GTBank Lure Investors with N455.22billion Revenue After N80 billion Loss

GTBank Lure Investors with N455.22billion Revenue After N80 billion Loss

- GTBank recorded N455.22 billion in full-year 2020, reporting revenue growth despite a shrunk in operation

- Profit after tax of the bank rose to N201.43 billion in twelve months after the lender surpassed the N196.84 billion of 2019

- The release of GTBank's earnings report excited investors who ignored the over N80 billion recently wiped off from the lender's market value

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Despite the impact of COVID-19 on the operations of the financial sector last year, GTBank generated N455.22 billion as revenue in twelve months of 2020. The revenue had increased by 4.57% when compared to the full year of 2019.

This announcement was enough to lure investors back to its stocks at the capital market on Thursday.

Last year's full-year revenue rose past the N435.30 billion the deposit money bank generated during the same period in 2019, a financial statement from the lender to the investing public showed.

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But interest income of the lender dropped during the period under review, after hitting N288.27 billion in 2020, falling below the N291.65 billion the company reported for the corresponding period in 2019.

Interest expense also dipped last year as GTBank recorded N64.84 billion between January to December, falling short of the N47.06 billion the financial firm reported in the full year of 2019.

However, Profit before tax increased in the twelve months period of 2020 after the lender posted N238.09 billion. A year before, the company indicated N231.70 billion as profit before tax.

GTBank Lure Investors with N455.22billion Revenue After N80 billion Loss
GTBank Lure Investors with N455.22billion Revenue After N80 billion Loss. Photo: Issouf SANOGO/AFP, franckreporter
Source: Getty Images

GTBank stated in its earnings report that profit after tax rose to N201.43 billion between January to December last year, surpassing the N196.84 billion.

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After the release of the financial statements, GTBank's stock price rose in value to N29.80 kobo per share on Thursday, March 18, 2021, from N28 per share of March 17, 2021, as the earnings report lure investors towards GTBank stocks.

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But prior to that, Legit.ng had reported that the bank's shareholders lost over N80 billion after its market capitalisation slumped from N905.01 billion held on Monday, March 15, 2021, to N824.07 billion on Wednesday, March 17, 2021.

In three days, over N80 billion was wiped off shareholders' holdings as some stakeholders ran for the door after profit-taking. However, the massive sell-off led to investors pricing the lender's stock at a lower rate.

This caused a slump in share price within the three days shareholders loss the N80 billion. The company lost N3.7 kobo in its stock price between Monday to Wednesday, as the stock dropped from N29.95 kobo to N28 per share. However, the stock closed Thursday's trading at N29.80 kobo per share.

Meanwhile, Legit.ng had reported that Airtel's mobile money business, Airtel Mobile Commerce, raised $200 million from The Rise Fund.

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The investors will take a minority stake in the company due to the investment, and has a buyback clause if the mobile money business doesn't conduct IPO within the next four years.

Fakoyejo Olalekan is a Business and Financial Journalist with over three years of experience in covering finance and business activities within Nigeria and offshore. Prior to joining Legit.ng, he worked at Nairametrics where he wrote financial and investment analysis articles. Olalekan is a resourceful and result-driven journalist with a track record for conducting extensive research and interviews to produce articles that provide different perspectives to market activities.

Source: Legit

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