By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Guaranty Trust Bank Plc (GTBank) Friday proposed a total dividend of N1.10 Kobo to shareholders of the Bank for the Audited Year End December 31 2011.
The Bank in its Corporate Actions to the Nigerian Stock Exchange (NSE) and obtained by www.investadvocateng.com in Lagos Nigeria had earlier paid an Interim Dividend of 25 Kobo and now a final dividend of 85 Kobo; indicating a total dividend payment of N1.10 Kobo for year 2011 end.
GTBank affirmed that closure date of Register of investors whose name appears on the Bank’s record is March 29 2012; while Annual General Meeting (AGM) and payment date is scheduled for April 19 2012 respectively.
Analyst at Afrinvest West Africa said the proposed final dividend of 85k is a yield of 6.0% of current Market price (total dividend yield is 7.7%).
A look at the 2011 Audited Year End of the Bank, shows that Profit After Tax (PAT) grew by 37.3% as the Bank recorded a PAT of N52.654 billion in year 2011 compared to N38.347 billion in year 2010 end.
Profit Before Tax (PBT) also increased from N48.456 billion in year 2010 to N65.596 billion in year 2011 end; indicating an increase 0f 35.4% in the review period.
While Gross Earnings went up by 22.7% as the Bank posted N188.819 billion in 2011 compared to N153.908 billion in year 2010.
The Afrinvest Analyst say the Result is showing impressive growths in top and bottom lines.
Afrinvest Earnings Update says GTBank outperformed Gross Earnings target by 4.1%, “Net Earnings missed our estimates by 8.1%, closing the year at N52.6bn, a 37.3% leap from the prior year’s figure of N38.3 billion†the Report said.
Analysts says the Bank recorded improvement in profitability metrics as its Net Margin came in at 27.9%, up by 300bps Year-on-Year (Y-o-Y), while ROAE stood at 23.4% from 18.5% in the previous year.
The GTBank proposed a final dividend of 85k, a yield of 6.0% of current market price (total dividend yield is 7.7%).
Analyst affirms that on the back of this performance, GTBank trades at 8.3x earnings, based on an adjusted trailing Earnings Per Share (EPS) of N1.71 and current Market price of N14.22 (as of March 16, 2012).
“This represents a discount to its peers – excluding UBA – trading at an average trailing P/E of 9.9x earnings. The bank also trades at P/BV of 1.8x, versus comparable–sized Nigerian banks trading at an average trailing P/BV of 1.1x.
We believe this premium remains justified on the back of the Bank’s superior ROE performance, as well as its consistent profitability and efficiencyâ€ÂÂAfrinvest Analyst said.
Click here to download GTBank Plc FY 2011 Earnings Update from Afrinvest.
