LSE:GRTB

Stock Analysis Report

Guaranty Trust Bank

Executive Summary

Guaranty Trust Bank Plc provides banking products and services in Nigeria, the rest of West Africa, East Africa, and Europe.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Guaranty Trust Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GRTB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

GRTB

-3.6%

GB Banks

0.05%

GB Market


1 Year Return

-17.6%

GRTB

-6.0%

GB Banks

7.1%

GB Market

Return vs Industry: GRTB underperformed the UK Banks industry which returned -6% over the past year.

Return vs Market: GRTB underperformed the UK Market which returned 7.1% over the past year.


Shareholder returns

GRTBIndustryMarket
7 Day1.4%-3.6%0.05%
30 Day-3.2%-3.6%-1.7%
90 Day-5.0%-2.3%4.1%
1 Year-11.2%-17.6%-1.2%-6.0%12.6%7.1%
3 Year30.6%9.1%-6.7%-17.4%18.4%3.6%
5 Year3.2%-27.0%-2.6%-21.1%35.2%4.2%

Price Volatility Vs. Market

How volatile is Guaranty Trust Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Guaranty Trust Bank undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRTB ($4.2) is trading below our estimate of fair value ($7.96)

Significantly Below Fair Value: GRTB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GRTB is good value based on its PE Ratio (4.3x) compared to the Banks industry average (9.2x).

PE vs Market: GRTB is good value based on its PE Ratio (4.3x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: GRTB is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: GRTB is overvalued based on its PB Ratio (1.3x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Guaranty Trust Bank forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRTB's forecast earnings growth (1.7% per year) is above the savings rate (0.5%).

Earnings vs Market: GRTB's earnings (1.7% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: GRTB's earnings are forecast to grow, but not significantly.

Revenue vs Market: GRTB's revenue (7.3% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: GRTB's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRTB's Return on Equity is forecast to be high in 3 years time (28.7%)


Next Steps

Past Performance

How has Guaranty Trust Bank performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRTB has high quality earnings.

Growing Profit Margin: GRTB's current net profit margins (54.3%) are higher than last year (52.6%).


Past Earnings Growth Analysis

Earnings Trend: GRTB's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: GRTB's earnings growth over the past year (2.4%) is below its 5-year average (16.6% per year).

Earnings vs Industry: GRTB earnings growth over the past year (2.4%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: GRTB's Return on Equity (29.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Guaranty Trust Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GRTB has a low level of unsold assets or inventory.

Debt Coverage by Assets: GRTB's debt is covered by short term assets (assets are 6.8x debt).


Financial Institutions Analysis

Asset Level: GRTB's level of assets compared to its equity is low.

Allowance for Bad Loans: GRTB has a low allowance for bad loans.

Low Risk Liabilities: GRTB's liabilities are made up of primarily low risk sources of funding.

Loan Level: GRTB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GRTB's loans are broadly funded by customer deposits.

Level of Bad Loans: GRTB has a high level of bad loans (5.61%)


Next Steps

Dividend

What is Guaranty Trust Bank's current dividend yield, its reliability and sustainability?

9.48%

Current Dividend Yield


Dividend Yield vs Market

company9.5%marketbottom25%1.8%markettop25%5.1%industryaverage6.4%forecastin3Years10.7%

Current dividend yield vs market & industry

Notable Dividend: GRTB's dividend (9.48%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: GRTB's dividend (9.48%) is in the top 25% of dividend payers in the UK market (5.09%)


Stability and Growth of Payments

Stable Dividend: GRTB's dividend payments have been volatile in the past 10 years.

Growing Dividend: GRTB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.1%), GRTB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GRTB's dividends in 3 years are forecast to be well covered by earnings (42.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Segun Agbaje (55yo)

8.7yrs

Tenure

0

Mr. Julius K. Olusegun Agbaje, also known as Segun, has been the Chief Executive Officer and Managing Director of Guaranty Trust Bank Plc since July 12, 2011 and June 22, 2011 respectively. Mr. Agbaje serv ...


