Coming on the heels of making provisions for its Non-Performing Loans (NPLs) Guaranty Trust Bank Plc (GTBank)  has announced 570 percent hike in loan impairment charges for nine-month (Q3) ended September 30, 2016.

The financial institution loan impairment charges moved from N8.5 billion in Q3 2015 to N57.08 billion in Q3 2016.

According to GTBank’s audited financial statement for 2015, a 74 percent increase in loan impairment charges to N12.4 billion from N7.1 billion in 2014 was recorded.

Significant increase in loan impairment charges impacted on the lender’s Net interest income after loan impairment charges that fell by 32.2 percent to N75.7 billion from N111.6 billion recorded in prior nine-month ended September 2015.

With impressive performance in Fee and commission income and non-core banking operations income, GTBank’s profit before tax rose by 53 percent from N92.1 billion in Q3 2015 to N140.8 billion in Q3 2016.

Profit for the period also increased by 60 percent to N119.9 billion from N75.16 billion to leverage 60 per cent increase in basic earnings per share to N4.24 in Q3 2016 from N2.65 per share.

However, the group total assets increased by 22.5 percent from N2.5 trillion recorded in December 2015 to N3.09 trillion as at September 2016 and Shareholders’ Funds  increased by 19 per cent to N492 billion.

The Bank’s loan book grew by 20 percent from N1.37 trillion recorded as at December 2015 to N1.6 trillion as at September 2016 with corresponding growth in total deposits which increased by 27 per cent to N2 trillion from N1.6 trillion in December 2015.

In the second quarter results, The Managing Director/CEO of Guaranty Trust Bank plc, Segun Agbaje, in a statement said, “Going into the year, we knew it would be a challenging year and we prepared for it by focusing on effective management of the balance sheet and adapting our business model to changing market variables. The quality of our past decisions enabled us navigate the challenges that persisted in the business environment most of the half year period”

Whilst expressing his sincere appreciation to customers for their loyalty, and to staff for their hard work and commitment, Agbaje added that “While the current economic realities present some challenges to growth, we remain committed to our ideals of staying positive, delivering exceptional service to our customers and adding value to all stakeholders”.

The Bank had paid shareholders an interim dividend of 25k per unit of ordinary share held by shareholders in the half year results and analysts predicted higher dividend by the end of the year.

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