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Guaranty Trust Bank

LSE:GRTB
Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GRTB
LSE
NGN967B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

Guaranty Trust Bank Plc provides banking products and services in Nigeria, the rest of West Africa, East Africa, and Europe. The last earnings update was 2 days ago. More info.


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GRTB Share Price and Events
7 Day Returns
-6.3%
LSE:GRTB
2.3%
GB Banks
1.9%
GB Market
1 Year Returns
-25%
LSE:GRTB
-7.8%
GB Banks
2.5%
GB Market
GRTB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Guaranty Trust Bank (GRTB) -6.3% -15.1% 0% -25% 32.5% -47.1%
GB Banks 2.3% 3.6% 4.4% -7.8% 16.1% -12.3%
GB Market 1.9% 3% 7.9% 2.5% 15.6% 6.8%
1 Year Return vs Industry and Market
  • GRTB underperformed the Banks industry which returned -7.8% over the past year.
  • GRTB underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.5% over the past year.
Price Volatility
GRTB
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Guaranty Trust Bank's competitors could be found in our database.

Value

 Is Guaranty Trust Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Guaranty Trust Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Guaranty Trust Bank.

LSE:GRTB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= NGN26.87 * 28.8%
NGN7.73
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. NGN26.87
Discount Rate (Cost of Equity) See below 6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:GRTB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 30%) (18.29%))
0.778
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 5.96%)
6%

Discounted Cash Flow Calculation for LSE:GRTB using Excess Returns Model Model

The calculations below outline how an intrinsic value for Guaranty Trust Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:GRTB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (28.8% – 6%) * NGN26.87)
NGN6.12
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= NGN6.12 / (6% - 1.23%)
NGN128.39
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= NGN26.87 + NGN128.39
NGN155.26
LSE:GRTB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:GRTB represents 0.12931x of NGSE:GUARANTY
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.12931x
Value per Share
(Listing Adjusted, USD)
= Value per Share (NGN) x Listing Adjustment Factor
= NGN 155.26 x 0.12931
$20.08
Value per share (USD) From above. $20.08
Current discount Discount to share price of $4.50
= -1 x ($4.50 - $20.08) / $20.08
77.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Guaranty Trust Bank is available for.
Intrinsic value
>50%
Share price is $4.5 vs Future cash flow value of $20.08
Current Discount Checks
For Guaranty Trust Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Guaranty Trust Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Guaranty Trust Bank's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Guaranty Trust Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Guaranty Trust Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:GRTB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in NGN NGN6.70
NGSE:GUARANTY Share Price ** NGSE (2019-04-18) in NGN NGN34.8
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.35x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 796 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Guaranty Trust Bank.

LSE:GRTB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NGSE:GUARANTY Share Price ÷ EPS (both in NGN)

= 34.8 ÷ 6.70

5.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guaranty Trust Bank is good value based on earnings compared to the GB Banks industry average.
  • Guaranty Trust Bank is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Guaranty Trust Bank's expected growth come at a high price?
Raw Data
LSE:GRTB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
5.2%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 563 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:GRTB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.19x ÷ 5.2%

1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guaranty Trust Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Guaranty Trust Bank's assets?
Raw Data
LSE:GRTB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in NGN NGN21.85
NGSE:GUARANTY Share Price * NGSE (2019-04-18) in NGN NGN34.8
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,365 Publicly-Listed Companies 1.51x
LSE:GRTB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NGSE:GUARANTY Share Price ÷ Book Value per Share (both in NGN)

= 34.8 ÷ 21.85

1.59x

* Primary Listing of Guaranty Trust Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guaranty Trust Bank is overvalued based on assets compared to the GB Banks industry average.
X
Value checks
We assess Guaranty Trust Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Guaranty Trust Bank has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Guaranty Trust Bank expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Guaranty Trust Bank expected to grow at an attractive rate?
  • Guaranty Trust Bank's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Guaranty Trust Bank's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Guaranty Trust Bank's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:GRTB Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:GRTB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 5.2%
LSE:GRTB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 8.9%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:GRTB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in NGN Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:GRTB Future Estimates Data
Date (Data in NGN Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 457,083 212,970 1
2021-12-31 436,949 214,102 9
2020-12-31 392,326 197,660 9
2019-12-31 360,676 185,857 8
LSE:GRTB Past Financials Data
Date (Data in NGN Millions) Revenue Cash Flow Net Income *
2019-03-31 350,068 211,267 188,383
2018-12-31 342,715 101,934 183,851
2018-09-30 349,177 59,545 186,312
2018-06-30 333,777 158,604 181,525
2018-03-31 326,857 290,787 170,217
2017-12-31 323,500 375,894 167,045
2017-09-30 298,407 472,176 139,764
2017-06-30 307,306 447,959 143,067
2017-03-31 304,526 455,679 147,154
2016-12-31 278,775 282,146 131,342
2016-09-30 271,931 233,620 140,437
2016-06-30 245,276 177,071 117,106

