24 Apr 2009 13:30
Guaranty Trust Bank
Final results for the 10 months ended 31 December 2008
Highlights of the Group's operating results for the period under review are as follows:
| 10 months to | 12 months to | ||
| 31-Dec-08 | 29-Feb-08 | ||
| N'000 | N'000 | ||
| Profit attributable to group shareholders | 27,608,558 | 20,800,447 | |
| Transfer to statutory reserve | 8,421,976 | 6,446,966 | |
| Transfer to bonus shares reserve | 1,865,375 | 621,792 | |
| Proposed final dividend | 14,922,999 | 9,575,591 | |
| Declared dividend during the year* | 9,575,591 | 7,419,854 | |
| Transfer to small scale industries reserve | - | 1,079,494 | |
| Shareholders' funds | 177,991,775 | 160,008,866 | |
| Earnings per share | |||
| - | (Basic) | 185k | 167k |
| - | (Adjusted) | 185k | 139k |
| Dividend per share | |||
| - | Interim dividend paid | - | 25k |
| - | Final proposed** | 100k | 70k |
*Declared dividend during the period represents the interim dividend declared and paid during the year plus the final dividend proposed for the preceding year, but declared during the current period.
**Final proposed dividend per share for the period ended 31 December 2008 was computed based on 14,922,998,891 shares (29 Feb 2008: 13,679,415,650) in issue during the period.
Dividends
The Directors recommend the payment of a dividend of N1.00 per share (29 Feb. 2008: N0.95 per share) on the issued share capital of 14,922,998,891 shares of 50k each. Withholding tax at the applicable rate will be deducted at the time of payment.
There will be a conference call for investors and analysts at 9.30am, Wednesday 29th April 2009. Details as follows:
Dial in: +44 (0) 1452 555 566
Conference code: 97133506
Tayo Aderinokum, Managing Director, said:
"We expect that, given a 12-month reporting period and barring any unforeseen circumstances, the 2009 financial year will be a significant improvement over previous financial years."
24 April 2009
Enquiries:
| GTBank | +234-1-2714591 |
| Lola Odedina, Head, Communications & External Affairs | |
| Pascal Or | |
| College Hill | +44 20 7457 2020 |
| Richard Pearson | |
| Peter Pantlin |
Notes to editors
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. According to the most recently published audited financial statements of Nigerian banks prepared in accordance with Nigerian GAAP, among Tier 1 banks in Nigeria as identified by Agusto & Co., the Bank is the most profitable bank measured in terms of return on assets, the most efficient bank measured in terms of cost to income, has the second best asset quality measured in terms of non-performing loan ratio and, among all banks in Nigeria, the Bank is the sixth largest bank in terms of total assets.
Historically, the Group has focused its business on large- and medium-size corporate clients. However, the economic reforms that followed Nigeria's return to democracy in 1999 led to an increase in liquidity of retail customers and a corresponding increase in demand by such customers for banking services. As a consequence, since 2005, the Group has placed an increasing emphasis on building its retail business. Initially the Group targeted only high-end retail customers that were employed by large, reputable companies. Recently, the Group has re-branded itself to emphasise its retail focus, in particular its evolution as a bank with a nationwide network and focus on the provision of banking services to nearly all segments of the Nigerian economy.
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 services its customers from 154 branches in Nigeria, as well as other branches of its subsidiaries throughout the region.
The Bank also has five non-banking subsidiaries: Guaranty Trust Assurance Plc ("GTB Assurance"), which provides insurance services in Nigeria, GTB Registrars Limited ("GTB Registrars"), a securities registrar, GTHomes Limited ("GTHomes"), which provides mortgage services, GTB Asset Management Limited ("GTB Asset"), which provides asset management and other investment services and GTB Finance B.V. ("GTB Finance"), a finance subsidiary located in The Netherlands. In each of the past three years, profit from the Bank accounted for over 90.0% of the Group's total income.
www.gtbank.com
Managing Director's Statement
OPERATING RESULTS
The Bank changed its financial year end from February to December during the 2008 financial year. This implies that this financial report is for 10 months while the prior year comparative figures are for 12 months.
