The Nation Newspaper

Tag: GTB

  • GTB, Access Bank, Zenith Bank’s directors meet over dividend payment

    The boards of directors of Guaranty Trust Bank (GTB) Plc, Access Bank Plc and Zenith Bank Plc have scheduled meetings later this month to approve the audited financial statement and accounts of the banks for the year ended December 31, 2016. The meetings will among others consider final dividend recommendation to be made to shareholders.

    In separate regulatory filing, the three banks indicated that their directors would be meeting to review and approve the earnings report and accounts for the 2016 business year, preparatory to sending the accounts for the clearance of the Central Bank of Nigeria (CBN) before release to the investing public at the Nigerian Stock Exchange (NSE).

    Under the enhanced listing rules at the NSE which took off on January 1, 2017, quoted companies are expected to submit their annual audited account to the Exchange not later than 90 calendar days after the relevant year end, and published same in at least two national daily newspapers not later than 21 calendar days before the date of the annual general meeting. They are also required to post same on their websites with the web address disclosed in the newspaper publications. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the publication.

    The three leading banks had paid interim dividend of 25 kobo to shareholders based on their half-year results. The share prices of the three banks rose at the weekend at the NSE as expectant investors sought to take positions ahead of the meetings and announcement of the final dividends by the banks. GTB’s share price rose by 7.0 kobo to close weekend at N23.54. Access Bank added 14 kobo to close at N6.28 per share while Zenith Bank’s share price rose by 27 kobo to N14.77 per share.

    Key extracts of the interim report and accounts of GTB for the nine-month period ended September 30, 2016 had shown that gross earnings rose by 43.6 per cent to N329.28 billion by September 2016 as against N229.37 billion in comparable period of 2015. Operating income rose by 59.3 per cent from N174.42 billion to N277.85 billion. Profit before tax grew by 53 per cent to N140.84 billion as against N92.06 billion while profit after rose by 59.6 per cent from N75.16 billion in September 2015 to N119.93 billion in September 2016. Earnings per share closed September 2016 at N4.24 as against N2.65 in September 2015.

    Also, key extracts of the nine-month report of Access Bank for the period ended September 30, 2016 released at the weekend showed that profit before tax rose by 19 per cent to N72 billion in third quarter 2016 as against N60.4 billion in comparable period of 2015. Also, net profit after tax rose by the same margin from N48.1 billion in third quarter 2015 to N57.1 billion in third quarter 2016. Gross earnings had risen from N257.6 billion to N274.5 billion. The growth in gross earnings was driven by 17 per cent increase in interest income on the back of continued growth in the Bank’s core business. Operating income rose to N199.3 billion in third quarter 2016 as against N178.1 billion in corresponding period of 2015.

    Access Bank also improved on the supporting balance sheet for its business. Customer deposits also grew by 25 per cent to N2.1 trillion by September 2016 as against N1.68 trillion recorded at the beginning of the year. The capital adequacy ratio (CAR) of the bank stood at 19 per cent as at September 2016, well above the regulatory minimum. The bank’s asset quality ratios remained well above the regulatory benchmark of 5.0 per cent as the percentage of Non-Performing Loans (NPL) to total gross loans stood at 2.1 per cent. The NPL coverage ratio also remained strong at 209.5 per cent.

  • GTB rallies equities on strong Q3 results

    GTB rallies equities on strong Q3 results

    Guaranty Trust Bank (GTB) Plc led Nigerian equities to break their three-day consecutive negative trading sessions yesterday as investors responded excitedly to the third quarter results of the most capitalised bank in Nigeria.

    GTB’s share price recorded the highest percentage gain of 5.11 per cent to close at N24.49 per share at the Nigerian Stock Exchange (NSE), leading a rally that saw the market recovering from the depreciation that started on Monday. Benchmark indices at the NSE indicated average day-on-day gain of 0.44 per cent, equivalent to net capital gain of N41 billion.

    Aggregate market value of all quoted equities rose from its opening value of N9.438 trillion to close at N9.479 trillion. The All Share Index (ASI), the main value-based index that tracks prices at the stock market, also rose from 27,478.04 points to close at 27,598.34 points. Average year-to-date return meanwhile remained negative, though slightly better, at -3.64 per cent.

