6 Apr 2010 16:57
Guaranty Trust Bank plc
Managing Director's Statement 2010
The 2009 financial year was significant for the Bank in numerous ways. Our resolve to strengthen our position as a frontline financial services provider yielded desired results. As an institution, our commitment to our core values of integrity, professionalism, ethics and absolute loyalty to our customers ensured that we remained a beacon of aspiration in the industry in which we operate.
The year witnessed a number of remarkable developments in the Nigerian Banking Industry, chief among which was the renewed vigilance and stronger oversight responsibilities on the part of the regulatory authority. The Central Bank of Nigeria, seeking to improve the fortunes of Nigerian Banks in the face of the global economic downturn, conducted a stress test on all Banks with the aim of separating the strong from the vulnerable and the weak. I am proud to report that your Bank was amongst the first set of Banks to scale the hurdle and pass the test.
Despite the daunting dynamics of our operating environment, your bank continued in steady progress towards achieving its 2012 strategic goals. We recorded gross earnings of N162.6 billion at the end of the year, representing a growth of 62% over the N100.6 billion recorded in ten months to December 2008. We were also able to close the year with a decent Profit Before Tax of N28 billion while Total assets and Contingents grew to N1.40 trillion. The success of our cost containment strategies also ensured that we maintained and sustained our efficiency with a cost to income ratio of 0.67:1.
Also in the course of the year, the bank's lending capabilities were boosted with a N200 billion bond programme approved by the Board in August. The successful completion of the first tranche, which raised N13.17 billion, was issued to institutional and High-Net worth individuals.
Of significant importance also, are the achievements of our subsidiaries whose steady growth in the various countries in which they operate continue to signpost the success of our organic growth strategy. Ghana grew from 10 branches to 18, Sierra Leone from 4 to 6 whilst our Gambian subsidiary increased by 5 additional branches. It is worthy to note that our Liberia subsidiary finally came on stream during the year as our UK subsidiary, is also gradually earning its pride of place in the United Kingdom. Within Nigeria, our spread received an additional boost with the opening of thirteen new branches.
There is no gainsaying that these successes were made possible by the combination of the immense energy and commitment to duty of our members of staff at home and abroad coupled with the contributions and support from our numerous stakeholders. These have ensured that we continue to meet and surpass expectations against all odds.
Our modest achievements also earned enviable recognition in the course of the year. The bank was bestowed with numerous awards and accolades some of which are, 'The 2009 Best Bank in Nigeria' by eminent international magazine, Euromoney; 'The Most Customer Focused Bank award by KPMG in its Annual Banking Industry and Customer Satisfaction Survey which we retained for the 2nd consecutive year and, 'The Most Socially Responsible Bank in Nigeria' at the 3rd Social Enterprise Reporting & Awards. Also worthy of note, is the re-affirmation of our double A minus (AA-) rating for the 5th consecutive year.
Our passionate belief that social responsibility embodies our ardent commitment and social pact with all our stakeholders has never waned. It has continuously driven us to proactively meet and exceed the social, environmental and growth expectations of our host communities.
During the course of the year and in partnership with Rolex and Mouawad, we sponsored the Annual Charity Ball of the Swiss Red Cross (SRC) - the oldest charitable organization in the world; proceeds of which were donated to the SRC's Victims of Forgotten Disasters' Programme - a charity that ensures the supply of aid materials to countries that are suffering from disasters but are not receiving adequate attention.
In partnership with various multisectoral agencies and bodies, we continued to vigorously champion causes for the challenged as evident in our sponsorship of the National Stakeholders Forum on Autism and the publication of the first ever video documentary on Autism in Nigeria. We also continued in our support for Special Olympics in Nigeria.
Our flagship Adopt-a-School project was further enhanced in 2009 with the donation of fully equipped science laboratories to five secondary schools in Jigawa and the maintenance of the existing infrastructures in St. Georges Boys and Girls Schools in Lagos, Baboko Community Secondary School in Ilorin and Community Secondary School, Nkpolu in Port Harcourt.
Our partnership with Students In Free Enterprise (SIFE) - an international non-profit organization that works with business leaders in the private sector and the higher institutions in Nigeria to mobilize university students towards making a difference in their communities while developing the skills to become socially responsible individuals, was further buttressed by our sponsorship of Business Ethics Workshops in 19 Universities across Nigeria.
