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Zenith, GTBank declare improved profits in 2014

By on March 7, 2015

Zenith Bank Plc and Guaranty Trust Bank (GTBank) Plc have announced their 2014 results, with growths in gross earnings and profit for the year. The two banks also declared dividends of N1.75 per share apiece. However, in absolute terms, Zenith Bank recorded a higher profit after tax of N99.4 billion compared to N98.7 billion posted by GTBank Plc.

Specifically, Zenith Bank grew gross earnings by 14.76 percent to N403.3billion, up from N351 billion. Interest Income grew by 15.9 per cent from N272 billion to N313.4 billion, while non-interest income  rose by 39.1 per cent to N90.1billion.

Profit before tax (PBT) increased  by 12.8 per cent from N106 billion to  N119.8 billion while profit after tax (PAT) for the year rose by 8.6 per cent N91.5 billion to N99.5 billion.
The board has proposed a final dividend of N1.75 per share.

On the other hand,  GTBank  grew its gross earnings by 14.8 per cent to N278.5 billion, from N242.7 billion recorded in 2013. Interest income rose by 8.2 per cent from N185.4 billion to N201 billion, while interest expenses rose by 20 per cent from N48.4 billion to N58.2 billion.However, credit impairment charges soared by 146 per cent from N2.9 billi to N7.1 billion. Similarly, operating expenses increased by 14.9 per cent to N95.7 billion, from N82.4 billion  in 2013.

PBT  rose by 8.7 per cent from N 107.1 billion in 2013 to N116.4 billion in 2014. PAT rose by 9.6 per cent from N90 billion to N98.7 billion.

Based on the performance, the directors recommended final dividend of N1.50 per share. This brings the total dividend to  N1.75 per share, having paid an interim dividend of 25 kobo before now.

Commenting on results, the Managing Director/CEO of GTBank, Mr. Segun Agbaje, said,said  financial performance  attested to the inherent soundness of its strategy and resilience of its earnings.

According to him, Group has delivered a respectable PBT  of N116.39billion in spite of all the headwinds the industry experienced in 2014.

“We remain committed to maximising shareholder value and delivering superior and sustainable returns. Our objective is to remain a leading player in the financial services sector whilst expanding our franchise in select, high growth African markets where we believe we have a competitive advantage,” Agbaje said.

Also speaking on the GTBank’s results, analysts at FBN Capital Limited, said the N116.4 billion PBT came in ahead of  bank management’s full year guidance of N110 billion.

“The PBT also came in ahead of consensus full year PBT forecast of N109 billion.Given that the positive surprise in the results was driven by non-interest income (and in particular FOREIGN EXCHANGE TRADING), we do not expect much of the surprise to be carried forward as far as consensus forecasts are concerned. More importantly, these results do not yet reflect the fallout from the worst of the marked decline in oil prices. We believe that GT Bank will fare better than most banks and should be viewed as a core holding for investors through the challenging times ahead. However, we also acknowledge that growth, particularly for risk assets, is bound to slowdown in 2015. GTBank’s exposure to the oil and gas sector at over 20 per cent  of its loan book is a slight concern also,” they said.

 

[ThisDay]