18659436 guaranty trust bank gt bank presentation financial results december 2008

8/3/2019 18659436 Guaranty Trust Bank GT Bank Presentation Financial Results December 2008

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1

Guaranty Trust Bank

Guaranty Trust Bank plc

Financial Results - Dec 2008

(10 months)



3

Guaranty Trust Bank

Outline

• GTBank’s Financial Highlights

• GTBank Overview (DEC 2008)

• Operating Environment

• Business Strategy and Objectives



4

Guaranty Trust Bank

GTBank’s Financial Highlights



5

Guaranty Trust Bank

GTBank’s Financial Highlights (YE Dec 2008)

G

T B a n k F i n a n c i a l H

i g h l i g h t s

* Comprised of Total Assets and Contingents** Using annualized estimates

All dollar conversions are computed at N139.5 - $1

DEC 2008(10 months)

PBT - $247m

Assets* - $9.5bn

NPL - 1.7%

Loans - $2.99bn Shareholders’ Funds - $1.3bn

Deposits - $3.2bn

Robust & SustainableGrowth (10 months)

PBT - +26.7%

Assets* - +27.4% Loans - +42.8%

Deposits - +25.2%

Shareholders’ Funds - +11.5%Shareholders’ Funds - +11.5%

NPL – one of Industry’s lowest

Growing International,and Local presence

• Continued Increase in local branch network and alternate delivery channels

• Opened new bank subsidiary and commenced operations in London in May 2008

• Received provisional license to operate in Liberia

• Completed Anglophone Phase of Strategic West African expansion

• **RoAA of 5.0% & **RoAE of 24.3%, up by 40% and 18% (respectively) from Feb 2008

• Over 1.35m retail customers as of Dec 08 – up by 21% from 1.07m in Feb 08

• Cost/Income ratio of 50.69%, improved by 5.2% from Feb 2008

• Most Customer Focused and Friendly Bank [retail] in 2008 by KPMG and Vanguard;

Best Bank in Corporate Governance in 2008 by Vanguard

ContinuouslyImproving

Global Medium TermNote Program

•Setup $2bn GMTN program in June 08;

•Access to international capital markets with greater flexibility;

•Program allows multi-currency issues if and when required;

•Aim is to bolster bank’s FCY balance sheet and meet client’s demand



6

Guaranty Trust Bank

Income Statement

G


i g h l i g h t s

* - Annualized estimatesAll dollar conversions are computed at N139.5 - $1

Profit and Loss Accounts

10 months ended 31 December 2008 Group Group Bank Bank31 Dec. 2008 29 Feb. 2008 31 Dec. 2008 29 Feb. 2008 YOY YOY

10 months 12 months 10 months 12 months Growth* Growth*

$'m $'m $'m $'m Group Bank

GROSS EARNINGS 746.38 584.20 682.04 555.30 53% 47%

INTEREST AND DISCOUNT INCOME 488.93 379.20 459.09 365.92 55% 51%Lease finance income 0.02 0.02 0.02 0.02

Interest expense (160.31) (139.18) (152.87) (136.15)

INTEREST MARGIN 328.64 240.04 306.24 229.79 64% 60%

Loan loss expense (net) (28.98) (28.20) (28.23) (27.56)

299.66 211.84 278.01 202.22 Other income 257.43 204.98 222.93 189.36

557.10 416.81 500.94 391.58

Operating expenses (304.93) (220.63) (253.93) (196.61)

PROFIT BEFORE TAXATION 252.17 196.19 247.00 194.97 54% 52%

Taxation (49.19) (44.44) (45.76) (40.92)

PROFIT AFTER TAXATION 202.98 151.75 201.24 154.05 61% 57%



7

Guaranty Trust Bank

Balance Sheet

G


i g h l i g h t s

* - Growth in 10 months (10 month Dec 08 vs. 12 month Feb 08)All dollar conversions are computed at N139.5 - $1