    Key extracts of the interim report and accounts of GTB for the nine-month period, which ended September 30, 2016, showed that gross earnings rose by 43.6 per cent to N329.28 billion by September 2016 as against N229.37 billion in comparable period of 2015. Operating income rose by 59.3 per cent from N174.42 billion to N277.85 billion. Profit before tax grew by 53 per cent to N140.84 billion as against N92.06 billion, while profit after rose by 59.6 per cent from N75.16 billion in September 2015 to N119.93 billion in September 2016. Earnings per share closed September 2016 at N4.24 as against N2.65 in September 2015.

    GTB was the most active stock with a turnover of 17.07 million shares valued at N426.53 million. Total turnover stood at 111.89 million shares valued at N4.01 billion in 2,699 deals.

    Other top gainers yesterday included Seplat Petroleum Development Company, which rose by N7 to close at N368; Guinness Nigeria, which added N1.09 to close at N80; Mobil Oil Nigeria, which gathered N1 to close at N187 and International Breweries, which rose by 95 kobo to close at N19.95.

    There were 16 gainers against 14 losers. Ecobank Transnational Incorporated declined by 40 kobo to close at N10.13. Dangote Sugar Refinery dropped by 14 kobo to close at N6.26. African Prudential Registrars and Nigerian Aviation Handling Company lost 13 kobo each to close at N2.56 and N2.92 while Custodian and Allied Insurance slipped by 9.0 kobo to close at N3.71 per share.

  • GTB fashion weekend debuts

    GTB fashion weekend debuts

    GUARANTY Trust Bank plc has announced the debut of the GTBank Fashion Weekend which will hold in Lagos on the 12th and 13th of November 2016. The two-day consumer focused event is themed “Promoting Enterprise” and is set to create an ultimate fashion experience, where the most promising and talented retail brands will showcase the latest fashion trends and products to a large and diverse audience of consumers, fashion aficionados and industry professionals.

    Positioned as a sequel to the GTBank Food and Drink Weekend, the GTBank Fashion Weekend is part of the bank’s initiative to strengthen small businesses in key economic sectors through non-profit consumer-focused fairs and capacity building initiatives that serve to boost their expertise, exposure and business growth.

    The weekend will be headlined by top fashion industry experts,trend setters as well as locally renowned designers and style authorities. Attendees will be treated to a series of fashion events such as Entrepreneurial and Fashion MasterClasses and Retail Exhibitions.

  • GTB grows pre-tax profit by 45% to N91.4b in first half

    GTB grows pre-tax profit by 45% to N91.4b in first half

    Guaranty Trust Bank (GTB) Plc recorded strong growths in incomes and profitability in the first half of this year as the most capitalised banking stock grew pre-tax profit by 45 per cent to N91.4 billion.

    Key extracts of the audited half-year report of GTB for the period ended June 30, 2016 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 37 per cent to N209.9 billion in first half 2016 as against N153 billion recorded in comparable period of 2015. Profit before tax rose from N63.11 billion to N91.38 billion. After taxes, net profit stood at N77.46 billion in first half 2016 compared with N53.37 billion recorded in first half of 2016.

    The bank balance sheet also emerged stronger. Total assets rose to N2.93 trillion by June 2016 as against N2.52 trillion recorded by December 31, 2015. The bank’s loan book grew by 14 per cent from N1.37 trillion recorded as at December 2015 to N1.56 trillion by June 2016. Total deposits also increased by 23 per cent to N2.01 trillion by June 2016 as against N1.64 trillion by December 2015. However, the proportion of non-performing loans to gross loans and advances spiked up slightly to 4.39 per cent but the group made coverage of 170.1 per cent to cushion the bad assets. The bank’s capital adequacy remains strong with capital adequacy ratio of 18.25 per cent while return on equity (ROAE) and return on assets (ROAA) stood at 35.8 per cent and 5.7 per cent respectively.

    The board of directors of the bank has recommended payment of interim dividend per share of 25 kobo to shareholders for the half-year results.

    Managing director, Guaranty Trust Bank (GTB) Plc, Mr Segun Agbaje said the bank had prepared well for the challenges in the industry by focusing on effective management of the balance sheet and adapting its business model to changing market variables.

