GTBank Gets ‘Buy’ Recommendation
Renaissance Capital (RenCap) in its recent economic value analysis (EVA) on the leading tier-1 banks in Nigeria has described the Guaranty Trust Bank Plc (GTBank) as a business that has created tangible cumulative value over a period of time.
The firm noted that for long-term investors seeking the best-in-class in terms of delivery, “GTB is still the best entry point into the Nigerian market,” saying that it believes the bank’s superior value creation justified the premium rating.
RenCap analysts stated that GTBank outperformed its other two peers in returns at 34 per cent, created the highest absolute value and delivered the best return-on-investment at 34 per cent.
“The bank’s management has demonstrated professionalism in managing a world-class bank in all facet to ensure steady growth in terms of profitability and dividend payment. The bank stood tall in the pre and post economic meltdown crisis that led to various reforms in the banking industry which boosted its customers and deposit base with high patronage by the banking public.
“The bank has remained strong in the industry as a result of solidified operations and branch networking through ICT driven banking products and efficient customer service delivery. The bank’s giant effort was clearly revealed in the numbers released in the past five years at the exchange,” it added.
The post elections prospects for the bank were also rated as highly optimistic.
“The expected relative stable macro-economic outlook after election will favour the bank as volume of transactions has increased with the cashless economy and its formidable IT driven banking products. Its recent IFC loan to boost retail lending to has complemented other banking products and service mix to enhance profitability and drive share price.
“The bank ranking among the top 500 banks in the world is a plus. It is also one of the most respected banks in Nigeria today and customer’s top choice due to its professionalism and prompt customer service delivery. Additionally, the strong brand name and good succession plan of the bank assures continuity,” it added.
GTBank recorded profit before tax of N116.39 billion in 2014 and a 12.4 per cent growth in total assets, from N2.10 trillion in 2013 to N2.36 trillion as at December 31, 2014. The bank’s non-performing Loans (NPL) ratio remained low at 3.15 per cent as at 2014.
The bank’s Chief Executive Officer, Mr Segun Agbaje had said GTBank’s financial performance “attests to the inherent soundness of our strategy and resilience of our earnings.