Balance Sheets

As at 31 December 2008 Group Group Bank Bank

31 Dec. 2008 29 Feb. 2008 31 Dec. 2008 29 Feb. 2008 YOY YOY

10 months 12 months 10 months 12 months Growth* Growth*

$'m $'m $'m $'m Group Bank

ASSETS

Cash and short-term funds 2,024 855 1,806 742 137% 143%

Short term investments 1,018 1,287 914 1,252 -21% -27%

Loans and advances 3,002 2,066 2,985 2,090 45% 43%Long term investments 85 53 287 159 60% 80%

Fixed assets 284 244 258 227 17% 14%

Other assets 489 770 356 677 -37% -47%

TOTAL ASSETS 6,901 5,274 6,608 5,147 31% 28%

LIABILITIES

Deposits and other accounts 3,385 2,602 3,203 2,559 30% 25%

Borrowings 451 402 451 402 12% 12%

Other liabilities 1,760 1,099 1,667 1,031 60% 62%

Equity 1,305 1,171 1,287 1,155 11% 11%

6,901 5,274 6,608 5,147 31% 28%

Contingents 2,971 2,334 2,894 2,312 27% 25%

Balance Sheet Size 9,872 7,608 9,502 7,459 30% 27%



8

Guaranty Trust Bank

Financial Ratios

G


i g h l i g h t s

* Based on annualized estimates

Key Financials ($ 'm) 28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31-Dec-08 CAGR

Balance Sheet

Total Advances and Loans to Customers 466.20 598.40 815.09 2,089.83 2,985.26 62.39%

Total Deposits from Customers 685.04 1,525.69 2,084.53 2,559.18 3,203.00 49.59%

Shareholders' Funds 259.27 291.37 340.02 1,154.70 1,287.10 51.95%

Total Assets 1,203.57 2,186.96 3,429.17 5,146.95 6,608.01 55.99%

Total Assets and Contingents 1,614.11 2,774.23 4,253.55 7,458.51 9,501.55 58.86%

Profit and Loss Account

Interest Income 109.40 152.97 224.89 365.92 459.09 45.42%

Non-Interest Income 58.03 76.21 107.61 189.36 222.93 42.11%

Profit Before Taxes 50.21 71.86 110.04 194.97 247.00 51.59%

Profit After Taxes 38.21 56.67 93.28 154.05 201.24 54.31%

Performance Ratios

Return on Average Assets (RoAA) 3.41% 3.48% 3.32% 3.59% *5.04%

Return on Average Equity (RoAE) 16.15% 23.63% 27.88% 20.62% *24.28%

Net Interest Margin 6.44% 6.16% 5.40% 6.79% 7.68%

Cost/Income 55.16% 52.01% 54.01% 53.48% 50.69%

Balance Sheet Ratios

Loans to Customers/ Customer's Deposits 63.70% 39.20% 33.40% 70.60% 81.70%

Liquidity Ratio 63.33% 69.22% 69.99% 51.86% 42.00%

Capital Adequacy Ratio 28.95% 22.41% 16.64% 27.55% 22.11%

Asset Quality Ratios

NPL/Total Loans 2.11% 3.37% 2.00% 1.19% 1.70%

Provisions for Loan Losses/NPL 157.25% 120.59% 127.60% 172.00% 122.00%



9

Guaranty Trust Bank

Milestones

Key Events•GTBank moves year end to December

• In line with recommendations issued in May 2008 by theCentral Bank of Nigeria (CBN), GTBank moved its year end from February 28 to December 31.

•GTBank opens UK subsidiary.

• GTBank opens Guaranty Trust Bank UK, a fully

operational retail bank located at 62 Margaret Street,London.

