On the Ghana Stock Exchange (GSE,) the Trust Bank Limited [TBL] – The Gambia, once again failed to impress stakeholders in Q4-2016.
The bank, which has been struggling to grow its revenue, reported a 6% dip in Interest Income over the 52 weeks period.
Interest Income fell from Dalasi [D] 555,173,000 in Q4-2015 to D 523,403,000 in Q4-2016.
Net Interest Income also went down by 7%; from D 346,486,000 in Q4-2015 to D 323,508,000 in Q4-2016.
Net trading Income also dropped in value during the period. Net trading Income fell by 57% to D 32,198,000.
Operating Income figure equally dropped by 11%; from D 557,599,000 in Q4-2015 to D 498,799,000 in Q4-2016.
Profit after Tax fell by 44%; from D 152,061,000 in Q4-2015 to D 85,837,000 in Q4-2016.
Total comprehensive Income for the period went down by 75% compared to Q4-2015 whereas Profit attributable to equity holders also fell by 44% in Q4-2016.
Total Assets of the bank increased by 11% in value to D 85,837,000 in Q4-2016 owing largely to the 40% increase in trading assets of the bank.
The bank however failed to grow its loan book during the period. The value of the loan portfolio of TBL fell by 21% in Q4-2016.
GN Analysts estimate that the poor performance of TBL in all 4 Quarters of 2016 will ultimately impact its 2016FY earnings results. The dip in fundamentals of TBL coupled with the harsh economic conditions in The Gambia could further affect the bank negatively. After a season of political instability in the country, restoration of business confidence could be pertinent in boosting the investment climate in The Gambia. TBL is recommended as a SELL. The equity has a negative projected growth and could offer capital losses in the short term to investors.
Trading activity on the bourse ended with 2 gainers [SCB and ETI] yesterday. ETI topped the trading chart in terms of volume as 21,200 shares worth GHS 2,868.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 7.36% and 10.07% respectively.
Trading activity on the Ghana Alternative Market [GAX] was hushed as no shares changed hands.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
The Cedi LOST to the US Dollar and Euro yesterday. The local currency however recorded marginal gains against the British Pound.
The local currency exchanged at a mid-rate of GHS 4.3734 to the USD, GHS 5.4560 to the GBP and GHS 4.6416 to the EURO.
The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 4.43%.
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