22 Apr 2021 07:00
Guaranty Trust Bank Plc
UNAUDITED Q1 GROUP RESULTS FOR THE PERIOD ENDED MARCH 31, 2021: DECLARES A PBT OF N53.7BILLION
Lagos Nigeria - April 21, 2021 - Guaranty Trust Bank Plc ("GTBank"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its unaudited Financial Results for the period ended 31 March 2021 and declares a PBT of N53.7bn.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; "We have started off the 2021 financial year on a fair footing, and our first-quarter results demonstrate our ability to continue delivering strong and sustainable returns, despite the macroeconomic uncertainties that persist in our business environment. This is a reflection of the resilience of our franchise, our prudent approach to risk management and the efficacy of our digital-first customer-centric business strategy."
He further stated that; "Looking forward, we are optimistic about the long-term value that we will continue to create as an organization. We strongly believe that our new growth strategy, together with the enduring loyalty of our customers, the hard work and dedication of our staff and the unwavering support we continue to enjoy from our shareholders, will enable us drive and deliver best-in-class financial solutions for people, businesses and communities across Africa and beyond."
Financial Highlights
· Earnings
- Profit before tax of N53.7bn (31 March 2020 N58.2bn) a decrease of 7.8%.
- Profit after tax decreased by 9.0% to N45.5bn from N50.1bn as of 31 March 2020.
- Earnings per share of 160kobo compared to 177kobo per share as of 31 March 2020.
· Revenue
- Interest Income of N60.3bn (31 March 2020: N77.0bn) down 21.7% as lower yields offering in-spite of growth in average volumes led to 400bps decline in Earnings asset yield, this weigh negatively on Interest earned on Loans and Advances Loans and Fixed Income, dropping by 4.5% and 67.3% respectively.
- Non-Interest Income of N45.9bn comprising of Fee and commission income, Net trading gains, and Other income (31 March 2020: N35.8bn) up by 28.0% due to significant growth in transaction volumes and improvement in earnings from dealing room activities, this compensated but not adequate to offset the dip in funded Income. Net trading gain grew by 63.5% while other income and in fees and commissions increased by 21.8% and 21.5% respectively.
- Net interest margin of 7.0% (31 March 2020: 9.9%).
· Balance Sheet
- Total assets of N4.993trn (31 December 2020: N4.945trn) up 1.0%
- Net loans and advances of N1.639trn (31 December 2020: N1.663trn) down 1.4%.
- Deposit Liabilities of N3.717trn (31 December 2020: N3.611trn) up 3.0%.
· Credit Quality
- Non-performing loans to total loans at 6.1%, 5.6% at Bank level (31 December 2020: 6.4%, 5.9% at Bank level).
- Coverage for Lifetime Credit Impaired Loans at 136.3% (31 December 2020: 128.7%)
- Cost of Risk at 0.11%, 0.02% at Bank level (31 December 2020: 1.18%, 0.97% at Bank level).
· Continued focus on efficiency
- Cost to income (CIR) of 42.6% (31 March 2020: 40.6%). Increase in CIR was influenced by increase in inflation rate.
· Subsidiaries
- Contribution to PBT from subsidiaries increased to 21.8% from 16.2% in March 2020.
March 2021 Financial Analysis and Ratios
Key Financials (N' billion) | Q1-2021 | Q1-2020 | ∆% |
Interest Income | 60.3 | 77.0 | -21.7% |
Net Interest Income | 52.4 | 64.3 | -18.4% |
Operating Income | 93.5 | 98.0 | -4.6% |
Operating expenses | 39.8 | 39.8 | 0.0% |
Profit before tax | 53.7 | 58.2 | -7.8% |
Profit After Tax | 45.5 | 50.1 | -9.0% |
Earnings per share (in Naira) | 1.6 | 1.8 | -9.4% |
Q1-2021 | FY-2020 | ∆% | |
Total Assets | 4,992.6 | 4,944.7 | 1.0% |
Net Loans | 1,638.7 | 1,662.8 | -1.4% |
Deposit Liabilities | 3,717.4 | 3,610.8 | 3.0% |
Income statement Key Ratios | Q1-2021 | Q1-2020 |
ROAE | 26.0% | 29.7% |
ROAA | 4.3% | 5.1% |
Net interest margin | 7.0% | 9.9% |
Cost-to-income ratio | 42.6% | 40.6% |
Balance sheet Key Ratios | Q1-2021 | FY-2020 |
Net Loans to deposits | 44.1% | 46.1% |
Liquidity ratio | 42.0% | 38.9% |
Capital adequacy ratio | 26.1% | 25.9% |
NPL/Total Loans | 6.1% | 6.4% |
Cost of risk | 0.1% | 1.2% |
Coverage (with Reg. Risk Reserves) | 136.3% | 128.7% |
21 April 2021
Enquiries:
GTBank Oyinade Adegite, Group Head, Corporate Communication cea@gtbank.com |
+234-1-2715227 |
Golden Nwaiwu, Head, Investor Relations ir@gtbank.com |
+234-1-4484156 |
Notes to the Editors:
Guaranty Trust Bank is a diversified financial services company with N4.993trillion in assets, providing commercial banking services through 232 local branches, 30 e-branches & Cash Centres, 60 GTExpress locations, 1,374 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, West and East African sub-regions as well as the United Kingdom. The Bank is rated B- and B by S&P and Fitch respectively, a reflection of the Bank's stability and reputation of being a well-established franchise with strong asset quality and consistent excellent financial performance.
The Bank has ten bank subsidiaries/sub-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")
10) Guaranty Trust Bank (Tanzania) Limited ("GTB Tanzania").