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Guaranty Trust Bank's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
  • Guaranty Trust Bank's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:GRTB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Guaranty Trust Bank Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GRTB Future Estimates Data
Date (Data in NGN Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 7.20 7.20 7.20 1.00
2021-12-31 7.55 8.00 6.40 5.00
2020-12-31 6.99 7.41 5.88 5.00
2019-12-31 6.52 6.71 6.39 4.00
LSE:GRTB Past Financials Data
Date (Data in NGN Millions) EPS *
2019-03-31 6.70
2018-12-31 6.54
2018-09-30 6.63
2018-06-30 6.46
2018-03-31 6.05
2017-12-31 5.94
2017-09-30 4.97
2017-06-30 5.09
2017-03-31 5.24
2016-12-31 4.67
2016-09-30 5.00
2016-06-30 4.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Guaranty Trust Bank is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Guaranty Trust Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Guaranty Trust Bank has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Guaranty Trust Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Guaranty Trust Bank's year on year earnings growth rate has been positive over the past 5 years.
  • Guaranty Trust Bank's 1-year earnings growth is less than its 5-year average (10.7% vs 17.6%)
  • Guaranty Trust Bank's earnings growth has not exceeded the GB Banks industry average in the past year (10.7% vs 42.2%).
Earnings and Revenue History
Guaranty Trust Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Guaranty Trust Bank Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GRTB Past Revenue, Cash Flow and Net Income Data
Date (Data in NGN Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 350,067.87 188,383.29 65,880.49
2018-12-31 342,715.26 183,851.28 66,836.44
2018-09-30 349,176.75 186,312.23 69,528.39
2018-06-30 333,777.47 181,525.14 64,365.41
2018-03-31 326,857.29 170,217.08 61,391.09
2017-12-31 323,500.46 167,045.34 62,712.28
2017-09-30 298,406.77 139,764.34 58,679.04
2017-06-30 307,305.52 143,067.09 63,435.51
2017-03-31 304,526.34 147,154.15 64,399.71
2016-12-31 278,775.10 131,341.74 59,339.12
2016-09-30 271,931.00 140,436.99 56,294.09
2016-06-30 245,275.58 117,106.36 53,947.65
2016-03-31 214,637.84 97,703.27 54,709.14
2015-12-31 217,072.89 98,678.43 55,044.03
2015-09-30 227,894.17 102,026.44 58,005.88
2015-06-30 224,256.44 103,036.28 54,592.41
2015-03-31 217,786.89 97,245.00 49,808.63
2014-12-31 210,823.63 93,736.46 50,981.80
2014-09-30 194,877.84 86,923.66 50,998.50
2014-06-30 189,455.37 84,447.07 51,866.50
2014-03-31 191,236.30 89,993.33 54,854.86
2013-12-31 189,629.16 89,599.10 53,438.96
2013-09-30 191,325.99 91,803.80 53,747.53
2013-06-30 187,943.48 90,775.62 53,173.11
2013-03-31 188,494.04 89,629.20 57,055.39
2012-12-31 181,028.75 86,398.36 52,285.78
2012-09-30 162,013.64 70,535.34 85,581.84
2012-06-30 155,750.19 65,214.90 50,760.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Guaranty Trust Bank has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Guaranty Trust Bank used its assets more efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Guaranty Trust Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Guaranty Trust Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Guaranty Trust Bank has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

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

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Guaranty Trust Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Guaranty Trust Bank Company Filings, last reported 2 weeks ago.

