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

Guaranty Trust HoldingAnnouncement

01/04/2016 17:06

RNS Number : 0195S
Guaranty Trust Bank PLC
14 March 2016
Guaranty Trust Bank plc
AUDITED FULL-YEAR GROUP RESULTS FOR THE YEAR ENDED DECEMBER 31, 2015 DECLARES A PBT OF N120.69BILLION
Lagos Nigeria - March 14, 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 full year ended 31 December 2015 and declares a PBT of 120.69bn.
Commenting on the results, Mr. Segun Agbaje, Managing Director and CEO of Guaranty Trust Bank plc stated that "Despite an extremely challenging business environment and increasing regulatory headwinds, our Bank recorded growth across all key financial indices during the year. Gross earnings for the year grew by 8.4% to 301.9billion from 278.5billion reported for prior year. The Bank's loan book grew by 7.5% from 1.276 Trillion recorded in December 2014 to 1.372 Trillion in December 2015. Total customer deposits declined slightly by 0.5% to 1.610trillion from 1.618trillion in December 2014 owing to deposit loss as a result of implementation of the Treasury Single Account (TSA) directive in Nigeria during the year.
He further stated that "As a Bank, we will continue to actively partner with our customers and grow our business in a sustainable manner that is not only driven by profit objective, but with an increased focus on empowering our customers with a view to growing Nigerian economy. Also, we remain committed to maximising shareholders' value and delivering superior and sustainable returns whilst actively expanding our franchise in select, high growth African markets where we believe we have a competitive advantage."
Financial Highlights
 Strong Earnings
- Profit before tax of N120.69bn (31 Dec 2014: N116.39bn) an increase of 3.7% enhanced by 14.3% growth in interest income and 8.1% growth in Fee and commission income (compared to FY-2014).
- Profit after tax for the year of N99.44bn (31 Dec 2014: N94.43bn)
- Earnings per share of 351kobo (31 Dec 2014: 332kobo per share)
 Revenue
- Interest Income of N229.24bn (31 Dec 2014: N200.60bn) up 14.3%. Growth driven by 7.5% growth in loan book from December 2014.
- Non-Interest Income of N72.61bn (31 Dec 2014: N77.92bn) down 6.8%. The earnings from foreign exchange revaluation income in 2014 financial year did not recur in the 2015 financial year as exchange rate was relatively steady over the period.
- Net interest margin remained strong at 8.26% (31 Dec 2014: 8.10%). NIM improved despite the upward pressure on cost of funding during the year due to optimization of the Loan Book.
 Balance Sheet
- Total assets and contingents of N3.089trn (31 December 2014: N3.039trn)
- Total assets of N2.525trn (31 December 2014: N2.356trn) up 7.16%
- Net loans and advances of N1.372trn (31 December 2014: N1.276trn) growth of 7.5%. 
- Total Deposits of N1.610trn (31 December 2014:N1.618bn) down 0.5%. 
 Credit Quality 
- Non-performing loans to total loans of 3.21% (31 December 2014: 3.15%) 
- Coverage (with Regulatory risk reserves) at 186.73% (31 December 2014: 143.22%)
- Cost of Risk at 0.91% (31 Dec 2014: 0.61%). 
 Continued focus on efficiency
- Cost to income of 44.40% (31 Dec 2014: 44.79%).
 Subsidiaries
- Contribution to PBT from subsidiaries declined marginally to 6.88% from 7.15% in FY-2014
Full Year 2015 Financial Analysis and Ratios
Key Financials (N' billion)
FY-2015
FY-2014
%
Interest Income
229.2
200.6
14.3%
Net Interest Income
159.9
142.4
12.3%
Operating Income
217.1
210.8
3.0%
Operating expenses
96.4
94.4
2.1%
Profit before tax
120.7
116.4
3.7%
Profit After Tax
99.4
94.4
5.3%
Earnings per share (:k)
 3.51 
 3.32 
5.5%





FY-2015
FY-2014
%
Total Assets
2,524.59
2,355.88
7.2%
Net Loans
1,371.93
1,275.68
7.5%
Total Deposits
1,610.35
1,618.21
-0.5%
Key Ratios
FY-2015
FY-2014
ROE(post-tax)
25.55%
27.30%
ROA(post-tax)
4.07%
4.24%
ROE (pre-tax)
31.02%
33.65%
ROA (pre-tax)
4.95%
5.22%
Net interest margin
8.26%
8.10%
Cost-to-income ratio
44.40%
44.79%




