22 Mar 2011 14:43
Guaranty Trust Bank plc
2010 Audited full-year results
Declares 0.75 kobo dividend per share and 1 for 4 scrip issue
Lagos Nigeria - March 22 2011 - Guaranty Trust Bank plc ("GTBank"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its Audited Financial Results for the year ended December 31, 2010, declaring a dividend of 75 kobo per share and a bonus of one (1) additional share for every four (4) shares held*.
Commenting on the results, Tayo Aderinokun, Managing Director and CEO of Guaranty Trust Bank attributed the Bank's success to hardwork during the year and a determination to achieve results without compromising on standards, service quality or professionalism.
He said: "The dynamics of the Nigerian banking industry have been in a constant flux, posing varying levels of challenges for industry players, but none more acute than the last financial crisis, which coincided with an unprecedented meltdown in the Nigerian capital market. However, we feel gratified to inform all stakeholders that our Bank has continued to perform admirably and our twin values of trust and professionalism have ensured that we adhere to the highest standards of Corporate Governance whilst delivering excellent financial performance".
Mr. Aderinokun further stated that in 2011, the Bank is well positioned to benefit tremendously given the rebound in various economies across the world, whilst also endeavoring to out-innovate, out-perform and out-think its competitors".
Financial Highlights
·; Strong Earnings
·; Profit before tax of N48.46bn (31 December 2009: N27.96bn) an increase of 73%. However, FY 2009 PBT was dampened by industry-wide provisions mandated by the Central Bank of Nigeria.
·; Earnings per share of 163kobo per share (31 Dec 2009: 127kobo per share) FY 2010 Dividend of 75kobo per share (not inclusive of 25kobo interim dividend issued at half-year 2010)
·; Subsidiaries - In 2010, as part of the Central Bank of Nigeria's (CBN) blueprint for reforming the Nigerian financial system, the CBN prohibited banks from engaging in non-banking activities. Henceforth, banks would exist either, as a subsidiary in a holding company structure, or as a standalone company solely capable of offering commercial banking services. In light of this development, Guaranty Trust Bank decided to focus on its core business of commercial banking and divest itself of its non bank subsidiaries. This divestment is set to be completed in 2011. As at December 2010, all subsidiaries continue to account for less than 10% of the total profitability of GTBank, while all non-bank subsidiaries contributed less than 4% of PBT.
·; All offshore banking subsidiaries in operation for over three years continue to show strong profitability and performance in their respective markets.
·; All non-banking subsidiaries are P&L positive.
·; Revenue
·; Net Interest Income of N112.35bn (31 December 2009: N119.57bn). Decrease due to a general decline in rates experienced early in 2010.
·; Non Interest Income of N41.56bn (31 December 2009: N42.98bn). General decline in market activity during 2010, resulted in fewer transactions.
·; Net interest margin remains strong at 7.84%
·; Balance Sheet
·; Total assets and contingents of N1.63trn as at December 2010
·; Loans and Advances of N593.56bn (31 December 2009: N563.49bn).
·; Deposits from Customers of N761.19bn, (31 December 2009: N683.08bn). Increase attributable to continued flight to quality.
·; Credit Quality
·; Non performing loans to total loans at 6.74% (31 December 2009: 11.8%) largely due to strong loan recovery efforts
·; Allowance for Credit Losses at 100.99% (31 December 2009: 48.9%)
·; Continued focus on efficiency
·; Cost to income profile improved to 58.2% (31 December 2009: 76.9%) Unusual spike in 2009 cost-to-income ratio a result of industry-wide provisioning mandated by the Central Bank.
