14 Mar 2016 13:44
Guaranty Trust Bank plc
AUDITED FULL-YEAR GROUP RESULTS FOR THE YEAR ENDED DECEMBER 31, 2015 DECLARES A PBT OF N120.69BILLION
Lagos Nigeria - March 14, 2016 - Guaranty Trust Bank plc ("GTBank"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its Audited Financial Results, in accordance with IFRS, for the full year ended 31 December 2015 and declares a PBT of ₦120.69bn.
Commenting on the results, Mr. Segun Agbaje, Managing Director and CEO of Guaranty Trust Bank plc stated that "Despite an extremely challenging business environment and increasing regulatory headwinds, our Bank recorded growth across all key financial indices during the year. Gross earnings for the year grew by 8.4% to ₦301.9billion from ₦278.5billion reported for prior year. The Bank's loan book grew by 7.5% from ₦1.276 Trillion recorded in December 2014 to ₦1.372 Trillion in December 2015. Total customer deposits declined slightly by 0.5% to ₦1.610trillion from ₦1.618trillion in December 2014 owing to deposit loss as a result of implementation of the Treasury Single Account (TSA) directive in Nigeria during the year.
He further stated that "As a Bank, we will continue to actively partner with our customers and grow our business in a sustainable manner that is not only driven by profit objective, but with an increased focus on empowering our customers with a view to growing Nigerian economy. Also, we remain committed to maximising shareholders' value and delivering superior and sustainable returns whilst actively expanding our franchise in select, high growth African markets where we believe we have a competitive advantage."
Financial Highlights
· Strong Earnings
- Profit before tax of N120.69bn (31 Dec 2014: N116.39bn) an increase of 3.7% enhanced by 14.3% growth in interest income and 8.1% growth in Fee and commission income (compared to FY-2014).
- Profit after tax for the year of N99.44bn (31 Dec 2014: N94.43bn)
- Earnings per share of 351kobo (31 Dec 2014: 332kobo per share)
· Revenue
- Interest Income of N229.24bn (31 Dec 2014: N200.60bn) up 14.3%. Growth driven by 7.5% growth in loan book from December 2014.
- Non-Interest Income of N72.61bn (31 Dec 2014: N77.92bn) down 6.8%. The earnings from foreign exchange revaluation income in 2014 financial year did not recur in the 2015 financial year as exchange rate was relatively steady over the period.
- Net interest margin remained strong at 8.26% (31 Dec 2014: 8.10%). NIM improved despite the upward pressure on cost of funding during the year due to optimization of the Loan Book.
· Balance Sheet
- Total assets and contingents of N3.089trn (31 December 2014: N3.039trn)
- Total assets of N2.525trn (31 December 2014: N2.356trn) up 7.16%
- Net loans and advances of N1.372trn (31 December 2014: N1.276trn) growth of 7.5%.
- Total Deposits of N1.610trn (31 December 2014:N1.618bn) down 0.5%.
· Credit Quality
- Non-performing loans to total loans of 3.21% (31 December 2014: 3.15%)
- Coverage (with Regulatory risk reserves) at 186.73% (31 December 2014: 143.22%)
- Cost of Risk at 0.91% (31 Dec 2014: 0.61%).
· Continued focus on efficiency
- Cost to income of 44.40% (31 Dec 2014: 44.79%).
· Subsidiaries
- Contribution to PBT from subsidiaries declined marginally to 6.88% from 7.15% in FY-2014
Full Year 2015 Financial Analysis and Ratios
Key Financials (N' billion) | FY-2015 | FY-2014 | ∆% |
Interest Income | 229.2 | 200.6 | 14.3% |
Net Interest Income | 159.9 | 142.4 | 12.3% |
Operating Income | 217.1 | 210.8 | 3.0% |
Operating expenses | 96.4 | 94.4 | 2.1% |
Profit before tax | 120.7 | 116.4 | 3.7% |
Profit After Tax | 99.4 | 94.4 | 5.3% |
Earnings per share (₦:k) | 3.51 | 3.32 | 5.5% |
FY-2015 | FY-2014 | ∆% | |
Total Assets | 2,524.59 | 2,355.88 | 7.2% |
Net Loans | 1,371.93 | 1,275.68 | 7.5% |
Total Deposits | 1,610.35 | 1,618.21 | -0.5% |
Key Ratios | FY-2015 | FY-2014 |
ROE(post-tax) | 25.55% | 27.30% |
ROA(post-tax) | 4.07% | 4.24% |
ROE (pre-tax) | 31.02% | 33.65% |
ROA (pre-tax) | 4.95% | 5.22% |
Net interest margin | 8.26% | 8.10% |
Cost-to-income ratio | 44.40% | 44.79% |
FY-2015 | FY-2014 | |
Loans to deposits | 83.89% | 77.67% |
Loans to deposits and borrowings | 69.28% | 67.14% |
Liquidity ratio | 42.21% | 40.07% |
Capital adequacy ratio | 18.17% | 17.50% |
NPL/Total Loans | 3.21% | 3.15% |
Cost of risk | 0.91% | 0.61% |
Coverage (with Reg. Risk Reserves) | 186.73% | 143.22% |
14 March 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 cea@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 N2.525trillion 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.