Esteemed stakeholders, this year marks our 20th year as a financial services provider of choice. In two decades, we have made giant strides, earned many accolades, learnt many lessons, survived numerous challenges, but most importantly, we have drawn our inspiration from the immense trust and confidence you have in us. We will not betray that trust.
Looking into the future, I imagine that our success will be measured by the quality of the service we provide and our commitment to do a lot more than is expected. We believe the task ahead will require a lot more hardwork, endurance, and an unrivalled passion for excellence and we are confident that this will certainly lead to greater rewards so long as we remain committed to the time tested values of ethics and integrity that define our special brand.
With your unflinching support, we will ensure that whatever the odds, wherever we are, these values will continue to shape the way we do our business as we seek newer inroads to entrench our brand as a Proudly African, Truly International financial institution.
Tayo Aderinokun MFR, FCIB
Managing Director Guaranty Trust Bank Plc and Subsidiary Companies
Group Financial Statements for the year ended 31 December 2009
Profit and Loss Accounts
For the year ended 31st December, 2009
[In accordance with Nigerian GAAP]
|
| GROUP Dec 2009 12 months N'000 | GROUP Dec 2008 10 months N'000 | BANK Dec 2009 12 months N'000 | BANK Dec 2008 10 months N'000 |
| GROSS EARNINGS | 162,550,418 | 100,605,806 | 151,698,107 | 93,017,258 |
| Interest and similar income | 119,567,654 | 67,217,099 | 110,889,700 | 64,192,456 |
| Interest and similar expenses | (40,540,465) | (19,467,500) | (37,421,590) | (18,430,138) |
| Net interest margin | 79,027,189 | 47,749,599 | 73,468,110 | 45,762,318 |
| Fee and commission income | 30,904,820 | 23,987,886 | 28,070,390 | 22,622,594 |
| Fee and commission expenses | (349,726) | (175,208) | (349,726) | (175,208) |
| Net fee and commission income | 30,555,094 | 23,812,678 | 27,720,664 | 22,447,386 |
| Net foreign exchange income | 6,035,587 | 4,512,201 | 5,042,456 | 3,744,846 |
| Underwriting profit | 1,392,365 | 1,200,115 | - | - |
| Income from investments | 4,649,992 | 3,688,505 | 7,695,561 | 2,457,362 |
| Operating income | 121,660,227 | 80,963,098 | 113,926,791 | 74,411,912 |
| Operating expenses | (56,170,495) | (41,055,452) | (49,963,277) | (35,521,595) |
| Loan loss expenses | (35,953,728) | (4,042,381) | (35,539,035) | (3,938,080) |
| Diminution in other asset values | (1,573,001) | (536,136) | (1,464,670) | (343,120) |
| Profit on ordinary activities before taxation | 27,963,003 | 35,329,129 | 26,959,809 | 34,609,117 |
| Taxation | (4,276,160) | (7,013,568) | (3,111,748) | (6,535,865) |
| Profit on ordinary activities after taxation | 23,686,843 | 28,315,561 | 23,848,061 | 28,073,252 |
| Non-controlling interest | (11,248) | (707,003) | - | - |
| Profit attributable to equity holders of the Bank | 23,675,595 | 27,608,558 | 23,848,061 | 28,073,252 |
| APPROPRIATIONS |
|
|
|
|
| Transfer to statutory reserve | 8,002,767 | 8,681,010 | 7,154,418 | 8,421,976 |
| Transfer to statutory contingency reserve | 142,930 | 239,345 | - | - |
| Transfer to bonus shares reserve | 2,331,719 | 1,865,375 | 2,331,719 | 1,865,375 |
| Transfer to retained earnings | 13,198,179 | 16,822,828 | 14,361,924 | 17,785,901 |
|
| 23,675,595 | 27,608,558 | 23,848,061 | 28,073,252 |
| Key Financial Information |
|
|
|
|
| Total NPLs to total loans and advances | 12% | 2% | 12% | 2% |
| Earnings per share (kobo) - Basic | 127k | 185k | 128k | 188k |
| Earnings per share (kobo) - Adjusted | 127k | 148k | 128k | 150k |
| Declared Dividend per share | 100k | 70k | 100k | 70k |
The board of directors have proposed a dividend of N0.75 per share on the issued share capital of 18,653,748,614 ordinary shares of 50k each subject to the approval of the shareholders at the next annual general meeting.