LSE:GRTB Past Debt and Equity Data
Date (Data in NGN Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 627,177.14 176,832.76 848,878.14
2018-12-31 575,567.35 182,319.47 629,524.63
2018-09-30 534,296.16 301,643.88 847,907.78
2018-06-30 497,081.99 315,027.30 854,006.03
2018-03-31 535,122.51 318,943.64 708,283.84
2017-12-31 619,400.21 315,493.02 627,286.58
2017-09-30 581,908.69 352,687.76 619,787.06
2017-06-30 537,997.87 357,156.95 524,213.31
2017-03-31 546,919.36 358,879.77 475,455.66
2016-12-31 504,902.84 348,534.01 468,016.94
2016-09-30 492,198.28 345,687.75 403,881.93
2016-06-30 452,800.01 324,374.48 406,139.67
2016-03-31 433,411.51 320,786.26 334,105.37
2015-12-31 413,561.94 347,155.73 276,559.13
2015-09-30 400,669.20 348,235.50 269,805.56
2015-06-30 384,997.37 331,008.96 293,660.23
2015-03-31 357,588.04 334,898.12 315,750.86
2014-12-31 364,714.30 261,401.36 256,825.11
2014-09-30 342,674.28 253,374.31 297,184.92
2014-06-30 328,648.95 244,839.42 381,462.45
2014-03-31 352,892.69 255,950.60 343,205.98
2013-12-31 332,353.07 251,406.16 324,725.85
2013-09-30 310,320.39 193,684.93 265,249.11
2013-06-30 296,949.38 187,297.24 254,819.95
2013-03-31 307,954.00 184,942.00 596,798.00
2012-12-31 281,826.94 182,730.18 547,875.27
2012-09-30 263,844.00 179,436.00 461,572.00
2012-06-30 252,179.04 189,435.03 434,703.60
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Guaranty Trust Bank has an acceptable proportion of non-loan assets held.
  • Guaranty Trust Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Guaranty Trust Bank are broadly funded by customer deposits.
  • Guaranty Trust Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Guaranty Trust Bank has a low allowance for bad loans.
  • Guaranty Trust Bank has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Guaranty Trust Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Guaranty Trust Bank has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.9%
Current annual income from Guaranty Trust Bank dividends. Estimated to be 9.23% next year.
If you bought $2,000 of Guaranty Trust Bank shares you are expected to receive $158 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Guaranty Trust Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Guaranty Trust Bank's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:GRTB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:GRTB Future Dividends Estimate Data
Date (Data in NGN) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 3.70 1.00
2021-12-31 3.51 9.00
2020-12-31 3.18 10.00
2019-12-31 2.86 8.00
LSE:GRTB Past Annualized Dividends Data
Date (Data in NGN) Dividend per share (annual) Avg. Yield (%)
2019-03-06 2.750 7.681
2018-03-14 2.700 7.084
2017-08-21 2.050 4.748
2017-03-08 2.000 6.463
2016-03-15 1.770 8.225
2015-03-06 1.750 7.955
2015-03-05 1.750 7.576
2014-03-17 1.700 6.595
2014-03-14 1.700 7.173
2013-04-03 1.550 5.968
2012-03-19 2.200 11.726
2012-01-25 1.100 7.812
2011-03-22 0.800 5.615
2011-03-21 0.800 5.138
2010-10-22 0.400 2.769
2010-08-09 0.400 3.212
2010-07-21 0.400 2.953
2010-04-07 0.480 3.472
2009-05-21 0.640 6.637
2009-04-24 0.512 7.725
2009-04-20 0.512 9.423

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Guaranty Trust Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Guaranty Trust Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Guaranty Trust Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Guaranty Trust Bank has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Guaranty Trust Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Segun Agbaje
TENURE AS CEO 7.8 years
CEO Bio

