GT Bank 9Months 2017 profit before tax hits N150 billion

Tier one lender, GT Bank today released its financial statements for the 9 months ended September 2017. Net interest income increased by 43% from N132.7 billion in 2016 to N189.6 billion in 2017. Profit before tax also increased by 9% from N137 billion in 2016 to N150 billion in 2017. Profit after tax also increased marginally by 7% from N117.1 billion in 2016 to N125 billion in 2017.

Key drivers behind the result

Net interest margin increased from 8.22% in 2016 to 10.50% in 2017. Net interest margin is the difference between the revenue generated from a bank’s assets and the amount paid out to lenders (such as depositors). The bank also managed costs efficiently as cost to income ratio increased slightly from 37.49% in 2016 to 37.59% in 2017.  Cost to income ratio shows a company’s costs in relation to income. Simply put, for every N100 GT Bank made, it spent. N37.49 as costs.

GT bank shares closed at N41.70 in today’s trading session on the Nigeria Stock Exchange (NSE). GT Bank was incorporated in 1990 and began operations in February 1991. The bank was listed on the Nigerian Stock Exchange in September 1996.