FY December 2011 Results presentation

to investors and analysts

2
Important notice
This presentation is based on the financial results of the Banks audited results for the period ended December 2011 consistent
with Nigerian GAAP. Guaranty Trust Bank Plc (GTBank or the Bank) has obtained some information in this presentation from
sources it believes to be reliable. Although GTBank has taken all reasonable care to ensure that the information herein is
accurate and correct, GTBank makes no representation or warranty, express or implied, as to the accuracy, correctness or
completeness of such information.
Furthermore, GTBank makes no representation or warranty, express or implied, that its future operating, financial or other results
will be consistent with results implied, directly or indirectly, by such information or with GTBanks past operating, financial or other
results. Any information herein is as of the date of this presentation and may change without notice. GTBank undertakes no
obligation to update the information in this presentation. In addition, some of the information in this presentation may be
condensed or incomplete, and this presentation may not contain all material information in respect of GTBank. Except where
indicated, the exchange rate adopted throughout the presentation is US$1 to N156.70 (official exchange rate December 31, 2011).
This presentation also contains forward-looking statementsthat relate to, among other things, GTBanks plans, objectives, goals,
strategies, future operations and performance. Such forward-looking statements may be characterised by words such as
estimates, aims, expects, projects, believes, intends, plans, may, will and should and similar expressions but are
not the exclusive means of identifying such statements. Such forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause GTBanks operating, financial or other results to be materially different
from the operating, financial or other results expressed or implied by such statements. Although GTBank believes the basis for
such forward-looking statements to be fair and reasonable, GTBank makes no representation or warranty, express or implied, as
to the fairness or reasonableness of such forward-looking statements. Furthermore, GTBank makes no representation or
warranty, express or implied, that the operating, financial or other results anticipated by such forward-looking statements will be
achieved. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be
viewed as the most likely or standard scenario. GTBank undertakes no obligation to update the forward-looking statements in this
presentation.
3
Financial highlights
Financial Highlights
December 2011
PAT: N52.65bn (December 2010: N38.35bn)
PBT: N65.60bn (December 2010: N48.46bn)
ROAE: 23.42% ROAA: 3.77% NIM: 7.80%
EPS: 169k per share
Total Year Dividend: 110k per share
Revenue Generation
Robust and sustainable
Loan book (Net) N715.94bn (December 2010: N593.46bn) up 20.64%
Interest Income - N130.14bn (December 2010: N112.52) up 15.66%
Non Interest Income - N55.92bn (December 2010: N41.39bn) up 35.10%
Deposits from Customers N1.03trn (December 2010: N761bn) up 35.72%
Poised to take advantage of opportunities in our operating environment
Operational efficiency
Through innovation
Cost to income ratio 50.82% ( December 2010: 56.82%)
Operating expenses up 10.78% in 2011 (below inflation)
Interest expense N28.46bn (December 2010: N30.15bn), down 5.62%
GTBanks strategy for sustaining NIMs in a highly competitive banking environment
includes increasing efficiency through innovation and forward thinking
Credit Quality
Focus on improvement
NPLs 3.73% (December 2010: 6.74%)
AMCON N77.01bn sold to AMCON in 2011. No further sales envisaged
Coverage Ratio - 92.29%. Managements goal is to return to over 100%
Zenon Total Zenon exposure sold to AMCON
GTBank continues to focus on building a high quality loan book
Subsidiaries
Strong growth potential
Subsidiary focus now on developing off-shore banking franchise following divestment
