3rd Quarter Results
Guaranty Trust Bank Plc
UNAUDITED Q3 GROUP RESULTS FOR THE PERIOD ENDED SEPEMBER 30, 2020: DECLARES A PBT OF N167.4BILLION
Lagos Nigeria - November 19, 2020 - 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 2020 and declares a PBT of N167.4bn.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; "Our 3rd Quarter result is a reflection of how we have appropriately positioned our balance sheet to cope with current economic realities and the challenging business environment. It is also testament to the enduring loyalty of our customers, the hard work and dedication of our staff and the unwavering support we continue to enjoy from all our stakeholders in our drive to deliver best-in-class financial services and superior and sustainable returns."
He further stated that; "As an organization, we will continue to build on our commitment to enriching lives by leveraging our digital-first customer-centric strategy to improve customer experience and maintain a high standard in service delivery, and going beyond banking to create and drive innovative financial solutions that add value to our customers in all aspects of their lives."
Financial Highlights
· Sustained Earnings
- Profit before tax of N167.4bn; representing a decrease of 1.9% over N170.7bn recorded in 30 September 2019 and an improvement on the 5.2% dip posted in H1-2020 relative to H1-2019.
- Profit after tax decreased by 3.2% to N142.3bn from N147.0bn of 30 September 2019.
- Earnings per share of 502kobo compared to 519kobo per share of 30 September 2019.
· Improved Revenue
- Interest Income of N228.2bn (30 September 2019: N224.2bn) up 1.8% as a result of 2.0% growth in interest income on loans and advances and 7.3% increase in interest income on fixed income securities.
- Non-Interest Income of N101.7bn (30 September 2019: N101.8bn) down 0.1% largely as a result of 22.7% dip in fee and commission income, partly offset by N3.8bn increase in net trading income at Parent level and 3.5% growth in Other Income line.
- Net interest margin remained strong at 9.5% (30 September 2019: 9.4%).
· Balance Sheet
- Total assets of N4.574trn (31 December 2019: N3.759trn) up 21.7%
- Net loans and advances of N1.569trn (31 December 2019: N1.502trn) up 4.5%.
- Deposits from customers of N3.191trn (31 December 2019: N2.533trn) up 26.0%.
- Restricted deposits and other assets which comprise largely of restricted deposits with central banks increased by 102.8% to N1.171trn in September 2020 from N577.4bn in December 2019.
· Credit Quality
- Non-performing loans to total loans at 6.5% (31 December 2019: 6.5%).
- Coverage for Lifetime Credit Impaired Loans at 123.3% (31 December 2019: 126.6%)
- Cost of Risk at 0.6% (31 December 2019: 0.3%).
· Continued focus on efficiency
- Cost to income of 40.2% (30 September 2019: 36.9%). Increase influenced by rise in inflation rate.
· Subsidiaries
- Contribution to PBT from subsidiaries increased to 16.3% from 15.1% in September 2019.
September 2020 Financial Analysis and Ratios
Key Financials (N' billion) | Q3-2020 | Q3-2019 | ∆% |
Interest Income | 228.2 | 224.2 | 1.8% |
Net Interest Income | 189.7 | 172.9 | 9.7% |
Operating Income | 279.8 | 270.3 | 3.5% |
Operating expenses | 112.4 | 99.6 | 12.9% |
Profit before tax | 167.4 | 170.7 | -1.9% |
Profit After Tax | 142.3 | 147.0 | -3.2% |
Earnings per share (in Naira) | 5.0 | 5.2 | -3.3% |
Q3-2020 | FY-2019 | ∆% | |
Total Assets | 4,573.7 | 3,758.9 | 21.7% |
Net Loans | 1,569.1 | 1,502.1 | 4.5% |
Customer Deposits | 3,191.2 | 2,532.5 | 26.0% |
Key Ratios | Q3-2020 | Q3-2019 |
ROAE(post-tax) | 26.3% | 32.3% |
ROAA(post-tax) | 4.6% | 5.8% |
ROAE (pre-tax) | 30.9% | 37.5% |
ROAA (pre-tax) | 5.4% | 6.7% |
Net interest margin | 9.5% | 9.4% |
Cost-to-income ratio | 40.2% | 36.9% |
Q3-2020 | FY-2019 | |
Net Loans to deposits | 47.5% | 56.9% |
Liquidity ratio | 38.8% | 49.3% |
Capital adequacy ratio | 23.9% | 22.5% |
NPL/Total Loans | 6.5% | 6.5% |
Cost of risk | 0.6% | 0.3% |
Coverage (with Reg. Risk Reserves) | 123.3% | 126.6% |
19 November 2020
Enquiries:
GTBank Oyinade Adegite, Group Head, Corporate Communication |
+234-1-2715227 |
Golden Nwaiwu, Head, Investor Relations |
+234-1-4484156 |
Notes to the Editors:
Guaranty Trust Bank is a diversified financial services company with N4.574trillion in assets, providing commercial banking services through 230 local branches, 30 e-branches & Cash Centres, 60 GTExpress locations, 1,368 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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