Guaranty Trust Bank plc
2011 Audited full-year results
Declares Total-Year dividend of 110 kobo per share
Lagos Nigeria - March 16, 2012 - Guaranty Trust Bank plc ("GTBank"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG (KSE: 003550.KS - news) ), provider of diversified financial services, announces its Audited Financial Results for the year ended December 31, 2011, and declares a Year End dividend of 85 kobo* per share.
Commenting on the results, Mr. Segun Agbaje, Managing Director and CEO of Guaranty Trust Bank plc, attributed the Bank's success in 2011 to a well defined business plan, the passion of its employees and a determination to achieve results without compromising on the GTBank standards of service quality, professionalism and integrity.
According to Mr. Agbaje: "Despite the complexities of today's financial landscape, we continue to remain true to our founding values: Service excellence, Professionalism, Integrity and Innovation, whilst ensuring we understand and meet the peculiar needs of our various stakeholders, every single time. Our employees imbibe this vision and that is why we are a successful financial institution today".
He further stated that the Bank intends to further consolidate its position in 2012 by pioneering service innovations, developing value adding products within all markets, promoting excellence and creating role models for society through a myriad of social and other initiatives.
Financial Highlights
· Strong Earnings
- Profit after tax and extra ordinary item of N52.65bn (31 December 2010: N38.35bn) an increase of 37.31%. PAT includes extraordinary item of N2.77bn which represents the net gain from the sale of our non-bank subsidiaries.
- Profit before tax of N65.60bn (31 December 2010: N48.46bn) an increase of 35.37%. Profitability driven by strong revenue growth and superior expense control.
- Earnings per share of 169kobo per share (31 Dec 2010: 163kobo per share)
- YE 2011 Dividend of 85kobo per share. Total (Other OTC: TTFNF.PK - news) -Year Dividend of 110kobo (inclusive of 25kobo interim dividend issued at half-year 2011)
· Subsidiaries - In 2011, in compliance with the repeal of the Universal Banking model by the Central Bank (Other OTC: CBSU.PK - news) of Nigeria and introduction of a new licensing regime, the Bank made the decision to focus on its core business of commercial banking and divest its non-bank subsidiaries. Hence, the following the following non-bank subsidiaries were sold in 2011:
- Guaranty Trust Assurance Plc (Insurance (Euronext: SIN.NX - news) subsidiary)
- GTB Asset Management Limited (Asset Management subsidiary)
- GTB Registrars Limited (Securities registration subsidiary)
GTBank made a net-profit of N2.77bn from the sale of above-mentioned subsidiaries. The sale of GTHomes Limited (Mortgage subsidiary) is scheduled for completion in the first half of 2012.
· Revenue
- Interest Income of N130.14bn (31 December 2010: N112.52bn) up 15.66%. Growth driven primarily by a combination of a larger loan book, return to positive real interest rates and gains from investments in fixed income securities.
- Non-Interest operating Income of N55.92bn (31 December 2010: N41.39bn) up 35.10%. Growth driven primarily by commissions on increased volumes of customer transactions and fx trading income growth.
- Net (Frankfurt: A0Z22E - news) interest margin remains strong and sustainable at 7.80%
· Balance Sheet
- Total assets and contingents of N2.14trn (31 December 2010: N1.58trn)
- Net Loans and Advances of N715.94bn (31 December 2010: N593.46bn) up 20.64%. Real growth of 33.61% (factoring in amounts sold to AMCON in 2011).
- Deposits from Customers of N1.03trn (31 December 2010: N761.19bn) up 35.72%. Growth in retail deposits derived from GTBank's concerted efforts to grow its retail franchise by providing excellent service and innovative e-banking solutions.
· Credit Quality
- Non performing loans to total loans of 3.73% (31 December 2010: 6.74%) Due in part to strong loan recovery efforts and sales to AMCON in the amount of N77.01bn. The Bank sold its Zenon exposure (N36.88bn) to AMCON in exchange for bonds in the amount of N43.10bn (discounted value: N30.13bn). GTBank had already recognized its N6.75bn shortfall in provisions from this transaction in its June 2011 results and booked no further provisions on Zenon in the second half of 2011.
