GT Bank records GHS 315m profit; grows assets value by GHS 954m YoY
Guaranty Trust Bank Ghana for the 2021 fiscal year, made a profit of GHS 315m, some GHS 45m more when compared to the GHS 269m profit made in 2020.
The bank’s profit was mainly driven by an increment in its net interest income which rose from GHS 285m to GHS 341m in 2020 and 2021 respectively.
GT Bank for the review period posted a strong loan asset quality.
This is despite a marginal deterioration in its loan asset quality as the GT Bank’s Non-Performing Loans (NPL) ratio increased from 0.98% in 2020 to 1.59% in 2021.
The Bank’s Non-Performing Loan (NPL) ratio of 1.59% is significantly lower than the banking industry’s average of 15.2% and probably the lowest NPL recorded by any bank in the country.
The bank’s ability to absorb bad loans as measured by its Capital Adequacy Ratio (CAR) declined by 5.32% ending 2021 at 38.53% from the previous year’s 43.85% CAR.
It is however, far above the Bank of Ghana’s 10% CAR minimum requirement.
GT Bank’s liquidity ratio also witnessed a decline from 64.20% in 2020 to 60.60% in 2020.
Liquidity ratio measures a bank’s ability to pay its short-term debt obligations particularly to depositors.
Despite the recorded declines in the aforementioned elements, GT Bank on a year-on-year basis grew its assets value by GHS 954m.
Primarily driven by significant increments in cash and cash equivalents, non-pledged trading assets and loans and advances to customers, the bank’s total assets rose to GHS 5.03bn in 2021.
This is from the previous year’s GHS 4.08bn in total assets value.
Liabilities on the other hand increased from GHS 3.07bn in 2020 to GHS 3.81bn in 2021 largely driven by deposits from customers which accounts for GHS 3.72bn of GT Bank’s total liabilities.
Examine the audited financial statement of GT Bank below:
Full Year Financials Publication 2021 GA Final 14th Update by Fuaad Dodoo on Scribd
