REG - Guaranty Trust Bank - 1st Quarter Results <Origin Href="QuoteRef">GUARANT.LG</Origin>

Guaranty Trust HoldingAnnouncement

20/04/2016 16:55

RNS Number : 8385V
Guaranty Trust Bank PLC
20 April 2016
Guaranty Trust Bank plc
UNAUDITED GROUP RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2016 DECLARES A PBT OF N30.68BILLION
Lagos Nigeria - April 20, 2016 - 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 31 March 2016 and declares a PBT of 30.68bn.
Commenting on the results, Mr. Segun Agbaje, Managing Director and CEO of Guaranty Trust Bank plc stated that:
"Despite a tepid start in economic activity in 2016, extremely challenging business environment and increasing regulatory headwinds, our Bank recorded a decent performance across all key financial indices during the period. Gross earnings for the period declined by 4.6% to 75.4billion from 79.02billion reported for the corresponding period last year. The Bank's loan book declined slightly by 0.7% from 1.373 Trillion recorded in December 2015 to 1.363 Trillion in March 2016. Sustained drive for low cost deposits saw Total customer deposits increase by 10.3% to 1.777trillion from 1.610trillion in December 2015."
He further stated that the bank will continue to provide best in class service, pioneer products that positively impact the wealth of its customers and ensure the sustenance of its strong showing going into the remaining quarters of the 2016 financial year.
Financial Highlights
 Strong Earnings
- Profit before tax of N30.68bn (31 Mar 2015: N32.65bn) a decline of 6.1% attributed to 79.9% decline in Net trading income and 81.0% decline in other income which was partially offset by 1.6% and 39.1% growth in interest income and fee and commission income respectively (compared to Q1-2015).
- Profit after tax for the period of N25.61bn (31 Mar 2015: N26.56bn)
- Earnings per share of 90kobo (31 Mar 2015: 94kobo per share)
 Revenue
- Interest Income of N55.83bn (31 Mar 2015: N54.95bn) up 1.6%. Growth in interest income came as a result of 4.8% growth in loan book from 1.301 trillion recorded in March 2015 to 1.363 trillion in March 2016.
- Non-Interest Income of N19.56bn (31 Mar 2015: N24.06bn) down 18.7%. The significant growth in foreign exchange earnings in Q1 2015 did not recur in the Q1 2016 as exchange rate was relatively steady over the period.
- Net interest margin remained strong at 8.12% (31 Mar 2015: 8.21%). NIM stable despite decline yield on fixed income securities as cost of funds reduced in 2016. 
 Balance Sheet
- Total assets and contingents of N3.115trn (31 December 2015: N3.089trn)
- Total assets of N2.656trn (31 December 2015: N2.525trn) up 5.19%
- Net loans and advances of N1.363trn (31 December 2015: N1.373trn) decline of 0.7%. 
- Total Customer Deposits of N1.777trn (31 December 2015: N1.610trn) up 10.3%. 
 Credit Quality 
- Non-performing loans to total loans of 3.51% (31 December 2015: 3.21%) 
- Coverage (with Regulatory risk reserves) at 176.13% (31 December 2015: 186.73%)
- Cost of Risk at 0.25% (31 Mar 2015: 0.27%).
 Continued focus on efficiency
- Cost to income of 45.61% (31 Mar 2015: 44.50%).
 Subsidiaries
- Contribution to PBT from subsidiaries grew to 8.79% from 7.36% in Q1-2015.
Q1 2016 Financial Analysis and Ratios
Key Financials (N' billion)
Q1-2016
Q1-2015
% 
Interest Income
55.83
54.95
1.6%
Net Interest Income
40.79
39.16
4.2%
Operating Income
56.40
58.84
-4.1%
Operating expenses
25.73
26.18
-1.8%
Profit before tax
30.68
32.65
-6.1%
Profit After Tax
25.61
26.56
-3.6%
Earnings per share (:k)
 0.90 
 0.94 
-3.6%