Extract of audited IFRS results for the full year ended 31 December 2015
Statements of Financial Position | Group | Group1 | Group1 | Parent | Parent1 | Parent1 |
as at 31 December 2015 | Dec 2015 | Dec 2014 | Jan 2014 | Dec 2015 | Dec 2014 | Jan 2014 |
₦'million | ₦'million | ₦'million | ₦'million | ₦'million | ₦'million | |
ASSETS | ||||||
Cash and cash equivalents | 254,633 | 246,940 | 307,396 | 173,133 | 161,779 | 228,610 |
Financial assets held for trading | 34,626 | 9,416 | 17,224 | 25,076 | 5,676 | 13,747 |
Derivative financial assets | - | 530 | 170 | - | 530 | 170 |
Investment securities: | ||||||
- Available for sale | 364,180 | 344,702 | 374,673 | 327,586 | 317,750 | 364,056 |
- Held to maturity | 29,408 | 35,161 | 84,742 | 3,210 | 4,511 | 46,682 |
Assets pledged as collateral | 61,954 | 39,179 | 28,443 | 61,946 | 39,174 | 28,441 |
Loans and advances to banks | 1,052 | 5,696 | 5,596 | 639 | 31 | 17 |
Loans and advances to customers | 1,371,926 | 1,275,681 | 1,002,371 | 1,265,207 | 1,182,393 | 926,967 |
Investment in subsidiaries | - | - | - | 41,906 | 40,130 | 40,130 |
Property and equipment | 87,989 | 76,236 | 68,306 | 79,193 | 68,042 | 61,420 |
Intangible assets | 12,471 | 12,516 | 11,214 | 2,493 | 2,418 | 2,257 |
Deferred tax assets | 3,244 | 2,358 | 1,946 | - | - | - |
Restricted deposits and other assets | 303,111 | 307,462 | 200,765 | 297,240 | 304,174 | 191,869 |
TOTAL ASSETS | 2,524,594 | 2,355,877 | 2,102,846 | 2,277,629 | 2,126,608 | 1,904,366 |
LIABILITIES | ||||||
Deposits from banks | 26,256 | 31,662 | 15,208 | 40 | 144 | 89 |
Deposits from customers | 1,610,350 | 1,618,208 | 1,427,494 | 1,422,550 | 1,439,522 | 1,261,927 |
Derivative financial liabilities | - | 253 | 4 | - | 253 | 4 |
Other liabilities | 104,606 | 57,200 | 61,015 | 85,126 | 47,714 | 49,008 |
Current income tax liabilities | 17,740 | 20,827 | 18,431 | 19,379 | 22,276 | 17,990 |
Deferred tax liabilities | 6,840 | 4,392 | 5,066 | 6,346 | 3,956 | 4,784 |
Debt securities issued | 180,117 | 167,321 | 156,498 | - | - | 13,234 |
Other borrowed funds | 165,123 | 91,299 | 92,135 | 338,580 | 252,831 | 233,040 |
TOTAL LIABILITIES | 2,111,032 | 1,991,162 | 1,775,851 | 1,872,021 | 1,766,696 | 1,580,076 |
CAPITAL AND RESERVES | ||||||
Share capital | 14,716 | 14,716 | 14,716 | 14,716 | 14,716 | 14,716 |
Share premium | 123,471 | 123,471 | 123,471 | 123,471 | 123,471 | 123,471 |
Treasury shares | (4,754) | (3,988) | (2,047) | - | - | - |
Retained earnings | 51,089 | 51,425 | 49,848 | 46,048 | 48,824 | 49,722 |
Other components of equity | 222,651 | 173,411 | 135,924 | 221,373 | 172,901 | 136,381 |
Capital and reserves attributable to equity holders of the parent entity | 407,173 | 359,035 | 321,912 | 405,608 | 359,912 | 324,290 |
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Non-controlling interests in equity | 6,389 | 5,680 | 5,083 | - | - | - |
TOTAL EQUITY | 413,562 | 364,715 | 326,995 | 405,608 | 359,912 | 324,290 |
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TOTAL EQUITY AND LIABILITIES | 2,524,594 | 2,355,877 | 2,102,846 | 2,277,629 | 2,126,608 | 1,904,366 |
1Restated
Income Statements for | |||||||
the year ended | Group | Group1 | Parent | Parent1 | |||
31 December 2015 | Dec 2015 | Dec 2014 | Dec 2015 | Dec 2014 | |||
₦'million | ₦'million | ₦'million | ₦'million | ||||
Interest income | 229,237 | 200,603 | 206,479 | 179,984 | |||
Interest expense | (69,290) | (58,211) | (61,446) | (51,285) | |||
Net interest income | 159,947 | 142,392 | 145,033 | 128,699 | |||
