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GTBank, Access Bank, others report Q3 profits

22 Oct 2015
Chibuike Oguh

Summary

GTBank’s interest income rose by 16.7 percent year-on-year to N173 billion in the nine months from N148.2 billion in the corresponding period last year.

Group MD/CEO, Guaranty Trust Bank, Segun Agbaje

GTBank, one of Nigeria’s biggest banks, has posted results for nine-months this year, showing a 12.6 percent increase in after-tax profits to N75.2 billion up from N66.7 billion in the same period last year.

This result is almost at par with the consensus expectations of analysts, who predicted after-tax profits of N77 billion, according to analysts at Cardinal Stone Partners. At the end of trading on October 21st, GTBank shares fell by 0.01 percent to close at N24.05.

The bank’s gross earnings rose by 15.1 percent to N229.4 billion for nine months ending in September up from N199.2 billion in the same period last year. Profits before tax also rose by 14 percent this year to N92.1 billion up from N80.7 billion last year, the bank said in a statement posted on the Nigerian Stock Exchange.

GTBank’s interest income rose by 16.7 percent year-on-year to N173 billion in nine months up from N148.2 billion last year. Non-interest income also rose by 9.6 percent year-on-year to N54.3 billion up from N49.6 billion last year.

Just like GTBank, Access Bank also posted nine-month results that exceeded the expectations of analysts. The bank reported that after-tax profits rose by 37.7 percent to N48.1 billion in nine months up from N34.9 billion in the same period last year.

Access Bank’s gross earnings rose by 42 percent in nine months to N257.6 billion up from N181.4 billion last year. Analysts at Cardinal Stone Partners had expected the bank to post earnings of N242.3 billion in nine months.

The main driver of Access Bank’s results is its impressive non-interest income, which rose by 105.9 percent year-on-year to N102.2 billion in nine months this year compared with N49.6 posted last year. The bank has benefited from derivative contracts made up of currency swaps, which it took in 2014 after its highly successful $400 million Eurobond offering.

Non-interest income rose by 17.9 percent to N155.4 billion in nine months last year up from N131.7 percent last year. At the end of trading on October 21st, Access Bank shares rose by 0.01 percent to close at N4.99.

Meanwhile, Nigerian Breweries (NB) posted a 12.2 percent decline in after-tax profits in nine months ending in September. After-tax profits dropped to N26.18 billion compared with N29.83 billion in the same period last year.

NB’s results disappointed analysts who expected higher profits. Consensus expectations for NB’s after tax profits stood at N28 billion, according to Cardinal Stone Partners.

However, gross earnings at the brewery giant rose by 10 percent year-on-year in nine months to N214.92 billion up from N194.74 billion recorded in the same period last year. At the end of trading on October 21st, NB shares fell by 1.01 percent to close at N138.02.

NB’s lackluster results may have been caused by higher sales and administrative expenses which rose by 16.2 percent year-on-year in nine months to N58.29 billion up from N59.14 billion in the same period last year. According to Cardinal Stone Partners, the increased expenses may have come from marketing costs incurred during the aggressive marketing campaign of latest brand – Star Raddler.

Just like NB, Transnational Corporation of Nigeria (Transcorp) posted disappointing results for nine months ending in September. Transcorp posted after-tax profits that declined by 28.8 percent year-on-year in nine months to N5.89 billion down from N8.26 billion posted last year.

Gross earnings declined by 3.1 percent year-on-year in nine months this year to N30.43 billion down from N31.4 billion last year. Cardinal Stone Partners stated that Transcorp earnings was affected by lower occupancy levels at the group’s flagship Transcorp Hilton, Abuja; lower average generating capacity at the Ughelli power plant; and insignificant revenue increases at the group’s agribusiness subsidiary, Teragro Commodities Limited.

At the end of trading on October 21st, Transcorp shares rose by 0.03 percent to close at N2.08.


Chibuike Oguh is Financial Nigeria's Frontier Markets Analyst


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