FY-2015
FY-2014
Loans to deposits
83.89%
77.67%
Loans to deposits and borrowings
69.28%
67.14%
Liquidity ratio
42.21%
40.07%
Capital adequacy ratio
18.17%
17.50%
NPL/Total Loans
3.21%
3.15%
Cost of risk
0.91%
0.61%
Coverage (with Reg. Risk Reserves)
186.73%
143.22%
14 March 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
cea@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 N2.525trillion 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.
Extract of audited IFRS results for the full year ended 31 December 2015
Statements of Financial Position
Group
Group1
Group1
Parent
Parent1
Parent1
as at 31 December 2015
Dec 2015
Dec 2014
Jan 2014
Dec 2015
Dec 2014
Jan 2014

 'million 
 'million 
 'million 
 'million 
 'million 
 'million 







ASSETS






Cash and cash equivalents
 254,633 
 246,940 
 307,396 
 173,133 
 161,779 
 228,610 
Financial assets held for trading
 34,626 
 9,416 
 17,224 
 25,076 
 5,676 
 13,747 
Derivative financial assets
 - 
 530 
 170 
 - 
 530 
 170 
Investment securities:






- Available for sale
 364,180 
 344,702 
 374,673 
 327,586 
 317,750 
 364,056 
- Held to maturity
 29,408 
 35,161 
 84,742 
 3,210 
 4,511 
 46,682 
Assets pledged as collateral
 61,954 
 39,179 
 28,443 
 61,946 
 39,174 
 28,441 
Loans and advances to banks
 1,052 
 5,696 
 5,596 
 639 
 31 
 17 
Loans and advances to customers
 1,371,926 
 1,275,681 
 1,002,371 
 1,265,207 
 1,182,393 
 926,967 
Investment in subsidiaries 
 - 
 - 
 - 
 41,906 
 40,130 
 40,130 
Property and equipment
 87,989 
 76,236 
 68,306 
 79,193 
 68,042 
 61,420 
Intangible assets
 12,471 
 12,516 
 11,214 
 2,493 
 2,418 
 2,257 
Deferred tax assets
 3,244 
 2,358 
 1,946 
 - 
 - 
 - 
Restricted deposits and other assets
 303,111 
 307,462 
 200,765 
 297,240 
 304,174 
 191,869 
TOTAL ASSETS
 2,524,594 
 2,355,877 
 2,102,846 
 2,277,629 
 2,126,608 
 1,904,366 
LIABILITIES






Deposits from banks
 26,256 
 31,662 
 15,208 
 40 
 144 
 89 
Deposits from customers
 1,610,350 
 1,618,208 
 1,427,494 
 1,422,550 
 1,439,522 
 1,261,927 
Derivative financial liabilities
 - 
 253 
 4 
 - 
 253 
 4 
Other liabilities
 104,606 
 57,200 
 61,015 
 85,126 
 47,714 
 49,008 
Current income tax liabilities
 17,740 
 20,827 
 18,431 
 19,379 
 22,276 
 17,990 
Deferred tax liabilities
 6,840 
 4,392 
 5,066 
 6,346 
 3,956 
 4,784 
Debt securities issued
 180,117 
 167,321 
 156,498 
 - 
 - 
 13,234 
Other borrowed funds
 165,123 
 91,299 
 92,135 
 338,580 
 252,831 
 233,040 
TOTAL LIABILITIES
 2,111,032 
 1,991,162 
 1,775,851 
 1,872,021 
 1,766,696 
 1,580,076 
CAPITAL AND RESERVES






Share capital
 14,716 
 14,716 
 14,716 
 14,716 
 14,716 
 14,716 
Share premium
 123,471 
 123,471 
 123,471 
 123,471 
 123,471 
 123,471 
Treasury shares
(4,754)
(3,988)
(2,047)
 - 
 - 
 - 
Retained earnings
 51,089
 51,425 
 49,848 
 46,048 
 48,824 
 49,722 
Other components of equity
 222,651 
 173,411 
 135,924 
 221,373 
 172,901 
 136,381 
Capital and reserves attributable to equity holders of the parent entity
 407,173 
 359,035 
 321,912 
 405,608 
 359,912 
 324,290 

