- Home
- StockWorld
- GTBank: Stability on All Fronts
GTBank: Stability on All Fronts
- By Kayode Ogunwale
- Published May 11th, 2010
- StockWorld
- Unrated
History
GUARANTY Trust Bank Plc was incorporated in July 1990, as a private limited liability company wholly owned by Nigerian individuals and institutions. GT Bank licensed as a commercial Bank in August 1990 and commenced operation in February 1991.
Five years later, in September 1996, Guaranty Trust Bank became a publicly quoted company and won the Nigerian Stock Exchange (NSE) Presidential Merit award that same year and subsequently in the years 2000, 2003, 2005, 2006, 2007 and 2008. In February 2002, the bank was granted a universal banking license and later appointed a settlement bank by the Central Bank of Nigeria (CBN) in 2003.
Guaranty Trust Bank undertook its second share offering in 2004 and successfully raised over N11 billion from Nigerian investors to expand its operations and favourably compete with other global financial institutions. This development ensured the bank was satisfactorily poised to meet the N25 billion minimum capital base for banks introduced by the CBN in 2005, as part of the consolidation exercise by the regulating body to sanitise and strengthen Nigerian banks.
Post-consolidation, Guaranty Trust Bank made a strategic decision to actively pursue retail banking. A major rebranding exercise followed in June 2005, which saw the bank emerge with innovative, cutting edge service offerings, aggressive expansion strategies advertising policies and its now trademark vibrant orange.
In 2007, the bank entered the African business landscape history books as the first Nigerian Financial Institution to undertake a $350 million regulation S Eurobond issue and a $750 million Global Depositary Receipts (GDR) Offer. The listing of the GDRs on the London Stock Exchnage in July that year made the bank the first Nigerian company and African Bank to attain such a landmark achievement.
In December 2009, Guaranty Trust Bank once again set the pace by successfully completing the first tranche of its $200 million dollars corporate bond the first corporate bond in Nigeria for a very long while.
People
GTBank is a 14 man board headed by Owelle Gilbert Chikelu CON as the chairman. Mr. Tayo Akinrinokun MFR is the managing director; Mr. Olusegun Agbaje is the deputy managing director. The non executive directors of the bank are Alhaji Mohammed Jada, Mr. Victor Osibodu, Mr. Adetokunbo Adesanya, Mr. Egbert Imomoh, Mr. Oluwole Oduyemi, Mr. Andrew Alli and Mr. Akindele Akintoye. Other executive directors of the bank are Mr. Babajide Ogundare, Mrs. Catherine Echeozo, Mrs.Titi Osuntoki and Mr. Akin George-Taylor.
Capital Adequacy
The authorized share capital of GTBank group was 30 billion ordinary shares of 50 kobo each worth N15 billion in 2008 and was unchanged in 2009.
It’s issued and fully paid share capital also stands at 16.27 billion ordinary shares of 50 kobo worth N8.13 billion, same as the preceding year.
The group’s shareholders’ fund increase by 6 per cent from N182.034 billion in 10 months of 2008 to N192.245 billion in 2009, while that of the bank went up by 5 per cent to stand at N188.476 billion in 2009 from N179.551 billion in 2008.
Asset Quality
The total assets of GTBank group increased to N1.067 trillion during the 2009 financial year, from N959.184 billion which it had at the end of its 2008 financial year. While the assets of the bank stood at N1.020 trillion in 2009 from N918.279 billion in 2008.
The group’s total liabilities went up by 12 per cent or N97.109 billion from N777.150 billion in 2008 to N874.259 billion in 2009, just as that of the bank also went up by N92.708 billion or 13 per cent from N738.728 billion to stand at N831.436 billion in 2009 financial year.