Francophone expansion to commerce in April 2012 with GTB Cote DIvoire
Divested from three subsidiaries (Guaranty Trust Assurance Plc, GTB Asset Management
Limited and GTB Registrars Limited)
Fourth and final divestment (GTHomes Limited) to be completed in H1 2012
4
Profit and loss highlights
Dec-11 Dec-10
Income N'bn N'bn y/y %
Interest and similar income 130.14 112.52 15.66%
Fee and Commission Income 44.17 34.91 26.50%
Net fx income 8.85 4.58 93.32%
Underwriting profit 1.37 1.17 16.63%
Income from Investments 1.53 0.72 111.71%
Total Income 186.06 153.91 20.89%
Interest and similar expenses (28.46) (30.15) -5.62%
Fee and commission expense (2.21) (3.21)
Operating expenses (70.65) (63.77) 10.78%
Loan loss expense (19.00) (8.09)
Dimunition in other asset value (0.14) (0.23)
Total expense (120.46) (105.45) 14.23%
Profits Before Tax 65.60 48.46 35.37%
Taxation (15.71) (10.11)
PAT 49.89 38.34
Extraordinary items 2.76
PAT and Extraordinary Items 52.65 38.34 37.32%
5
Balance sheet overview
Dec-11 Dec-10
ASSETS N'bn N'bn y/y %
Cash & deposits with banks 430.69 279.04
Treasury bills 256.82 157.29 63.27%
Loans & advances under finance lease 715.98 593.47 20.64%
Investment securities 109.39 51.84 111.02%
Property, equipment and intangible assets 58.52 48.69
Other Assets 40.49 22.08
Total Assets 1,611.88 1,152.41
Dec-11 Dec-10
EQUITIES & LIABILITIES N'bn N'bn
Equity 238.78 210.83
Deposits 1,033.07 761.19 35.72%
Borrowings 236.74 87.84 169.52%
Other Liabilities 103.29 92.55
1,611.88 1,152.41
Contingents 526.82 424.98
6
Focus on:
Federal government
State governments
Local governments
and clients
Active in all government
segments
Business segment overview
Institutional Commercial Retail Public Sector International
GTBank
multinationals and large
corporates, with turnover
in excess of N5bn.
Organised in 5 sections:
Energy, Telecoms,
Corporate Finance,
Corporate Bank and
Treasury
Primary customer base
Middle market
companies, with turnover
between N250m and
N5bn
Extensive product range:
tailor-made solutions and
flexibility
Custom E-commerce
solutions
Deposit drive focus for
retail customer-base
Rapidly developing
business line
177 branches, 17 e-
branches & 627 ATMs
Extensive leverage of
alternative distribution
channels
Expansion into Anglo-
phone West Africa
Sierra Leone (2002)
Gambia (2002)
Ghana (2006)
Liberia (2009)
Also present in
London, servicing
trade finance and high
net worth individuals
Over 400 clients Over 50,000 Clients Over 3.3 million All Tiers of Government Anglophone WA
Client Base Client Base Client Base Client Base Client Base
Contribution to bank
Contribution to bank
Contribution to bank Contribution to bank Contribution to group
19%
23%
20%
Deposits Loans PBT
41%
8%
15%
Deposits Loans PBT
15%
6% 6%
Deposits Loans PBT
7%
9%
5%
Deposits Loans PBT
25%
64%
59%
Deposits Loans PBT
7
Geographical distribution
The Gambia
Liberia
Sierra Leone
Ghana
UK
Nigeria
GTBank UK
Established in 2008
1 branch
100% owned by Parent
20mm in shareholders
funds
GTBank PLC
Parent Company
Established 1991
177 branches
N238.79bn in shareholders
funds
GTBank Ghana
Established in 2006
22 branches
95.72% owned by Parent
N8.11bn invested in
subsidiary by parent
GTBank Liberia
Established in 2009
6 branches
99.43% owned by parent
N1.95bn invested in
subsidiary by Parent
GTBank Sierra Leone
Established in 2002
1
st
Bank Subsidiary
84.24% owned by parent
9 branches
N594.11mm invested in
subsidiary by parent
GTBank Gambia
Established in 2002
2
nd
Bank subsidiary
77.81% owned by parent
15 branches
N574.28mm invested in
subsidiary by parent
Completed Anglophone West Africa
expansion in 2009 with GTBank Liberia
Will commenced Francophone expansion
in 2012 with GTBank Cote DIvoire
Objectives for West Africa (WA)
Promotion of West African regional trade
Integration of WA economies
Single currency etc
8
Profitability (Group)
3.59%
4.20%
2.48%
3.42%
3.77%
20.62%
20.23%
12.70%
18.81%
23.42%
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
RoAA RoAE
27.37
