17 Oct 2018 16:54
Guaranty Trust Bank Plc
UNAUDITED 9-MONTHS GROUP RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2018: DECLARES A PBT OF N164.2BILLION
Lagos Nigeria - October 17, 2018 - Guaranty Trust Bank Plc ("GTBank"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its unaudited Financial Results, in accordance with IFRS, for the period ended 30 September 2018 and declares a PBT of N164.2bn.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; "Despite operating in a very challenging business environment, our 3rd quarter result is a reflection of how we have appropriately positioned our balance sheet to cope with economic realities. It further demonstrates the strength of our business strategy to deliver financial services that enriches the lives of our customers and creates more value for all our stakeholders."
He added that, "Going into the final quarter of the year, the Bank will continue to drive its digital-first customer-centric strategy to improve customer experience and expand its range of service offering whilst constantly differentiating itself by maintaining a high standard in service delivery and putting our customers at the heart of everything that we do."
Financial Highlights
· Strong Earnings
- Profit before tax of N164.2bn (30 September 2017: N150.0bn) an increase of 9.5%.
- Profit after tax improved by 13.3% to N142.2bn from N125.6bn of 30 September 2017
- Earnings per share of 503kobo relative to 444kobo per share for comparative period 30 September 2017
· Revenue
- Interest Income of N237.5bn (30 September 2017: N248.3bn) down 4.3% as a result of 6.7% dip in interest income on loans and advances and 363bp decline in Fixed Income Securities yield. Gross Loans contracted by 8.3% from N1.517trn in December 2017 to N1.391trn due to de-recognition of certain financial assets and scheduled repayments of FCY components of the Loan book owing to increased FX liquidity at the back of improved crude oil price.
- Non-Interest Income (NII) of N99.7bn (30 September 2017: N61.6bn) up 61.8% compensated for the 4.3% drop in Interest Income. The NII growth resulted largely from 19.5% increase in Fee and Commission Income and growth in Other Income comprising Advisory, Discounts, rebate Commissions, & revaluation gains.
- Net interest margin remained strong at 9.2% (30 September 2017: 10.5%).
· Balance Sheet
- Total assets of N3.433trn (31 December 2017: N3.351trn) up 2.4%
- Net loans and advances of N1.270trn (31 December 2017: N1.449trn) dip of 12.3%.
- Deposits from customers of N2.239trn (31 December 2017:N2.062trn) up 8.6%.
· Credit Quality
- Non-performing loans to total loans improved to 5.6% from 7.7% as at 31 December 2017.
- Coverage for Lifetime Credit Impaired Loans improved to 180.6% (31 December 2017: 119.6%)
- Cost of Risk at 0.1% (31 Dec 2017: 0.8%).
· Continued focus on efficiency
- Cost to income of 38.3% (30 September 2017: 37.6%) due to improved revenue growth and continuous implementation of cost optimization strategies.
· Subsidiaries
- Contribution to PBT from subsidiaries increased to 11.9% from 9.3% in 30 September 2017.
September 2018 Financial Analysis and Ratios
Key Financials (N' billion) | Q3-2018 | Q3-2017 | ∆% |
Interest Income | 237.5 | 248.3 | -4.3% |
Net Interest Income | 170.6 | 189.6 | -10.0% |
Operating Income | 266.1 | 240.4 | 10.7% |
Operating expenses | 101.8 | 90.4 | 12.7% |
Profit before tax | 164.2 | 150.0 | 9.5% |
Profit After Tax | 142.2 | 125.6 | 13.3% |
Earnings per share (in Naira) | 5.0 | 4.4 | 13.4% |
Q3-2018 | FY-2017 | ∆% | |
Total Assets | 3,433.2 | 3,351.1 | 2.4% |
Net Loans | 1,270.4 | 1,449.3 | -12.3% |
Customer Deposits | 2,238.9 | 2,062.0 | 8.6% |
Key Ratios | Q3-2018 | Q3-2017 |
ROAE(post-tax) | 32.7% | 30.8% |
ROAA(post-tax) | 5.6% | 5.3% |
ROAE (pre-tax) | 37.8% | 36.8% |
ROAA (pre-tax) | 6.5% | 6.3% |
Net interest margin | 9.2% | 10.5% |
Cost-to-income ratio | 38.3% | 37.6% |
Q3-2018 | FY-2017 | |
Loans to deposits | 54.4% | 67.5% |
Liquidity ratio | 43.9% | 47.6% |
Capital adequacy ratio | 22.0% | 25.7% |
NPL/Total Loans | 5.6% | 7.7% |
Cost of risk | 0.1% | 0.8% |
Coverage (with Reg. Risk Reserves) | 180.6% | 119.6% |
17, October 2018
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 |
Notes to the Editors:
Guaranty Trust Bank is a diversified financial services company with N3.433trillion in assets, providing commercial banking services through 221 local branches, 71 e-branches & GTExpress locations, over 1,254 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, West and East African sub-regions as well as the United Kingdom. The Bank is rated B and B+ by S&P and Fitch respectively, 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 ten 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")
10) Guaranty Trust Bank (Tanzania) Limited ("GTB Tanzania").