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20 Apr 2016 16:51
Guaranty Trust Bank plc
UNAUDITED GROUP RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2016 DECLARES A PBT OF N30.68BILLION
Lagos Nigeria - April 20, 2016 - 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 period ended 31 March 2016 and declares a PBT of ₦30.68bn.
Commenting on the results, Mr. Segun Agbaje, Managing Director and CEO of Guaranty Trust Bank plc stated that:
"Despite a tepid start in economic activity in 2016, extremely challenging business environment and increasing regulatory headwinds, our Bank recorded a decent performance across all key financial indices during the period. Gross earnings for the period declined by 4.6% to ₦75.4billion from ₦79.02billion reported for the corresponding period last year. The Bank's loan book declined slightly by 0.7% from ₦1.373 Trillion recorded in December 2015 to ₦1.363 Trillion in March 2016. Sustained drive for low cost deposits saw Total customer deposits increase by 10.3% to ₦1.777trillion from ₦1.610trillion in December 2015."
He further stated that the bank will continue to provide best in class service, pioneer products that positively impact the wealth of its customers and ensure the sustenance of its strong showing going into the remaining quarters of the 2016 financial year.
Financial Highlights
· Strong Earnings
- Profit before tax of N30.68bn (31 Mar 2015: N32.65bn) a decline of 6.1% attributed to 79.9% decline in Net trading income and 81.0% decline in other income which was partially offset by 1.6% and 39.1% growth in interest income and fee and commission income respectively (compared to Q1-2015).
- Profit after tax for the period of N25.61bn (31 Mar 2015: N26.56bn)
- Earnings per share of 90kobo (31 Mar 2015: 94kobo per share)
· Revenue
- Interest Income of N55.83bn (31 Mar 2015: N54.95bn) up 1.6%. Growth in interest income came as a result of 4.8% growth in loan book from ₦1.301 trillion recorded in March 2015 to ₦1.363 trillion in March 2016.
- Non-Interest Income of N19.56bn (31 Mar 2015: N24.06bn) down 18.7%. The significant growth in foreign exchange earnings in Q1 2015 did not recur in the Q1 2016 as exchange rate was relatively steady over the period.
- Net interest margin remained strong at 8.12% (31 Mar 2015: 8.21%). NIM stable despite decline yield on fixed income securities as cost of funds reduced in 2016.
· Balance Sheet
- Total assets and contingents of N3.115trn (31 December 2015: N3.089trn)
- Total assets of N2.656trn (31 December 2015: N2.525trn) up 5.19%
- Net loans and advances of N1.363trn (31 December 2015: N1.373trn) decline of 0.7%.
- Total Customer Deposits of N1.777trn (31 December 2015: N1.610trn) up 10.3%.
· Credit Quality
- Non-performing loans to total loans of 3.51% (31 December 2015: 3.21%)
- Coverage (with Regulatory risk reserves) at 176.13% (31 December 2015: 186.73%)
- Cost of Risk at 0.25% (31 Mar 2015: 0.27%).
· Continued focus on efficiency
- Cost to income of 45.61% (31 Mar 2015: 44.50%).
· Subsidiaries
- Contribution to PBT from subsidiaries grew to 8.79% from 7.36% in Q1-2015.
Q1 2016 Financial Analysis and Ratios
Key Financials (N' billion) | Q1-2016 | Q1-2015 | ∆% |
Interest Income | 55.83 | 54.95 | 1.6% |
Net Interest Income | 40.79 | 39.16 | 4.2% |
Operating Income | 56.40 | 58.84 | -4.1% |
Operating expenses | 25.73 | 26.18 | -1.8% |
Profit before tax | 30.68 | 32.65 | -6.1% |
Profit After Tax | 25.61 | 26.56 | -3.6% |
Earnings per share (₦:k) | 0.90 | 0.94 | -3.6% |
Q1-2016 | FY-2015 | ∆% | |
Total Assets | 2,655.6 | 2,524.6 | 5.2% |
Net Loans | 1,362.8 | 1,373.0 | -0.7% |
Total Customer Deposits | 1,776.8 | 1,610.3 | 10.3% |
Key Ratios | Q1-2016 | Q1-2015 |
ROE(post-tax) | 24.19% | 29.03% |
ROA(post-tax) | 3.96% | 4.39% |
ROE (pre-tax) | 28.97% | 35.69% |
ROA (pre-tax) | 4.74% | 5.40% |
Net interest margin | 8.12% | 8.21% |
Cost-to-income ratio | 45.61% | 44.50% |
Liquidity ratio | 36.13% | 42.74% |
Capital adequacy ratio (Group) | 20.25% | 19.81% |
Capital adequacy ratio (Parent) | 18.16% | 17.18% |
NPL/Total Loans | 3.51% | 3.06% |
Cost of risk | 0.25% | 0.27% |
Coverage (with Reg. Risk Reserves) | 176.13% | 153.40% |
20 April 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 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 N2.656trillion in assets, providing commercial banking services through 224 local branches, 46 e-branches, 1,165 ATMs, 116 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 Standard and Poor's and B+ by Fitch, 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.
