GTBank impresses investors with capital gain, steady growth in dividend

For dividend and capital gain –driven investors, GTBank has met their investment objectives. GODFREY OBIOMA says with its international strategic partnership and current quarterly results, there are strong indications of better returns in the coming year.

Consistently rising final dividend payment has been the hallmark of GT Bank, a trend that has endeaved it to investors.

The bank paid final dividends of N0.75 per share in 2003; N0.60 in 2004; N0.62 in 2005; N0.70 in 2006 and N0.95 per share in the 2007 financial year. These were paid from earnings per share of N1.28 per share in 2003; N1.35 in 2004; N1.10 in 2005; N1.45 in 2006 and N1.63 in 2007.

This partly explains the substantial capital appreciation. As at October 3, 2006, the share price of the bank grew by 56.03 percent in one year. In 6 months, it was 19.88 percent stronger and 51.92 percent higher in one month.

March 1, 200, GT Bank gained 7.62 percent in 8 months; 51.07 percent in 2 months ; 27.5 percent in 1 month and 5.75 percent in I week.

By April 24, 2007, investors reaped 10.7 percent capital gain in one month. The bank’s quarterly result for the period ended December 31, 2006 shows turnover of N40.5 billion, up from N26.35 billion in the corresponding quarter in 2005.Profit after tax was up from N2.34 billion to N3.42 billion.

To further boost earnings and deliver more superior returns to investors, the bank entered into strategic partnership with Morgan Stanley investment management, a leading investment bank in the United States. The partnership would also enable it take part in the management of the nation’s external reserves.

GT Bank also earned further international confidence with a $40-million credit line from the African Development Bank. This brings to $400million, the total funding from international finance institutions.

GT Banks international stature was further bolstered by the Netherlands Development Finance Company (FMO) acquisition of 15 percent equity interest in Guaranty Trust Bank Ghana Limited.

Recently, the bank’s $350-million Eurobond, the first of its kind in West Africa, was oversubscribed.

It is on account of this local and international pedigree that the bank has received (AA-) risk rating from Fitch, an international rating agency and BB- risk rating from Standard and Poor’s.

Back home, it received the first runners-up award in KPMG’s customer services excellence award in recognition of its excellent customer services delivery.

The superior service delivery was achieved through the creation of some financial products. These include cash plus, a debit card connected to customers accounts that give them access to all the electronic channels. Through this product, customers can pay for goods and serviced and withdraw cash from over 3,000 interswitch powered Automated Teller Machines (ATMs).

Also among its financial product is Guaranty Bank Master, a global and e-payment brands issued in partnership with MasterCard international.

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