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GTBank Announces Unaudited Third Quarter Results

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UNAUDITED Q3 GROUP RESULTS FOR THE PERIOD ENDED SEPEMBER 30, 2019: DECLARES A PBT OF N170.7BILLION

October 16, 2019 – Guaranty Trust Bank Plc (“GTBank”), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its unaudited Financial Results for the period ended 30 September 2019 and declares a PBT of N170.7bn.

Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; “The Bank’s 3rd quarter result reflects the strength of our franchise and the quality of our business strategy to deliver sustainable long-term value for our shareholders. Going into the final quarter of the year, we will continue to differentiate ourselves by maintaining a high standard in service delivery and leveraging our resources, expertise and network to enrich the lives of our customers. That’s why, from November 10 – 11, 2019, we are organizing the GTBank Fashion Weekend, the biggest consumer-focused event in Africa’s fashion industry, to give indigenous small businesses the platform and access to new markets and customers that they need to grow.”

Financial Highlights

· Strong Earnings

  • Profit before tax of N170.7bn (30 September 2018 N164.2bn) an increase of 3.9%.
  • Profit after tax improved to N147.0bn from N142.2bn of 30 September 2018.
  • Earnings per share of 519kobo compared to 503kobo per share of 30 September 2018.

· Revenue

  • Interest Income of N224.2bn (30 September 2018: N237.5bn) down 5.6% as a result of 6.2% dip in interest income on loans and advances and 7.1% drop in interest income on fixed income securities.
  • Non-Interest Income of N101.8bn (30 September 2018: N99.7bn) up 2.1% largely as a result of 19.9% 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 9.4% (30 September 2018: 9.2%).

· Balance Sheet

  • Total assets of N3.519trn (31 December 2018: N3.287trn) up 7.1%
  • Net loans and advances of N1.378trn (31 December 2018: N1.262trn) up 9.2%.
  • Deposits from customers of N2.390trn (31 December 2018: N2.274trn) up 5.1%.

· Credit Quality

  • Non-performing Loans to total loans improved to 5.6% from 7.3% as at 31 December 2018.
  • Coverage for Lifetime Credit Impaired Loans at 95.2% (31 December 2018: 105.1%)
  • Cost of Risk at 0.2% (31 December 2018: 0.3%).

· Continued Focus on Efficiency

  • Cost to income of 36.9% (30 September 2018: 38.3%) due to improved revenue growth and continuous implementation of cost cutting initiatives.

· Subsidiaries

  • Contribution to PBT from subsidiaries increased to 15.1% from 12.1% in December 2018.

September 2019 Financial Analysis and Ratios

Key Financials (N’ billion)

Q3-2019

Q3-2018

∆%

Interest Income

224.2

237.5

-5.6%

Net Interest Income

172.9

170.6

1.3%

Operating Income

270.3

266.1

1.6%

Operating expenses

99.6

101.8

-2.2%

Profit before tax

170.7

164.2

3.9%

Profit After Tax

147.0

142.2

3.4%

Earnings per share (in Naira)

5.2

5.0

3.1%

Q3-2019

FY-2018

∆%

Total Assets

3,519.4

3,287.3

7.1%

Net Loans

1,378.0

1,262.0

9.2%

Customer Deposits

2,390.5

2,273.9

5.1%

Key Ratios

Q3-2019

Q3-2018

ROAE(post-tax)

32.3%

32.7%

ROAA(post-tax)

5.8%

5.6%

ROAE (pre-tax)

37.5%

37.8%

ROAA (pre-tax)

6.7%

6.5%

Net interest margin

9.4%

9.2%

Cost-to-income ratio

36.9%

38.3%

Q3-2019

FY-2018

Net Loans to deposits

54.0%

53.5%

Liquidity ratio

36.8%

41.4%

Capital adequacy ratio

23.6%

23.4%

NPL/Total Loans

5.6%

7.3%

Cost of risk

0.2%

0.3%

Coverage (with Reg. Risk Reserves)

95.2%

105.1%

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/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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