GUARANTY TRUST BANK PLC 2016 FINANCIAL SUMMARY

12 Months Report GUARANTY TRUST BANK PLC
	2016 N'000	2015 N'000	change	Year End
Revenue	414,615,588	301,850,111	37%	December
Profit before taxation	165,136,461	120,694,804	37%
Profit for the period	132,280,655	99,436,881	33%
Issued Shares (Units)	29,431,179,224	29,431,179,224
Basic Earnings Per Shares (Kobo)	467.00	351.00	33%
Last total dividend paid (Kobo)	175.00	152.00	15.13%

Guaranty Trust Bank Plc became the third Bank after Zenith Bank and Access Bank Plc to release its result to the public on the Nigerian Stock Exchange. The company declared a dividend of #1.75k against #1.52k it paid the same period last year. This is a dividend increase of 15.13% and a dividend yield of 6.76%, not included here is the 25k interim dividend paid within the year 2016.     The reaction of the Market to the former two banks result is lukewarm, especially   for Zenith Bank that raced to #15.40k when its result hit the Market, then quickly declined, while on the other hand Access Bank had lost steam before the release of its result, the result however took further steam from it beating it down to around #5.00 before it recovered. 

Would Market perception exempt Guaranty Trust Bank Plc from the harsh  treatment meted on the former two? Time will tell!!!

But before time tells let us look at the quarter on quarter performance of the Company:

Gross Income N'000

Q1: #75,394,181

Q2: #134,478,481

Q3: #119,410,975

Q4: #85,331,951

The Gross income spike in Q2 2016 and that continued through Q3 was a result of the Devaluation of the Naira against other currencies. GTBank benefited immensely from the foreign exchange revaluation gains that follows. A closer look at the report shows that the company made a gain of    #60.5 billion and #32.2 billion for Q2 and Q3 respectively. Every other income head remains moderate within the period. 

PAT N'000

Q1: #25,614,448

Q2:#51,846,626

Q3:#42,466,319

Q4:#12,353,262

The company was able to keep all expenses moderate and was able to translate the gains from foreign exchange revaluation to the bottom line.

Worthy of note is the Loan impairment charge that jumped to #65,290,310,000 from #12,408,194,000 a whopping increase of 426.19%. This is an increase brought about by increase in collective impairment . This calls for concern going forward. If the company had not made that huge gains from revaluation i belief this story would have been different. This loans and advances are to individual and non-individuals.

A tax expense increase of 54.55% is another concern. The marked increase in the company income tax and the origination of temporary differences largely contributed to this.

The Company must do well on Loan recovery and risk analysis to do well in 2017. The CBN may not devalue naira again this year thereby such huge gains from Forex revaluation may not repeat itself. 

The Market has opened, let us see the Market opinion about the Company performance for 2016.