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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