 
 
 
 
 
 
Non-controlling interests in equity
 6,389 
 5,680 
 5,083 
 - 
 - 
 - 







TOTAL EQUITY 
 413,562 
 364,715 
 326,995 
 405,608 
 359,912 
 324,290 

 
 
 
 
 
 
TOTAL EQUITY AND LIABILITIES
 2,524,594 
 2,355,877 
 2,102,846 
 2,277,629 
 2,126,608 
 1,904,366 
1Restated
Income Statements for 







the year ended 
Group

Group1

Parent

Parent1
31 December 2015 
Dec 2015

Dec 2014

Dec 2015

Dec 2014

'million 

'million 

 'million 

 'million 
Interest income
229,237

200,603

206,479

179,984
Interest expense
(69,290)

(58,211)

(61,446)

(51,285)
Net interest income
159,947

142,392

145,033

128,699
Loan impairment charges
(12,408)

(7,098)

(11,769)

(6,184)
Net interest income after loan impairment charges
147,539

135,294

133,264

122,515
Fee and commission income
51,866

47,970

44,035

40,945
Fee and commission expense
(3,079)

(2,114)

(2,690)

(1,748)
Net fee and commission income
48,787

45,856

41,345

39,197
Net gains on financial 







instruments classified as held 







for trading
12,237

12,084

9,190

8,344
Other income
8,511

17,864

9,172

19,734
Net impairment charge on







financial assets
 - 

(274)

 - 

(274)
Personnel expenses
(27,722)

(27,442)

(20,728)

(21,036)
Operating lease expenses
(1,125)

(913)

(675)

(561)
Depreciation and amortization
(12,595)

(12,152)

(10,787)

(10,590)
Other operating expenses
(54,937)

(53,931)

(47,754)

(46,961)
Profit before income tax
120,695

116,386

113,027

110,368
Income tax expense
(21,258)

(21,952)

(18,719)

(21,197)
Profit for the year
99,437

94,434

94,308

89,171








Profit attributable to:







Equity holders of the parent entity
98,679

93,736

94,308

89,171
Non-controlling interests
758

698

 - 

 - 

99,437

94,434

94,308

89,171
1Restated






Statements of other comprehensive
income for the year ended 
Group

Group

Parent

Parent
31 December 2015
Dec 2015

Dec 2014

Dec 2015

Dec 2014

N'million 

N'million 

 N'million 

 N'million 
Profit for the year
99,437

94,434

94,308

89,171
Other comprehensive income not to be reclassified to profit or loss in subsequent years:







Actuarial gains and losses
(1,343)

(796)

(1,343)

(796)
Income tax relating to actuarial gains and losses
403

239

403

239
Other comprehensive income to be reclassified to profit or loss in subsequent years:







- Foreign currency translation 







differences for foreign operations
(1,653)

(1,453)

 - 

 - 








- Income tax relating to foreign 







 currency translation differences 







 for foreign operations
496

436

 - 

 - 








- Net change in fair value of 







 available for sale financial 







 assets
5,303

(4,601)

5,232

(4,711)








- Income tax relating to 







 net change in fair value of 







 available for sale financial 







 assets
(1,420)

1,720

(1,399)

1,753
Other comprehensive income for the year, net of tax
1,786

(4,455)

2,893

(3,515)
Total comprehensive income for the year
101,223

89,979

97,201

85,656
Total comprehensive income 
attributable to:
Equity holders of the parent entity
100,410

89,097

97,201

85,656
Non-controlling interests 
813

882

 - 

 - 
Total comprehensive income for the year
101,223

89,979

97,201 

85,656
Earnings per share for the profit attributable to the equity holders of the parent entity during the year (expressed in naira per share):







- Basic
3.51

3.32

3.35

3.03
- Diluted
3.51

3.32

3.35

3.03




Total impaired Loans and Advances (N'million)
45,061

41,309

36,611

32,616
Total impaired Loans and Advances to Loans and Advances (%)
3.21%

3.15%

2.83%

2.70%








Gross Earnings
301,851

278,521

268,876

249,007









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