Guaranty Trust Bank Plc and Subsidiary Companies
Group Financial Statements for the year ended 31 December 2009
Consolidated Balance Sheets
As at 31December, 2009
[In accordance with Nigerian GAAP]
|
| GROUP Dec 2009 N'000 | GROUP Dec 2008 N'000 | BANK Dec 2009 N'000 | BANK Dec 2008 N'000 |
| ASSETS |
|
|
|
|
| Cash in hand and balances with CBN | 35,889,931 | 64,349,514 | 34,890,767 | 62,579,450 |
| Treasury bills | 36,936,014 | 62,216,318 | 29,405,616 | 52,715,562 |
| Due from other banks | 225,330,111 | 219,821,791 | 202,810,278 | 191,187,296 |
| Loans and advances to customers | 563,488,164 | 416,318,640 | 538,137,569 | 413,983,817 |
| Advances under finance lease | 6,070 | 23,835 | 1,288 | 23,835 |
| Insurance receivables | 809,546 | 562,687 | - | - |
| Investment securities | 136,193,629 | 91,511,483 | 134,126,992 | 86,616,909 |
| Investment in subsidiaries | - | - | 29,774,817 | 28,274,817 |
| Trading properties | 5,070,666 | 15,085,846 | - | - |
| Other assets | 15,523,244 | 49,272,639 | 9,478,730 | 46,866,078 |
| Deferred tax assets | 410,864 | 36,847 | - | - |
| Property and equipment | 46,491,151 | 39,629,765 | 41,285,479 | 36,030,992 |
| Goodwill on consolidation | 354,328 | 354,328 | - | - |
| TOTAL ASSETS | 1,066,503,718 | 959,183,693 | 1,019,911,536 | 918,278,756 |
| LIABILITIES |
|
|
|
|
| Customers' deposits | 683,080,902 | 470,605,806 | 662,261,026 | 445,740,212 |
| Due to other banks | 14,981,705 | 27,965,203 | 1,083,016 | 27,965,203 |
| Claims payable | 350,631 | 188,588 | - | - |
| Finance lease obligations | 2,211,130 | 2,125,260 | 2,211,130 | 2,125,260 |
| Liability on investment contracts | 1,115,094 | 586,386 | - | - |
| Liabilities on insurance contracts | 1,126,011 | 794,546 | - | - |
| Current income tax payable | 3,483,561 | 9,636,970 | 2,373,006 | 9,237,928 |
| Other liabilities | 85,491,872 | 198,400,658 | 81,284,082 | 186,892,178 |
| Deferred tax liabilities | 4,346,591 | 3,474,838 | 4,134,454 | 3,395,712 |
| Dividend payable | - | - | - | - |
| Retirement benefit obligations | 253,075 | 475,010 | 240,811 | 475,010 |
| Debt securities in issue | 65,485,550 | 48,838,125 | 65,515,655 | 48,838,125 |
| Other borrowings | 12,332,568 | 14,058,403 | 12,332,568 | 14,058,403 |
|
|
|
|
|
|
| TOTAL LIABILITIES | 874,258,690 | 777,149,793 | 831,435,748 | 738,728,031 |
| NET ASSETS | 192,245,028 | 182,033,900 | 188,475,788 | 179,550,725 |
|
|
|
|
|
|
|
|
|
|
|
|
| CAPITAL AND RESERVES |
|
|
|
|
| Share capital | 9,326,875 | 7,461,500 | 9,326,875 | 7,461,500 |
| Share premium | 119,076,566 | 119,076,565 | 119,076,566 | 119,076,565 |
| Translation reserve | 12,200 | (346,662) | - | - |
| Retained earnings | 15,424,515 | 16,083,910 | 18,641,439 | 18,137,089 |
| Other reserves | 43,263,078 | 35,716,462 | 41,430,908 | 34,875,571 |
| EQUITY ATTRIBUTABLE TO EQUITY-HOLDERS OF THE PARENT | 187,103,234 | 177,991,775 | 188,475,788 | 179,550,725 |
| Non-controlling interest | 5,141,794 | 4,042,125 | - | - |
| TOTAL EQUITY | 192,245,028 | 182,033,900 | 188,475,788 | 179,550,725 |
|
|
|
|
|
|
| Guarantees and other commitments on behalf of customers | 332,820,260 | 400,369,438 | 316,381,113 | 389,543,782 |
The financial statements were approved by the Board of Directors on 22 February 2010
INDEPENDENT AUDITOR'S REPORT
To the Members of Guaranty Trust Bank Plc:
We have audited the Group and separate financial statements of Guaranty Trust Bank Plc ("the Bank") and its subsidiary companies ("the Group") for the year ended 31st December, 2009, from which the summarised financial statements were derived, in accordance with International Standards on Auditing. In our report dated 22 February 2010, we expressed an unqualified opinion on the Group and separate financial statements from which the summarised financial statements were derived.
