GTBank posts 2.39% NPL, GHS 102m net profit for Q1 2022
The Guaranty Trust Bank (Ghana) for the first quarter of 2022, posted net profit of GHS 102.7m.
This is an increase of GHS 20.8m in net profit as against the GHS 81.9m recorded in Q1 2021.
A perusal of the bank’s Unaudited Financial Statement for Q1 2022 indicates that increment in the bank’s revenue from GHS 155m to GHS 210m and subsequently its profit-before-tax from GHS 117m to GHS 158m on a year-on-year basis accounted for the rise in net profit.
Total asset base of GTBank at the end of the first quarter of 2022 amounted to GHS 5.70bn, representing an increase of GHS 668m from the total asset base of GHS 5.03bn in the same period last year.
Mainly accounting for the rise in the bank’s total asset value were increments in its cash and cash equivalents as well as loans and advances to customers.
GTBank’s cash and cash equivalents grew from GHS 894m in Q1 2021 to GHS 1.38bn in Q1 2022, for loans and advances to customers, the bank recorded a marginal increase from GHS 1.64bn to GHS 1.84bn.
Liabilities of the bank for the review period also grew to GHs 4.38bn from the previous figure of GHS 3.81bn in Q2 2021.
Deposits by customers accounted for over 90% of the bank’s liabilities as it amounted to GHS 4.21bn of GTBank’s total liabilities in Q1 2022.
Regarding the bank’s loan asset quality, GTBank witnessed a marginal deterioration of its loan asset quality as its non-performing loans as a ratio of gross loans increased from 1.02% to 2.39%.
However, the bank’s Capital Adequacy Ratio (CAR) which measures the bank’s ability to cover loan losses grew by 5% ending Q1 2022 with a CAR of 40% as against the 35% CAR recorded in Q1 2021.
The bank’s CAR of 40% is way above the Bank of Ghana’s 13% minimum CAR requirement.
Additionally, the bank for the review period also increased its liquidity ratio to 65.8% in Q1 2022 from 62.8% in Q1 2021.
This implies that the bank has marginally strengthened its capacity to pay its short term debt obligations when they are due.
Peruse financial statement below: