GTBank doubles interest income to drive profit growth by 531% in 2023

Interest income on loans provided to individuals and businesses by Guaranty Trust Bank at the close of the 2023 fiscal year amounted to GHS 1.3bn.

This is a significant increment and more than twice from the GHS 649m interest income recorded in 2022.
On the back of the surge in the bank’s interest income, profit for the 2023 review period stood at GHS 725m, some 531% increase compared to the GHS 114m profit recorded the previous year.

GTBank within the review period grew its assets value by some GHS 4bn to GHS 11.2bn from the 2022 figure of GHS 7.1bn.

Largely contributing to the growth in the bank‘s assets value were cash and cash equivalents (GHS 3.09bn), loans and advances (GHS 1.7bn) and investment securities (GHS 5.5bn).

Liabilities of the bank also driven largely by customer deposits of GHS 9bn from the previous year’s amount of GHS 5.6bn, ended the year at GHS 9.16bn.

The growth in customer deposits at the bank is an indication of the trust customers have in the bank.
Capital Adequacy Ratio (CAR) of the bank stood at 41.84% significantly above the industry’s average CAR of 13.6%.
This implies that the bank is solvent and financially stable.

Liquidity ratio of the bank grew from 57.51% in 2022 to 73.18% indicative of the increased growth of the bank’s assets over its liabilities and the bank’s ability to satisfy its short-term obligations.

The loan asset quality of the bank measured by its non-performing loans, however, deteriorated marginally to 3.96% from 2.42% in 2022.

The bank’s NPL is significantly lower than the industry’s average NPL of 24.6%.

Source:norvanreports