Q1-2016
FY-2015
% 
Total Assets
2,655.6
2,524.6
5.2%
Net Loans
1,362.8
1,373.0
-0.7%
Total Customer Deposits
1,776.8
1,610.3
10.3%
Key Ratios
Q1-2016
Q1-2015
ROE(post-tax)
24.19%
29.03%
ROA(post-tax)
3.96%
4.39%
ROE (pre-tax)
28.97%
35.69%
ROA (pre-tax)
4.74%
5.40%
Net interest margin
8.12%
8.21%
Cost-to-income ratio
45.61%
44.50%
Liquidity ratio
36.13%
42.74%
Capital adequacy ratio (Group)
20.25%
19.81%
Capital adequacy ratio (Parent)
18.16%
17.18%
NPL/Total Loans
3.51%
3.06%
Cost of risk
0.25%
0.27%
Coverage (with Reg. Risk Reserves)
176.13%
153.40%
20 April 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 N2.656trillion in assets, providing commercial banking services through 224 local branches, 46 e-branches, 1,165 ATMs, 116 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 Standard and Poor's and B+ by Fitch, 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.
Guaranty Trust Bank Plc
Statement to the Nigerian Stock Exchange and the Shareholders on the extract of unaudited IFRS results for the three months ended 31 March 2016.
The Board of Directors of Guaranty Trust Bank Plc is pleased to announce the Group's unaudited results for the three months ended 31 March 2016.
Statements of Financial Position
Group
Group
Parent
Parent
as at 31 December 2015
Mar 2016
Dec 2015
Mar 2016
Dec 2015

 'million 
 'million 
 'million 
 'million 





ASSETS




Cash and cash equivalents
 309,906 
 254,633 
 214,910 
 173,133 
Financial assets held for trading
 24,199 
 34,626 
 16,392 
 25,076 
Investment securities:




- Available for sale
 333,326 
 364,180 
 294,355 
 327,586 
- Held to maturity
 27,234 
 29,408 
 3,104 
 3,211 
Assets pledged as collateral
 60,279 
 61,954 
 60,279 
 61,946 
Loans and advances to banks
 639 
 1,052 
 639 
 639 
Loans and advances to customers
 1,362,822 
 1,371,926 
 1,253,225 
 1,265,207 
Investment in subsidiaries 
 - 
 - 
 43,968 
 41,906 
Property and equipment
 86,784 
 87,989 
 78,216 
 79,193 
Intangible assets
 12,318 
 12,471 
 2,289 
 2,493 
Deferred tax assets
 2,961 
 3,244 
 - 
 - 
Restricted deposits and other assets
 435,100 
 303,111 
 422,347 
 297,240 
TOTAL ASSETS
 2,655,568 
 2,524,594 
 2,389,724 
 2,277,630 
LIABILITIES




Deposits from banks
 31,939 
 26,256 
 198 
 40 
Deposits from customers
 1,776,815 
 1,610,350 
 1,574,805 
 1,422,550 
Financial liabilities held for trading
 244 
 - 
 244 
 - 
Other liabilities
 71,914 
 104,606 
 51,656 
 85,126 
Current income tax liabilities
 17,691 
 17,740 
 19,599 
 19,379 
Deferred tax liabilities
 4,476 
 6,840 
 4,392 
 6,346 
Debt securities issued
 157,453 
 180,117 
 - 
 - 
Other borrowed funds
 161,624 
 165,123 
 314,252 
 338,580 
TOTAL LIABILITIES
 2,222,156 
 2,111,032 
 1,965,146 
 1,872,021 
CAPITAL AND RESERVES




Share capital
 14,716 
 14,716 
 14,716 
 14,716 
Share premium
 123,471 
 123,471 
 123,471 
 123,471 
Treasury shares
 (4,754)
 (4,754)
 - 
 - 
Retained earnings
 69,175 
 51,089 
 62,517 
 46,048 
Other components of equity
 224,552 
 222,651 
 223,874 
 221,374 
Capital and reserves attributable to equity holders of the parent entity
 427,160 
 407,173 
 424,578 
 405,609 