•Setup $2bn Global Medium Term Note Program(GMTN)

•Launched Asset Management Subsidiary- April 08

International

•GTBank completes Anglo West Africa Expansion

• With the acquisition of a provisional operating license in2008 and the launch of GTBank Liberia in 2009,GTBank completed the Anglophone phase of it’s

planned expansion into West AfricaNigeria

•142 Branches

•398 strategically located ATMs

•1.34million retail customers

Ratings and AwardsRatings (2009)•Agusto & Co. “Aaa”

•Fitch “AA-”

•Standard & Poors “BB-”

Awards• Most Customer Focused Bank (retail) – KPMG 2009

• 2nd Most Customer Focused Bank (corporate) – KPMG 2009

• Best Bank in Nigeria - JP MorganChase, Oct. 2008 Report

• Bank of the Year, Best Bank in Corporate Governance,Most Customer Friendly Bank – Vanguard Awards

• Deal of the Year for Nigeria ‘08 – Banker Magazine Awards

•Nigeria’s first fully automated mobile bank branch

•Nigeria’s first Drive-Through ATMs

•Fully automated E- Branches

•Initiated development of Naira DenominatedMastercards

•Initiated the development of Prepaid Master &Visa Cards

•Developed new Student dedicated accounts

G


i g h l i g h t s

Growing Presence New Products



10

Guaranty Trust Bank

GTBank Overview (DEC 2008)



11

Guaranty Trust Bank

Robust Profitability

Earnings [after tax] $mEarnings [after tax] $m

RoAE and RoAARoAE and RoAA

DividendsDividends

Stable and Consistent GrowthStable and Consistent Growth

Source: Company data, as of 31 December 2008 (10 months)Source: Company data, as of 31 December 2008 (10 months)

Source: Company data, as of 31 December 2008 (10 months)

G

T B a n k O v e r v i e w ( D e c 0 9 )

CA G R –

5 4. 3 %

* - Proposed Final Dividend for Dec 2008. No interim was declared due to new YE

• Stability and Consistency

– Stable and consistent Return on Average Equity postcapital raising in 2004 and 2007

– Stable and Consistent Return on Average Asset

– Stable and Consistent Dividend Payout

– Stable and Consistent Growth in Earnings with 53%CAGR over past 5 financial years

38.2156.67

93.28

154.05

201.24

28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31 Dec 2008

Profit After Taxes ($ 'm)

Feb 2005 Feb 2006 Feb 2007 Feb 2008 *Dec 2008

Total Dividend Per Share EPS

63%67% 73%

59%

54%

3.41% 3.48% 3.32% 3.59%5.04%

16.15%

23.63%

27.88%

20.62%

24.28%

28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31-Dec-08

Return on Average Assets (RoAA) Return on Average Equity (RoAE)

## Dividend Payout ratio



12

Guaranty Trust Bank

Business Overview

G

T B a n k O v e r v i e w

( D e c 0 9 )

Institutionalbanking

Commercialbanking

Publicsector

banking

Retailbanking

• Focus on multinationals and large corporates,with turnover in excess of US$40 m

• Organised in 5 groups: Energy, Telecoms,Corporates, Corporate Finance and Treasury

• Voted Best Bank in Corporate Governance byVanguard in 2008

• Focus on small & medium companies, withturnover between US$2 m and US$40 m

• Extensive product range: tailor-madesolutions and flexibility

• In-depth knowledge of local market

• Focus on:

– Federal government

– State governments

– Local governments and clients

• Focus on retail customers

• Rapidly developing business

• 142 branches and 398 ATMs• Extensive leverage of alternative distribution

channels

About 400

Over 50,000

Active in allgovernmentsegments

Over 1.34m

retailcustomers

Active

customers

Contribution to

GTBankSelected highlights

Informationtechnology

Riskmanagement

Operations/HR

Supported bystrong support

centres

Finance

14.8%

36.2%

9.6%

9.9%

17.9%

5.8%

28.4%

18.7%

16.8%

46.9%

67.8%

27.2%

Loans Deposits PBT



13

Guaranty Trust Bank

Regional Presence and Diversification

G


( D e c 0 9 )