The Bank had an impressive performance in the 2008 financial year despite immense challenges in the global marketplace. While contending with fierce competition and a difficult operating environment, the Bank was able to grow its business significantly.
FINANCIAL PERFORMANCE
The Bank ended the 2008 financial year with a ten-month Gross Earnings figure of N95.14bn. This represents a growth of 22.82% over the prior 12 months figure of N77.46bn. Profit before Taxation was N34.46bn resulting in an Operating Margin of 36.22% and a growth of 26.70% over last year's profit of N27.20bn. Basic Earnings per Share for the period also grew by 8.67% to 188k.
The performance on the Interest and discount income line was N64.04bn; representing a 25.46% growth over the prior year figure of N51.05bn. In the face of a challenging operating environment, the Bank achieved a Net Interest Margin of N38.78bn, an increase of 37.48% over the Interest Margin of N28.21bn earned in the prior year. On the Other Banking Income line, the Bank earned N31.10bn which represents a growth of 17.73%. Interest and Discount Income accounted for 67.31% of Gross Earnings up from 65.90% in the prior year. The Bank's revenue mix continues to show focus and increasing market share in core banking business.
Overall, despite a harsh operating environment (i.e increasing cost of funds, tight liquidity, credit crunch e.t.c.), the Bank was able to achieve a significant growth in its Profit Before Tax in the ten months ended December, 2008.
BALANCE SHEET PERFORMANCE
The Bank closed the year with a balance sheet size (total assets and contingents) of N1.33trillion. This performance represents a growth of 27.39% over the balance sheet size as at last financial year end. The growth was driven primarily by growths in Deposit Liabilities, Other Liabilities and Contingent Assets, which grew by 25.16%, 62.36% and 25.18%, respectively.
The Bank grew its deposit liabilities by 25.16% to N446.82bn. The introduction of more innovative banking products and a professional approach to marketing same contributed to deposits growth. Loans and Advances grew by 42.85% to N416.44bn reflecting the Bank's commitment to driving economic outputs.
We expect that, given a 12-month reporting period and barring any unforeseen circumstances, the 2009 financial year will be a significant improvement over previous financial years.
Tayo Aderinokum
Managing Director
Balance Sheets
As at 31 December 2008
| Group | Group | Bank | Bank | ||
| 31 Dec. 2008 | 29 Feb. 2008 | 31 Dec. 2008 | 29 Feb. 2008 | ||
| N'000 | N'000 | N'000 | N'000 | ||
| ASSETS | |||||
| Cash and short-term funds | 282,342,056 | 119,206,071 | 252,003,983 | 103,519,908 | |
| Short term investments | 141,972,602 | 179,585,974 | 127,549,286 | 174,612,748 | |
| Loans and advances | 418,778,900 | 288,152,339 | 416,444,077 | 291,530,777 | |
| Advances under finance lease | 23,835 | 18,091 | 23,835 | 18,091 | |
| Trading properties | 15,085,846 | 12,062,730 | - | - | |
| Other assets | 52,676,400 | 95,102,586 | 49,707,152 | 94,446,992 | |
| Long term investments | 11,821,685 | 7,408,498 | 40,058,002 | 22,218,821 | |
| Deferred tax assets | 36,847 | 20,649 | - | - | |
| Fixed assets | 39,629,765 | 33,969,536 | 36,030,992 | 31,652,460 | |
| Goodwill on consolidation | 354,328 | 166,432 | - | - | |
| TOTAL ASSETS | 962,722,264 | 735,692,906 | 921,817,327 | 717,999,797 | |
| LIABILITIES | |||||