 
 
 
 
Non-controlling interests in equity
 6,252 
 6,389 
 - 
 - 





TOTAL EQUITY 
 433,412 
 413,562 
 424,578 
 405,609 

 
 
 
 
TOTAL EQUITY AND LIABILITIES
 2,655,568 
 2,524,594 
 2,389,724 
 2,277,630 
Income Statements 
Group

Group

Parent

Parent
for the period ended 
Mar 2016

Mar 2015

Mar 2016

Mar 2015
31 March 2016 
 'million 

 'million 

 'million 

 'million 








Interest income
55,833

54,951

49,296

49,437
Interest expense
(15,039)

(15,788)

(13,026)

(13,958)
Net interest income
40,794

39,163

36,270

35,479
Loan impairment charges
(3,386)

(3,526)

(3,010)

(3,501)
Net interest income after loan impairment charges
37,408

35,637

33,260

31,978
Fee and commission income
17,286

12,430

15,226

10,625
Fee and commission expense
(567)

(864)

(479)

(775)
Net fee and commission income
16,719

11,566

14,747

9,850
Net gains on financial instruments 
classified as held for trading
1,172

5,831

592

5,006
Other income
1,104

5,803

907

5,617
Personnel expenses
(6,785)

(6,716)

(5,175)

(5,088)
Operating lease expenses
(397)

(368)

(171)

(177)
Depreciation and amortization
(3,321)

(3,117)

(2,895)

(2,728)
Other operating expenses
(15,224)

(15,983)

(13,257)

(14,207)
Profit before income tax
30,676

32,653

28,008

30,251
Income tax expense
(5,062)

(6,089)

(4,481)

(5,143)
Profit for the period
25,614

26,564

23,527

25,108








Profit attributable to:







Equity holders of the parent entity
25,397

26,372

23,527

25,108
Non-controlling interests
217

192

 - 

 - 

25,614

26,564

23,527

25,108
Statements of other comprehensive 
Group

Group

Parent

Parent
income for the period ended 
Mar 2016

Mar 2015

Mar 2016

Mar 2015
31 March 2016
 N'million 

 N'million 

 N'million 

 N'million 








Profit for the period
25,614

26,564

23,527

25,108
Other comprehensive income to be reclassified to profit or loss in subsequent periods:







- Foreign currency translation 







differences for foreign operations
(1,072)

236

- 

- 
- Income tax relating to foreign 







 currency translation differences 







 for foreign operations
322

(71)

- 

- 
- Net change in fair value of 







 available for sale financial assets
(6,484)

962

(6,511)

1,240
- Income tax relating to net change 







 in fair value of available for sale 







 financial assets
1,945

(288)

1,953

(372)
Other comprehensive income for







the period, net of tax
(5,289)

839

(4,558)

868
Total comprehensive income for the period
20,325

27,403

18,969

25,976
Profit attributable to:







Equity holders of the parent entity
19,986

27,035

18,969

25,976
Non-controlling interests 
339

368

- 

- 
Total comprehensive income for the period
20,325

27,403

18,969 

25,976
Earnings per share for the profit attributable to the equity holders of the parent entity during the period (expressed in naira per share):







- Basic
0.90

0.94

0.80

0.85
- Diluted
0.90

0.94

0.80

0.85

Mar 2016

Dec 2015

Mar 2016

Dec 2015
Total impaired Loans and Advances (N'million)
48,936

44,798

44,604

36,611
Total impaired Loans and Advances to Loans and Advances (%)
3.51%

3.21%

3.48%

2.83%








Gross Earnings
75,395

79,015

66,021

70,685

This information is provided by RNS
The company news service from the London Stock Exchange
  END
QRFPGUMCCUPQGAU