17 Aug 2016 14:12
Guaranty Trust Bank plc
AUDITED HALF-YEAR GROUP RESULTS FOR THE PERIOD ENDED JUNE 30, 2016 DECLARES A PBT OF N91.38BILLION
Lagos Nigeria - August 17, 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 6 months ended 30 June 2016 and declares a PBT of N91.38bn.
Commenting on the financial results, Segun Agbaje, the Managing Director/CEO of Guaranty Trust Bank plc, said that:
"Going into the year, we knew it would be a challenging year and we prepared for it by focusing on effective management of the balance sheet and adapting our business model to changing market variables. The quality of our past decisions enabled us navigate the challenges that persisted in the business environment most of the half year period."
Whilst expressing his sincere appreciation to customers for their loyalty, and to staff for their hard work and commitment, Segun Agbaje added that:
"While the current economic realities present some challenges to growth, we remain committed to our ideals of staying positive, delivering exceptional service to our customers and adding value to all stakeholders."
Financial Highlights
· Strong Earnings
- Profit before tax of N91.38bn (30 June 2015 N63.11bn) an increase of 44.8% enhanced by 155.9% growth in non-interest income
- Profit after tax for period N77.46bn (30 June 2015: N53.37bn)
- Earnings per share of 274kobo (30 June 2015: 188kobo per share)
- Consistent Half Year dividend of 25kobo per share
· Revenue
- Interest Income of N109.78bn (30 June 2015: N113.88bn)
- Non-Interest Income of N100.09bn (30 June 2015: N39.11bn) up 155.9%. Despite regulatory headwinds and the resultant impact on certain fee lines as well as FX scarcity, the bank recorded an increase in Non-interest income largely as a result of a significant growth in fees and commission income and foreign exchange income.
- Net interest margin remained strong at 8.40% (30 June 2015: 8.17%).
· Balance Sheet
- Total assets of N2.931trn (31 December 2015: N2.525trn) up 16.1%
- Net loans and advances of N1.563trn (31 December 2015: N1.373trn) growth of 13.8%.
- Total Deposits of N2.008trn (31 December 2015: N1.637trn) up 22.7%. Strong deposit growth driven by impressive performance of our various initiatives.
· Credit Quality
- Non-performing loans to total loans of 4.39% (31 December 2015: 3.21%)
- Coverage (with Regulatory risk reserves) at 170.11% (31 December 2015: 186.73%)
- Cost of Risk at 2.48% (31 Dec 2015: 0.91%) at the back of increased collective impairment charge premised on prudent stance of the Bank.
· Continued focus on efficiency
- Cost to income of 34.91% (30 June 2015: 43.75%).
· Subsidiaries
- Contribution to PBT from subsidiaries at 6.2% from 7.7% in H1-2015
Half Year 2016 Financial Analysis and Ratios
Key Financials (N' billion) | H1-2016 | H1-2015 | ∆% |
Interest Income | 109.78 | 113.88 | -3.61% |
Net Interest Income | 79.12 | 80.12 | -1.25% |
Operating Income | 140.40 | 112.19 | 25.14% |
Operating expenses | 49.01 | 49.08 | -0.14% |
Profit before tax | 91.38 | 63.11 | 44.79% |
Profit After Tax | 77.46 | 53.37 | 45.13% |
Earnings per share (in Naira) | 2.74 | 1.88 | 45.74% |
H1-2016 | FY-2015 | ∆% | |
Total Assets | 2,931.00 | 2,524.59 | 16.10% |
Net Loans | 1,562.27 | 1,372.98 | 13.79% |
Total Deposits | 2,007.82 | 1,636.61 | 22.68% |
Key Ratios | H1-2016 | H1-2015 |
ROE(post-tax) | 35.76% | 28.12% |
ROA(post-tax) | 5.68% | 4.36% |
ROE (pre-tax) | 42.19% | 33.25% |
ROA (pre-tax) | 6.70% | 5.15% |
Net interest margin | 8.40% | 8.17% |
Cost-to-income ratio | 34.91% | 43.75% |
H1-2016 | FY-2015 | |
Loans to deposits | 77.81% | 83.89% |
Liquidity ratio | 36.87% | 42.21% |
Capital adequacy ratio | 18.25% | 18.17% |
NPL/Total Loans | 4.39% | 3.21% |
Cost of risk | 2.48% | 0.91% |
Coverage (with Reg. Risk Reserves) | 170.11% | 186.73% |
17 August 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 corpaff@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 N2.931trillion in assets, providing commercial banking services through 235 local branches, 54 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.