Coy: Guaranty Trust Bank Plc
Rating: Strong Buy
Current Market Price: N29.80
Loan to Deposit Ratio: 46.05%
Year High: N36.00
Year Low: N 27.85
Fair Value: N39.69
By: Jeariogbe Tunde Segun (Equity Analyst)
Key Financial Ratios
- Gross Earnings & Turnover only improved marginally above corresponding year’s numbers
- Equity Ratio dipped by 9.93%
- ROAE dropped but still impressive
- Book Value remained at slight gap below market value, investors may be rightly pricing the shares of Guaranty Trust Bank on the exchange floor
- A Final Dividend of N2.70 was announced as against N2.50 in the corresponding year. Kindly note that 30k was initially paid as interim dividend before now
- The said dividend is same as 39.45% of the total earnings achieved through the 2020 financial year
- Although it achieved earnings yield of 22.97%, Dividend yield over the price of Guaranty Trust Bank when the result was released is only 9.06%
- The Closure Date for the said dividend is 1st April, 2021. In other words, the qualification date will be 31st March, 2021
- According to the document released by the bank, the said final dividend shall be paid on 9th April, 2021
| GUARANTY | |
| Bourse | Nigerian Stock Exchange |
| Code Name | GUARANTY |
| Sector | FINANCIAL SERVICES |
| Market Classification | MAIN BOARD |
| Nature of Business | Commercial Banking |
| Date of Incorporation | July 20th 1990 |
| Date Listed | September 9th 1996 |
| End of Accounting Year | 31st December |
| Website | www.gtbank.com |
| Registrar | Datamax Registrars Limited |
| Auditor | PRICEWATERHOUSECOOPERS |
| Share Price@Relsd (N) | 29.80 |
| Earnings per Share | 6.84 |
| Intrinsic Value(N) | 39.69 |
| Share Outstanding | 29,431,179,224 |
| Market Capitalisation | 877,049,140,875 |
| GUARANTY-FULL YEAR 2020 NUMBERS | |||
| Statement of Comprehensive Income | |||
| TICKERS | 2020(000) | 2019(000) | %CHG |
| GROSS EARNINGS | 455,229,759 | 435,306,541 | 4.58 |
| INTEREST INCOME | 300,737,588 | 296,204,699 | 1.53 |
| INTEREST EXPENSES | 47,069,441 | 64,841,597 | 27.41 |
| NET INTEREST INCOME | 253,668,147 | 231,363,102 | 9.64 |
| OPEX | 116,283,160 | 106,164,001 | 9.53 |
| DEPRECIATION | 29,046,513 | 22,692,637 | 28.00 |
| PBT | 238,095,070 | 231,707,834 | 2.76 |
| TAX | 36,655,130 | 34,842,168 | 5.20 |
| PAT | 201,439,940 | 196,849,281 | 2.33 |
| TOTAL COMP INCOME | 210,551,705 | 193,668,944 | 8.72 |
| Statement of Financial Position | |||
| Total Assets | 4,944,653,293 | 3,758,918,770 | 31.54 |
| Total Liabilities | 4,130,257,616 | 3,071,581,302 | 34.47 |
| Net Assets | 814,395,677 | 687,337,468 | 18.49 |
| Property Plan & Equipment | 148,782,835 | 141,774,863 | 4.94 |
| Retained Earnings | 193,921,810 | 119,247,653 | 62.62 |
| Total Deposits | 3,610,828,787 | 2,640,058,782 | 36.77 |
| Total Loans and Advances | 1,662,830,742 | 1,502,085,356 | 10.70 |
| Financial Strength/Solvency Ratio | |||
| TICKERS | 2020 | 2019 | %CHG |
| Debt Ratio | 83.53% | 81.71% | 2.22 |
| Total Debt to Equity Ratio (MRQ) | 5.07 | 4.47 | 13.49 |
| Equity Ratio | 16.47% | 18.29% | 9.93 |
| Beta Value | 1.00 | 1.11 | 9.91 |
| PROFITABILITY RATIOS | |||
| TICKERS | 2020 | 2019 | %CHG |
| PRE-TAX MARGIN | 52.30% | 53.23% | 1.74 |
| EFFECTIVE TAX RATE | 15.40% | 15.04% | 2.38 |
| IE TO GE | 10.34% | 14.90% | 30.59 |
| ROAE | 24.73% | 28.64% | 13.63 |
| ROAA | 4.07% | 5.24% | 22.21 |
| EFFICIENCY RATIOS | |||
| TICKERS | 2020 | 2019 | %CHG |
| OPEX TO GE | 25.54% | 24.39% | 4.74 |
| GE TO TA | 9.21% | 11.58% | 20.50 |
| LDR | 46.05% | 56.90% | 19.06 |
| Capex/Share | 1.23 | 1.79 | 31.51 |
| GUARANTY | |||
| Investment/Valuation Ratios | |||
| Tickers | 2020 | 2019 | %Chg |
| EPS | 6.84 | 6.69 | 2.33 |
| TCIP/SHARE | 7.15 | 6.58 | 8.72 |
| P/E-Ratio | 4.35 | 3.39 | 28.29 |
| Earnings Yield | 22.97% | 29.46% | 22.05 |
| BV/Share | 27.67 | 23.35 | 18.49 |
| PBV | 1.08 | 0.97 | 10.80 |
| LDR | 46.05% | 56.90% | 19.06 |
| DIVIDEND INFORMATION | |||
| Tickers | 2020 | 2019 | %Chg |
| Latest Final Dividend | 2.70 | 2.50 | 8.00 |
| Final Dividend Pay-Out Ratio | 3 9.45% | 37.38% | 5.54 |
| Final Dividend Yield | 9.06% | 11.01% | -17.73 |
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