Guaranty Trust Bank 3 Months 2017 Financial Summary

3 Months Report GUARANTY TRUST BANK PLC
	2017 N'000	2016 N'000	change	Year End
Revenue	104,656,897	75,394,191	39%	December
Profit/Loss before taxation	50,392,075	30,675,985	64%
Profit/Loss for the period	41,477,409	25,614,448	62%
Issued Shares (Units)	29,431,179,224	29,431,179,224
Basic Earnings Per Shares (Kobo)	147.00	90.00	63%
Last total dividend paid (Kobo)	0.00	0.00

GTBank Plc released its Q1 result with strong growth on all parameters year on year and quarter on quarter.

Is this a golden year for GTBank? As it remains the Market delight.

A closer look at the result shows that interest income grew by 52.73% , with major contribution coming from investment securities which returned 170% from what it was same period 2016. Interest expenses also jump up indicating that the funds were not cheap. It increased by 26.17%. There was a moderate growth in loan impairment, which grew by 15.15% with contribution from collective and specific impairments.

The fees and commission income head declined marginally by 7% with the major culprit being the E-business income that declined by 63.29%. This implies other Banks are catching up on the E-business.

As the MD mentioned during the conference call after their 2016 financial year end result, that the company would be investing much in FGN stock. Bond trading increased by 124.78% while treasury bills trading increased by 479.55% to buttress the MD remarks. Also worthy of note is the gain on foreign exchange that came to about 200.41%

.

Further examination shows that other operating expenses increased by 26.67%, with AMCON expenses, Business travel expenses, advert promotion and corporate gifts, deposit insurance premium and others all increased.

A closer look at the cash and cash equivalents revealed that has over #165billion in Money market placements against #135billion in 2016.

The Bank seems to have cut out its plan for 2017 and the end result already crafted. We belief that the Bank will maintained its tradition and by midyear we should be expecting interim dividend.  The only surprise that it can give the Market is to pay more than 25k.

We assumed that Market had factored in this result, the reason why it is currently trading above #26. However there should still be a little room for growth.