How did the orange bank fare in 2019?

Guaranty Trust Bank is fondly known as the Orange bank. It is one of the 5 biggest banks in the country known as tier one banks.

So how did GTBank fare in 2019?

The bank had gross earnings of N435 billion in 2019. Gross earnings simply means how much the bank made as a whole i.e every Naira it earned.

The bank made N196 billion as profit after tax for the 2019 financial year. This is the highest the bank has made since inception in terms of Naira.

Let’s break it down in simpler terms. If you divide the profit made by the number of shares, you would get N6.96.

This figure is known as the earnings per share.

The bank will be paying a final dividend of N2.50. A dividend is the portion of a company’s profit paid to shareholders.

Last year, GT paid an interim dividend of N0.30. In total, the bank will pay N2.80.

If you divide the total dividend by a stock’s current price, you get the dividend yield.

This is simply a way to estimate the return on a stock based on dividends only then compare it to returns made by other assets like treasury bills or bonds.

GTBank has a dividend yield of 11.42% based on yesterday’s share price of N24.50.

This means it has a higher return at the moment compared to a one year treasury bill which has a yield of 5.7%.