• Commenced Operations – Jan 2002

• 84% Ownership

• 4 Branches

• P&L Positive

• Total Number of Banks: 13

GTBank

(Sierra Leone)

• Commenced Operations – Mar 2002

• 78% Ownership

• 8 Branches

• P&L Positive


GTBank

(Gambia)


• 70% Ownership

• 10 Branches

• P&L Positive


GTBank

(Ghana)

• Commenced Operations - May 2008

• To facilitate trade and retail betweenthe UK and West African countries

GTB UK

(London)


• 100% Ownership


GTBank

(Liberia)

• Regional Expansion intoWest Africa (WA)

• Completed expansion

plans into AnglophoneWest Africa

• Expansion intoFrancophone West Africaunderway

• Positioning for growthand reforms

─ Single Currency

─ Integration of WAeconomies

─ Promotion of WAregional trade, gaspipeline etc.

(Others)

• Commenced Operations -May 2002

• 74% Ownership

• Total Number of Insurance Coys –

• US$13.5m profit before taxes (2008)

• Strong National Coverage throughGTBank’s regional branch network

Guaranty Trust

Assurance plc

• Commenced Operations –April 2008

• 100% Ownership

• AM products and services to HNIsand Institutions

GTB Asset

Management Limited

• Commenced Operations - Jan 2008

• 100% Ownership

• Financing of property developmentand mortgages

GT Homes Limited

• Commenced Operations - Sep 2006

• 99% Ownership

• Captive Registrar Services

GTB Registrars Limited

• Commenced Operations - Dec 2006

• 100% Ownership

• SPV for debut of the $350mm

Eurobond issue in January 2007

GTB Finance BV

GTBank Nigeria

International Non Bank

• Commenced Operations - Feb 1991

• Listed on the NSE & LSE

• Over 300,000 Shareholders

• 6 overseas subsidiaries

• 5 Bank Subsidiaries

• 5 non-Bank Subsidiaries

GTBank Group

Mauri tani a S enegal BeninRepublic

Togo

Niger Mali Guinea Côted'Ivoire

BurkinaFasso

GuineaBissau

• Diversification inprofitable businesssegments with strongmedium to long term

prospects• Strengthen Competitive

advantage by offeringexisting clients productsto cater to their financialneeds.

• Increase profitability andmarket share

• Focus on customer satisfaction and retention

• Increase operationalsynergies within financialservices offered to clients

Strategic

Expansion



14

Guaranty Trust Bank

Revenue Composition

Revenue growth $m (Gross Earnings)Revenue growth $m (Gross Earnings)

Interest Income Mix $mInterest Income Mix $m Non Interest Income Mix $mNon Interest Income Mix $m

Strong Revenue-Growth modelStrong Revenue-Growth model

Note

1. Other fees include Foreign Exchange earnings and other fees

Feb-05 Feb-06 Feb-07 Feb-08 Dec-08

Dealing and Other Securities Placements and Short Term funds Loans and Advances

68%71%

52%

64%

86%

10%

31% 4%

5%

45%

3%

26%

10%3%2%

29%

109

153

225

366

459


Commissions Fees and charges Other Incomes

40% 45%51%

47%44%

39%43%

36%

38%38%

18%

15%

13%

12%21%

58

76

108

189

223


G


( D e c 0 9 )


CA G R –

4 5. 4 %

CA G R –

4 2. 1 %

CA G R –

4 4. 3 %

• Strong Revenue Growth

– 45.4% CAGR for Interest Income Mix

– 42.1% CAGR for Non- Interest Income Mix

– Total Revenue 5 year CAGR of 44.3%

• Growth generated by increased lending opportunitiesin the real sector, resulting in greater opportunities for fees and commissions.

