January 29, 2022


Accounting + Finance Blog

GT Bank earnings dipped to 79.4 billion in FS Quarter 2 of 2021


Guaranty Trust (GT) Bank earnings for 2021 dipped to N78.4 billion, according to its second-quarter financial statement published recently. The report shows a comparison with the previous quarter 2 report for 2020. It revealed that the earnings for 2020 were 94.2 billion Naira. Therefore, GT bank profit after tax fell by 15.7 percent.


The total interest income earned by GT bank as a group was 104 billion Naira in the period under review. But earned 150.4 billion Naira in the preceding period. For the bank, the interest income was 84.9 billion Naira compared to 124.3 billion. The fall in interest income may be as a result of a fall in loans to clients of 1.4 trillion in 2020 to 1.3 trillion in 2021 for the periods compared.

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Credit loss for GT bank

The loan impairment also fell, which is good for business. The impairment loss for the second quarter of 2021 was 4.7 billion compared to 6.7 billion. For the bank, credit impairment loss dipped to 2.1 billion compared to 4.5 billion Naira.

Why did GT bank Earnings dip?

The profit dipped by 15.7 percent. The reasons for this are as follows.

Revenue: As already mentioned, the interest income for the group fell to 104 billion Naira. This contributed to the fall in profit for the quarter.

Other income: the other income earned by the bank fell as well. The earnings which were 34.1 billion in quarter two of 2020 decreased to 33.1 billion in the current quarter.

Depreciation and amortization: the value for depreciation and amortization of properties and equipment increased to 15.3 billion from 14 billion in the quarter under comparison.

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Other operating expenses: another reason earnings dipped for GT bank earnings was an increase in operating expenses. From the report, operating expenses were 54.3 billion Naira. Whereas, the previous period figure was 50.8 billion Naira.

Cash and Cash Equivalent of GT bank

The cash and cash equivalent value was 794.3 billion Naira compared to 745.5 billion. There was a surge in this item despite the fall in earnings for the period. This implies that GT bank holds a strong cash position. This is good for business to a greater extent and may have complied with cash is king mantra.

Shareholders’ value

The shareholders’ value for GT bank is 5 trillion Naira. This is so, although the value of its shares is 14 billion Naira. Accumulated earnings, share premium and other components of equity have increased the shareholders’ value over time.