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 served as Deputy Managing Director of Guaranty Trust Bank plc from August 2002 to April 20, 2011 and its Divisional Head Institutional Banking Division. Mr. Agbaje has been a Vice Chairman at Guaranty Trust Bank (Ghana) Ltd since July 2018. He served as Acting Managing Director of Guaranty Trust Bank (Ghana) Limited since April 20, 2011. Prior to joining Guaranty Trust Bank Plc, he worked for Ernst & Young, San Francisco, from 1988 to 1990 as a staff Auditor. He helped to develop the Interbank Derivatives market amongst dealers and introduced the Balance Sheet Management Efficiency System in Nigeria. As Head of the Settlements Group of Guaranty Trust Bank Plc, he supervised the conversion of its operations from a cost centre to a profit centre by the year 2000. Being a project-oriented person, he was very instrumental in the introduction of Valucard and Western Union Money Transfer. He was also directly responsible for Guaranty Trust Bank Plc's Initial Public Offer of N2.5 billion in July 2002. He serves as the Chairman of the Board at Guaranty Trust Bank (UK) Limited. He has been a Director of Guaranty Trust Bank plc since March 22, 2000. He serves as a Non Executive Director at Guaranty Trust Bank (Uganda) Ltd. He served as a Director of FBNQuest Merchant Bank Ltd. formerly known as Kakawa Discount House Limited. He serves as a Director at Guaranty Trust Bank (Ghana) Limited. He served as a Director of AXA Mansard Insurance Plc (also known as Mansard Insurance Plc) until October 26, 2011. He served as a Director of InterSwitch Limited. Mr. Agbaje holds a first degree in Accountancy from the University of San Francisco, California (1986), and a Master's degree in Business Administration from the same university in 1988.

CEO Compensation
  • Insufficient data for Segun to compare compensation growth.
  • Insufficient data for Segun to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Guaranty Trust Bank management team in years:

2.3
Average Tenure
  • The tenure for the Guaranty Trust Bank management team is about average.
Management Team

Segun Agbaje

TITLE
MD, CEO & Director
TENURE
7.8 yrs

Banji Adeniyi

TITLE
GM, CFO and Head of Finl Ctrl Group Reporting & Strategy Div

Sina Ayegbusi

TITLE
GM & Head of Technology Division

Olawale Abdul

TITLE
Assistant GM & Head of Administration Group
TENURE
1.3 yrs

Golden Nwaiwu

TITLE
Head of Investor Relations

Subuola Abraham

TITLE
GM & Chief Compliance Officer
TENURE
2.3 yrs

Oyinade Adegite

TITLE
Deputy GM & Head of Communication & External Affairs Group
TENURE
2.3 yrs

Oyiza Salu

TITLE
Deputy GM & Head of Human Resources Group

George Uwakwe

TITLE
GM & Head of Enterprise Risk Management Division

Miriam Olusanya

TITLE
Head of Wholesale Banking Division & Executive Director
Board of Directors Tenure

Average tenure of the Guaranty Trust Bank board of directors in years:

5.8
Average Tenure
  • The tenure for the Guaranty Trust Bank board of directors is about average.
Board of Directors

Osaretin Demuren

TITLE
Chairman of Board of Directors
TENURE
4.1 yrs

Segun Agbaje

TITLE
MD, CEO & Director
TENURE
19.1 yrs

Miriam Olusanya

TITLE
Head of Wholesale Banking Division & Executive Director
TENURE
0.7 yrs

Demola Odeyemi

TITLE
Head of International Banking
TENURE
7.5 yrs

Haruna Musa

TITLE
Head of North-East Division & Public Sector Abuja and Executive Director
TENURE
3.7 yrs

Bolaji Lawal

TITLE
Head of Digital Banking Division & Executive Director
TENURE
2.1 yrs

Jide Okuntola

TITLE
Executive Director & Head of Oil & Gas Division
TENURE
0.3 yrs

Bode Agusto

TITLE
Non-Executive Director
TENURE
9 yrs

Ibrahim Hassan

TITLE
Non-Executive Director
TENURE
9 yrs

Bayo Adeola

TITLE
Non-Executive Director
TENURE
9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Guaranty Trust Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Guaranty Trust Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: Guaranty Trust Bank Plc
GRTB
Exchange: LSE
Founded: 1990
NGN2,685,947,078
27,784,887,601
Website: http://www.gtbank.com
Address: Guaranty Trust Bank Plc
Plot 635,
Akin Adesola,
Lagos,
Nigeria
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NGSE GUARANTY Ordinary Shares Nigerian Stock Exchange NG NGN 02. May 2000
LSE GRTB SPON GDR REG S London Stock Exchange GB USD 23. Jul 2007
OTCPK GUAR.Y SPON GDR REG S Pink Sheets LLC US USD 23. Jul 2007
DB 37G1 SPON GDR REG S Deutsche Boerse AG DE EUR 23. Jul 2007
BATS-CHIXE GRTBL SPON GDR REG S BATS 'Chi-X Europe' GB USD 23. Jul 2007
Number of employees
Current staff
Staff numbers
5,361
Guaranty Trust Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 21:06
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/04/17
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.