    “The quality of our past decisions enabled us navigate the challenges that persisted in the business environment most of the half year period,” Agbaje said.

    According to him, while the current economic realities present some challenges to growth, the bank remains committed to its ideals of staying positive, delivering exceptional service to its customers and adding value to all stakeholders.

    He noted that with this solid financial result in the first half, GTB has continued to enshrine its position as a clear leader in the banking industry in Nigeria, with strong showing in Africa, a position validated by numerous awards and accolades received by the bank during the course of the year in recognition of its leading role in Africa.

  • Two banks shut over tax in Ekiti

    Hundreds of customers went home disappointed in Ado Ekiti,  Ekiti State, on Wednesday after  two banks  were shut over alleged non-remittance of tax.

    Officials of the State Internal Revenue Service (IRS) swooped on Guaranty Trust Bank (GTB) and Ecobank, both located on Secretariat Road at about 8:35am and shut them down.

    The closure caught the banks’ staff and customers unaware and ended banking operations abruptly.

    Staff and customers were evacuated from the banks within 35 minutes as bystanders watched the unfolding drama.

    Apart from the doors to the banking halls, gates of the two banks were firmly locked by IRS officials.

  • GTB declares N121b pre-tax profit, N52b dividend

    GTB declares N121b pre-tax profit, N52b dividend

    Guaranty Trust Bank (GTB) Plc, Nigeria’s most capitalised banking stock and fourth most capitalised quoted company, yesterday announced its audited earnings report for the year ended December 31, 2015, showing growth across key top-line and profitability items.

    Key extracts of the audited report and accounts for the year ended December 31, 2015 showed that gross earnings rose by 8.4 per cent to N301.9 billion in 2015 as against N278.5 billion in 2014. Group profit before tax also rose by 3.7 per cent from N116.4 billion in 2014 to N120.7billion in 2015. Profit after tax increased from N94.43 billion in 2014 to N99.44 billion.

    The board of directors of the bank has reco mmended final dividend of N44.74 billion to shareholders, bringing total dividend for the 2015 business year to N52.1 billion. The bank had paid interim dividend of N7.36 billion.

    A breakdown of the dividend recommendation indicated that shareholders would receive a final dividend per share of N1.52, in addition to interim dividend of 25 kobo, bringing total dividend per share to N1.77 for the 2015 business year.

    Further analysis showed that the bank’s balance sheet remained strong with 7.2 per cent growth in total assets from N2.36 trillion in 2014 to N2.52 trillion in 2015. Loans to customers grew by 7.5 per cent to N1.37 trillion from N1.28 trillion in 2014. Despite the implementation of the Treasury Single Account (TSA) by the Federal Government, customer deposits remained relatively stable with a marginal year-on-year decline of 0.49 per cent from N1.62 trillion in 2014 to N1.61 trillion in 2015.

    The bank also continued to maintain a disciplined and prudent approach to loan growth as the proportion of non-performing loans (NPL) stood at 3.21 per cent; up slightly from 3.15 per cent in 2014.

    Commenting on the earnings report, managing director, Guaranty Trust Bank (GTB) Plc, Mr. Segun Agbaje said the bank’s 2015 performance was an indication that it has earned the loyalty of its customers.

    “As a bank, we will continue to actively partner with our customers and grow our business in a sustainable manner that is not only driven by profit objective, but with an increased focus on empowering our customers with a view to growing Nigerian economy,” Agbaje said.

    He reiterated the commitment of the bank to maximising shareholders’ value and delivering superior and sustainable returns whilst actively expanding its franchise in select, high growth African markets where it believes it has a competitive advantage.

  • Afrinvest picks Conoil, Oando, UBA, GTB, 10 others as top stocks for 2016

    Investors looking for above average gains and a reflective stock portfolio to beat the downtrend in 2016 should concentrate on 14 stocks across five key sectors of the economy, according to the 2016 stock recommendation by Afrinvest Securities.

    The 2016 stock recommendation was based on the research and market intelligence prepared by analysts at Afrinvest Securities, a Lagos-based dealer on the Nigerian Stock Exchange (NSE) and member of Afrinvest (West Africa).

