Guaranty Trust Bank reports 37.4% revenue growth in 2016
08 Mar 2017 • About Guaranty Trust Bank (
$GRTB) • By InTwits
Guaranty Trust Bank reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Guaranty Trust Bank is a fast growth stock: 2016 revenue growth was 37.4%, 5 year revenue CAGR was 17.8% at 2016 ROIC 17.4%
- Guaranty Trust Bank has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.2%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 27,421 in 2016, 25,019 in 2015, 12,232 in 2014, 10,772 in 2013, 11,290 in 2012
- The company has highly profitable business model: ROIC is at 17.4%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Guaranty Trust Bank ($GRTB) key annual financial indicators
| mln. NGN | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 221,940 | 242,665 | 278,443 | 301,762 | 414,541 | 37.4% |
| Net Income | 86,958 | 89,599 | 93,737 | 98,678 | 131,342 | 33.1% |
Balance Sheet
|
|---|
| Cash | 322,989 | 307,396 | 246,940 | 254,633 | 455,863 | 79.0% |
| Short Term Debt | 35,769 | 40,767 | 122,960 | 191,380 | 172,499 | -9.9% |
| Long Term Debt | 167,580 | 223,074 | 167,321 | 180,117 | 300,505 | 66.8% |
Cash flow
|
|---|
| Capex | 14,921 | 14,820 | 18,833 | 23,155 | 15,753 | -32.0% |
Ratios
|
|---|
| Revenue growth | 21.7% | 9.3% | 14.7% | 8.4% | 37.4% | |
| Net Income Margin | 39.2% | 36.9% | 33.7% | 32.7% | 31.7% | -1.0% |
| CAPEX, % of revenue | 6.7% | 6.1% | 6.8% | 7.7% | 3.8% | -3.9% |
| ROIC | 19.8% | 18.9% | 17.8% | 16.0% | 17.4% | 1.4% |
| ROE | 34.1% | 29.4% | 27.3% | 25.8% | 29.1% | 3.3% |
Revenue and profitability
The company's Revenue jumped on 37.4% in 2016.
Net Income marign decreased slightly on 1.0 pp from 32.7% to 31.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.8% in 2016. CAPEX/Revenue decreased on 2.3 pp from 6.1% in 2013 to 3.8% in 2016. It's average level of CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at high and attractive ROE (29.08%) while ROIC is a bit lower (17.43%). ROIC increased slightly on 1.4 pp from 16.0% to 17.4% in 2016. ROE increased on 3.3 pp from 25.8% to 29.1% in 2016.
Leverage (Debt)
Debt jumped on 27.3% in 2016 while cash jumped on 79.0% in 2016.
Appendix 1: Peers in Banks
Below we provide Guaranty Trust Bank benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bank Audi S.A.L. ($BQAD) | | 11.7% | 23.9% | 7.1% | 27.2% |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Turkiye Garanti Bankasi ($39IS) | | 4.2% | 15.8% | 10.3% | 20.4% |
| Turk Ekonomi Bankasi As ($TURA) | | 6.3% | 23.0% | 14.6% | 18.1% |
| Zenith Bank ($ZENB) | | 14.8% | 20.1% | 7.0% | 17.8% |
| |
|---|
| Median (35 companies) | 8.8% | 4.2% | 11.5% | 4.2% | 3.6% |
|---|
| Guaranty Trust Bank ($GRTB) | | 9.3% | 14.7% | 8.4% | 37.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 5.1% | 3.8% | 4.5% | 6.0% | 3.3% |
| |
|---|
| Median (41 companies) | 2.2% | 2.7% | 2.1% | 2.5% | 1.9% |
|---|
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | 3.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Bank Audi S.A.L. ($BQAD) | 13.2% | 9.2% | 8.9% | 8.3% | 14.5% |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | 12.5% |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | 11.1% |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | 10.7% |
| |
|---|
| Median (37 companies) | 6.0% | 5.3% | 4.4% | 3.4% | 4.8% |
|---|
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | 17.4% |
