26 Apr 2017 17:36
Guaranty Trust Bank plc
UNAUDITED Q1 GROUP RESULTS FOR THE QUARTER ENDED MARCH 31, 2017 DECLARES A PBT OF N50.39BILLION
Lagos, Nigeria - April 26, 2017 - Guaranty Trust Bank plc ("GTBank"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its Unaudited Financial Results, in accordance with IFRS, for the quarter ended 31 March 2017 and declares a PBT of N50.39bn.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr Segun Agbaje, said that "Given the significant progress we made in 2016, we came into the year better equipped to navigate any further economic headwinds, and our performance in the first quarter demonstrates our ability to deliver sustainable long-term growth. We remain committed to maximizing shareholders' value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity.
He further stated that "As we transform our organization into a platform for enriching lives, we are providing our customers with information and access they need to thrive. We are also leveraging our brand and networks to support small businesses through free business platforms and capacity building initiatives."
Financial Highlights
· Strong Earnings
- Profit before tax of N50.39bn (31 March 2016 N30.68bn) an increase of 64.3% enhanced by 50.6% growth in interest income and 5.0% growth in non-interest income
- Profit after tax of N41.48bn (31 March 2016 N25.61bn)
- Earnings per share of 147kobo (31 March 2016: 90kobo per share)
· Revenue
- Interest Income of N84.1bn (31 March 2016: N55.83bn). The bank recorded an increase in interest income largely as a result of a significant growth in interest income on fixed income securities.
- Non-Interest Income of N20.55bn (31 March 2016: N19.56bn) up 5.0%.
- Net interest margin remained strong at 10.6% (31 March 2016: 8.12%).
· Balance Sheet
- Total assets of N3.165trn (31 December 2016: N3.117trn) up 1.6%
- Net loans and advances of N1.562trn (31 December 2016: N1.589trn) decline of 1.7%.
- Deposits from customers of N2.012trn (31 December 2016:N1.986trn) up 1.3%. Strong deposit growth driven by impressive performance of our various initiatives.
· Credit Quality
- Non-performing loans to total loans of 3.62% (31 December 2016: 3.66%)
- Coverage (with Regulatory risk reserves) at 231.6% (31 December 2016: 222.9%)
- Cost of Risk at 0.23% (31 December 2016: 4.25%).
· Continued focus on efficiency
- Cost to income of 38.75% (31 March 2016: 45.61%) due to improved revenue growth and continuous implementation of cost cutting initiatives.
· Subsidiaries
- Contribution to PBT from subsidiaries increased to 8.96% from 8.79% in March 2016
March 2017 Financial Analysis and Ratios
Key Financials (N' billion) | Q1-2017 | Q1-2016 | ∆% |
Interest Income | 84.10 | 55.83 | 50.64% |
Net Interest Income | 66.13 | 40.79 | 62.12% |
Operating Income | 82.28 | 56.40 | 45.90% |
Operating expenses | 31.89 | 25.73 | 23.94% |
Profit before tax | 50.39 | 30.68 | 64.24% |
Profit After Tax | 41.48 | 25.61 | 61.97% |
Earnings per share (in Naira) | 1.41 | 0.90 | 56.67% |
Q1-2017 | FY-2016 | ∆% | |
Total Assets | 3,164.82 | 3,116.39 | 1.55% |
Net Loans | 1,562.28 | 1,589.43 | -1.71% |
Deposits from customers | 2,071.49 | 2,111.31 | 1.28% |
Key Ratios | Q1-2017 | Q1-2016 |
ROAE(post-tax) | 31.55% | 24.19% |
ROAA(post-tax) | 5.28% | 3.96% |
ROAE (pre-tax) | 38.33% | 28.97% |
ROAA (pre-tax) | 6.42% | 4.74% |
Net interest margin | 10.60% | 8.12% |
Cost-to-income ratio | 38.75% | 45.61% |
Q1-2017 | FY-2016 | |
Loans to deposits and borrowings | 64.34% | 75.31% |
Liquidity ratio | 46.42% | 42.19% |
Capital adequacy ratio | 20.03% | 19.79% |
NPL/Total Loans | 3.62% | 3.66% |
Cost of risk | 0.23% | 4.25% |
Coverage (with Reg. Risk Reserves) | 231.57% | 222.86% |
26 April 2017
Enquiries:
GTBank Golden Nwaiwu, Head, Investor Relations ir@gtbank.com |
+234-1-4484156 |
Oyinade Adegite, Head, Communications & External Affairs |
+234-1-2715227 |
corpaff@gtbank.com |
Instinctif Partners | +44 20 7457 2020 |
Mark Garraway | |
Rosie Driscoll |
Notes to the Editors:
Guaranty Trust Bank is a diversified financial services company with N3.165trillion in assets, providing commercial banking services through 216 local branches, 71 e-branches, 1,168 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.