• Increased transactions volumes to generate increasedincome from transaction fees, charges, commissionsand foreign exchange earnings

109.40152.97

224.89

365.92459.09

58.0376.21

107.61

189.36

222.93

28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31Dec 2008

Interest Income Non-Interest Income



15

Feb-07 Feb-08 Dec-08

Staff Expenses Depreciation Operating Expenses

Guaranty Trust Bank

Stable Operating Cost profile

Efficiency and Productivity Improvements

Stable Operating Cost profile

Cost/Income ratioCost/Income ratio

Branches and EmployeesBranches and Employees


Efficient and Conservative Cost ProfileEfficient and Conservative Cost Profile

Source: Company data, as of 31 December 2008 (10 months) Source: Company data, as of 31 December 2008 (10 months)

28% 29%30%12%

13%10%

60%

58%

60%

G


( D e c 0 9 )

• Conservative cost profile

– Cost to income ratio of 50.69%

– Below management’s maximum of 60%

• Stable Cost profile

– Maintained low infrastructure related costs such as

power etc through innovative operational policies.

– Personnel costs in line with industry

• GTBank remains one of the most efficient in Nigerianbanking industry

54.01%

53.48%

50.69%

28-Feb-07 28-Feb-08 31 Dec 2008

Cost to Income

23551894

1617

142131

102

0

500

1000

1500

2000

2500

28-Feb-07 28-Feb-08 31-Dec-08

0

50

100

150

Staff B ranches

`



16

Guaranty Trust Bank

Strong Balance Sheet Growth

Funding MixFunding Mix

Asset, Loan and Deposit Growth $bnAsset, Loan and Deposit Growth $bn

Asset Base and ComponentsAsset Base and Components

CommentsComments

• Strong asset and deposit growth of 58.9% and 49.6%

respectively (CAGR Feb 2005 – Dec 2008)

• Asset growth driven by government reforms and recent

economic growth in the Nigerian economy

• Diverse Funding mix with priority on increasing deposits

through steady growth and optimization of branchesand delivery channels

• Increasingly utilizing funds to high margin top-end

quality loan activities

• Funding base diversified further through issue of US$

350m Eurobond and US$ 824m GDRsSource: Company data, as of 31 December 2008 (10 months)


G


( D e c 0 9 )


1.612.77

4.25

7.46

9.50

0.691.53 2.08

2.56 3.20

0.47 0.60 0.822.09

2.99

Total Loans Total Deposits Total Assets & Contingents

28% 24% 26%14%

27%

17%34% 33%

24%

14%

39%

27% 24%

41%

45%

4%

3%

4%14% 11% 15% 18%

9%

2%2%


Cash and short-term funds Short term investments Loans and advances Long term investments Other assets

57%

70%61%

50% 48%

4%

3%

12%

8%7%

17%

14% 17%

20%25%

22%13% 10%

22% 19%


Deposits and other accounts Borrowings Other Liabilities Equity



17

Guaranty Trust Bank

Strong Net Interest Margins

Net Interest MarginNet Interest Margin

Yield on Interest Earning AssetsYield on Interest Earning Assets

Cost of Interest Bearing LiabilitiesCost of Interest Bearing Liabilities

CommentsComments

•Consistently Strong NIM

•Yield and Cost of liabilities were generally higher in theindustry due to initial anticipation of common YE amongbanks. This fuelled fierce competition for depositswhich drove rates higher.

•The CBN has released a recent directive capping loaninterest rates at 22% and deposit rates at 15% to avoidsimilar spikes in the renewed drive to a common year end.

•Consistently low cost of liabilities

•Growth in demand deposits through extensivebranch network and increase in alternate delivery

channels.