Leadership Team

NamePositionTenureCompensationOwnership
Julius K. Agbaje
MD, CEO & Director8.7yrsno data0.15% NGN3.2m
Adebanji Adeniyi
GM, CFO and Head of Finl Ctrl Group Reporting & Strategy Div0yrsno datano data
Olusina Ayegbusi
GM & Head of Technology Division0yrsno datano data
Olawale Abdul
Assistant GM & Head of Administration Group2.1yrsno datano data
Golden Nwaiwu
Head of Investor Relations0yrsno datano data
Subuola Abraham
GM & Chief Compliance Officer3.1yrsno datano data
Oyinade Adegite
Deputy GM & Head of Communication & External Affairs Group3.1yrsno datano data
Oyiza Salu
Deputy GM & Head of Human Resources Group0yrsno datano data
George Uwakwe
GM & Head of Enterprise Risk Management Division0yrsno datano data
Miriam Olusanya
Head of Wholesale Banking Division & Executive Director1.5yrsno data0.0017% NGN37.2k

3.1yrs

Average Tenure

Experienced Management: GRTB's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Julius K. Agbaje
MD, CEO & Director8.7yrsno data0.15% NGN3.2m
Miriam Olusanya
Head of Wholesale Banking Division & Executive Director1.5yrsno data0.0017% NGN37.2k
Ademola Odeyemi
Head of International Banking8.3yrsno data0.034% NGN720.2k
Haruna Musa
Head of North-East Division & Public Sector Abuja and Executive Director4.5yrsno data0.00042% NGN9.0k
Mobolaji Lawal
Head of Digital Banking Division & Executive Director2.9yrsno data0.00091% NGN19.5k
Babajide Okuntola
Executive Director & Head of Oil & Gas Division1.2yrsno datano data
Olabode Agusto
Non-Executive Director9.8yrsno data0.00072% NGN15.4k
Ibrahim Hassan
Non-Executive Director9.8yrsno data0.0023% NGN48.6k
Osaretin Demuren
Chairman of Board of Directors4.9yrsno data0.0013% NGN27.4k
Hezekiah Oyinlola
Non-Executive Director5.8yrsno datano data

5.4yrs

Average Tenure

55yo

Average Age

Experienced Board: GRTB's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Guaranty Trust Bank Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guaranty Trust Bank Plc
  • Ticker: GRTB
  • Exchange: LSE
  • Founded: 1990
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₦777.977b
  • Listing Market Cap: ₦2.140b
  • Shares outstanding: 27.78b
  • Website: https://www.gtbank.com

Number of Employees


Location

  • Guaranty Trust Bank Plc
  • Plot 635
  • Akin Adesola
  • Lagos
  • Nigeria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GUARANTYNGSE (Nigerian Stock Exchange)YesOrdinary SharesNGNGNMay 2000
37G1DB (Deutsche Boerse AG)SPON GDR REG SDEEURJul 2007
GRTBLSE (London Stock Exchange)SPON GDR REG SGBUSDJul 2007
GUAR.YOTCPK (Pink Sheets LLC)SPON GDR REG SUSUSDJul 2007
GRTBLBATS-CHIXE (BATS 'Chi-X Europe')SPON GDR REG SGBUSDJul 2007

Biography

Guaranty Trust Bank Plc provides banking products and services in Nigeria, the rest of West Africa, East Africa, and Europe. The company operates through five segments: Corporate Banking, Commercial Banking, Retail Banking, SME Banking, and Public Sector. It offers current accounts, deposits, overdrafts, loans and other credit facilities, foreign currency and derivative products, private banking and international concierge services, private customer current accounts, savings deposits, investment savings products, custody, credit and debit cards, consumer loans, and mortgages products. The company also provides letters of credit, bills for collection, time/term loans, bankers acceptances, and leases; loans, bonds, and guarantees; and portfolio management services, tenured deposits, and FX forward contracts, as well as online banking and other services. It serves large corporate customers and blue chips, mid-size and fledgling corporate customers, small and medium-size enterprises and ventures, government ministries, departments, and agencies. The company was founded in 1990 and is headquartered in Lagos, Nigeria. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:27
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.