*Subject to shareholder approval at GTBank's AGM to be held on April 21, 2011
22 March 2011
Enquiries:
GTBank | +234-1-2714591 |
Lola Odedina, Head, Communications & External Affairs | |
Pascal Or | |
College Hill | +44 20 7457 2020 |
Peter Pantlin | |
Tony Friend |
PROFIT & LOSS ACCOUNTS
For the period ended 31st December, 2010
[In accordance with Nigerian GAAP]
GROUP Dec 2010 N'000 | GROUP Dec 2009 N'000 | BANK Dec 2010 N'000 | BANK Dec 2009 N'000 | |
GROSS EARNINGS |
153,908,027 |
162,550,418 |
138,347,028 |
151,698,107 |
Profit on ordinary Activities before Taxation |
48,455,850 |
27,963,003 |
45,475,040 |
26,959,809 |
Taxation | (10,109,227) | (4,276,160) | (8,963,412) | (3,111,748) |
Profit on ordinary Activities after Taxation | 38,346,623 | 23,686,843 | 36,511,628 | 23,848,061 |
Non-controlling interest | (430,302) | (11,248) | - | - |
Profit attributable to equity holders of the bank | 37,916,321 | 23,675,595 | 36,511,628 | 23,848,061 |
APPROPRIATIONS | ||||
Transfer to statutory reserve | 11,621,393 | 8,002,767 | 10,953,489 | 7,154,418 |
Transfer to statutory contingency reserve | 124,886 | 142,930 | - | - |
Transfer to bonus shares reserve | 2,914,648 | 2,331,719 | 2,914,648 | 2,331,719 |
Transfer to retained earnings | 23,255,394 | 13,198,179 | 22,643,491 | 14,361,924 |
37,916,321 | 23,675,595 | 36,511,628 | 23,848,061 | |
Key Financial Information | ||||
Total NPLs to total loans and advances | 6.74% | 11.84% | 6.79% | 11.26% |
Earnings per share (Kobo)- Basic | 163k | 127k | 157k | 128k |
Earnings per share (Kobo)- Adjusted | 163k | 102k | 157k | 102k |
BALANCE SHEET
As at 31st December 2010
[In accordance with Nigerian GAAP]
ASSETS | GROUP Dec 2010 N'000 | GROUP Dec 2009 N'000 | BANK Dec 2010 N'000 | BANK Dec 2009 N'000 |
Cash in hand and balances with CBN | 28,855,906 | 35,889,931 | 27,017,683 | 34,890,767 |
Treasury bills | 157,291,249 | 36,936,014 | 141,775,484 | 29,405,616 |
Due from other banks | 250,180,751 | 225,330,111 | 204,567,931 | 202,810,278 |
Loans and advances to customers | 593,562,579 | 563,488,164 | 563,482,281 | 538,137,569 |
Advances under finance lease | 9,821 | 6,070 | - | 1,288 |
Insurance receivables
|
873,841 |
809,546 |
- |
- |
Investment securities | 51,738,634 | 136,193,629 | 46,356,435 | 134,126,992 |
Investment in subsidiaries | - | - | 30,115,862 | 29,774,817 |
Trading properties | 7,349,815 | 5,070,666 | - | - |
Other assets | 10,600,066 | 15,523,244 | 7,631,958 | 9,478,730 |
Deferred tax assets | 587,881 | 410,864 | - | - |
Property and equipment | 50,597,029 | 46,491,151 | 45,815,129 | 41,285,479 |
Goodwill on consolidation | 354,328 | 354,328 | - | - |
TOTAL ASSETS |
1,152,001,900 |
1,066,503,718 | 1,066,762,763 | 1,019,911,536 |
LIABILITIES | ||||
Customers' deposits | 761,194,792 | 683,080,902 | 713,080,374 | 662,261,026 |
Due to other banks | 17,943,922 | 14,981,705 | 3,320,059 | 1,083,016 |
Claims payable | 727,653 | 350,631 | - | - |
Finance lease obligations | 1,847,629 | 2,211,130 | 1,847,629 | 2,211,130 |
Liability on investment contracts | 1,822,664 | 1,115,094 | - | - |
Liabilities on insurance contracts | 2,198,669 | 1,126,011 | - | - |
Current income tax payable | 9,529,921 | 3,483,561 | 8,686,276 | 2,373,006 |
Other liabilities | 53,697,739 | 85,491,872 | 43,243,089 | 81,284,082 |
Deferred tax liabilities | 4,337,046 | 4,346,591 | 4,160,684 | 4,134,454 |
Dividend payable | - | - | - | - |
Retirement benefit obligations | 36,699 | 253,075 | 35,785 | 240,811 |
Debt securities in issue | 64,903,211 | 65,485,550 | 66,387,400 | 65,515,655 |
