9 Aug 2010 13:06
Guaranty Trust Bank plc
GUARANTY TRUST BANK PLC REPORTS AUDITED HALF-YEAR GROUP RESULTS FOR THE PERIOD ENDED JUNE 30, 2010 AND DECLARES A DIVIDEND OF 25KOBO PER SHARE
Guaranty Trust Bank plc ("GTBank"), provider of diversified financial services, announces its Audited Financial results for the 6 months ended 30 June 2010 and declares a half year dividend of 25 kobo per share.
Commenting on the results, Tayo Aderinokun, Managing Director/CEO of Guaranty Trust Bank plc said: "Through our sustained and continued commitment to our core values, we have been able to record outstanding progress in all areas of our operations despite a challenging operating environment. We have also been able to generate increased interest and investor confidence in the Nigerian Banking system as shown by the vote of Confidence from our recent deal with the International Finance Corporation which we intend to utilize in funding long term projects in major sectors of the local economy and to boost our strategic objectives. Going into the second half of the year, we remain determined to deliver our best notwithstanding the operating conditions whilst building upon the gains we have made in the past 6 months".
Financial Highlights:
·; Strong Earnings
- Profit before tax of N25.7bn, an increase of 209% compared to half-year 2009 PBT of N8.3bn. Half year 2009 PBT dampened by industry-wide provisions mandated by the Central Bank of Nigeria.
- Earnings per share of 77obo per share
- Half Year dividend of 25kobo per share
- Subsidiaries - While all subsidiaries account for less than 10% of the total profitability of GTBank,
§ All foreign bank subsidiaries with operations over two years continue to show strong profitability and performance in their markets.
§ All local non-bank subsidiaries are P&L positive.
·; Revenue
- Net Interest Income of N61.3bn vs. N65.6bn (June 2009) on a reduced, more conservative loan book.
- Non Interest Income of N21.7bn vs. N25.0bn due to slow economy and market activity.
- Net interest Margin remains strong at 7.6%
·; Balance Sheet
- Total Assets and contingents of N1.49tn as at June 2010
- Net Loans and Advances of N560.5bn vs. N563.5 (December 2009) owing to more conservative lending in the current operating environment.
- Deposits from Customers of N721bn, an increase from N683.1bn as at December 2009, due to flight to quality.
·; Credit Quality
- Non performing loans to total loans declined to 7.09% from 11.8% as at December 2009 on the back of strong loan recovery efforts on a reduced loan book.
- Allowance for Credit Losses improved to 91.97% from 48.9% as at December 2009. We are working towards moving back to our comfort level of close to 120% coverage by December 2010.
·; Continued focus on efficiency
- Cost to Income profile improved to 57.3% versus 76.9% as at December 2010.
9 August 2010
Enquiries:
| GTBank | +234-1-2714591 |
| Lola Odedina, Head, Communications & External Affairs |
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| Pascal Or |
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| College Hill | +44 20 7457 2020 |
| Peter Pantlin |
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| Tony Friend |
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BALANCE SHEETS
As at 30 June, 2010
In accordance with Nigerian GAPs
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ASSETS | GROUP Jun 2010 N'000 |
| GROUP Dec 2009 N'000 |
| BANK Jun 2010 N'000 |
| BANK Dec 2009 N'000 |
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| Cash in hand and balances with CBN | 37,430,801 |
| 35,889,931 |
| 32,570,748 |
| 34,890,767 |
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Treasury bills | 85,948,870 |
| 36,936,014 |
| 71,079,264 |
| 29,405,616 |
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Due from other banks | 289,939,122 |
| 225,330,111 |
| 262,884,342 |
| 202,810,278 |
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Loans and advances to customers | 560,484,672 |
| 563,488,164 |
| 532,391,651 |
| 538,137,569 |
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Advances under finance lease | 13,292 |
| 6,070 |
| - |
| 1,288 |
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Insurance receivables | 1,226,965 |
| 809,546 |
| - |
| - |
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Investment securities | 72,669,943 |
| 136,193,629 |
| 69,655,986 |
| 134,126,992 |
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Investment in subsidiaries | - |
| - |
| 29,349,528 |
| 29,774,817 |
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Trading properties | 4,992,555 |
| 5,070,666 |
| - |
| - |
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Other assets | 17,349,369 |
| 15,523,244 |
| 10,774,585 |
| 9,478,730 |
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Deferred tax assets | 537,134 |
| 410,864 |
| - |
| - |
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Property and equipment | 47,466,989 |
| 46,491,151 |
| 42,143,733 |
| 41,285,479 |
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Goodwill on consolidation | 354,328 |
| 354,328 |
| - |
| - |
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TOTAL ASSETS |
1,118,414,040 |
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1,066,503,718 |
| 1,050,849,837 |
| 1,019,911,536 |
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| LIABILITIES |
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Customers' deposits | 720,981,030 |
| 683,080,902 |
| 695,637,033 |
| 662,261,026 |
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Due to other banks | 20,268,408 |
| 14,981,705 |
| 3,480,570 |
| 1,083,016 |
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Claims payable | 585,475 |
| 350,631 |
| - |
| - |
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Finance lease obligations | 2,025,707 |
| 2,211,130 |
| 2,025,707 |
| 2,211,130 |
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Liability on investment contracts | 733,562 |
| 1,115,094 |
| - |
| - |
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Liabilities on insurance contracts | 3,002,974 |
| 1,126,011 |
| - |
| - |