G


( D e c 0 9 )

Source: Company data, as of 31 December 2008


5.40%

6.79%

7.68%

28-Feb-07 28-Feb-08 31-Dec-08

Net Interest Margin

4.09%

3.70%

5.30%


Average Cost of Liabilities

9.32%9.88%

12.98%


Average Yeild on Assets



18

28.95%

22.41%

16.64%

27.55%

22.11%


Capital Adequacy Ratio

Guaranty Trust Bank

Capital Adequacy and Liquidity

Liquidity RatioLiquidity Ratio

Capital Adequacy RatioCapital Adequacy Ratio

Loan to Deposit RatioLoan to Deposit Ratio

CommentsComments


Source: Company data, as of 31 December 2008Source: Company data, as of 31 December 2008

•Capital Adequacy well above Basel requirement of 10%

•Strong liquidity ratio above regulatory minimum of 25%

•Loan to Deposit ratio shows growth in lending postJanuary 2007 Eurobond offering

G


( D e c 0 9 )

63.70%

39.20%33.40%

70.60%

81.70%


Loans to Customers/ Customer's Deposits

63.33%69.22% 69.99%

51.86%42.00%


Liquidity Ratio



19

• GTBank is taking advantage of quality lendingopportunities in the institutional and commercialbanking space

• Portfolio well spread across sectors withconcentration is stable and established institutions

• Consistently improving asset quality on the back of sound risk management practices

– NPL ratio of 1.7% - within Management’s targetof < 5%

• High coverage ratio - well above 100%

• Foreign exchange risk averted through proper

matching of dollar funding (e.g. Eurobond) to dollar generating clients only. This applies across allforms of foreign exchange transactions.

Loan Portfolio – Diversification and Quality

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

28-Feb-07 28-Feb-08 31-Dec-08

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%180.00%

200.00%

NPL/Total Loans Provisions for Loan Losses/NPL

Guaranty Trust Bank

G


( D e c 0 9 )

Industry ConcentrationIndustry Concentration

NPL and Coverage RatiosNPL and Coverage Ratios

Best in Class in Nigerian banking industryBest in Class in Nigerian banking industry



Transportation &

Communication,

21.89%

Public Utilities, 0.25%

Finance and

Insurance, 8.92%

Construction/Real

Estate, 11.21%

Manufacturing, 21.22%

Mining, 7.39%

Agriculture, 0.39%

General Commerce,

28.72%



20

GTBank’s Profile

Pre-eminent Institutional & Commercial Banking Franchise

Guaranty Trust Bank G


( D e c 0 9 )

Institutional BankingInstitutional Banking

• Traditionally strong, GTBank continues tocultivate and expand key relationships

– Relationships with 90% of Nigeria’s corporates

• Significant boost to the segment followingthe increase in capital base

– Able to increase lending to large borrowers (i.e.larger single obligor limit)

• Wide product offering which includes:

– import finance facilities; export credit lines; USdenominated credits; equipment finance etc

• Focus on stable, high growth industries

– oil and gas; telecoms; real estate; constructionmanufacturing

• Key Clients

• Margins on Corporate Loans: – 10% average NIM

– 0.5% facility fee;

• Also under the corporate banking umbrella

– Treasury Group consisting of ALM, FundsManagement and Trading (5 desks) Units

– Corporate Finance providing investmentbanking advice and loan syndications to existingClients.

Commercial BankingCommercial Banking

• Covers the ‘middle market’

• Segment organised by geography and industrysectors to achieve proximity to clients to better address their needs

• Broad lending, product offering andcustomized solutions

– Overdrafts, term loans, commercial paper,bankers acceptances

– Most loans are secured by real estate

Danote Group ofCompanies

US$1,278 MillionSyndicated Notes Issuance

Facility

Lead Arranger

SyndicationsSyndications



21

GTBank’s Profile (Cont’d)

Strategic Distribution Expansion to Capture Increasing Opportunities



( D e c 0 9 )

Effectively Employing Alternative DistributionEffectively Employing Alternative Distribution

• Established country’s 1st fullyintegrated Interactive Call Centre

• Other distribution channels suchas internet banking, telephonebanking, mobile banking, etcdeployed nationwide