| Deposits and other accounts | 472,270,503 | 362,936,393 | 446,818,523 | 357,006,128 | |
| Taxation payable | 9,484,919 | 5,851,198 | 9,085,877 | 5,517,981 | |
| Other liabilities | 232,561,576 | 144,609,871 | 220,069,962 | 135,548,369 | |
| Deferred tax liabilities | 3,474,838 | 2,808,927 | 3,395,712 | 2,731,679 | |
| Dividend payable | - | - | - | - | |
| Borrowings | 62,896,528 | 56,142,576 | 62,896,528 | 56,142,576 | |
| TOTAL LIABILITIES | 780,688,364 | 572,348,965 | 742,266,602 | 556,946,733 | |
| NET ASSETS | 182,033,900 | 163,343,941 | 179,550,725 | 161,053,064 | |
| CAPITAL AND RESERVES | |||||
| Share capital | 7,461,500 | 6,839,708 | 7,461,500 | 6,839,708 | |
| Share premium | 119,076,565 | 119,076,565 | 119,076,565 | 119,076,565 | |
| Other reserves | 51,453,710 | 34,092,593 | 53,012,660 | 35,136,791 | |
| SHAREHOLDERS' FUNDS | 177,991,775 | 160,008,866 | 179,550,725 | 161,053,064 | |
| Non controlling interest | 4,042,125 | 3,335,075 | - | - | |
| 182,033,900 | 163,343,941 | 179,550,725 | 161,053,064 | ||
| Guarantees and other commitments on behalf of customers | 414,474,819 | 325,600,406 | 403,649,163 | 322,462,234 |
Please paste the following URL into your browser to access the full accounts including notes.
http://www.rns-pdf.londonstockexchange.com/rns/1378R_-2009-4-24.pdf
Profit and Loss Accounts
For the 10 months period ended 31 December 2008
| Group | Group | Bank | Bank | ||
| 31 Dec. 2008 | 29 Feb. 2008 | 31 Dec. 2008 | 29 Feb. 2008 | ||
| 10 months | 12 months | 10 months | 12 months | ||
| N'000 | N'000 | N'000 | N'000 | ||
| GROSS EARNINGS | 104,120,146 | 81,495,608 | 95,144,561 | 77,464,019 | |
| INTEREST AND DISCOUNT INCOME | 68,205,208 | 52,898,466 | 64,043,570 | 51,045,578 | |
| Lease finance income | 2,889 | 2,715 | 2,889 | 2,715 | |
| Interest expense | (22,362,967) | (19,416,060) | (21,325,605) | (18,992,719) | |
| INTEREST MARGIN | 45,845,130 | 33,485,121 | 42,720,854 | 32,055,574 | |
| Loan loss expense (net) | (4,042,381) | (3,934,017) | (3,938,080) | (3,845,258) | |
| 41,802,749 | 29,551,104 | 38,782,774 | 28,210,316 | ||
| Other income | 35,912,048 | 28,594,427 | 31,098,102 | 26,415,726 | |
| 77,714,797 | 58,145,531 | 69,880,876 | 54,626,042 | ||
| Operating expenses | (42,537,719) | (30,777,193) | (35,423,810) | (27,427,338) | |
| PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION | 35,177,078 | 27,368,338 | 34,457,066 | 27,198,704 | |
| Taxation | (6,861,517) | (6,198,861) | (6,383,814) | (5,708,819) | |
| PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION | 28,315,561 | 21,169,477 | 28,073,252 | 21,489,885 | |
| Non controlling interest | (707,003) | (369,030) | - | - | |
| PROFIT ATTRIBUTABLE TO GROUP SHAREHOLDERS | 27,608,558 | 20,800,447 | 28,073,252 | 21,489,885 | |
| APPROPRIATIONS | |||||
| Transfer to statutory reserves | (8,421,976) | (6,446,966) | (8,421,976) | (6,446,966) | |
| Transfer to bonus shares reserve | (1,865,375) | (621,792) | (1,865,375) | (621,792) | |
| Transfer to small scale industries reserve | - | (1,074,494) | - | (1,074,494) | |
| Dividend declared during the year | - | (3,419,854) | - | (3,419,854) | |
| Transfer to retained earnings | 17,321,207 | 9,237,341 | 17,785,901 | 9,926,779 | |
| Earnings per share (Kobo) | |||||
| - Basic | 185k | 167K | 188k | 173K | |
| - Adjusted | 185k | 139K | 188k | 144K | |
| Declared dividend per share | 70k | 75K | 70k | 75K | |
Please paste the following URL into your browser to access the full accounts including notes.