35.33
27.96
48.46
65.60
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
PBT - N'bn
Continued drive for strong profitability
Consistent dividend payments
Returns on Average Assets/ Equity (ROAA/ROAE)
Profit before tax [Nbn]
ROAE of 23.42% ROAA of 3.77%
PBT N65.60bn, up 35.37% from 2011
Earnings per share 169k, a 30% increase from 2010 (after
adjusting for 1 for 4 scrip issue in 2010)
Profitability driven by
a concerted effort to improve efficiency in an
increasingly competitive operating environment
return to positive real interest rates
growth in customer base and resulting increase in
transaction fees
expense control (Interest expense & OpEx)
Total Year dividend of 110k/share (25k interim and 85k FY)
Capital adequacy ratio: 23.03%, adequately capitalized for
near term expansion opportunities that may arise.
0.95
1.00
0.75
1.00
1.10
63%
67%
73%
59%
65%
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
Total Dividends (N per share)
Payout Ratio
9
Revenue mix consists of
Net Interest Income: N130.14bn (70%)
Non Interest Income: N55.92bn (30%)
15.66% increase in Interest Income from 2010 driven by
6.19% growth in interest income from a larger loan book
despite increased competition in the high-end banking
space. Interest from loans and advances accounted for
70% of interest income
56.76% growth in income from investments in government
securities, enhanced by return to positive interest rates
22.23% growth in Income from interbank placements.
GTBank remained a net placer in the interbank market in
2011

Interest income [Nbn]
Revenue mix [Nbn]
Growth in interest income further enhanced by 5.62% drop
in interest expense despite 35.72% growth in deposits
35.10% increase in Non-Interest Income driven by
Increased transaction fees and commissions driven by
o 26.50% growth in fees and commissions
attributable to
larger customer base
higher transaction volume
o larger deposit base and loan book
Gains in fx trading income
Profit drivers strong revenue generation
3.07
4.42
9.81
9.13
11.16
17.27
7.96
15.89
18.18
28.50
32.56
54.84
93.87
85.21
90.48
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
Placements Tresury Bills and Investment Securities Loans and Advances
Growth across all revenue lines
28.59
33.39
42.96
41.39
55.92
52.90
67.22
119.57
112.52
130.14
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
Non-Interest Income Interest Income
70%
73% 74%
67%
65%
35% 33%
26% 27%
30%
Non-Interest income [Nbn]
5.47
9.65
12.46
6.92
13.33
23.13
23.74
30.50
34.47
42.58
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
Other Non-Interest Income Fees and Commissions
10
Profit drivers cost efficiency
53.48%
50.69%
65.10%
56.82%
50.82%
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
Cost/Income
4.04
35.95
8.09
19.00 19.47
40.54
30.15
28.46
41.06
54.90
63.77
70.65
2008 2009 2010 2011
Loan Loss Expense Interest Expense Operating Expenses
Increasingly efficient operations
Cost-to-Income Ratio
Expense summary
Operating expense breakdown
Cost to Income ratio improved from 56.82% in 2010 to
50.82% in 2011
Expense performance highlights include
Over-all operating cost growth of 10.78% (below
inflation)
Operating cost growth of 5.76%, after factoring out the
AMCON charge (0.3% of total Assets for all banks)
introduced by CBN in 2011
Operating cost performance largely attributed to
o Relatively flat growth in non-staff and
depreciation related expenses
o GTBanks focus on increasing operational
efficiency across board
o GTBanks use of technology and innovation in
servicing expanding customer base
Interest Expense, down 5.62% from 2010, due to
o GTBanks concerted effort to grow its retail
deposit base and other sources of low cost
funding
o Negative real interest rates in the early part of
2010
Increase in loan loss expense due to
o Reinstatement of General Loan Loss Provisions
o Additional provisioning taken on loans sold to
AMCON (Zenon in particular)
- - - -
3.20
3.68
4.01
6.01
6.83
7.80
8.96
13.04
18.40 18.19
20.97
18.13
24.00
30.49
38.75 38.68