Earnings /Profitability
Gross earnings of the group during the year under review stand at N162.550 billion against N100.606 billion in 2008 financial year ended 31st December went up by N61.944 billion or 62 per cent, while that of the bank which was N93.017 billion in 2008, increased to N151.698 billion in 2009 representing 63 per cent increase. The group recorded net interest margin of N47.750 billion in 2008 to stand at N79.027 billion in 2009 financial year, while that of the bank was N45.762 billion to stand at N73.468 billion in 2009. Operating expenses of the group went up by N15.115 billion or 37 per cent from N41.055 in 2008 to N56.170 billion during the year under review, just as that of the bank also went up by N14.442 billion or 41 per cent from N35.522 billion in 2008 to stand at N49.963 billion in 2009.
Profit before taxation (PBT) of the group for the 2009 financial year was down by 21 per cent as the group recorded N27.963 billion in 2009 as PBT to N35.329 billion it made the previous year. The bank also recorded 22 per cent depreciation in its profit before taxation which dropped to N26.960 billion from N34.609 billion. Profit after taxation (PAT) of the group was N23.687 billion at the end of its 2009 financial year down by 16 per cent from N28.316 billion in 2008, while the PAT of the bank dropped to N23.848 billion from N28.073 billion representing 15 per cent depreciation.
Scorecard
The gross earning of the bank grew from N151.70 billion recorded in the previous year to N162.55 billion, while profit before tax stood at N27.96 billion. Strict stipulations mandated by the CBN temporarily eroded the profit margin of the bank, effectively translating to an additional N29.71 billion provision in the review period. Also total assets plus contingents grew by 5 per cent from N1.33 trillion to N1.40 trillion, while shareholders’ funds stood at N187.10 billion as at 31st December, 2009.
During the course of the year, the first tranche of the N200 billion bond programme approved by the board in August 2009 was issued. Resoundingly, the bank succeeded in raising N13.17 billion during this first phase alone. The five year long term debt capital, which is to be repaid in 2014, will improve the lending capacities of the bank, and further position the bank for new opportunities as the economy improves.
Deposit liabilities grew by N20.82 billion, a 3 per cent increase above the N662.26 billion figure recorded in December 2008. This growth was largely influenced by the re-classification of bankers’ acceptances and commercial paper as on-balance sheet items.
GUARANTY Trust Bank Plc was incorporated in July 1990, as a private limited liability company wholly owned by Nigerian individuals and institutions. GT Bank licensed as a commercial Bank in August 1990 and commenced operation in February 1991.
Five years later, in September 1996, Guaranty Trust Bank became a publicly quoted company and won the Nigerian Stock Exchange (NSE) Presidential Merit award that same year and subsequently in the years 2000, 2003, 2005, 2006, 2007 and 2008. In February 2002, the bank was granted a universal banking license and later appointed a settlement bank by the Central Bank of Nigeria (CBN) in 2003.
Guaranty Trust Bank undertook its second share offering in 2004 and successfully raised over N11 billion from Nigerian investors to expand its operations and favourably compete with other global financial institutions. This development ensured the bank was satisfactorily poised to meet the N25 billion minimum capital base for banks introduced by the CBN in 2005, as part of the consolidation exercise by the regulating body to sanitise and strengthen Nigerian banks.
Post-consolidation, Guaranty Trust Bank made a strategic decision to actively pursue retail banking. A major rebranding exercise followed in June 2005, which saw the bank emerge with innovative, cutting edge service offerings, aggressive expansion strategies advertising policies and its now trademark vibrant orange.
In 2007, the bank entered the African business landscape history books as the first Nigerian Financial Institution to undertake a $350 million regulation S Eurobond issue and a $750 million Global Depositary Receipts (GDR) Offer. The listing of the GDRs on the London Stock Exchnage in July that year made the bank the first Nigerian company and African Bank to attain such a landmark achievement.
In December 2009, Guaranty Trust Bank once again set the pace by successfully completing the first tranche of its $200 million dollars corporate bond the first corporate bond in Nigeria for a very long while.