Other borrowings | 22,936,267 | 12,332,568 | 20,833,661 | 12,332,568 |
TOTAL LIABILITIES | 941,176,211 | 874,258,690 | 861,594,957 | 831,435,748 |
NET ASSETS | 210,825,689 | 192,245,028 | 205,167,806 | 188,475,788 |
CAPITAL AND RESERVES | ||||
Share capital | 11,658,594 | 9,326,875 | 11,658,594 | 9,326,875 |
Share premium | 119,076,566 | 119,076,566 | 119,076,566 | 119,076,566 |
Translation reserve | (392,596) | 12,200 | - | - |
Retained earnings | 18,860,299 | 15,424,515 | 21,465,320 | 18,641,439 |
Other reserves | 55,592,286 | 43,263,078 | 52,967,326 | 41,430,908 |
EQUITY ATTRIBUTABLE TO EQUITY-HOLDERS OF THE PARENT | 204,795,149 | 187,103,234 | 205,167,806 | 188,475,788 |
Non- controlling interest | 6,030,540 | 5,141,794 | - | - |
TOTAL EQUITY | 210,825,689 | 192,245,028 | 205,167,806 | 188,475,788 |
Guarantees and other commitments on behalf of customers | 424,988,204 | 332,820,260 | 401,745,825 | 316,381,113 |
SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:
TAYO ADERINOKUN
SEGÚN AGBAJE
Approved by the Board of Directors on 21 March 2011.
INDEPENDENT AUDITOR'S REPORT
To the Members of Guaranty Trust Bank Plc:
The accompanying balance sheets as at 31 December 2010 and the profit and loss accounts for the year then ended, are derived from the audited Group and Separate financial statements of Guaranty Trust Bank Plc ("the Bank") and its subsidiary companies (together "the Group") for the year ended 31 December 2010. We expressed an unmodified audit opinion on the Group and Separate financial statements in our report dated 21 March, 2011.
The accompanying balance sheets and profit and loss accounts do not contain all the disclosures required by Statements of Accounting Standards applicable in Nigeria, the Companies and Allied Matters Act, the Banks and Other Financial Institutions Act, and other relevant Central Bank of Nigeria circulars applied in the preparation of the audited financial statements of the Bank and the Group. Reading the accompanying balance sheets and profit and loss accounts, therefore, is not a substitute for reading the audited financial statements of the Bank and the Group.
In our opinion, the accompanying balance sheets and profit and loss accounts are consistent, in all material respects, with the audited Group and Separate financial statements of Guaranty Trust Bank Plc for the year ended 31 December 2010 from which they were derived.
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 pay any penalties in respect of contravention of the provisions of the Banks and Other Financial Institutions Act and Central Bank of Nigeria's circulars during the year ended 31 December 2010.
Related party transactions and balances are disclosed in the financial statements in compliance with the Central Bank of Nigeria circular BSD/1/2004.
21 March 2011.
Lagos, Nigeria
Notes to the Editors:
Guaranty Trust Bank is a diversified financial services company with over N1trillion in assets, providing banking, insurance, investment management, registrar services, mortgages and commercial finance through 184 local branches, 506 ATMs, our international and subsidiary offices and the Internet (gtbank.com).
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. The Bank is rated B+ by Fitch and S&P, 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 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 also has five non-bank 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 special purpose subsidiary incorporated in The Netherlands. In each of the past three years, profit from the parent company accounted for over 90.0% of the Group's total income.