Guaranty Trust Bank, on Wednesday, became the third to present its audited half-year report, which like others showed constrained growth and even marginal decline in key parameters- particularly top and bottom-lines, as well as a spike in loan impairment charge.

Basically, the bank reported a N94.271bn net profit, from previous year’s N99.333bn, following which the directors have proposed an interim dividend of 30 kobo per share for the half-year period. The dividend is payable electronically on September 21, 2020 to shareholders whose names appear on the register of members when it closes on September 15 and September 3, 2020 for holders of the bank’s Global Depository Receipts (GDR).

Interest income for the period stood at N150.486bn, up from N146.448bn; while interest expense dropped to N26.093bn from N32.627bn in the corresponding half-year of 2019; resulting in net interest income of N127.615bn, up from N116.364bn.

Loan impairment charges grew within the period from N2.186bn in 2019 to N6.769bn; bringing net interest income after loan impairment charges to N120.846bn, as against the previous N114.178bn.

Fee and commission income fell from N35.348bn to N24.729bn, with credit related fees and commissions dropping from N6.564bn to N3.352bn; e-business income from N5.053n to N1.188bn. Commission on foreign exchange deals was marginal, from N3.389bn in the first half of 2019 to N3.042bn; account maintenance banks from N5.709bn to N5.54bn; and banking charges from N3.948bn to N3.063bn; among others.

Fee and commission expense inched from N1.505bn to N2.435bn, of which bank charges soared from N656.854m to N1.6bn; following which net fee and commission income declined to N22.294bn from N33.843bn.

Net gains on financial instruments held at fair value through profit or loss inched from N9.488bn to N10.791bn, lifted by foreign exchange trading gain of N7.65bn, up from N5.329bn. Other income soared to N35.909bn from N28.039bn, mainly foreign exchange revaluation gain of N21.902bn, a giant leap from N2.66bn in 2019; while recoveries and others slowed down to N3.3bn from N10.44bn. Net impairment reversal on other financial assets soared from N108.445bn to N3.18bn. Personnel expenses was constrained at.  N18.775bn from N18.578bn; depreciation and amortization climbed from N10.622bn to N14.024bn; and other operating expenses from N39.439bn to N49.548bn.

Profit before tax stood at N109.713bn, as against N115.787bn; while income tax expense fell marginally from N16.654bn to N15.442bn. Net profit for the period translated to Earnings per share of N3.32, compared to the previous N3.50 each.

On the balance sheet, total assets grew from N3.758tr at the end of December 2019, to N4.511tr by June 30, 2020, helped by the N1.623tr customer loans and advances, from N1.5tr; just as restricted deposits and other assets amounted to N1.054tr, soaring from N577.433bn in December.

Total liabilities improved from N3.071tr to N3.79tr, boosted by the N3.001tr customer deposits, as against N2.532tr at the end of last year.