    The report portfolio was built around the key sectors such as banking, consumer and industrial goods, insurance, and oil and gas sectors.

    Afrinvest Securities picked 14 stocks across the five sectors with different rating of buy and accumulate, citing potential earnings and resilience to weather the tough operating environment.

    The stocks included Guaranty Trust Bank (GTB); United Bank for Africa (UBA); Zenith Bank International; Nestle Nigeria; Nigerian Breweries; Flour Mills of Nigeria; Dangote Sugar Refinery; Dangote Cement; AIICO Insurance; Continental Reinsurance; AXA Mansard Insurance; Oando, Conoil and Total Nigeria Plc.

    “One key theme that has come up in our analysis and valuation of companies is the tougher operating environment which is consequent on the weak macroeconomic backdrop. Slowing Gross Domestic Products (GDP) growth has been a major headwind on sales of manufacturing companies and risk assets creation by banks. Elevated inflationary pressures and foreign exchange shortages have driven-up costs whilst uncertain direction of fiscal and monetary policy have together worsened the risk landscape and impaired market valuation of assets,” Afrinvest Securities stated.

    According to the report, GDP growth may rebound to 3.5 per cent in 2016 from estimated 3.0 per cent in 2015, largely due to expectation on fiscal stimulus. Inflationary pressure is however predicted to hit double digit while foreign exchange supply constraint would also remain a challenge in 2016 given the negative sentiments deterring autonomous foreign exchange inflow and bearish outlook for oil prices.

    The report noted that these mutually reinforcing factors would combine to pressure revenue, earnings and margins across sectors and remain a drag on market sentiments. The report assumed equity risk premium and inflation assumptions to be 11.4 per cent and 10.1 per cent respectively.

    Afrinvest Securities said while it rated most of the banking stocks, its top picks in the sector were GTB, UBA and Zenith Bank, due to their “rich return on equity, lower cost profile and relatively healthier balance sheet, are positive driver of earnings and sentiment”.

    “We believe Tier-1 banks will continue to deliver superior earnings performance relative to Tier-2 and are better equipped to weather the storm in light of the current challenges, we maintain that investors underweight on Tier-2 banks in favour of Tier-1 banks.

    “We believe most of the banking tickers have already been heavily discounted for projected weaker forward earnings to a point that positive earnings surprises in 2016 will have massive positive knock-on impacts on pricing. Our Tier-2 coverage has higher upsides but we advocate selective and cautious positioning with a keen eye on sentiment drivers,” Afrinvest stated.

    The report noted that while the overall outlook for the consumer goods sector appears negative, there are still opportunities in specific stocks in the sector, adding that sector pricing over a long term horizon presents a fantastic opportunity for discerning investors.

    The report added that the top picks in the consumer goods sector-Nestle Nigeria, Nigerian Breweries, Flour Mills of Nigeria and Dangote Sugar Refinery were selected based on their continuous investment in capacity and expansion, leadership of their respective segments and investor sentiments towards these stocks.

    “In addition, the stocks are so selected given their relative defensiveness as blue chip stocks relative to other stocks within the sector,” Afrinvest said in relation to its top picks in the consumer goods sector.

    The report said Dangote Cement stands out in the industrial goods sector because of its continental operations and dominance of the domestic market.

    According to analysts, as the struggle for market share continues in the cement industry and margins contract, companies with strong volumes growth potential and cost leaders with capacity to grow earnings per share are in better position to deliver better returns.

    “Industry price and cost leader, Dangote Cement is best positioned for this with over 60 per cent of Nigeria’s market share and increased exposure to other regions in Africa with strong earnings potential,” Afrinvest stated.

    Analysts said Dangote Cement’s share price could rise to N183.92 per share over the next 12 months.

    The report expected gross premium growth in the insurance sector to remain positive in 2016, noting that while macroeconomic challenges remain a critical concern, demographic attractiveness and low insurance penetration rate in Nigeria accentuates the compelling growth potential of the sector.

    The report added that tighter regulatory activities which has brought about the implementation of “No Premium No Cover” rule, the launching of the micro insurance scheme and the Takaful insurance as well as the recent claims payment guidelines are expected to strengthen recent gains observed in the sector.

