Earnings ReportFeatured

Fair Performance, Lower Growths; GT-Bank Announces N2.70 Final Cash Dividend

 

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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Earnings ReportFeatured

Fair Performance, Lower Growths; GT-Bank Announces N2.70 Final Cash Dividend

 

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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