14 Mar 2018 11:43
Guaranty Trust Bank Plc
AUDITED FULL-YEAR GROUP RESULTS FOR THE YEAR ENDED DECEMBER 31, 2017: DECLARES A PBT OF N200.2BILLION
Lagos Nigeria - March 14, 2018 - 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 31 December 2017 and declares a PBT of N200.2bn.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr Segun Agbaje, said; "2017 was a pivotal year for the bank. We delivered a strong result in a challenging environment; achieving record growth in earnings, carefully managing cost margins and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible."
He further stated that "The result demonstrates the fundamental strength of our franchise as well as the progress we are making in transforming our organization into a platform on which our customers could build their businesses, connect with their consumers and access all the resources that they need to make their lives better."
Financial Highlights
· Strong Earnings
- Profit before tax of N200.2bn (31 December 2016 N165.1bn) an increase of 21.3% enhanced by 24.7% growth in interest income
- Profit after tax for period N170.5bn (31 December 2016: N132.3bn)
- Earnings per share of 603kobo (31 December 2016: 467kobo per share)
- Final dividend of 240kobo per share
· Revenue
- Interest Income of N327.3bn (31 December 2016: N262.5bn)
- Non-Interest Income of N91.9bn (31 December 2016: N152.1bn) down 39.6% due to decline in foreign exchange revaluation gains.
- Net interest margin remained strong at 10.4% (31 December 2016: 9.0%).
· Balance Sheet
- Total assets of N3.351trn (31 December 2016: N3.116trn) up 7.5%
- Net loans and advances of N1.449trn (31 December 2016: N1.590trn) dip of 8.9%.
- Deposits from customers of N2.062trn (31 December 2016:N1.986trn) up 3.8%.
· Credit Quality
- Non-performing loans to total loans of 7.7% (31 December 2016: 3.7%) largely as a result of classification of a single exposure within the Nigerian Telecommunications Industry. However, non-performing loans would moderate to 4.6%, which is below regulatory threshold, if we exclude this name from NPL ratio computation.
- Coverage (with Regulatory risk reserves) at 119.6% (31 December 2016: 222.9%)
- Cost of Risk at 0.8% (31 Dec 2016: 4.3%).
· Continued focus on efficiency
- Cost to income of 38.1% (31 Dec 2016: 40.8%).
· Subsidiaries
- Contribution to PBT from subsidiaries at 8.7% from 8.2% in FY-2016
Full Year 2017 Financial Analysis and Ratios
Key Financials (N' billion) | FY-2017 | FY-2016 | ∆% |
Interest Income | 327.3 | 262.5 | 24.7% |
Net Interest Income | 246.7 | 195.4 | 26.2% |
Operating Income | 323.5 | 278.8 | 16.0% |
Operating expenses | 123.3 | 113.6 | 8.5% |
Profit before tax | 200.2 | 165.1 | 21.3% |
Profit After Tax | 170.5 | 132.3 | 28.9% |
Earnings per share (in Naira) | 6.0 | 4.7 | 29.1% |
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| FY-2017 | FY-2016 | ∆% |
Total Assets | 3,351.1 | 3,116.4 | 7.5% |
Net Loans | 1,449.3 | 1,590.1 | -8.9% |
Customer Deposits | 2,062.0 | 1,986.2 | 3.8% |
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Key Ratios | FY-2017 | FY-2016 |
ROAE(post-tax) | 30.2% | 28.8% |
ROAA(post-tax) | 5.3% | 4.7% |
ROAE (pre-tax) | 35.4% | 36.0% |
ROAA (pre-tax) | 6.2% | 5.9% |
Net interest margin | 10.4% | 9.0% |
Cost-to-income ratio | 38.1% | 40.8% |
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| FY-2017 | FY-2016 |
Loans to deposits | 67.5% | 75.3% |
Liquidity ratio | 47.6% | 42.2% |
Capital adequacy ratio | 25.7% | 19.8% |
NPL/Total Loans | 7.7% | 3.7% |
Cost of risk | 0.8% | 4.3% |
Coverage (with Reg. Risk Reserves) | 119.6% | 222.9% |
13 March 2018
Enquiries:
GTBank
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Oyinade Adegite, Head, Communication & External Affairs | +234-1-2715227 |
cea@gtbank.com |
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Golden Nwaiwu, Head, Investor Relations ir@gtbank.com |
+234-1-4484156 |
Notes to the Editors:
Guaranty Trust Bank is a diversified financial services company with N3.351trillion in assets, providing commercial banking services through 218 local branches, 65 e-branches & GTExpress locations, 1,192 ATMs, ten international subsidiary offices and online at www.gtbank.com.
GTBank is one of the leading Banks in Nigeria, offering a wide range of financial products & services; operating 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").