REG - Guaranty Trust Bank - 1st Quarter Results

Guaranty Trust HoldingAnnouncement

18/04/2018 18:25

RNS Number : 3892L
Guaranty Trust Bank PLC
18 April 2018
 

Guaranty Trust Bank Plc
 
UNAUDITED Q1 GROUP RESULTS FOR THE QUARTER ENDED MARCH 31, 2018: DECLARES A PBT OF N52.6BILLION
 
Lagos, Nigeria - April 18, 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 quarter ended 31 March 2018 and declares a PBT of N52.6bn.
 
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; "Our performance in the first quarter reflects the strength of our businesses and the success of our digital-first customer-centric strategy in delivering services to ur customers that are simple, cheap and easily accessible.
 
He further stated that "Despite the challenging environment, we focused our resources on strengthening relationships with our customers, building our digital capabilities to ensure that our customers enjoy the same superior experience across all touch points, whilst consolidating our leading position in all the economies wherein we operate."
 
Financial Highlights
 
·      Strong Earnings
-  Profit before tax of N52.6bn (31 March 2017 N50.4bn) an increase of 4.4%.
-  Profit after tax improved to N44.7bn from N41.5bn of 31 March 2017
-  Earnings per share of 158kobo compared to 147kobo per share of 31 March 2017
 
·      Revenue
-  Interest Income of N80.8bn (31 March 2017: N84.1bn) down 4.0% as a result of 7.7% dip in interest income on loans and advances and 300bp decline in yield of Fixed Income Securities. Loan Book contracted by 7.8% from N1.645trn in March 2017 to N1.526trn due to drop in FCY components of the Loan book as a result of pay-down of pent up obligations owing to improved FX liquidity in the market following the introduction of the investors' and exporters' window in April 2017.
 
-  Non-Interest Income of N28.2bn (31 March 2017: N20.0bn) up 40.8% largely as a result of 11.3% growth in fee and commission income and growth in other Income comprising Advisory, Discounts, rebate Commissions & revaluation gains.
 
-  Net interest margin remained strong at 10.1% (31 March 2017: 10.6%).
 
·      Balance Sheet
-  Total assets of N3.507trn (31 December 2017: N3.351trn) up 4.6%
-  Net loans and advances of N1.354trn (31 December 2017: N1.449trn) dip of 6.5%.
-  Deposits from customers of N2.214trn (31 December 2017:N2.062trn) up 7.4%.
 
·      Credit Quality
-  Non-performing loans to total loans improved to 6.2% from 7.7% as at 31 December 2017.
-  Coverage (with Regulatory risk reserves) at 202.9% (31 December 2017: 119.6%)
-  Cost of Risk at 0.1% (31 Dec 2017: 0.8%).
 
·      Continued focus on efficiency
-  Cost to income of 38.5% (31 March 2017: 38.7%) due to improved revenue growth and continuous implementation of cost cutting initiatives.
 
·      Subsidiaries
-  Contribution to PBT from subsidiaries increased to 11.3% from 9.0% in Q1-2017.
 
 
March 2018 Financial Analysis and Ratios
 




Key Financials (N' billion)


Q1-2018


Q1-2017


∆%




Interest Income


80.8


84.1


-4.0%




Net Interest Income


59.7


66.1


-9.7%




Operating Income


85.5


82.2


4.1%




Operating Expenses


32.9


31.8


3.5%




Profit Before Tax


52.6


50.4


4.4%




Profit After Tax


44.7


41.5


7.7%




Earnings Per Share (in Naira)


1.6


1.5


7.7%


























Q1-2018


FY-2017


∆%




Total Assets


3,506.8


3,351.1


4.6%




Net Loans


1,354.3


1,449.3


-6.5%




Customer Deposits


2,213.8


2,062.0


7.4%






















 
 




Key Ratios


Q1-2018


Q1-2017




ROAE(post-tax)


30.8%


31.6%




ROAA(post-tax)


5.2%


5.3%




ROAE (pre-tax)


36.3%


38.3%




ROAA (pre-tax)


6.1%


6.4%




Net Interest Margin


10.1%


10.6%




Cost-to-Income Ratio


38.5%


38.7%






















Q1-2018


FY-2017




Loans to Deposits


58.6%


67.5%




Liquidity Ratio


55.9%


47.6%




Capital Adequacy Ratio


24.6%


25.7%




NPL/Total Loans


6.2%


7.7%




Cost of Risk


0.1%


0.8%




Coverage (with Reg. Risk Reserves)


202.9%


119.6%




 
 
 
18 April 2018
 
Enquiries:
 




GTBank
Golden Nwaiwu, Head, Investor Relations
ir@gtbank.com


 
+234-1-4484156




 
Oyinade Adegite, Head, Communications & External Affairs


 
+234-1-2715227




corpaff@gtbank.com








 
 
 
 
 
 
 
 
Notes to the Editors:
 
Guaranty Trust Bank is a diversified financial services company with N3.507 trillion in assets, providing commercial banking services through 217 local branches, 65 e-branches & GTExpress locations, 1,192 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").
 



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