Guaranty Trust Bank Grows Asset Base to GHS 13.4 Billion in Q2 2024
Guaranty Trust Bank (GTBank) reported a substantial increase in its asset base for the second quarter of 2024, reaching GHS 13.4 billion.
This represents a notable rise from GHS 8.69 billion recorded in the same period last year and GHS 11.22 billion at the end of December 2023.
The growth in assets was primarily driven by increases in cash and cash equivalents (GHS 4.42 billion), loans and advances to customers (GHS 1.63 billion), and investment securities (GHS 5.77 billion).
The bank’s liabilities also expanded significantly, reaching GHS 11.30 billion, up from GHS 7 billion in Q2 2023.
This increase was largely attributed to a rise in customer deposits, which surged to GHS 11.06 billion from GHS 6.82 billion year-on-year.
The growth in deposits bolsters GTBank’s credit creation capabilities, enabling it to extend more loans to both businesses and individuals.
Profit-after-tax for the quarter stood at GHS 439 million, a marked improvement from GHS 351 million in Q2 2023.
This increase in net profit was driven by a rise in net interest income, which climbed from GHS 410 million to GHS 579 million over the same period.
However, the bank’s non-performing loans (NPLs) increased to 4.75% from 2.95%, reflecting a slight deterioration in loan asset quality. Despite this, GTBank’s NPL ratio remains well below the industry average of 24.1%.
Additionally, the bank’s Capital Adequacy Ratio (CAR) decreased from 35.91% in Q2 2023 to 31.96% in Q2 2024, indicating a marginal decline in capital reserves.