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
AMCON Charge Depreciation Staff Costs Other operating Expenses
11
Strong, liquid balance sheet
Total Assets, Loans and Deposits [Nbn]
Asset base and components [Nbn]
Low cost, diverse funding mix [Nbn]
Balance sheet
Loans to deposits ratio: 71.78%
Loan-book of N715.94bn, up 20.64% from 2010
Actual loan book growth of 33.61% (factoring in
N77.01bn in loans sold to AMCON in 2011)
GTBank has always maintained a focus on the high-end
institutional client-base, hence 60% of the banks loan-
book is in the institutional banking segment
Liquidity Ratio: 55.88% (GTBank plc)
Deposits of N1.03trn up 35.72% from December 2010
Other sources of quasi deposits include:
Other Borrowings
o $500m 5yr 7.5% fixed notes aimed at dollar
earning opportunities in the oil & gas, maritime
and manufacturing industries
o Funding from IFC, ADB, FMO and Propaco
totaling N58.88bn aimed at mutually agreed
dollar earning opportunities
o Government sponsored and guaranteed sector
development schemes
Debt Securities in Issue
o N13.16bn 5yr 13.5% fixed unsecured bonds
Total Deposits and Quasi deposits of N1.27trn.
GTBank is well positioned to take advantage on business
opportunities that may arise in the short to medium term.
107
65
22 22
40 34 40
46 49
59
118
92
136
52
109
66 62
37
157
257
119
284
261
279
431
288
416
563
593
716
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
Other Assets PPE & intangible assets Investment securities
Treasury bills Cash & deposits with banks Loans & advances
150
113
93
103
163
192
211
239
56 63
78 88
363
471
683
761
1,033
244
182
237
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
Other Liabilities Equity Borrowings Deposits
291.5
414.0
538.1
563.5
715.9
683.1
761.2
1,033.1
718.0
1,307.8
1,336.3
1,468.5
2,138.7
362.9
470.6
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
Total Loans Total Deposits Total Assets and Contingents

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Net interest margins
9.88%
12.98%
12.80%
11.65%
9.95%
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
Strong, sustainable margins Strong net interest margins
Low cost of interest bearing liabilities Competitive yields on interest earning assets
NIM of 7.80% (December 2010 7.84%)
Competitive operating space in the high end market was
further compounded by a negative real interest rate
regime in early 2011
NIMs sustained through aggressive drive to lower cost of
funding and efficient Asset/Liability management
(balance sheet efficiency)
NIMs to be enhanced in short term by return to Positive
interest rate regime
3.70%
5.30%
6.20%
3.31%
2.11%
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
6.79%
7.68%
7.80%
7.84%
7.80%
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
13
Asset diversification & Quality
Real Estate Activities
4%
Information and Communication
8%
Government
9%
General Commerce
10%
General
10%
Oil and Gas
20%
Manufacturing
22%
Capital Market
1%
Others
2%
Health
1%
Transportation and Storage
4%
Education
3%
Finance and Insurance
2%
Construction
4%
Health
1%
Manufacturing
2%
Government
4%
Education
4%
General
6%
Oil and Gas
6%
Real Estate Activities
10%
General Commerce
14%
Information and Communication
42%
Others
2%
Professional Activities
1%
Finance and Insurance
2%
Agriculture
3%
Construction
3%
NPLs and Coverage
Loan breakdown by industry
NPLs by Industry
NPL Ratio 3.73% (December 2010 6.74%)
Coverage Ratio 92.29% Cost of Risk 2.78%
In 2011, GTBank sold a total of N77.01bn in loans to
AMCON in exchange for bonds totaling N81.78bn
(Discounted Value: N58.39bn). The net effect of sales to
AMCON was added provisioning in the amount of N17bn
Zenon accounted for N36.88bn of the amount taken to
AMCON. The amount received from AMCON for Zenon
totaled N30.13bn (discounted value)
GTBank does not envisage any further sales to AMCON
GTBank has taken a 50% provision on Hi-Media, which
is currently in receivership. Hi Media accounts for the
bulk of NPLs under Information and Communication.
