GTB 2016-Annual-Report

INTRODUCTION
Guaranty Trust Bank’s Consolidated Financial Statements

complies with the applicable legal requirements of the
Nigerian Securities and Exchange Commission regarding
Annual Financial Statements and comprises Separate
and Consolidated Financial Statements of the Bank and
the Group for the year ended 31 December 2016. The
consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board and
adopted by the Financial Reporting Council of Nigeria. For
better understanding, certain disclosures and some prior
year figures have been presented in line with current year
figures. Due to rounding, numbers presented throughout
this document may not add up precisely to the totals
provided and percentages may not precisely reflect the
absolute figures.
#EnrichingLives Guaranty Trust Bank plc | 2016 Annual Report | 1

Table of
Contents
Overview AML/CFT Framework 034
Vision & Mission Statements 004 Internal Control and Risk 038
Management Systems
Directors, Officers & Professional Chairman’s Statement 041

Advisers 005
Managing Director’s Statement 049
Result at a Glance 006

Directors’ Report 055
GROSS EARNINGS PROFIT BEFORE TAX PROFIT AFTER TAX
N414.62billion N165.14billion N132.28billion

Statement of Directors’ Responsibilities 067
Notice of Annual General Meeting 007

Report of the Audit Committee 068
Corporate Governance 009

§§ Introduction 010 Report of the Independent Consultants on
on the Appraisal of the Board 069
§§ Governance Structure 010
Subsidiary Governance 025 Report of the Independent Auditor to the

Members of Guaranty Trust Bank plc 070
Sustainability Report 028
Complaints and Feedback 031

Financial Statement 076 Five Year Financial Summary 323
§§ Statements of financial position 077 §§ Statements of Financial Position (Group) 324
§§ Income Statements 079 §§ Statements of Comprehensive Income (Group) 325
§§ Statements of comprehensive income 080 §§ Statements of Financial Position (Parent) 326
§§ Consolidated Statement of changes in equity 081
§§ Statements of Comprehensive Income (Parent) 327
§§ Statement of Cash - flows 085
Share Capitalisation History 328
Accounting Policies 087

Corporate Information 331
§§ Reporting Entity 088
§§ List of Management Team
§§ Basis of Preparation 088
Including Subsidiaries 332
§§ Significant Accounting Policies 088
Products and Services 334
Financial Risk Management 109 Corporate Social

§§ Credit Risk 114 Responsibility 346
§§ Liquidity Risk 171
§§ Settlement Risk 188
§§ Market Risk 188 Corporate Directory 352
§§ Correspondent Banking Relationships 354
§§ Branch Network 355
Other notes to the Financial Statements 209

§§ Capital Management & Other Risks 210
Forms 363
§§ Use of Estimates and Judgements 213
§§ Statement of Prudential Adjustment 224 §§ Mandate for e-Dividend payment 365
§§ Operating Segments 225 §§ Unclaimed Dividend Warrant Form 367
§§ Financial Assets and Liabilities 235 §§ Proxy Form 369
§§ Notes to the Statements of Comprehensive §§ Shareholder’s Data Update Forms 371
Income and Statements of Financial position 239 §§ Notes 372
§§ Dividends 299
§§ Contingencies 300
§§ Group Entities 301
§§ Related Parties 303
Regulatory Requirements under 308

IFRS Regime
Operational Risk Management 313

View our Annual Report Online
www.gtbank.com
Activities of Card Operations 317
Value Added Statements 320

VISION AND
MISSION
STATEMENTS
VISION
We are a team driven to deliver the utmost in customer
service.
We are synonymous with innovation, building excellence

and superior financial performance and creating role models
for society.
MISSON
We are a high quality financial services provider with the
urge to be the best at all times whilst adding value to all
stakeholders.