- Allowance for Credit Losses at 92.29% (31 December 2010: 98.24%)
· Continued focus on efficiency
- Cost to income profile improved to 50.82% (31 December 2010: 56.82%) a 6% improvement from 2010. Cost performance driven by GTBank's continued drive for higher levels of cost efficiency through innovation and Best-In-Class practices.
- Expense highlights include:
§ 10.78% growth in operating expenses (with AMCON charge)
§ 5.76% growth in operating expenses (without AMCON charge)
§ Interest expense 5.62% lower in 2011 compared to 2010.
*Subject to shareholder approval at GTBank's AGM to be held on April 19, 2012
16 March 2012
Enquiries:
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GTBank |
+234-1-2714591 |
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Lola Odedina, Head, Communications ∓ External Affairs |
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Pascal Or |
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Muyiwa Teriba, Head, Investor Relations |
+234-1-4484156 |
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College Hill |
+44 20 7457 2020 |
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Tony Friend |
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Antonia Coad |
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Profit and Loss Accounts
For the year ended 31 December
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Group Dec 2011 N'million |
Group Dec 2010 N'million |
Bank Dec 2011 N'million |
Bank Dec 2010 N'million |
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Gross Earnings |
188,819 |
153,908 |
172,332 |
138,347 |
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|
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Interest and similar income |
130,137 |
112,521 |
120,953 |
102,597 |
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Interest and similar expenses |
(28,459) |
(30,152) |
(25,430) |
(26,517) |
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Net interest margin |
101,678 |
82,369 |
95,523 |
76,080 |
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Fee and commission income |
44,165 |
34,913 |
39,004 |
31,264 |
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Fee and commission expense |
(2,208) |
(3,213) |
(2,172) |
(3,199) |
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Net fee and commission income |
41,957 |
31,700 |
36,832 |
28,065 |
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Net foreign exchange income |
8,849 |
4,578 |
6,867 |
3,372 |
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Underwriting profit |
1,367 |
1,172 |
- |
- |
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Income from investments |
1,534 |
724 |
2,507 |
1,114 |
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Operating income |
155,385 |
120,543 |
141,729 |
108,631 |
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Operating expenses |
(70,645) |
(63,770) |
(61,498) |
(55,612) |
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Loan loss expenses |
(19,004) |
(8,088) |
(18,152) |
(7,492) |
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Diminution in other asset values |
(140) |
(229) |
- |
(52) |
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|
|
|
|
|
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Profit on ordinary activities before tax |
65,596 |
48,456 |
62,079 |
45,475 |
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Taxation |
(15,709) |
(10,109) |
(14,098) |
(8,963) |
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Profit on ordinary activities after tax |
49,887 |
38,347 |
47,981 |
36,512 |
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Extra-ordinary item |
2,767 |
- |
3,000 |
- |
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Profit after tax and extra-ordinary item |
52,654 |
38,347 |
50,981 |
36,512 |
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Non-controlling interest |
(538) |
(431) |
- |
- |
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Profit attributable to equity holders of the bank |
52,116 |
37,916 |
50,981 |
36,512 |
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Key Financial Information |
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Total NPLs to total loans and advances |
3.73% |
6.74% |
3.59% |
6.79% |
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Earnings per share (kobo) - Basic |
169 |
163 |
164 |
157 |
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Earnings per share (kobo) - Adjusted |
168 |
129 |
163 |
124 |
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Balance Sheets
As at 31 December, 2011
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Group Dec 2011 N'million |
Group Dec 2010 N'million |
Bank Dec 2011 N'million |
Bank Dec 2010 N'million |
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ASSETS |
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Cash in hand and balances with CBN |
116,663 |
28,856 |
107,251 |
27,018 |
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Treasury bills |
256,815 |
157,291 |
235,495 |
141,775 |
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Due from other banks |
314,029 |
250,181 |
281,378 |
206,464 |
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Loans and advances to customers |
715,944 |
593,464 |
681,757 |
563,383 |
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Advances under finance lease |
39 |
10 |
- |
- |
