 25 percent YonY drop in Interest Expenses to N38.49 billion for the period, from N51.25 billion for the corresponding period in 2019. While Interest Income was flat at N219 billion.

Non-Interest Income also however grew marginally to N100.2 billion in the nine months of 2020 from N100.1 billion in the same period of 2019. The decline of 23 percent YonY in Net Fee and Commission Income (N37.4 billion in Q3 2020 from N48.4 billion in Q3 2019) was compensated for by Gains on Financial Assets and Other Income.

The positive growth in the top-line Interest Income and the flat growth in Non-Interest Income, were not able to dovetail positively into the bottom line because of the significant rise on the Bank’s Opex and Credit Impairment Charges for the period ended September 2020.

Here are the other highlights of the Q3 2020 results released by GTBank Plc

Income Statement.

  • Net Interest Income of N189.7 billion, up 10% YonY, Sept 2019 – N172.9 billion
  • Non-Interest Income of N100.2 billion, flat YonY, Sept 2019 – N100.1 billion
  • Impairment Charge for Credit Losses up 267% YonY to N10.1 billion, Sept 2019 – N2.8 billion
  • Operating Expenses of N112.4 billion up 13% YonY, Sept 2019 – N99.6 billion
  • Profit Before Tax down 2% YonY to N167.4 billion, Sept 2019 – N170.7 billion
  • Profit After Tax for the 9-month period down 3% YonY to N142.3 billion from N147 billion
  • Earnings Per Share also down by 3% YonY to 502kobo from 519 kobo

Statement of Financial Position

The Balance Sheet size of GTBank Plc had an impressive 9-month Balance Sheet growth for the period ended 30 September 2020. Total Assets grew 22% Ytd; Deposit from Customers was also up by 26%; Customer Loans and Advances was up by 5% Ytd, while Total Equity grew by 10%.

  • Total Assets up 22% year to date (Ytd) to N4.6 trillion, Dec 2019 – N3.8 trillion
  • Customer Loans and Advances up 1% Ytd to N1.6 trillion, Dec 2019 – N1.5 trillion
  • Deposits from Customers up 26% Ytd to N3.2 trillion, Dec 2019 – N2.5 trillion
  • Owner’s Equity up 10% Ytd to N755.6 billion, Dec 2019 – N687.3 billion
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