In our opinion, the accompanying summarized financial statements are consistent, in all material respects, with the Group and separate financial statements from which they were derived. For a better understanding of the Bank's and Group's financial position and results for the year ended 31st December, 2009 and of the scope of our audit, the summarised financial statements should be read in conjunction with the Group and separate financial statements from which the summarised financial statements were derived and our audit opinion thereon.
Compliance with Section 27 (2) of the Banks and Other Financial Institutions Act of Nigeria and Central Bank of Nigeria Circular BSD/1/2004
The Bank did not contravene any provisions of the Banks and Other Financial Institutions Act of Nigeria and Central Bank of Nigeria Circular BSD/1/2004 during the period under review.
Related party transactions and balances have been disclosed in the financial statements in compliance with the Central Bank of Nigeria circular BSD/1/2004.
Lagos, Nigeria, KPMG
22 February 2010.
6 April 2010
Enquiries:
| GTBank | +234-1-2714591 |
| Lola Odedina, Head, Communications & External Affairs |
|
| Pascal Or |
|
|
|
|
| College Hill | +44 20 7457 2020 |
| Peter Pantlin |
|
| Tony Friend |
|
Notes to editors:
The Group operates as one of the leading Nigerian banks offering a wide range of financial services and products throughout Nigeria and in the West African sub-region. According to the most recently published audited financial statements of Nigerian banks prepared in accordance with Nigerian GAAP, among Tier 1 banks in Nigeria as identified by Agusto & Co., the Bank is the most profitable bank measured in terms of return on assets, the most efficient bank measured in terms of cost to income, has the second best asset quality measured in terms of non-performing loan ratio and, among all banks in Nigeria, the Bank is the sixth largest bank in terms of total assets.
Historically, the Group has focused its business on large- and medium-size corporate clients. However, the economic reforms that followed Nigeria's return to democracy in 1999 led to an increase in liquidity of retail customers and a corresponding increase in demand by such customers for banking services. As a consequence, since 2005, the Group has placed an increasing emphasis on building its retail business. Initially the Group targeted only high-end retail customers that were employed by large, reputable companies. Recently, the Group has re-branded itself to emphasise its retail focus, in particular its evolution as a bank with a nationwide network and focus on the provision of banking services to nearly all segments of the Nigerian economy.
The Bank has five banking subsidiaries established outside of Nigeria - Guaranty Trust Bank (Gambia) Ltd ("GTB Gambia"), Guaranty Trust Bank (Sierra Leone) Ltd ("GTB Sierra Leone"), Guaranty Trust Bank (Ghana) Ltd ("GTB Ghana"), Guaranty Trust Bank (Liberia) Ltd ("GTB Liberia") and Guaranty Trust Bank (United Kingdom) Ltd ("GTB UK"). The Bank services its customers from 154 branches in Nigeria, as well as other branches of its subsidiaries throughout the region.
The Bank also has five non-banking subsidiaries: Guaranty Trust Assurance Plc ("GTB Assurance"), which provides insurance services in Nigeria, GTB Registrars Limited ("GTB Registrars"), a securities registrar, GTHomes Limited ("GTHomes"), which provides mortgage services, GTB Asset Management Limited ("GTB Asset"), which provides asset management and other investment services and GTB Finance B.V. ("GTB Finance"), a finance subsidiary located in The Netherlands. In each of the past three years, profit from the Bank accounted for over 90.0% of the Group's total income.
www.gtbank.com