Loan impairment charges | (12,408) | (7,098) | (11,769) | (6,184) | |||
Net interest income after loan impairment charges | 147,539 | 135,294 | 133,264 | 122,515 | |||
Fee and commission income | 51,866 | 47,970 | 44,035 | 40,945 | |||
Fee and commission expense | (3,079) | (2,114) | (2,690) | (1,748) | |||
Net fee and commission income | 48,787 | 45,856 | 41,345 | 39,197 | |||
Net gains on financial | |||||||
instruments classified as held | |||||||
for trading | 12,237 | 12,084 | 9,190 | 8,344 | |||
Other income | 8,511 | 17,864 | 9,172 | 19,734 | |||
Net impairment charge on | |||||||
financial assets | - | (274) | - | (274) | |||
Personnel expenses | (27,722) | (27,442) | (20,728) | (21,036) | |||
Operating lease expenses | (1,125) | (913) | (675) | (561) | |||
Depreciation and amortization | (12,595) | (12,152) | (10,787) | (10,590) | |||
Other operating expenses | (54,937) | (53,931) | (47,754) | (46,961) | |||
Profit before income tax | 120,695 | 116,386 | 113,027 | 110,368 | |||
Income tax expense | (21,258) | (21,952) | (18,719) | (21,197) | |||
Profit for the year | 99,437 | 94,434 | 94,308 | 89,171 | |||
Profit attributable to: | |||||||
Equity holders of the parent entity | 98,679 | 93,736 | 94,308 | 89,171 | |||
Non-controlling interests | 758 | 698 | - | - | |||
99,437 | 94,434 | 94,308 | 89,171 | ||||
1Restated
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Statements of other comprehensive | |||||||
income for the year ended | Group | Group | Parent | Parent | |||
31 December 2015 | Dec 2015 | Dec 2014 | Dec 2015 | Dec 2014 | |||
N'million | N'million | N'million | N'million | ||||
Profit for the year | 99,437 | 94,434 | 94,308 | 89,171 | |||
Other comprehensive income not to be reclassified to profit or loss in subsequent years: | |||||||
Actuarial gains and losses | (1,343) | (796) | (1,343) | (796) | |||
Income tax relating to actuarial gains and losses | 403 | 239 | 403 | 239 | |||
Other comprehensive income to be reclassified to profit or loss in subsequent years: | |||||||
- Foreign currency translation | |||||||
differences for foreign operations | (1,653) | (1,453) | - | - | |||
- Income tax relating to foreign | |||||||
currency translation differences | |||||||
for foreign operations | 496 | 436 | - | - | |||
- Net change in fair value of | |||||||
available for sale financial | |||||||
assets | 5,303 | (4,601) | 5,232 | (4,711) | |||
- Income tax relating to | |||||||
net change in fair value of | |||||||
available for sale financial | |||||||
assets | (1,420) | 1,720 | (1,399) | 1,753 | |||
Other comprehensive income for the year, net of tax | 1,786 | (4,455) | 2,893 | (3,515) | |||
Total comprehensive income for the year | 101,223 | 89,979 | 97,201 | 85,656 | |||
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Total comprehensive income attributable to: | |||||||
Equity holders of the parent entity | 100,410 | 89,097 | 97,201 | 85,656 | |||
Non-controlling interests | 813 | 882 | - | - | |||
Total comprehensive income for the year | 101,223 | 89,979 | 97,201 | 85,656 | |||
Earnings per share for the profit attributable to the equity holders of the parent entity during the year (expressed in naira per share): | |||||||
- Basic | 3.51 | 3.32 | 3.35 | 3.03 | |||
- Diluted | 3.51 | 3.32 | 3.35 | 3.03 | |||
Total impaired Loans and Advances (N'million) | 45,061 | 41,309 | 36,611 | 32,616 | |||
Total impaired Loans and Advances to Loans and Advances (%) | 3.21% | 3.15% | 2.83% | 2.70% | |||
Gross Earnings | 301,851 | 278,521 | 268,876 | 249,007 | |||