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Current income tax payable | 10,129,172 |
| 3,483,561 |
| 9,291,828 |
| 2,373,006 |
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Other liabilities |
80,490,053 |
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85,491,872 |
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64,718,627 |
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81,284,082 |
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Deferred tax liabilities | 4,441,293 |
| 4,346,591 |
| 4,296,111 |
| 4,134,454 |
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Dividend payable | - |
| - |
| - |
| - |
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Retirement benefit obligations | 37,379 |
| 253,075 |
| 36,662 |
| 240,811 |
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Debt securities in issue | 64,970,654 |
| 65,485,550 |
| 65,608,510 |
| 65,515,655 |
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Other borrowings | 14,345,997 |
| 12,332,568 |
| 14,345,997 |
| 12,332,568 |
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TOTAL LIABILITIES | 922,011,704 |
| 874,258,690 |
| 859,441,045 |
| 831,435,748 |
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NET ASSETS | 196,402,336 |
| 192,245,028 |
| 191,408,792 |
| 188,475,788 |
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| CAPITAL AND RESERVES |
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| Share capital | 11,658,594 |
| 9,326,875 |
| 11,658,594 |
| 9,326,875 |
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Share premium | 119,076,566 |
| 119,076,566 |
| 119,076,566 |
| 119,076,566 |
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Translation reserve | (375,579) |
| 12,200 |
| - |
| - |
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Retained earnings | 13,702,225 |
| 15,424,515 |
| 16,497,448 |
| 18,641,439 |
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Other reserves | 46,607,998 |
| 43,263,078 |
| 44,176,184 |
| 41,430,908 |
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EQUITY ATTRIBUTABLE TO EQUITY-HOLDERS OF THE PARENT | 190,669,804 |
| 187,103,234 |
| 191,408,792 |
| 188,475,788 |
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Non- controlling interest | 5,732,532 |
| 5,141,794 |
| - |
| - |
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TOTAL EQUITY | 196,402,336 |
| 192,245,028 |
| 191,408,792 |
| 188,475,788 |
| Guarantees and other commitments on behalf of customers | 369,938,198 |
| 332,820,260 |
| 348,298,714 |
| 316,381,113 |
PROFIT & LOSS ACCOUNTS
For the 6 months period ended 30 June, 2010
In accordance with Nigerian GAPs
|
| GROUP Jun 2010 N'000 |
| GROUP Jun 2009 N'000 |
| BANK Jun 2010 N'000 |
| BANK Jun 2009 N'000 |
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GROSS EARNINGS |
82,962,639 |
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90,595,499 |
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75,398,147 |
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84,260,487 |
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Profit on ordinary Activities before Taxation |
25,722,006 |
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8,325,723 |
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24,003,795 |
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10,018,384 |
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Taxation | (7,497,416) |
| 432,607 |
| (7,080,479) |
| 1,111,057 |
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Profit on ordinary Activities after Taxation | 18,224,590 |
| 8,758,330 |
| 16,923,316 |
| 11,129,441 |
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Non-controlling interest | (279,928) |
| 274,123 |
| - |
| - |
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Profit attributable to equity holders of the bank | 17,944,662 |
| 9,032,453 |
| 16,923,316 |
| 11,129,441 |
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APPROPRIATIONS |
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Transfer to statutory reserve | 5,484,972 |
| 3,338,832 |
| 5,076,995 |
| 3,338,832 |
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Transfer to statutory contingency reserve | 191,668 |
| - |
| - |
| - |
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Transfer to bonus shares reserve | - |
| - |
| - |
| - |
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Transfer to retained earnings | 12,268,022 |
| 5,693,621 |
| 11,846,321 |
| 7,790,609 |
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| 17,944,662 |
| 9,032,453 |
| 16,923,316 |
| 11,129,441 |
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| Key Financial Information |
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| Total NPLs to total loans and advances | 7.1% |
| 11.8% |
| 7.3% |
| 12.3% |
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| Earnings per share (Kobo)- Basic | 77k |
| 48k |
| 73k |
| 60k |
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Earnings per share (Kobo)- Adjusted | 77k |
| 39k |
| 73k |
| 48k |
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SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:
…………………………………………………………….O. Aderinokun
…………………….……………………………………… J.K Agbaje
Approved by the Board of Directors on 21 July 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 period ended 30th June, 2010, from which the summarised financial statements were derived, in accordance with International Standards on Auditing. In our report dated 21 July 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 period ended 30th June, 2010 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 pay any penalties in respect of contravention of the provisions of the Banks and Other Financial Institutions Act of Nigeria and Central Bank of Nigeria's circulars during the period ended 30 June 2010
Related party transactions and balances have been disclosed in the financial statements in compliance with the Central Bank of Nigeria circular BSD/1/2004.
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 154 local branches, 493 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 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.