Guaranty Trust Bank Plc
Statement to the Nigerian Stock Exchange and the Shareholders on the extract of unaudited IFRS results for the three months ended 31 March 2016.
The Board of Directors of Guaranty Trust Bank Plc is pleased to announce the Group's unaudited results for the three months ended 31 March 2016.
Statements of Financial Position | Group | Group | Parent | Parent |
as at 31 December 2015 | Mar 2016 | Dec 2015 | Mar 2016 | Dec 2015 |
₦'million | ₦'million | ₦'million | ₦'million | |
ASSETS | ||||
Cash and cash equivalents | 309,906 | 254,633 | 214,910 | 173,133 |
Financial assets held for trading | 24,199 | 34,626 | 16,392 | 25,076 |
Investment securities: | ||||
- Available for sale | 333,326 | 364,180 | 294,355 | 327,586 |
- Held to maturity | 27,234 | 29,408 | 3,104 | 3,211 |
Assets pledged as collateral | 60,279 | 61,954 | 60,279 | 61,946 |
Loans and advances to banks | 639 | 1,052 | 639 | 639 |
Loans and advances to customers | 1,362,822 | 1,371,926 | 1,253,225 | 1,265,207 |
Investment in subsidiaries | - | - | 43,968 | 41,906 |
Property and equipment | 86,784 | 87,989 | 78,216 | 79,193 |
Intangible assets | 12,318 | 12,471 | 2,289 | 2,493 |
Deferred tax assets | 2,961 | 3,244 | - | - |
Restricted deposits and other assets | 435,100 | 303,111 | 422,347 | 297,240 |
TOTAL ASSETS | 2,655,568 | 2,524,594 | 2,389,724 | 2,277,630 |
LIABILITIES | ||||
Deposits from banks | 31,939 | 26,256 | 198 | 40 |
Deposits from customers | 1,776,815 | 1,610,350 | 1,574,805 | 1,422,550 |
Financial liabilities held for trading | 244 | - | 244 | - |
Other liabilities | 71,914 | 104,606 | 51,656 | 85,126 |
Current income tax liabilities | 17,691 | 17,740 | 19,599 | 19,379 |
Deferred tax liabilities | 4,476 | 6,840 | 4,392 | 6,346 |
Debt securities issued | 157,453 | 180,117 | - | - |
Other borrowed funds | 161,624 | 165,123 | 314,252 | 338,580 |
TOTAL LIABILITIES | 2,222,156 | 2,111,032 | 1,965,146 | 1,872,021 |
CAPITAL AND RESERVES | ||||
Share capital | 14,716 | 14,716 | 14,716 | 14,716 |
Share premium | 123,471 | 123,471 | 123,471 | 123,471 |
Treasury shares | (4,754) | (4,754) | - | - |
Retained earnings | 69,175 | 51,089 | 62,517 | 46,048 |
Other components of equity | 224,552 | 222,651 | 223,874 | 221,374 |
Capital and reserves attributable to equity holders of the parent entity | 427,160 | 407,173 | 424,578 | 405,609 |
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Non-controlling interests in equity | 6,252 | 6,389 | - | - |
TOTAL EQUITY | 433,412 | 413,562 | 424,578 | 405,609 |
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TOTAL EQUITY AND LIABILITIES | 2,655,568 | 2,524,594 | 2,389,724 | 2,277,630 |
Income Statements | Group | Group | Parent | Parent | |||
for the period ended | Mar 2016 | Mar 2015 | Mar 2016 | Mar 2015 | |||
31 March 2016 | ₦'million | ₦'million | ₦'million | ₦'million | |||
Interest income | 55,833 | 54,951 | 49,296 | 49,437 | |||
Interest expense | (15,039) | (15,788) | (13,026) | (13,958) | |||
Net interest income | 40,794 | 39,163 | 36,270 | 35,479 | |||
