Gross Earnings: The Bank’s gross earnings for its half year report, recorded a decline of 2.06% for the period under review, which was N221.977Billion as at June, 2019 against N226.641Billion as at June 2018, factors influencing this decline was as a result of decrease recorded in the Bank’s Interest income that decline by 7.96%, as well as decrease recorded in net gains from financial instrument that declined by 25.05%.
Revenue: The Bank’s Revenue for the period under review declined by 7.96%, as at June, 2019 interest income was N148.993Billion against N161.881Billion interest income earned as at June 2018. The reduction in Interest Income was influenced by, decline in Income from loan and advance to customers, Investment Securities FVOCI(Fair Value through Other Comprehensive Income) and Assets pledged as collateral, which all decline by 9.97%, 14.08% and 25.26% respectively.
Operating Expenses: Operating Expenses for the period under review which comprises of Interest Expenses, Credit Impairment Charges and Administrative Expenses, of this element Interest Expense and Administrative Expense both decline by 25.76% and 0.51% respectively, while credit impairment charges inched higher by 7.58%. As for the decline recorded on Interest Expenses, which was attributed to a 22.68% decline on interest expense paid on customer deposit and a 27.67% decline on interest expense paid on other borrowed fund.
Bottom Line: The Banks PAT appreciated marginally by 3.72%, this reflect weakening growth in the Bank’s income lines, in our view the Bank was able to make up for the decline in revenue through a prudent management of its operating expenses, as such it was able to record a marginal growth in its Profit After Tax, which was influenced by the contracting nature of the general business landscape.GTB H1 2019 RESULT ANALYSIS