People
GTBank is a 14 man board headed by Owelle Gilbert Chikelu CON as the chairman. Mr. Tayo Akinrinokun MFR is the managing director; Mr. Olusegun Agbaje is the deputy managing director. The non executive directors of the bank are Alhaji Mohammed Jada, Mr. Victor Osibodu, Mr. Adetokunbo Adesanya, Mr. Egbert Imomoh, Mr. Oluwole Oduyemi, Mr. Andrew Alli and Mr. Akindele Akintoye. Other executive directors of the bank are Mr. Babajide Ogundare, Mrs. Catherine Echeozo, Mrs.Titi Osuntoki and Mr. Akin George-Taylor.
Capital Adequacy
The authorized share capital of GTBank group was 30 billion ordinary shares of 50 kobo each worth N15 billion in 2008 and was unchanged in 2009.
It’s issued and fully paid share capital also stands at 16.27 billion ordinary shares of 50 kobo worth N8.13 billion, same as the preceding year.
The group’s shareholders’ fund increase by 6 per cent from N182.034 billion in 10 months of 2008 to N192.245 billion in 2009, while that of the bank went up by 5 per cent to stand at N188.476 billion in 2009 from N179.551 billion in 2008.
Asset Quality
The total assets of GTBank group increased to N1.067 trillion during the 2009 financial year, from N959.184 billion which it had at the end of its 2008 financial year. While the assets of the bank stood at N1.020 trillion in 2009 from N918.279 billion in 2008.
The group’s total liabilities went up by 12 per cent or N97.109 billion from N777.150 billion in 2008 to N874.259 billion in 2009, just as that of the bank also went up by N92.708 billion or 13 per cent from N738.728 billion to stand at N831.436 billion in 2009 financial year.
Earnings /Profitability
Gross earnings of the group during the year under review stand at N162.550 billion against N100.606 billion in 2008 financial year ended 31st December went up by N61.944 billion or 62 per cent, while that of the bank which was N93.017 billion in 2008, increased to N151.698 billion in 2009 representing 63 per cent increase. The group recorded net interest margin of N47.750 billion in 2008 to stand at N79.027 billion in 2009 financial year, while that of the bank was N45.762 billion to stand at N73.468 billion in 2009. Operating expenses of the group went up by N15.115 billion or 37 per cent from N41.055 in 2008 to N56.170 billion during the year under review, just as that of the bank also went up by N14.442 billion or 41 per cent from N35.522 billion in 2008 to stand at N49.963 billion in 2009.
Profit before taxation (PBT) of the group for the 2009 financial year was down by 21 per cent as the group recorded N27.963 billion in 2009 as PBT to N35.329 billion it made the previous year. The bank also recorded 22 per cent depreciation in its profit before taxation which dropped to N26.960 billion from N34.609 billion. Profit after taxation (PAT) of the group was N23.687 billion at the end of its 2009 financial year down by 16 per cent from N28.316 billion in 2008, while the PAT of the bank dropped to N23.848 billion from N28.073 billion representing 15 per cent depreciation.
Scorecard
The gross earning of the bank grew from N151.70 billion recorded in the previous year to N162.55 billion, while profit before tax stood at N27.96 billion. Strict stipulations mandated by the CBN temporarily eroded the profit margin of the bank, effectively translating to an additional N29.71 billion provision in the review period. Also total assets plus contingents grew by 5 per cent from N1.33 trillion to N1.40 trillion, while shareholders’ funds stood at N187.10 billion as at 31st December, 2009.
During the course of the year, the first tranche of the N200 billion bond programme approved by the board in August 2009 was issued. Resoundingly, the bank succeeded in raising N13.17 billion during this first phase alone. The five year long term debt capital, which is to be repaid in 2014, will improve the lending capacities of the bank, and further position the bank for new opportunities as the economy improves.
Deposit liabilities grew by N20.82 billion, a 3 per cent increase above the N662.26 billion figure recorded in December 2008. This growth was largely influenced by the re-classification of bankers’ acceptances and commercial paper as on-balance sheet items.
