Guaranty Trust Bank Plc (GTBank) on Wednesday declared its 2017 third quarter (Q32017) financial report, which showed that the bank grew its Profit (after Tax) for the period by a marginal 7.26 percent being N8.497 billion better than the N117.081 billion recorded in the corresponding period last year to close at 125.578 billion for the period ended 30th September, 2017.
According to the company’s third quarter result released by the Nigerian Stock Exchange (NSE), Net Interest Income recorded the most percentage growth being 36.48 percent better than 2016’s corresponding period’s feat to have the bank have its Net Interest Income close at N248.270 billion against N181.910 billion previously recorded.
GTBank which as at this day (Wednesday, 18 October, 2017), has had its stock grow by 77.45 percent in the last one year (Year-to-Date), had its Profit before Tax (PBT) for Q32017 at N150.003 billion, being 8.73 percent better than N137.991 billion recorded in the same period in 2016.
The report also showed that the bank had its loan impairment charges declined by 85.36 percent to N8.357 billion from N57.083 billion of 2016, bringing the Net interest income after loan impairment charges to N37.977 billion in Q32017 equating to 21.10 percent drop from 2016’s N48.134 billion.
The company’s Total Assets for the period Q32017 stood at N3.213 trillion. It represents 3.10 percent growth from N3.116 trillion recorded in the same period in 2016. On the flipside, the bank grew its Total Liabilities by 0.75 percent from N2.611 trillion recorded in Q32016 to N2.631 trillion in Q32017.
Further analysis showed that the bank which recently marked 10years of being listed on the London Stock Exchange (LSE), had its Earnings per Share grow by 7.25 percent from N4.14 of Q32016 to N4.44 of Q32017. The Price Earnings (P.E.) Ratio stood at 9.39 while the earnings yield stood at 10.65 percent.
Recall that the commercial lender, announced its intention to offer cash to holders of the $400 million notes it offered to investors sometimes ago at 6 percent.
The notes, according to the lender, are due in November 2018.
GTBank had in a notice to the Nigerian Stock Exchange (NSE), disclosed that the commencement and settlement dates for the offer were September 25 and October 5, 2017, respectively.
“Kindly be informed that, Guaranty Trust Bank Plc (GTBank) intends to launch an invitation to holders of its $400 million 6 percent notes due 2018 (the Notes) to tender any and all of their Notes for purchase by GTBank in exchange for cash (the Offer),” the financial institution said in the notice to the stock market regulator.
GTBank explained that, “Through the offer, GTBank seeks to deploy its available Dollar liquidity to the repurchase of the notes ahead of the scheduled maturity in November 2018.
“This liability management exercise allows GTBank to efficiently manage its liquidity by addressing debt maturing in 2018.
“The extent to which this goal can be achieved through the Offer will depend on the number of Notes that will be tendered in the Offer, given the voluntary nature of the Offer. The Notes purchased by GTBank under the Offer will be cancelled.”
The notice said, “GTBank has retained the services of Lucid Issuer Services Limited as tender agent and Exotix Partners LLP, J.P. Morgan Securities Plc and Morgan Stanley & Co. International Plc as Dealer Managers in connection with the Offer.”
The report showed that the gross earnings represented a growth of 25.75 per cent when compared to N265.53 billion posted in the comparative period of 2016.
Also, the company’s profit before tax during the period under review increased by 33.2 per cent or N19.53 billion to N78.33 billion as against N58.79 billion in the corresponding period.
The result showed that profit for the year closed higher at N60.92 billion from N49.51 billion, representing an increase of N11.41 billion or 23 per cent.
Further analysis showed that net interest income stood at N152.29 billion from N112.07 billion achieved in the preceding period of 2016.
Its interest income declined to N238.09 billion compared to N265.53 billion in 2016, while interest expenses stood at N85.79 billion from N70.92 billion in 2016.
However, the non-interest income rose to N84.60 billion from N71.19 billion, while fees and commission surged to N57.89 billion from N56.22 billion recorded in the corresponding period.
Similarly, total assets increased to N3.77 trillion from N3.50 trillion in 2016, while total liabilities rose to N3.26 trillion from N3.06 trillion in comparative period of 2016.
Loans and advances to customers grew to N1.08 trillion from N970.39 billion reported in the preceding period.