REG - Guaranty Trust Bank - 1st Quarter Results

Guaranty Trust HoldingAnnouncement

17/04/2019 16:10

RNS Number : 5383W
Guaranty Trust Bank PLC
17 April 2019
 


Guaranty Trust Bank Plc
 
UNAUDITED Q1 GROUP RESULTS FOR THE QUARTER ENDED MARCH 31, 2019: DECLARES A PBT OF N57.0BILLION
 
Lagos Nigeria - April 17, 2019 - Guaranty Trust Bank Plc ("GTBank"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its unaudited Financial Results for the quarter ended 31 March 2019 and declares a PBT of N57.0bn.
 
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; "the structure of the Balance sheet continued to give us the cutting edge needed to deliver strong results in a challenging environment; achieving impressive showing 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 financial lives better."
 
 
Financial Highlights
 
·      Strong Earnings
-  Profit before tax of N57.0bn (31 March 2018 N52.6bn) an increase of 8.3%.
-  Profit after tax improved to N49.3bn from N44.7bn of 31 March 2018
-  Earnings per share of 174kobo compared to 158kobo per share of 31 March 2018
 
·      Revenue
-  Interest Income of N74.5bn (31 March 2018: N80.8bn) down 7.8% as a result of 10.1% dip in interest income on loans and advances and 10.8% drop in interest income on fixed income securities.
 
-  Non-Interest Income of N35.8bn (31 March 2018: N28.2bn) up 27.1% largely as a result of 21.9% growth in fee and commission income, as well as growth in other Income comprising recoveries, discounts, rebate commissions & mark to market gains on trading investments.
 
-  Net interest margin remained strong at 9.9% (31 March 2018: 10.1%).
 
·      Balance Sheet
-  Total assets of N3.556trn (31 December 2018: N3.287trn) up 8.2%
-  Net loans and advances of N1.282trn (31 December 2018: N1.262trn) up 1.6%.
-  Deposits from customers of N2.410trn (31 December 2018: N2.274trn) up 6.0%.
 
·      Credit Quality
-  Non-performing loans to total loans improved to 7.0% from 7.3% as at 31 December 2018.
-  Coverage for Lifetime Credit Impaired Loans at 90.1% (31 December 2018: 105.1%)
-  Cost of Risk at 0.05% (31 Dec 2018: 0.3%).
 
·      Continued focus on efficiency
-  Cost to income of 38.6% (31 March 2018: 38.5%) due to improved revenue growth and continuous implementation of cost cutting initiatives.
 
·      Subsidiaries
-  Contribution to PBT from subsidiaries increased to 15.3% from 11.3% in March 2018.
 
 
 
March 2019 Financial Analysis and Ratios
 




Key Financials (N' billion)


Q1-2019


Q1-2018


∆%




Interest Income


74.5


80.8


-7.8%




Net Interest Income


58.2


59.7


-2.5%




Operating Income


92.9


85.5


8.6%




Operating expenses


35.9


32.9


9.1%




Profit before tax


57.0


52.6


8.3%




Profit After Tax


49.3


44.7


10.4%




Earnings per share (in Naira)


1.7


1.6


10.2%




 


 


 


 




 


Q1-2019


FY-2018


∆%




Total Assets


3,555.9


3,287.3


8.2%




Net Loans


1,281.6


1,262.0


1.6%




Total Deposits


2,513.3


2,356.7


6.6%




 


 


 


 




 
 




Key Ratios


Q1-2019


Q1-2018




ROAE(post-tax)


32.8%


30.8%




ROAA(post-tax)


5.8%


5.2%




ROAE (pre-tax)


37.9%


36.3%




ROAA (pre-tax)


6.7%


6.1%




Net interest margin


9.9%


10.1%




Cost-to-income ratio


38.6%


38.5%




 


 


 




 


Q1-2019


FY-2018




Loans to deposits


51.0%


53.5%




Liquidity ratio


47.7%


41.4%




Capital adequacy ratio


22.3%


23.4%




NPL/Total Loans


7.0%


7.3%




Cost of risk


0.05%


0.3%




Coverage (with Reg. Risk Reserves)


90.1%


105.1%




 
 
 
17 April 2019
 
Enquiries:
 
Oyinade Adegite, Head Corporate Communication                                       +234 1 2715227
oyinade.ogunade@gtbank.com
 
Golden Nwaiwu, Investor Relations                                                            +234 1 4484156
ir@gtbank.com                                                  
 
 
 
Notes to the Editors:
 
Guaranty Trust Bank is a diversified financial services company with N3.556trillion in assets, providing commercial banking services through 225 local branches, 75 e-branches & GTExpress locations, 1,317 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/sub-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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