• Bank on wheels: mobile bankingunit to service remotecommunities

Retail Banking OpportunityRetail Banking Opportunity

• Servicing increased demand for retail banking

products and services by Nigeria’s emerging middleclass

• Target market:

– Traditionally, the upper segment of the economy;mainly employees of institutional banking clients

– Re-branded to attract a broader segment

• Increased reach efficiently and effectively by

employing alternative distribution channels• GTBank is focused on expanding the liability side

while following a prudent approach to lending

• Focused on customer service and support

Numbers of Branches and ATMs

North West

# Branches - 10

# ATMs - 37

South West

# Branches - 25# ATMs - 63

Lagos

# Branches - 50

# ATMs - 149

North East

# Branches - 14

# ATMs - 29

Abuja - NC

# Branches - 15

# ATMs - 46

South East

# Branches - 28# ATMs - 74

Total

# Branches - 142# ATMs – 398

0 1 6

72 83131 142

34 39 60 84 108

214

398

Feb 03 Feb 04 Feb 05 Feb 06 Feb 07 Feb 08 Dec 09

Branches ATMs





22


Expanding distribution network and channels



( D e c 0 9 )

Continuing increase in Branches & ATMs…Continuing increase in Branches & ATMs…Strong and growing local presenceStrong and growing local presence

Growth in transactions via ATMsGrowth in transactions via ATMs

• 398 ATMs located in branches and in strategic

locations

– 184 new ATMs deployed since Feb 2008 – Plan to increase ATM network to 1,000 by 2012

• Significant growth recorded in utilisation levels

(branches/ATMs)

• 142 branches and cash centres strategicallylocated in key urban areas as of Dec 2008

– 11 branches opened since Feb 2008

– Several branches in the pipeline, i.e. in

construction or awaiting CBN approval

– Network expected to increase in line with

Management projections of 200 branches by 2012

• Branches are multifunctional catering

predominantly for retail, commercial and public

sector clients

132 139 141 142

244

298

357

398

Q1 Q2 Q3 YE (10 months)

B ranc hes A TM



229 263340

4,771

4,137

5,298

0

50

100

150

200

250300

350

400

Q1 Q2 Q3

0

1,000

2,000

3,000

4,000

5,000

6,000

Value $'m Volume '000



23


Leveraging on alternative distribution

channels



( D e c 0 9 )

…with impact on retail clientele base…with impact on retail clientele baseSustainable growth profile…Sustainable growth profile…

• Telephone banking –

– Available 24/7 to all customers

– First fully Interactive Voice Response inWest Africa

– Number of active users = 35,359

– Plan to use medium to telemarket andcross-sell all bank’s products

• Internet banking and internet payment

systems

– Gaining traction and popularity amongstusers

– Available to all customers

– Number of active users = 32,1116

• Bank on Wheels

– First unit launched in April 2007

– Cost efficient way to reach unbankedcommunities and provide ad-hoc bankingservices

26,739 27,900 27,243 26,668 26,905

35,359

Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08

Telephone Banking Clientele

Internet Banking Clientele

Retail Clientele (in millions)

1.161.20

1.241.28

1.321.35



26,852 27,002

31,112

38,18635,140

32,116




24


Growth across all distribution segments



( D e c 0 9 )

Source: Company data, as of 31 August 2008

Growth in POS terminals acquiredGrowth in POS terminals acquiredMarket PositionMarket Position

Growth in Card volumesGrowth in Card volumes Consistent growth in ATM & POS terminalsConsistent growth in ATM & POS terminals



• One of the 5 principal member banks of MasterCard inNigeria

• One of the top banks in transactions per ATM(efficiency)

• Ranked 2nd in Cards Usage on POS terminals

• 5th in number of card transactions processed

• Ranked 4th in number of Point-of-Sale (POS) terminals

875919

1008

1,084 1,106

Apr-08 Jun-08 Aug-08 Oct-08 Dec-08

1,032,2021,082,043

1,194,126

1,308,619

1,463,213


230262

298344

398

875

919

1008

1,084 1,106


ATMs POS Terminals

Source: Interswitch Report



25

Guaranty Trust Bank

Operating Environment



26

Macro Economic Overview (2008)

• In 2008, the Global financial markets suffered a severedownturn. The Nigerian financial markets alsoexperienced a similar correction in what, till March 2008,could have been seen as a bull market.