http://www.rns-pdf.londonstockexchange.com/rns/1378R_-2009-4-24.pdf
Statements of Cash Flows
For the 10 months period ended 31 December 2008
| Group | Group | Bank | Bank | ||
| 31 Dec. 2008 | 29 Feb. 2008 | 31 Dec. 2008 | 29 Feb. 2008 | ||
| 10 months | 12 months | 10 months | 12 months | ||
| N'000 | N'000 | N'000 | N'000 | ||
| Operating activities | |||||
| Net cash flow from operating activities before changes in operating assets | 56,550,511 | 32,557,948 | 55,652,913 | 32,647,186 | |
| Changes in operating assets | 145,043,838 | (98,782,169) | 139,250,673 | (112,329,832) | |
| Income tax paid | (2,597,543) | (2,103,103) | (2,151,885) | (1,862,959) | |
| Net cash flows from operating activities | 198,996,806 | (68,327,324) | 192,751,701 | (81,545,605) | |
| Investing activities: | |||||
| Proceeds from disposal of fixed assets | 134,035 | 356,837 | 108,163 | 353,070 | |
| Purchase of fixed assets | (9,744,044) | (14,764,803) | (8,039,703) | (13,253,975) | |
| Purchase of investments | (10,093,070) | (13,348,767) | (20,473,104) | (12,165,634) | |
| Proceeds from sale of investments | 333,674 | 80,000 | 310,830 | 80,000 | |
| Dividend income | 230,398 | 338,762 | 136,253 | 338,762 | |
| Net cash flows from investing activities | (19,139,007) | (27,337,971) | (27,957,561) | (24,647,777) | |
| Financing activities: | |||||
| Dividend paid | (9,575,591) | (7,419,854) | (9,575,591) | (7,419,854) | |
| Long-term borrowings | |||||
| - Inflow from borrowings | - | 4,154,686 | - | 4,154,686 | |
| - Repayment of borrowings | (4,043,518) | (979,617) | (4,043,518) | (979,617) | |
| - Interest paid on borrowings | (2,183,844) | (2,717,538) | (2,183,844) | (2,717,538) | |
| Finance lease | |||||
| - Finance lease repayments | (225,187) | (194,689) | (225,187) | (194,689) | |
| - Interest paid on finance lease | (281,925) | (393,553) | (281,925) | (393,553) | |
| Other facilities - repayment of other facilities | - | (4,488,605) | - | (4,488,605) | |
| Proceeds from issue of GDR (Global Depository | |||||
| Reserves) | - | 103,996,181 | - | 103,996,181 | |
| GDR issue expenses | - | (4,471,836) | - | (4,471,836) | |
| Net cash flows from financing activities | (16,310,065) | 87,485,175 | (16,310,065) | 87,485,175 | |
| Net increase/(decrease) in cash and short term funds | 163,547,734 | (8,180,120) | 148,484,075 | (18,708,207) | |
| Cash and short term funds, beginning of period/year | 119,206,071 | 127,381,363 | 103,519,908 | 122,228,115 | |
| Effect of exchange rate fluctuation on cash held | (411,749) | 4,828 | - | - | |
| Cash and short term funds, end of period/year | 282,342,056 | 119,206,071 | 252,003,983 | 103,519,908 | |
Please paste the following URL into your browser to access the full accounts including notes.
http://www.rns-pdf.londonstockexchange.com/rns/1378R_-2009-4-24.pdf
Please paste the following URL into your browser to access the results presentation.
http://www.rns-pdf.londonstockexchange.com/rns/1378R_1-2009-4-24.pdf