Guaranty Trust Bank Plc H1 2018 Conference Call and Earnings Presentation - The Key Takeaways

Tuesday, August 14, 2018 07:23 PM / Proshare Markets

Guaranty Trust Bank Plc held its H1 2018 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.

The bank, in its presentation gave an overview of the economy as well as an overview of the operating environment highlighting the key steps and policy initiatives of the key regulator of its industry of operation within the half year period under review.

Guaranty Trust Bank Plc recorded a gross earnings of N226.6bn in H1 2018 as against N214.1bn in H1 2017, up by 5.9% YoY while its net interest income dropped by -9% from N117.9bn in H1 2018 to N129.54bn in H1 2017.The bank’s  Profit After Tax increased by 14%  YoY from N83.68bn in H1 2017 to N95.58bn in H1 2018.  This was driven by efficient balance sheet, growth in transactional volumes arising from effective delivery of financial services, strong asset quality and moderate OPEX growth.

Its balance sheet snapshot reflected that its gross and net loan and advances declined by -6.8% and -10.8% respectively while its total equity also dropped by -20.5% Yoy.

At the close of trading today, the share price of Guaranty Trust Bank Plc moved down by a tick size of -0.52% to close at N38.60k from N38.80k previous close price.

In a nutshell, below are the key takeaways from the H1 2018 earnings presentation made by the bank’s management;

1.      The bank’s interest income declined as a result of declining yield environment in 2018 compared with corresponding period last year.

2.      Its Impairment charge for Stage 3/Lifetime Credit Impaired exposures increased by N31.7 bn under IFRS 9.

3.      The Group’s CAR dropped to 22.04% in H1 2018 from 25.68% in December 2017which is well above the regulatory requirement of 15% in spite of the implementation of IFRS 9.

4.      The bank currently has strong naira liquidity and also has sufficient FX liquidity;

5.      The bank sets a loan growth of 10^% as its 2018 FY guidance. This was at 11% as at H1 2018.

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