• Over the course of the year, the Nigerian StockExchange Index declined by 45.77%

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

J a n

- 0 8

F e b

- 0 8

M a r - 0 8

A p r - 0 8

M a y

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J u n

- 0 8

J u l - 0 8

A u g

- 0 8

S e p

- 0 8

O c t - 0 8

N o v

- 0 8

D e c

- 0 8Guaranty Trust Bank

O p e r a t i n g E n v i r o n m e n t

Financial Markets

Financial Markets

Exchange Rate

Exchange Rate

• In 2008, in a reaction to the drastic drop in oil prices andother macroeconomic developments, the Central Bankof Nigeria devalued the Naira from N117/$1 to N139.5/$1as at December 31, 2008.

GovernmentGovernment

• To reduce a dependence on oil as a major source of GDP, the Nigerian government began an initiative tointroduce programs to boost productivity in theagriculture sector e.g. the N200 Special Fund for LargeAgriculture Credit Scheme. The measures are expectedto reduce the impact of crude oil price fluctuation and

inflation.

• It is expected that the CBN will be able to curtail further devaluation current exchange rates if oil prices staynear or above $45 (Government’s 2009 budgetarybenchmark)

• The SEC and the CBN released new regulations andguidelines to stabilize the market.

Crude Oil pricesCrude Oil prices

• 2008 saw a 53.5% decrease in oil prices from Dec 31,2007 (95.98) to Dec 31, 2008 ($44.60).

• Inflation increased 76% over the year. Inflation is likelyto be sustained due to Naira devaluation in an importdependent economy

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J u l - 0 8

A u g - 0 8

S e p - 0 8

O c t - 0 8

N o v - 0 8

D e c - 0 8

Dec 31 2007 Dec 31 2008 YTD Chg.Nigerian Stock Index 57,990.22 31,450.78 -45.77%Dow Jones Industrial Avg 13,264.82 8,776.39 -33.84%

FTSE 100 Index 6,456.90 4,434.17 -31.33%Nasdaq Composite Index 2,652.28 1,577.03 -40.54%

Nikkei 225 Index 15,307.78 8,859.56 -42.12%S&P 500 Index 1,468.36 903.25 -38.49%



28

Guaranty Trust Bank

Business Strategy and Objectives

B i St t d Obj ti



29

Guaranty Trust Bank

Business Strategy and Objectives (Medium to Long Term)

Cost Control

Monthly budgets

Outsourcing of non-corefunctions

Staff incentives for cost

savings

‘Efficient’ distribution

Invest in reliable technology

Focus onGrowth business

• No. 1 bank in Nigeria in terms of profit before tax and Return on Equity / Profitability

• Maintain Cost to Income stability by managing costs

• Expand leadership position across West Africa

2012

Goals

Opportunities

Insurance

Mortgage Banking

Investment Banking

Advisory

Capital Markets

Project Finance

Asset Management

Enhance productand service offering CostLeadership

Institutional

Capitalise on existing

relationships

Oil & Gas, Infrastructure, Telco

Increase penetration in

growing sectors

Hospitality, Real Estate

Construction, Power

West Africa selective

expansion and investments

Efficient, Innovative banking for the Entire Value Chain

SuppliersGTBank’s

ClientDistributors Customers

Employees B u s i n e s s S t r a t e g y

a n d O b j e c t i v e s

Th k Y



30

Guaranty Trust Bank

Thank You

18659436 guaranty trust bank gt bank presentation financial results december 2008

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