DIRECTORS
1 Mrs. O.A. Demuren Chairman, Board of Directors DIRECTORS,
2 Mr. J.K.O. Agbaje Managing Director/CEO
OFFICERS AND
3 Mrs. C.N. Echeozo Deputy Managing Director
4 Mr. A.O Akintoye

(Retired with effect from March 16, 2017)
Non-Executive (Independent) Director
PROFESSIONAL
5 Mr. A.F. Alli
(Retired with effect from June 30, 2016)
Non-Executive (Independent) Director
ADVISERS
6 Mr. K. A. Adeola Non-Executive Director
7 Mr. O.M. Agusto Non-Executive Director
8 Mr. I. Hassan Non-Executive Director
9 Mr. H.A. Oyinlola Non-Executive Director
10 Ms. I. L. Akpofure Non-Executive (Independent) Director
11 Mr. B. T. Soyoye Non-Executive (Independent) Director
(Appointed with effect from July 27, 2016)
12 Mr. A.A. Odeyemi Executive Director
13 Mrs. O.O. Omotola Executive Director
14 Mr. A.A. Oyedeji Executive Director
15 Mr. H. Musa Executive Director
16 Mr. M.J. Lawal Executive Director
(Appointed with effect from March 17, 2017)
Company Secretary
Mr. E.E. Obebeduo
FRC/2017/NBA/00000016024
Registered Office
Plot 635, Akin Adesola Street
Victoria Island, Lagos State.
Auditors
PricewaterhouseCoopers
Landmark Towers
5B, Water Corporation Road
Victoria Island, Lagos State.
Registrar & Transfer Office

Datamax Registrars Limited
2c, Gbagada Express Way
Gbagada Phase 1
Lagos State.
Tel: +234 1 7120008-11
Fax: +234 1 7120012
Email: [email protected]

RESULT AT A GLANCE
GROSS EARNINGS PROFIT BEFORE TAX PROFIT AFTER TAX
N414.62billion N165.14billion N132.28billion
Group Group Increased/ Parent Parent Increased/

Major Income Statement Items Dec-2016 Dec-2015 (Decreased) Dec-2016 Dec-2015 (Decreased)
N’million N’million % N’million N’million %
Gross Earnings 414,616 301,850 37 365,917 268,876 36
Profit before income tax 165,136 120,695 37 154,005 113,027 36
Profit after income tax 132,281 99,437 33 126,837 94,308 34
Earnings Per Share (Kobo) 467 351 431 320
Major Statement of Financial

Position Items
Loans and advances to customers 1,589,430 1,371,926 16 1,417,218 1,265,207 12
Deposits from customers 1,986,246 1,610,350 23 1,681,185 1,422,550 18
Total assets 3,116,393 2,524,594 23 2,613,340 2,277,629 15
Total equity 504,903 413,562 22 476,918 405,608 18

NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the Twenty-seventh NOTES:

Annual General Meeting of GUARANTY TRUST BANK
PLC will hold at the Oriental Hotel, 3, Lekki Road, 1. Dividend
Victoria Island, Lagos State, on Friday, April 7, 2017, at
10.00 a.m. to transact the following business: If approved, dividend will be payable on Friday,
April 7, 2017, at the rate of ₦1.75 Kobo per every
ORDINARY BUSINESS 50 Kobo ordinary share, to shareholders whose
names appear in the Register of Members at the
1. To receive the Audited Financial Statements for the close of business on Tuesday, March 28, 2017
year ended December 31, 2016, and the Reports (bringing total dividend paid for the 2016 financial
of the Directors, Auditors and Statutory Audit year to ₦2.00). Shareholders who have completed
Committee thereon; the e-Dividend Mandate Forms will receive a direct
credit of the dividend into their bank accounts on
2. To declare a dividend; the date of the Annual General Meeting, while
dividend warrants for shareholders who have
3. To elect/re-elect Directors; not completed the e-dividend Mandate Form
shall be posted on the same day. Note however,
4. To authorise Directors to fix the remuneration of that holders of the Company’s Global Depository
the Auditors; Receipts listed on the London Stock Exchange will
receive their dividend payments subsequently.
5. To elect Members of the Statutory Audit
Committee. 2. E-Dividend Mandate
SPECIAL BUSINESS Shareholders are kindly requested to update their