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Insurance receivables |
- |
874 |
- |
- |
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Investment securities |
109,387 |
51,837 |
111,946 |
44,559 |
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Investment in subsidiaries |
- |
- |
19,734 |
30,116 |
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Trading properties |
2,838 |
7,350 |
- |
- |
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Other assets |
37,112 |
12,912 |
34,192 |
9,944 |
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Deferred tax assets |
486 |
588 |
- |
- |
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Property and equipment |
57,560 |
47,093 |
52,494 |
42,539 |
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Intangible asset |
956 |
1,602 |
763 |
1,374 |
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Goodwill on consolidation |
51 |
354 |
- |
- |
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TOTAL ASSETS |
1,611,880 |
1,152,412 |
1,525,010 |
1,067,172 |
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LIABILITIES |
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Customers' deposits |
1,033,068 |
761,195 |
964,086 |
713,080 |
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Due to other banks |
18,631 |
17,944 |
3,036 |
3,320 |
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Claims payable |
- |
728 |
- |
- |
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Finance lease obligations |
3,699 |
1,847 |
3,699 |
1,847 |
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Liability on investment contracts |
- |
1,823 |
- |
- |
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Liabilities on insurance contracts |
- |
2,199 |
- |
- |
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Current income tax payable |
14,263 |
9,530 |
13,760 |
8,686 |
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Other liabilities |
61,986 |
54,107 |
59,314 |
43,653 |
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Deferred tax liabilities |
4,601 |
4,337 |
4,499 |
4,161 |
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Dividend payable |
- |
- |
- |
- |
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Retirement benefit obligations |
109 |
37 |
79 |
36 |
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Debt securities in issue |
143,587 |
64,903 |
13,165 |
13,165 |
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Other borrowings |
93,156 |
22,936 |
227,461 |
74,056 |
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TOTAL LIABILITIES |
1,373,100 |
941,586 |
1,289,099 |
862,004 |
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NET ASSETS |
238,780 |
210,826 |
235,911 |
205,168 |
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CAPITAL AND RESERVES |
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Share capital |
14,716 |
11,659 |
14,716 |
11,659 |
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Share premium |
123,471 |
119,077 |
123,471 |
119,077 |
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Translation reserve |
(193) |
(393) |
- |
- |
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Retained earnings |
30,697 |
18,860 |
32,378 |
21,465 |
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Other reserves |
68,088 |
55,592 |
65,346 |
52,967 |
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EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT |
236,779 |
204,795 |
235,911 |
205,168 |
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Non-controlling interest |
2,001 |
6,031 |
- |
- |
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TOTAL EQUITY |
238,780 |
210,826 |
235,911 |
205,168 |
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|
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GUARANTEES AND OTHER COMMITMENTS ON BEHALF OF CUSTOMERS |
526,822 |
424,988 |
492,780 |
401,746 |
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TOTAL ASSETS AND CONTINGENTS |
2,138,702 |
1,577,400 |
2,017,790 |
1,468,918 |
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SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:
SEGÚN AGBAJE
CATHY ECHEOZO
Approved by the Board of Directors on 25 January, 2012.
Notes to the Editors:
Guaranty Trust Bank is a diversified financial services company with over N1.61trillion in assets, providing commercial banking services through 177 local branches, 627 ATMs, our international and subsidiary offices and the Internet (gtbank.com).
The Group operates as one of the leading Nigerian banks offering a wide range of financial services and products throughout Nigeria and in the West African sub-region. The Bank is rated B+ by Fitch and S∓P, 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 five banking subsidiaries established outside of Nigeria - Guaranty Trust Bank (Gambia) Ltd ("GTB Gambia"), Guaranty Trust Bank (Sierra Leone) Ltd ("GTB Sierra Leone"), Guaranty Trust Bank (Ghana) Ltd ("GTB Ghana"), Guaranty Trust Bank (Liberia) Ltd ("GTB Liberia") and Guaranty Trust Bank (United Kingdom) Ltd ("GTB UK").
The Bank also has two non-bank subsidiaries: GTHomes Limited ("GTHomes"), which provides mortgage services and GTB Finance B.V. ("GTB Finance"), a special purpose subsidiary incorporated in The Netherlands. In each of the past three years, profit from the parent company accounted for over 90.0% of the Group's total income.
