Guaranty Trust Bank (GTBank) plc is one of the foremost Nigerian financial institution with vast business outlays spanning Anglophone/Francophone West Africa, East Africa and the United Kingdom.
GTBank has a corporate banking bias and strong service culture that have enabled it record consistent year-on-year growth in clientele base and key financial indices since its inception in 1990.
Recently, at the Nigerian Stock Exchange (NSE), it published its 2013 financial results that further proved its position as one of the leaders in the banking industry.
The results show gross earnings of N243 billion, an increase of 9 percent compared with N232 billion posted in 2012. Profit before tax stood at N103 billion, while profit after tax rose from N87 billion to N90 billion.
Based on the results, the directors recommended a final dividend of N1.45 for every share held, bringing total dividend for the year to N1.70 (about N50bn), having paid an interim dividend of 25 kobo earlier.
As the bank’s corporate strategic aspirations grow, it remains proudly African with an international outlook, committed to the creation of long-term value for its stakeholders by measuring not only the impact of its activities on the economies and communities where it operates, but also the external environmental outcomes of transactions funded by it.
The bank presently has an asset base of over N2 trillion, shareholders’ funds of over N200 billion and employs over 10,000 people in Nigeria, Cote d’Ivoire, Gambia, Ghana, Kenya, Liberia, Rwanda, Sierra Leone, Uganda, and the UK.
Looking at its financial statements for FY 2013, it shows that the bank recorded 3.1 percent improvement in PAT, 3.9 percent improvement in PRT, 29.32 percent in Return On Average Equity (ROAE), and 4.69 percent in Return On Average Asset (ROAA).
Earnings Per Share (EPS) was 317 kobo, thus leading to a total year dividend of 170k per share (145k final, 25k interim), compared with the previous year where total dividend was 155k. At the end of December 2013, the dividend payout ratio became 55.6 percent, compared with December 2012, which was 52.3 percent.
The revenue generation on its part reveals that the loan book (net) was up to 28.58 percent improvement, the interest income recorded 8.86 percent improvement, non-interest income recorded 8.58 percent, while deposits recorded 23.09 percent. Under the operational efficiency, the bank had cost-to-income ratio of about 43.53 percent compared with the previous year where they recorded 43.09 percent. Absolute operating expenses increased by 5.8 percent from what it was in December 2012.
Under the Margins and Quality, it could be seen that the bank had Net Interest Margin of 8.87 percent compared with 9.46 percent it had in the previous year, Non Performing Loans (NPL) was 3.58 percent compared with 3.75 percent it had previously, and a coverage ratio of 110.6 percent compared with 101.6 percent it had previously also.
GTBank recently acquired some subsidiaries for strong growth potential. It successfully completed its acquisition of Fina Bank and its subsidiaries, and Fina Bank has now been rebranded to GTB Kenya, GTB Rwanda and GTB Uganda. GTB now operates out of 10 locations across Africa and the UK.
The profit drivers of the bank came majorly from interest income and non-interest income. It recorded about N185.38 billion (8.9%), interest income, and about N57.77 billion (8.55%) in the period under review, and the revenue mix was consistent with that of 2012.
Growth in interest income was driven by N11.8 billion (23.2%) growth in investment securities; N3.7 billion (3.3%) growth in income from loans and advances, and 3.3 percent increase due to decreased yields on interest earned on risk assets by 2 percent.
On the other hand, growth under the non-interest income was driven by improvement on credit related fees, improvement on advisory related fees, profit from sales of financial instruments held for trading, FX trading income, and income from subsidiaries. Cost-to-income ratio stood at 43.53 percent compared with 43.1 percent which it stood on in 2012, and personnel expenses grew 0.43 percent in 2013, also interest expense grew by 22.2 percent due to growth in volume of deposits.
Taking a look at the balance sheet, the total net loans at the end of December 2013 was N1.007 trillion (28.6% increase), compared with N783.91 billion which was recorded at the previous year. Also, total deposits increased from N1.172 trillion to N1.442 trillion (23.1% increase). Balance sheet however reveals increase of about 70.61 percent for loans to deposits; 60.14 percent for loans to deposits-borrowings; 50.31 percent for liquidity ratio, 21.58 percent for capital adequacy ratio, 23. 64 percent for Tier one capital adequacy ratio, and 42.76 percent debt-to-total capital.
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