Shares of Guaranty Trust Bank Plc (GTBank) rose eight per cent at the stock market last week as investors reacted to the impressive 2013 results and declaration of N50 billion dividend.
The stock rose from N23.70 to N25.65 or 8.23 per cent to close as the second highest price gainer in the week that saw only 19 stocks appreciate.
GTBank had in the previous Friday announced gross earnings of N243 billion for the year ended December 31, 2013, showing an increase of nine per cent compared to N232 billion posted in 2012. Profit before tax stood at N103 billion, while profit after tax rose from N87 billion to N90 billion.
Based on the results, the directors had recommended a final dividend of N1.45 for every share held, bringing total dividend for the year to N1.70 (about N50 billion), having paid an interim dividend of 25 kobo earlier.
A further analysis of the results showed that the bank maintained its top position in the industry with pre-tax Return of Equity (ROE) of 34.9 per cent and pre-tax Return on Asset (ROA) of 5.6 per cent.
GTBank increased loan book by 28.6 per cent from N783.91 billion in 2012 to N1.01 trillion in 2013, while customers’ deposits grew by a remarkable 24.3 per cent from N1.15 trillion in 2012 to N1.43tn in 2013. Consequently, the bank closed the 2013 financial year with a balance sheet size in excess of N2 trillion just as shareholdersâ€™ equity increased by 17.9 per cent to N332.35 billion from N281.83 billion in 2012.
The Managing Director/Chief Executive Officer of GTBank, Mr. Segun Agbaje, had explained that in spite of the regulatory headwinds, the bank posted respectable results that reaffirm its reputation as a market leader and a highly ethical financial institution.
He said: “We have maintained our cost-leadership position as typified by the cost-to-income ratio (2013: 43.5 per cent; 2012:43.1 per cent) among peers year-on-year. With this performance, we will maintain our commitment to maximising shareholder value with a proposed dividend pay-out of N1.70 per share, an increase of 10 per cent over the N1.55 paid in 2012 and a share price appreciation of 17 per cent in 2013.
“Our acquisition of Fina Bank Limited, a Kenyan bank with significant business footprint in Rwanda and Uganda, gives us the opportunity to commence business in three East African countries via the acquisition of one bank.â€