16 Aug 2019 12:16
Guaranty Trust Bank Plc
AUDITED HALF-YEAR GROUP RESULTS FOR THE PERIOD ENDED JUNE 30, 2019: DECLARES A PBT OF N115.8BILLION
Lagos Nigeria - August 16, 2019 - 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 period ended 30 June 2019 and declares a PBT of N115.8bn.
Commenting on the financial results, the Chief Executive Officer of Guaranty Trust Bank plc, Segun Agbaje, said; "We have delivered a good result in spite of a challenging market, characterized by varying degrees of uncertainty and a rapidly changing competitive landscape. Our strong financial performance is underpinned by our unwavering focus on delivering value for our shareholders and reimagining the role we play in our customers' lives."
He further stated that "In a rapidly changing world and increasingly unpredictable environment, we are committed to building a long-term business that is both nimble and focused on flawless execution. The progress that we have made over the past six months demonstrates that we have the right strategy and the dedicated team to deliver for all our stakeholders, even in difficult conditions."
Financial Highlights
·; Strong Earnings
- Profit before tax of N115.8bn (30 June 2018: N109.6bn) an increase of 5.6%.
- Profit after tax improved by 3.7% to N99.1bn from N95.6bn of 30 June 2018.
- Earnings per share of 350kobo relative to 338kobo per share for the comparative period 30 June 2018.
·; Revenue
- Interest Income of N149.0bn (30 June 2018: N161.9bn) down 8.0% as a result of 9.4% dip in interest income on loans and advances and 170bp decline in yield on Fixed Income Securities.
- Non-Interest Income of N72.9bn (30 June 2018: N64.8bn) up 12.5% compensated for the 8.0% drop in Interest Income. The NII growth resulted largely from 29.2% increase in Fee and Commission Income and 13.3% growth in Other Income comprising Discounts, rebate Commissions, revaluation gains, Recoveries & Others.
- Net Interest Margin remained strong at 9.6% (31 Dec 2018: 9.2%).
·; Balance Sheet
- Total assets of N3.598trn (31 December 2018: N3.287trn) up 9.5%.
- Net loans and advances of N1.274trn (31 December 2018: N1.262trn) up 1.0%.
- Deposits from customers of N2.418trn (31 December 2018: N2.274trn) up 6.3%.
·; Credit Quality
- Non-performing loans to total loans improved to 6.8% from 7.3% as at 31 December 2018.
- Coverage for Lifetime Credit Impaired Loans at 84.7% (31 December 2018: 105.1%)
- Cost of Risk at 0.2% (31 Dec 2018: 0.3%).
·; Continued focus on efficiency
- Cost to income of 37.6% (30 June 2018: 38.8%).
·; Subsidiaries
- Contribution to PBT from subsidiaries increased to 16.1% from 12.2% as at 31 December 2018.
June 2019 Financial Analysis and Ratios
Key Financials (N' billion) | H1-2019 | H1-2018 | ∆% |
Interest Income | 149.0 | 161.9 | -8.0% |
Net Interest Income | 116.4 | 117.9 | -1.3% |
Operating Income | 185.7 | 179.2 | 3.6% |
Operating expenses | 69.9 | 69.6 | 0.4% |
Profit before tax | 115.8 | 109.6 | 5.6% |
Profit After Tax | 99.1 | 95.6 | 3.7% |
Earnings per share (in Naira) | 3.5 | 3.4 | 3.5% |
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| H1-2019 | FY-2018 | ∆% |
Total Assets | 3,598.1 | 3,287.3 | 9.5% |
Net Loans | 1,274.4 | 1,262.0 | 1.0% |
Customer Deposits | 2,417.8 | 2,273.9 | 6.3% |
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Key Ratios | H1-2019 | H1-2018 |
ROAE(post-tax) | 33.7% | 34.1% |
ROAA(post-tax) | 5.8% | 5.5% |
ROAE (pre-tax) | 39.3% | 39.1% |
ROAA (pre-tax) | 6.7% | 6.4% |
Net interest margin | 9.6% | 9.6% |
Cost-to-income ratio | 37.6% | 38.8% |
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| H1-2019 | FY-2018 |
Loans to deposits | 49.9% | 53.5% |
Liquidity ratio | 47.3% | 41.4% |
Capital adequacy ratio | 23.5% | 23.4% |
NPL/Total Loans | 6.8% | 7.3% |
Cost of risk | 0.2% | 0.3% |
Coverage (with Reg. Risk Reserves) | 84.7% | 105.1% |
16 August 2019
Enquiries:
GTBank Oyinade Adegite, Head, Corporate Communications & External Affairs cea@gtbank.com |
+234-1-2715227 |
Golden Nwaiwu, Head, Investor Relations |
+234-1-4484156 |
ir@gtbank.com |
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Notes to the Editors:
Guaranty Trust Bank is a diversified financial services company with N3.598trillion in assets, providing commercial banking services through 226 local branches, 31 e-branches & Cash Centres, 60 GTExpress locations, over 1,317 ATMs, our international subsidiary offices and the Internet (gtbank.com).
The Group is a leading African financial institution offering a wide range of commercial banking products and services throughout Nigeria, West and East Africa 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").
GRTB.L (GRTB)