8 Mar 2017 16:12
Guaranty Trust Bank plc
AUDITED FULL YEAR GROUP RESULTS FOR THE YEAR ENDED DECEMBER 31, 2016 DECLARES A PBT OF N165.14BILLION
Lagos Nigeria - March 08, 2017 - 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 2016 and declares a PBT of N165.14bn.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr Segun Agbaje, said that "The Bank's financial performance in 2016, does not only reflect the resilience of our franchise, it demonstrates the fundamental strength of our businesses to deliver sustainable long-term growth. We successfully navigated the heightened economic uncertainty and regulatory headwinds which dominated the year to deliver a solid performance across all financial and non-financial indices.
He further stated that "We are transforming our organization into a platform for enriching lives by positioning ourselves at the centre of an extended ecosystem that offers our stakeholders, benefits beyond banking. We also remain committed to maximising shareholders' value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity."
Financial Highlights
· Strong Earnings
- Profit before tax of N165.14bn (31 December 2015 N120.69bn) an increase of 36.8% enhanced by 14.5% growth in interest income and 109.5% growth in non-interest income
- Profit after tax of N132.28bn (31 December 2015 N99.44bn)
- Earnings per share of 467kobo (31 December 2015: 351kobo per share)
- Consistent Final Year dividend of 175kobo per share in addition to interim dividend of 25kobo per share bringing total dividend for 2016 financial year to N2 per share.
· Revenue
- Interest Income of N262.49bn (31 December 2015: N229.24bn)
- Non-Interest Income of N152.12bn (31 December 2015: N72.61bn) up 109.5%. The bank recorded an increase in Non-interest income largely as a result of a significant growth in foreign exchange income.
- Net interest margin remained strong at 9.01% (31 December 2015: 8.26%).
· Balance Sheet
- Total assets of N3.116trn (31 December 2015: N2.525trn) up 23.4%
- Net loans and advances of N1.590trn (31 December 2015: N1.373trn) growth of 15.8%.
- Total Deposits of N2.111trn (31 December 2015:N1.637trn) up 29.0%. Strong deposit growth driven by impressive performance of our various initiatives.
· Credit Quality
- Non-performing loans to total loans of 3.66% (31 December 2015: 3.21%)
- Coverage (with Regulatory risk reserves) at 222.86% (31 December 2015: 186.73%)
- Cost of Risk at 4.25% (31 Dec 2015: 0.91%) on the back of increased collective impairment charge premised on the prudent stance of the Bank.
· Continued focus on efficiency
- Cost to income of 40.76% (31 December 2015: 44.40%) due to improved revenue growth and continuous implementation of cost cutting initiatives.
· Subsidiaries
- Contribution to PBT from subsidiaries at 8.23% from 6.97% in 2015
Full Year 2016 Financial Analysis and Ratios
Key Financials (N' billion) | FY-2016 | FY-2015 | ∆% |
Interest Income | 262.49 | 229.24 | 14.51% |
Net Interest Income | 195.40 | 159.95 | 22.17% |
Operating Income | 278.78 | 217.07 | 28.42% |
Operating expenses | 113.64 | 96.38 | 17.91% |
Profit before tax | 165.14 | 120.69 | 36.82% |
Profit After Tax | 132.28 | 99.44 | 33.03% |
Earnings per share (in Naira) | 4.67 | 3.51 | 33.05% |
FY-2016 | FY-2015 | ∆% | |
Total Assets | 3,116.39 | 2,524.59 | 23.44% |
Net Loans | 1,590.08 | 1,372.98 | 15.81% |
Total Deposits | 2,111.31 | 1,636.61 | 29.01% |
Key Ratios | FY-2016 | FY-2015 |
ROAE(post-tax) | 28.80% | 25.55% |
ROAA(post-tax) | 4.69% | 4.07% |
ROAE (pre-tax) | 35.96% | 31.02% |
ROAA (pre-tax) | 5.85% | 4.95% |
Net interest margin | 9.01% | 8.26% |
Cost-to-income ratio | 40.76% | 44.40% |
FY-2016 | FY-2015 | |
Loans to deposits | 75.31% | 83.89% |
Liquidity ratio | 42.19% | 42.21% |
Capital adequacy ratio | 19.79% | 18.17% |
NPL/Total Loans | 3.66% | 3.21% |
Cost of risk | 4.25% | 0.91% |
Coverage (with Reg. Risk Reserves) | 222.86% | 186.73% |
08 March 2017
Enquiries:
GTBank Golden Nwaiwu, Head, Investor Relations ir@gtbank.com |
+234-1-4484156 |
Oyinade Adegite, Head, Communications & External Affairs |
+234-1-2715227 |
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 N3.116trillion in assets, providing commercial banking services through 234 local branches, 53 e-branches, 1,252 ATMs, our 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 Fitch and B by S&P, 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.