records and advise Datamax Registrars Limited of
6. To consider and if thought fit, pass the following their updated records and relevant bank accounts
as an Ordinary Resolution: for the payment of their dividends. Detachable
forms in respect of mandate for e-dividend
“That the Directors’ fee for the financial year ending payment, unclaimed/stale dividend payment and
December 31, 2017, and for succeeding years until shareholder data update are attached to the Annual
reviewed by the Company in its Annual General Meeting, Report for convenience. The aforementioned forms
be and is hereby fixed at ₦24,500,000.00 (twenty-four can also be downloaded from the Bank’s website
million, five hundred thousand Naira only) for each at www.gtbank.com or from Datamax Registrars
financial year.” Limited’s website at www.datamaxregistrars.com.
The duly completed forms should be returned to
PROXY Datamax Registrars Limited, No. 2c, Gbagada
Express Road, Gbagada Phase 1, Lagos State, or to
A member entitled to attend and vote at the Annual the nearest Guaranty Trust Bank plc branch.
General Meeting is entitled to appoint a proxy to attend
and vote in his/her/its stead. A proxy need not be a 3. Closure of Register
member of the Company. For the appointment to be
valid, a completed and duly stamped proxy form must The Register of Members will be closed on
be deposited at the office of the Registrar, Datamax Wednesday, March 29, 2017, to enable the
Registrars Limited, No. 2c, Gbagada Express Road, Registrar prepare for payment of dividend.
Gbagada Phase 1, Lagos State, not less than 48 hours
before the time fixed for the meeting. A blank proxy 4. Statutory Audit Committee
form is attached to the Annual Report.
In accordance with section 359(5) of the Companies
BY THE ORDER OF THE BOARD and Allied Matters Act, 2004, any shareholder
may nominate a shareholder for appointment to
the Statutory Audit Committee. Such nomination
should be in writing and should reach the Company
ERHI OBEBEDUO Secretary at least twenty-one (21) days before the
Company Secretary Annual General Meeting.

FRC/2017/NBA/00000016024 Kindly note that the provisions of the Codes of
Plot 635, Akin Adesola Street Corporate Governance issued by the Securities
Victoria Island, Lagos and Exchange Commission (SEC); and Central
March 8, 2017

NOTICE OF ANNUAL GENERAL MEETING
Bank of Nigeria (CBN) indicate that members of Bank’s website at www.gtbank.com.

the Statutory Audit Committee should have basic
financial literacy and be knowledgeable in internal 6. Re-election of Directors
control processes.
In accordance with the provisions of the Articles of
Furthermore, in line with the Financial Reporting Association, the Directors to retire by rotation at
Council of Nigeria (FRCN) Rules, the Chairman of the the 27th Annual General Meeting are Mrs. Osaretin
Statutory Audit Committee must be a professional Demuren and Mr. Ibrahim Hassan. The retiring
member of an accounting body established by Act Directors, being eligible, offer themselves for re-
of the National Assembly in Nigeria. In view of election.
the foregoing, nominations to the Statutory Audit
Committee should be supported by the Curricula The profiles of the Directors retiring by rotation
Vitae of the nominees. are available in the Annual Report and also on the
Bank’s website at www.gtbank.com.
5. Election of Directors
7. Shareholders’ Questions
i. Mr. Babatunde Temitope Soyoye
Mr. Babatunde Temitope Soyoye is being Shareholders reserve the right to ask questions at
proposed for election as a Non-Executive the Annual General Meeting. Shareholders may
(Independent) Director to fill an existing also submit their questions prior to the Meeting in
vacancy. writing to the Company, in line with Rule 19.12(c)
of the Listing Rules of The Nigerian Stock Exchange.
ii. Mr. Mobolaji Jubril Lawal Such questions should be addressed to the Company
Mr. Mobolaji Jubril Lawal is being proposed Secretary and reach the Company at its Head Office
for election as an Executive Director to fill an or by electronic mail at investorsenquiries@gtbank.
existing vacancy. com not later than 7 days to the date of the Meeting.
The appointments of both Directors have been

approved by the Central Bank of Nigeria and
would be presented for Shareholders’ approval at
the 27th Annual General Meeting.
The profiles of the aforementioned Directors are
available in the Annual Report and also on the

