After 12 years of operation in Uganda under the Fina and GTBank brands, Guaranty Trust Bank (Uganda) Limited has reported a Profit Before Tax of UGX2 Billion and Profit After Tax of UGX1 Billion for the year ended December, 2019. This is the first time that the bank would be achieving a profit since its establishment in Uganda.
GTBank Uganda, originally Fina Bank Uganda was established in 2008 as a subsidiary of the Fina Bank Group, a bank that originated in Kenya in 2005 and also had operations in Rwanda. GTBank Plc, Nigeria, in pursuit of its African expansion drive, acquired 70% stake in Fina Bank, Kenya in 2013. By implication, the operations of Fina Bank in the 3 East African countries of Kenya, Rwanda and Uganda came under the GTBank brand.
It should be noted that for the 5 years of its operation as Fina Bank Uganda, the institution was loss making. The trend remained the same for the next 6 years under GTBank brand, until 2019 when the winds shifted in the favour of GTBank. The performance in 2019 is the outcome of corporate transformation resulting in improved market focus and customer service with an exemplary leadership that is backed by strong management and staff made up of young and committed Ugandans.
The Bank recorded considerable improvements in 2019 when its performance is compared to prior years. It maintained a diversified and efficient Balance Sheet with Total Assets increasing to UGX 225 Billion from UGX 209 Billion in December 2018. The growth in Total Assets was led by an 18% growth in Customer Deposits which increased from UGX152 Billion in 2018 to UGX180 Billion by the end of 2019. The growth in Deposits was effectively utilized as the bank grew its loan book by 14% while investments grew by 88% over the same period. Contingent liabilities grew by 27% between 2018 and 2019.
Arising from the above, the bank recorded a Profit Before Tax (PBT) of UGX2 Billion in 2019 which represents a growth of 130% when compared to the Loss Before Tax of UGX6.5 Billion recorded in 2018. The resulting Profit After Tax of UGX1 Billion represents over 1000% growth when compared to the Net Loss of UGX10 Billion recorded in 2018.
In terms of efficiency ratios, the bank recorded positive improvements in all areas. By the end of 2019, the bank’s asset quality measured by its Non-Performing Loan (NPL) ratio improved by 52% from 4.42% in 2018 to 2.10% in December 2019. The bank achieved a Net Interest Margin of 8% while its Cost to Income Ratio improved significantly to 90% compared to 117% recorded in 2018. Shareholders’ funds also witnessed a 3% increase from UGX 36 Billion to UGX 38 Billion in December 2019.
Commenting on the financial results, the Managing Director of Guaranty Trust Bank (Uganda) Ltd, Mr Lekan Sanusi, who joined the bank in mid 2018, commented on the Bank’s performance saying “The journey of 1,000 miles begins with one step. This is the beginning of a long and fruitful journey. Our rejuvenated team worked tirelessly in the year 2019 to transform the bank and lay a sustainable path for profitability. The performance is a clear result of a massive corporate turnaround and evidence that, where there is the will of the people, the Almighty will provide the way’’.
He further stated that, ‘’underpinning this turnaround are; support from Shareholders and Board plus our dedicated team of deeply committed Ugandan professionals, loyal customers who demonstrated confidence in our franchise, a strong brand, and, of course, membership of a group with a network of operations in 8 other African countries and full commercial banking operations in United Kingdom (GTBank, UK).
In recognition of GTBank Plc’s bias for world class corporate governance standards, excellent service delivery and innovation, the bank has been a recipient of numerous awards over the years. Some of which include Best Bank in Africa and Best Bank in Nigeria by the Euromoney Magazine (2019), Best Banking Group and Best Retail Bank Nigeria from World Finance Magazine (2019).
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- Communication & Corporate Affairs Team (GTBank Uganda)