Guaranty Trust Bank reports 23.0% CAPEX growth and 8.4% Revenue growth
14 Mar 2016 • About Guaranty Trust Bank (
$GRTB) • By InTwits
Guaranty Trust Bank reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Guaranty Trust Bank is a growth stock: 2015 revenue growth was 8.4%, 5 year revenue CAGR was 14.4% at 2015 ROIC 16.0%
- Guaranty Trust Bank has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.5%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 34,936 in FY2015, 43,361 in FY2014, 42,702 in FY2013, 53,507 in FY2012, 92,321 in FY2011
- The company has highly profitable business model: ROIC is at 16.0%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Guaranty Trust Bank ($GRTB) key annual financial indicators
| mln. NGN | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 182,409 | 221,940 | 242,665 | 278,443 | 301,762 | 8.4% |
| Net Income | 51,204 | 86,958 | 89,599 | 93,737 | 98,678 | 5.3% |
Balance Sheet
|
|---|
| Cash | 368,282 | 322,989 | 307,396 | 246,940 | 254,633 | 3.1% |
| Short Term Debt | 95,527 | 35,769 | 40,767 | 122,960 | 191,380 | 55.6% |
| Long Term Debt | 180,699 | 167,580 | 223,074 | 167,321 | 180,117 | 7.6% |
Cash flow
|
|---|
| Capex | 18,247 | 14,921 | 14,820 | 18,833 | 23,155 | 23.0% |
Ratios
|
|---|
| Revenue growth | 18.5% | 21.7% | 9.3% | 14.7% | 8.4% | |
| Net Income Margin | 28.1% | 39.2% | 36.9% | 33.7% | 32.7% | -1.0% |
| CAPEX, % of revenue | 10.0% | 6.7% | 6.1% | 6.8% | 7.7% | 0.9% |
| ROIC | 14.2% | 19.8% | 18.9% | 17.8% | 16.0% | -1.8% |
| ROE | 23.6% | 34.1% | 29.4% | 27.3% | 25.8% | -1.6% |
Revenue and profitability
The company's Revenue increased on 8.4% in 2015.
Net Income marign decreased slightly on 0.96 pp from 33.7% to 32.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.7%. CAPEX/Revenue increased slightly on 0.95 pp from 6.7% in 2012 to 7.7% in 2015. Average CAPEX/Revenue for the last three years was 6.8%.
Return on investment
The company operates at high and attractive ROE (25.76%) while ROIC is a bit lower (16.01%). ROIC decreased slightly on 1.8 pp from 17.8% to 16.0% in 2015. ROE decreased slightly on 1.6 pp from 27.3% to 25.8% in 2015.
Leverage (Debt)
Debt jumped on 28.0% in 2015 while cash increased on 3.1% in 2015.
Appendix 1: Peers in Banks
Below you can find Guaranty Trust Bank benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kazkommertsbank JSC ($KKB) | | | 6.0% | 16.3% | 41.4% |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 37.6% | 23.7% | 18.9% | 26.8% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 14.9% | 4.8% | 19.7% | 25.3% |
| Mcb Bank Ltd ($MCBS) | | 3.0% | -1.7% | 19.4% | 22.4% |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | | 3.7% | 9.4% | 16.3% | 19.5% |
| |
|---|
| Median (37 companies) | 8.1% | 9.3% | 4.2% | 11.5% | 3.7% |
|---|
| Guaranty Trust Bank ($GRTB) | | 21.7% | 9.3% | 14.7% | 8.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Diamond Bank ($DBPA) | | 8.2% | 7.9% | 6.0% | 6.7% |
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 4.1% | 5.1% | 3.8% | 4.5% | 6.0% |
| Royal Bank Of Scotland Group ($RBS) | | 5.8% | 2.7% | 4.1% | 4.6% |
| |
|---|
| Median (35 companies) | 2.3% | 2.2% | 2.7% | 2.1% | 2.4% |
|---|
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | 7.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | 30.3% |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | 12.6% |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 5.1% | 8.8% | 9.0% | 12.9% | 10.8% |
| Axis Bank ($AXB) | 10.2% | 9.6% | 8.9% | 9.1% | 8.8% |
| |
|---|
| Median (37 companies) | 6.9% | 6.0% | 5.3% | 4.4% | 3.3% |
|---|
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | 16.0% |
