The eagerly awaited H1 2012 audited result for GTBank was released on the floor of the Nigerian Stock Exchange.
The bank reported Gross Earnings of N106.1bn for H1 2012, 25.2% higher than the N84.8bn reported in H1 2011(this figure is re-stated from N91.8bn). PBT and PAT recorded remarkable year-on-year growth of 63.0% and 69.7% to N53.6bn and N45.6bn from N32.9bn and N26.8bn respectively.
Quarter-on-quarter, the Bank grossed N53.5bn in earnings for Q2 2012, a marginal 1.7% increase on the N52.6bn posted in Q1 2012. PBT and PAT however rose in Q2 by 20.0% and 35.9% to N29.3bn and N26.2bn from N24.4bn and N19.3bn in Q1 respectively.
On the strength of these numbers, the bank currently trades at a trailing P/E of 7.5x which falls below its peer average (trailing basis) of 10.2x.
The price to book value at 2.1x looks pricey relative to a peer average of 1.2x, it however reflects the investor confidence on the counter as we believe the bank has been fairly priced in recent times.
We however recommend an ACCUMULATE rating on the stock based on a 6 month price target of N20.23, which represents a 12.7% upside from a market price of N17.95.
Source: Afrinvest