Loan impairment charges | (3,386) | (3,526) | (3,010) | (3,501) | |||
Net interest income after loan impairment charges | 37,408 | 35,637 | 33,260 | 31,978 | |||
Fee and commission income | 17,286 | 12,430 | 15,226 | 10,625 | |||
Fee and commission expense | (567) | (864) | (479) | (775) | |||
Net fee and commission income | 16,719 | 11,566 | 14,747 | 9,850 | |||
Net gains on financial instruments classified as held for trading |
1,172 |
5,831 |
592 |
5,006 | |||
Other income | 1,104 | 5,803 | 907 | 5,617 | |||
Personnel expenses | (6,785) | (6,716) | (5,175) | (5,088) | |||
Operating lease expenses | (397) | (368) | (171) | (177) | |||
Depreciation and amortization | (3,321) | (3,117) | (2,895) | (2,728) | |||
Other operating expenses | (15,224) | (15,983) | (13,257) | (14,207) | |||
Profit before income tax | 30,676 | 32,653 | 28,008 | 30,251 | |||
Income tax expense | (5,062) | (6,089) | (4,481) | (5,143) | |||
Profit for the period | 25,614 | 26,564 | 23,527 | 25,108 | |||
Profit attributable to: | |||||||
Equity holders of the parent entity | 25,397 | 26,372 | 23,527 | 25,108 | |||
Non-controlling interests | 217 | 192 | - | - | |||
25,614 | 26,564 | 23,527 | 25,108 |
Statements of other comprehensive | Group | Group | Parent | Parent | |||
income for the period ended | Mar 2016 | Mar 2015 | Mar 2016 | Mar 2015 | |||
31 March 2016 | N'million | N'million | N'million | N'million | |||
Profit for the period | 25,614 | 26,564 | 23,527 | 25,108 | |||
Other comprehensive income to be reclassified to profit or loss in subsequent periods: | |||||||
- Foreign currency translation | |||||||
differences for foreign operations | (1,072) | 236 | - | - | |||
- Income tax relating to foreign | |||||||
currency translation differences | |||||||
for foreign operations | 322 | (71) | - | - | |||
- Net change in fair value of | |||||||
available for sale financial assets | (6,484) | 962 | (6,511) | 1,240 | |||
- Income tax relating to net change | |||||||
in fair value of available for sale | |||||||
financial assets | 1,945 | (288) | 1,953 | (372) | |||
Other comprehensive income for | |||||||
the period, net of tax | (5,289) | 839 | (4,558) | 868 | |||
Total comprehensive income for the period | 20,325 | 27,403 | 18,969 | 25,976 | |||
Profit attributable to: | |||||||
Equity holders of the parent entity | 19,986 | 27,035 | 18,969 | 25,976 | |||
Non-controlling interests | 339 | 368 | - | - | |||
Total comprehensive income for the period | 20,325 | 27,403 | 18,969 | 25,976 | |||
Earnings per share for the profit attributable to the equity holders of the parent entity during the period (expressed in naira per share): | |||||||
- Basic | 0.90 | 0.94 | 0.80 | 0.85 | |||
- Diluted | 0.90 | 0.94 | 0.80 | 0.85 | |||
Mar 2016 | Dec 2015 | Mar 2016 | Dec 2015 | ||||
Total impaired Loans and Advances (N'million) | 48,936 | 44,798 | 44,604 | 36,611 | |||
Total impaired Loans and Advances to Loans and Advances (%) | 3.51% | 3.21% | 3.48% | 2.83% | |||
Gross Earnings | 75,395 | 79,015 | 66,021 | 70,685 |
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