Guaranty Trust Bank posts 0.96% NPL for Q2 2021
Nigerian-owned bank, Guaranty Trust Bank (GT Bank) for the second quarter posted a strong loan asset quality recording a non-performing loan (NPL) ratio of less than 1 percent – 0.96 percent.
The posted NPL of 0.96 percent is an improvement on the 2.97 percent NPL recorded same period last year – Q2 2020.
The Bank’s loan loss provision for the review period also improved ending the second quarter with 0.40 percentage points, a reduction of some 0.32 percentage points from the 0.72 percentage points recorded for Q2 2020.
Loan loss provision refers to the amounts set aside when banks make loans and which are to be used to cover the loans when they go bad, that is, the borrower is unable to pay the loan amount.
The posted NPL of 0.96 percent and loan loss provision of 0.40 percent for Q2 2020, bodes well for GT Bank, this implies that the bank probably has the best loan asset quality in the country.
Guaranty Trust Bank’s NPL of 0.96 percent is also significantly below the banking industry’s NPL of 17 percent.
GT Bank for the review period also posted a Capital Adequacy Ratio (CAR) of 33.3 percent, more than 3 times the 13 percent regulatory requirement of the Bank of Ghana (BoG).
Read: Restructuring your company’s debt during a pandemic
The recorded CAR at the end-June 2021, is, however, a decline from the 42.6 percent CAR recorded for Q2 2020.
With a CAR of 33.1 percent, GT Bank has enough capital to absorb bad loans and protect depositors‘ funds.
Profit for the review period amounted to Ghs 153 million, an increase of some Ghs 20 million from the posted Ghs 134 million profit for Q2 2020.
Per the bank’s Q2 2020 Unaudited Financial Statement, the increase in profit was on the account of increment in its net interest income and revenue.
GT Bank’s net interest income and revenue grew from Ghs 131 million to Ghs 167 million and Ghs 265 million to Ghs 329 million in Q2 2020 to Q2 2021 respectively.
In terms of assets value, the bank’s total assets grew in value by some Ghs 800 million ending the second quarter with Ghs 4.88 billion.
GT Bank’s assets value for Q2 2020 stood at Ghs 4.08 billion.
With regards to liabilities, the bank ended Q2 2021 with total liabilities of Ghs 3.82 billion from the Ghs 3.07 billion posted in Q2 2020.
Examine financial statement below:
GT Bank by Fuaad Dodoo on Scribd