     

    Against the negative sentiments that had trailed Oando since the release of its 2014 results, analysts said the stock appeared to have bottomed out and now presents attractive buy opportunity for investors.

    It noted that “against the colossal sell-off in Oando following the release of its 2014 results, the stock has bottomed out and fundamental analysis gives a ‘buy’ rating”.

    Afrinvest Securities also placed buy on Conoil while urging investors to accumulate shares of Total Nigeria.

    “Since the fall in global oil prices, investor sentiments towards oil and gas stocks have been largely dampened due to the blue outlook. Following this, downstream Nigerian oil companies suffered immediate massive sell-offs. However, our analysis of the companies within our coverage in the downstream sector indicates that bottom line declines have been against foreign exchange illiquidity and subsidy delays. Going forward, with technical removal of subsidy through the price modulation template and diversification strategies of some, we expect an improvement in company returns,” Afrinvest stated.

  • Ikpeba, Nwosu, others for GTB Football Camp

    Ikpeba, Nwosu, others for GTB Football Camp

    Former Super Eagles star, Victor Ikpeba, Henry Nwosu, Mutiu Adepoju, Yisa Sofoluwe, and Waidi Akanni as well as Ex-Super Falcons goalie, Anne Chiejinne will handle proceedings for the annual football development programme sponsored by Guaranty Trust Bank plc tagged Camp GTB which begins today in Ibadan.

    The clinic is scheduled to hold between August 31 to September 7 and as a residential camp, it is designed to train and develop outstanding footballing talents discovered from GTBank sponsored youth football leagues; Principals’ and Masters Cups.

    This year’s camp will hold at The International Institute of Tropical Agriculture (IITA), Ibadan, with 40 participants selected from the GTBank-Lagos State Principals Cup, GTBank-Ogun State Principals Cup and GTBank Masters Cup competitions.

    The ultimate goal of this programme is to sharpen and cultivate the football skills of identified outstanding talents drawing on the experience of top football coaches. The lead coaches for this year’s Camp GTBank are Victor Ikpeba and Henry Nwosu.

    These two outstanding coaches will be supported by four distinguished ex-internationals and football coaches, including Mutiu Adepoju, Yisa Sofoluwe, Anne Chiejinne, and Waidi Akanni.

    The 40 individuals selected will be taken through extensive training sessions on strategy, tactics and conditioning. They will also be given the opportunity to interact with coaches and mentors on and off the pitch. It is expected that their completion of the session will help fine-tune their skills and make them more attractive to clubs and academies as the camp will be open to scouts and coaches searching for young talents.

    According to Segun Agbaje, the Managing Director/CEO of GTBank, “the Bank remains a big supporter of sports, as a vehicle to mentor students and develop their talents. He also reaffirmed the bank’s commitment to the promotion of youth sports development and said that this year’s competition will again provide the students a platform to showcase their skills and further bolster the rekindled faith of Nigerians in home grown talents.”

  • Investors await interim dividends

    Investors await interim dividends

    •Nestle Nigeria, GTBank may declare this week

    The boards of Nestle Nigeria Plc and Guaranty Trust Bank Plc are scheduled to meet this week to review the company’s half-year earnings and possible returns to shareholders.

    Directors of the companies are expected to discuss dividend payments, regulatory filings at the Nigerian Stock Exchange (NSE) indicated. Both companies operate a twice-a-year dividend policy while they also operate the Gregorian calendar as their business year.

    Market analysts said they expected interim dividends and half-year earnings from companies to stimulate mild rallies at the stock market.

    The equities’ market maintained a tight trading position last week as investors remained cautious. With average week-on-week gain 0f 0.14 per cent and almost flat turnover, the market situation was almost at a standstill.

    “Despite the lacklustre performance of the equities market in the first half, we retain our 10 per cent target return for the market by 2014 year-end, as we see opportunities for outperformance in some counters with high volatility,” analysts at Cardinal Stone Partners stated in reference to earnings and dividend outlooks.

    GTBank is expected to declare interim dividend on its audited accounts for the six-month period ended June 30, 2014. At the meeting, the board of the bank is expected to deliberate on the operational reports and financial statements for the six-month period, after which the accounts would be forwarded to the Central Bank of Nigeria (CBN) for the apex bank’s review and approval. The accounts would then be sent to the Nigerian Stock Exchange (NSE).