Further provisions will be taken when due
NPLs and Coverage
1.19%
1.83%
11.84%
6.74%
3.73%
Feb-08 Dec-08 Dec-09 Dec-10 Dec-11
172% 122% 57% 98% 92%
- NPLs
14
5- year figures and ratios
Key Financials (N'000) - Group 28-Feb-08 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11
Balance Sheet
Total Advances and Loans to Customers 288,152,339 416,318,640 563,488,164 593,463,860 715,944,065
Total Deposits from Customers 362,936,393 470,605,806 683,080,902 761,194,792 1,033,067,649
Shareholders' Funds 163,343,941 182,033,900 192,245,028 210,825,690 238,779,846
Total Assets 735,692,906 959,183,693 1,066,503,718 1,152,411,526 1,611,879,579
Total Assets and Contingents 851,975,137 1,284,784,099 1,399,323,978 1,577,399,730 2,138,701,378
Profit and Loss Account 12 months 10 months 12 months 12 months 12 months
Interest Income 52,898,466 67,217,099 119,567,654 112,520,923 130,136,922
Non-Interest Income 28,594,427 33,388,707 42,982,764 41,387,104 55,915,524
Profit Before Taxes 27,368,338 35,329,129 27,963,003 48,455,850 65,596,077
Profit After Taxes 20,800,447 28,315,561 23,686,843 38,346,622 52,653,436
Performance Ratios
Return on Average Assets (RoAA) 3.59% 4.20% 2.48% 3.42% 3.77%
Return on Average Equity (RoAE) 20.62% 20.23% 12.70% 18.81% 23.42%
Net Interest Margin 6.79% 7.68% 7.80% 7.84% 7.80%
Cost/Income 53.48% 50.69% 65.10% 56.82% 50.82%
Balance Sheet Ratios
Loans/Deposits 70.60% 81.70% 72.70% 69.91% 71.78%
Liquidity Ratio 51.86% 42.00% 43.50% 56.12% 55.88%*
Capital Adequacy Ratio 27.55% 22.11% 25.99% 23.41% 23.03%
Asset Quality Ratios
NPL/Total Loans 1.19% 1.83% 11.84% 6.74% 3.73%
Provisions for Loan Losses/NPL 172.00% 122.00% 50.68% 98.24% 92.29%
* Liquidity ratio for GTBank plc
15
Business strategy and objectives
Cost Control
Use of envelope budgeting
system
Monthly performance review
Outsourcing of non-core
functions
Efficient distribution
Invest in reliable technology
Focus on
Growth business
In 2007 we set out to achieve the following by 2012:
No. 1 bank in Nigeria in terms of profit before tax and Return on Equity / Profitability
Maintain Cost to Income stability through unparalleled efficiency
Expand leadership position across West Africa
2012
Goals
Opportunities
Advisory
Advisory
Bonds
Project Finance
Increase market share in the
Institutional banking space
Enhance product
and service offering
Cost
Leadership
Institutional
Capitalise on existing
relationships
Oil & Gas, Infrastructure, Telcos
Increase penetration in growing
sectors
Hospitality, Real Estate Construction,
Power
West African Expansion
(Francophone)
Retail Retail Deposit Drive
Efficient, Innovative banking for the Entire Value Chain
Suppliers
GTBank
Client
Distributors Customers
Employees
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