20 Oct 2016 11:25
Guaranty Trust Bank plc
UNAUDITED QUARTER THREE GROUP RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 DECLARES A PBT OF N140.84BILLION
Lagos Nigeria - October 19, 2016 - Guaranty Trust Bank plc ("GTBank"), (Bloomberg: GUARANTY:NL/Reuters: GUARANTY.LG), provider of diversified financial services, announces its Q3 Results and declares a PBT of N140.84bn.
Commenting on the Bank's financial results, Segun Agbaje, the Managing Director/CEO said that "The Bank's strong performance is a reflection of the continued support of our customers, hard work of our Staff and the commitment of the Management and Board to manage the Bank for long term sustainable returns. Recognizing that we operate in challenging business environments, we set high goals, benchmark ourselves against global standards and aggressively pursue our key objectives for the year, which are focused mainly on adding value to all stakeholders and improving the customer journey.
He further stated that "As a Bank, we will continue to leverage collaborations and technology to drive customer engagement, improve the overall customer experience and grow our business for long term sustainable returns."
Financial Highlights
· Strong Earnings
- Profit before tax of N140.84bn (30 September 2015 N92.06bn) an increase of 53.0% enhanced by 161.26% growth in non-interest income
- Profit after tax for the year of N119.93bn (30 September 2015: N75.16bn)
- Earnings per share of 424kobo (30 September 2015: 265kobo per share)
· Revenue
- Interest Income of N181.91bn (30 September 2015: N172.96bn) up 5.2%.
The growth in interest income is a reflection of the strategic decisions taken by the Management towards the end of 2015 FY which has started yielding results during the period, this is in addition to the solid liquidity position that enabled the Bank to optimize earnings on Fixed Income securities.
- Non-Interest Income of N147.37bn (30 September 2015: N56.41bn) up 161.3%. In spite of a tough operating environment, characterized by restrictive FX policy for most periods of the year which curtailed credit growth, the Bank was able to grow its E-business income to compensate for drop in credit and guarantee related fees. Also, the Bank's strategy of keeping long FCY position resulted in revaluation gains.
- Net interest margin remained strong at 8.79% (30 September 2015: 8.22%).
NIM grew as a result of the Bank's impressive showing in interest income as well as effective management of its cost of funds.
· Balance Sheet
- Total assets of N3.093trn (31 December 2015: N2.525trn) up 22.5%
- Net loans and advances of N1.640trn (31 December 2015: N1.372trn) growth of 19.6%.
- Total Deposits of N2.106trn (31 December 2015:N1.637trn) up 28.7%. Strong deposit growth driven by impressive performance of our various initiatives.
· Credit Quality
- Non-performing loans to total loans of 4.13% (31 December 2015: 3.21%)
- Coverage (with Regulatory risk reserves) at 185.11% (31 December 2015: 186.73%)
- Cost of Risk at 3.66% (30 September 2015: 0.65%). The growth in cost of risk resulted from management decision to provide cushion for Trades transactions.
· Continued focus on efficiency
- Cost to income of 36.20% (30 September 2015: 44.51%).
· Subsidiaries
- Contribution to PBT from subsidiaries at 7.2%
Q3 2016 Financial Analysis and Ratios
Key Financials (N' billion) | Q3-2016 | Q3-2015 | ∆% |
Interest Income | 181.91 | 172.96 | 5.17% |
Net Interest Income | 132.75 | 120.13 | 10.50% |
Operating Income | 220.76 | 165.91 | 33.07% |
Operating expenses | 79.93 | 73.84 | 8.24% |
Profit before tax | 140.84 | 92.06 | 52.98% |
Profit After Tax | 119.93 | 75.16 | 59.56% |
Earnings per share (in Naira) | 4.24 | 2.65 | 60.26% |
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| Q3-2016 | FY-2015 | ∆% |
Total Assets | 3,092.86 | 2,524.59 | 22.51% |
Net Loans | 1,640.26 | 1,371.93 | 19.56% |
Total Deposits | 2,105.80 | 1,636.61 | 28.67% |
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Key Ratios | Q3-2016 | Q3-2015 |
ROE(post-tax) | 35.31% | 25.86% |
ROA(post-tax) | 5.69% | 4.16% |
ROE (pre-tax) | 41.46% | 31.68% |
ROA (pre-tax) | 6.69% | 5.10% |
Net interest margin | 8.79% | 8.22% |
Cost-to-income ratio | 36.20% | 44.51% |
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| Q3-2016 | FY-2015 |
Loans to deposits | 80.27% | 83.89% |
Liquidity ratio | 37.62% | 42.21% |
Capital adequacy ratio | 18.10% | 18.17% |
NPL/Total Loans | 4.13% | 3.21% |
Cost of risk | 3.66% | 0.91% |
Coverage (with Reg. Risk Reserves) | 185.11% | 186.73% |
20 October, 2016
Enquiries:
GTBank Golden Nwaiwu, Head, Investor Relations ir@gtbank.com |
+234-1-4484156 |
Lola Odedina, Head, Communications & External Affairs |
+234-1-2715227 |
Oyinade Adegite cea@gtbank.com |
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Instinctif Partners | +44 20 7457 2020 |
Mark Garraway |
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Rosie Driscoll |
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Notes to the Editors:
Guaranty Trust Bank is a diversified financial services company with N3.093trillion in assets, providing commercial banking services through 238 local branches, 54 e-branches, 1,252 ATMs, our international subsidiary offices and the Internet (gtbank.com).
The Group operates as one of the leading Nigerian banks offering a wide range of commercial banking services and products throughout Nigeria and in the West and East African sub-region. The Bank is rated B+ by Fitch and B by S&P, a reflection of the Bank's stability and reputation of being a well-established franchise with strong asset quality and consistently excellent financial performance.
The Bank has nine bank subsidiaries established outside of Nigeria -
1) Guaranty Trust Bank (Gambia) Limited ("GTB Gambia"),
2) Guaranty Trust Bank (Sierra Leone) Limited ("GTB Sierra Leone"),
3) Guaranty Trust Bank (Ghana) Limited ("GTB Ghana"),
4) Guaranty Trust Bank (Liberia) Limited ("GTB Liberia"),
5) Guaranty Trust Bank (United Kingdom) Limited ("GTB UK")
6) Guaranty Trust Bank (Cote D'Ivoire) ("GTB Cote D'Ivoire"),
7) Guaranty Trust Bank (Kenya) Limited ("GTB Kenya"),
8) Guaranty Trust Bank (Rwanda) Limited ("GTB Rwanda"),
9) Guaranty Trust Bank (Uganda) Limited ("GTB Uganda").
The Bank also has a non-bank GTB Finance B.V. ("GTB Finance"), a special purpose subsidiary incorporated in The Netherlands.
GRTB.L (GRTB)