    GTBank had paid an interim dividend of N7.36 billion, implying a dividend per share of 25 kobo in 2013. It later followed this with final dividend of N42.67 billion, representing a dividend per share of N1.45. The total dividend for 2013 thus stood at N50 billion, representing N1.70 per share.

    There are credible indications that the bank might not go below the interim level in 2013. While the market awaits the second quarter earnings, the bank had recorded modest growth in gross earnings in the first quarter, though its bottom-line was suppressed by relatively higher interest and operating expenses.

    First quarter report of GTBank for the period ended March 31, 2014 showed that while gross earnings rose by 6.0 per cent, profit before tax slipped marginally by 2.0 per cent. Net profit after tax however inched up by 2.0 per cent.

    The performance of the bank across the profit and loss accounts and the balance sheet was tight with slight increases in key balance sheet items. Deposits rose by 3.0 per cent while loans and advances inched up by one per cent. Net assets rose by 6.0 per cent.

    Gross earnings stood at N67.58 billion in first quarter 2014 as against N63.86 billion in comparable period of 2013. Profit before tax dipped from N28.49 billion to N28.01 billion. Profit after tax inched up from N22.56 billion to N23.11 billion. Earnings per share thus increased by similar ratio from 80 kobo to 81 kobo.

    Customer deposits rose from N1.44 trillion in first quarter 2013 to N1.49 trillion in first quarter 2014. Loans and advances increased marginally from N1.01 trillion to N1.02 trillion. Net assets rose by 6.0 per cent from N332.35 billion to N352.89 billion.

    Meanwhile, turnover at the NSE last week stood at 1.78 billion shares worth N19.90 billion in 25,974 deals as against a total of 1.83 billion shares valued at N19.39 billion traded in 26,521 deals in previous week. The financial services sector was the most active with 1.31 billion shares valued at N9.82 billion traded in 12,283 deals; thus contributing 73.6 per cent the total equity turnover volume. The conglomerates sector followed with a turnover of 138.12 million shares worth N873.59 million in 2,103 deals. The third place was occupied by the consumer goods sector with 136.58 million shares worth N4.651 billion in 3,464 deals.

    The three most active stocks were FBN Holdings Plc, Unity Bank Plc and Fidelity Bank Plc, which jointly accounted for 668.15 million shares worth N4.50 billion in 2,807 deals, contributing 37.60 per cent and 22.6 per cent to the total equity turnover volume and value respectively.

    Also, a total of 18,535 units of Exchange Traded Products (ETPs) valued at N483.425.26 were traded in 19 deals compared with a total of 836,683 units valued at N18.094 million traded in 21 deals in the previous week. In the debt segment, a total of 220 units of FGN bonds valued at N260, 072.36 were traded in two deals compared with a total of 10,600 units of FGN bonds valued at N13.64 million traded in two deals in the previous week.

    The All Share Index (ASI), the benchmark index at the NSE, recorded a week-on-week gain of 0.14 per cent to close at 42,891.82, pushing the aggregate market capitalisation similarly to N14.163 trillion. All the NSE sector indices appreciated during the week with the exception of the NSE Oil and Gas Index that depreciated.

     

     

  • Segun Agbaje celebrates 50th birthday in London

    Segun Agbaje celebrates 50th birthday in London

    It was meant to be a low-key party, but the presence of top dignitaries at the 50th birthday celebration of Segun Agbaje was an indication that the Managing Director of GTB is a gold fish that has no hiding place. So, it was another moment of jollity and conviviality in London penultimate weekend as frontline Nigerian businessmen, politicians, bankers, socialites and celebrities gathered to celebrate the eminent banker.

    It was an event that spoke volumes about Agbaje’s influence and social standing. London-based DJ, Cuppy, was in the house to entertain the A-list guests.‎ Cuppy, apart from being the heiress to Femi Otedola’s multi-billion dollar business empire, is also pulling her weight as a female in a male-dominated music sector. Some of the guests were said to be so impressed with her performance that they rained dollars and pound sterling on her.