CORPORATE
GOVERNANCE

CORPORATE GOVERNANCE
Introduction Communications Policy, which regulate employee

relations with internal and external parties. This is
In our pursuit to deliver greater shareholder value, a strong indicator of the Bank’s determination to
Guaranty Trust Bank Plc (“the Bank”) continues ensure that its employees remain professional at
to subject its operations to the highest standards all times in their business practices. The Bank also
of corporate governance, which is an essential has an entrenched culture of openness in which
foundation for sustainable corporate success. healthy discourse is encouraged and employees are
We believe good corporate governance practices mandated to report improper activities.
enhance the confidence placed in the Bank by our
shareholders, business partners, employees and The Bank complies with the requirements of
the financial markets in which we operate. The the Central Bank of Nigeria (“CBN”) in respect
belief that success is only worth celebrating when of internal review of its compliance status with
achieved the right way through a process supported defined corporate governance practices and
and sustained with the right values remains one of submits reports on the Bank’s compliance status
the Bank’s guiding principles. Our commitment to to the CBN and the Nigeria Deposit Insurance
this principle is for us, the key to keeping public Corporation. The Bank also conducts an Annual
trust and confidence in our Bank and the key to our Board and Directors’ Review/Appraisal covering
continued long-term success. all aspects of the Boards’ structure, composition,
responsibilities, processes and relationships, in
Maintaining good corporate governance practices compliance with the requirement of the CBN
has become even more important, in view of the Code. To conduct the Annual Board Appraisal for
increased risks brought about by globalization and the financial year ended December 31, 2016, the
digitalization in the Banking industry. Board engaged the consultancy firm of Ernst and
Young LP. The independent consultants carried out
As a company publicly quoted on The Nigerian Stock a comprehensive review of the effectiveness of the
Exchange with Global Depositary Receipts (GDRs) Board by assessing the performance of the Board,
listed on the London Stock Exchange, we remain the Board Committees and Directors. The report of
dedicated to our duties and pledge to safeguard the Appraisal will be presented to Shareholders at
and increase investor value through transparent the 27th Annual General Meeting of the Bank.
corporate governance practices. The Bank has a
Code of Corporate Governance which provides a Governance Structure
robust framework for the governance of the Board
and the Bank. The Bank ensures compliance with The Board
the Code of Corporate Governance for Public
Companies issued by the Securities and Exchange The Board of Directors is responsible for the
Commission (“the SEC Code”), the revised Code governance of the Bank and is accountable to
of Corporate Governance for Banks and Discount shareholders for creating and delivering sustainable
Houses in Nigeria issued by the Central Bank of value through the management of the Bank’s
Nigeria (“the CBN Code”) in May 2014, as well business.
as disclosure requirements under the Disclosure
and Transparency Rules of the Financial Conduct The Board ensures that an appropriate level of
Authority (FCA), United Kingdom, which are checks and balances are maintained, in order
applicable to non-United Kingdom companies with to ensure that decisions are taken with the best
Global Depositary Receipts (GDRs) listed on the interests of the Bank’s stakeholders in mind.
London Stock Exchange. Directors of the Bank possess the right balance of
expertise, skills and experience, which translates to
The Bank’s Code of Corporate Governance is an effective Board and an executive management
continuously reviewed to align with additional team capable of steering the affairs of the Bank in
legal and regulatory requirements and global best an ever changing and challenging environment. The
practices, in order to remain a pace setter in the area Bank’s robust appointment and effective succession
of good corporate governance practices. In addition planning framework is one way of ensuring that
to the Code, the Bank aggressively promotes its core we continue to have the right people to drive the
values to employees of the Bank through its Code business of the Bank in the desired direction.
of Professional Conduct; its Ethics Policy as well as
The Board plays a central role in conjunction with
Management in ensuring that the Bank is financially Responsibilities of the Board

strong, well governed and risks are identified and
well mitigated. The synergy between the Board and The Board has ultimate responsibility for determining
Management further fosters interactive dialogue in the strategic objectives and policies of the Bank to
setting broad policy guidelines in the management deliver long-term value by providing overall strategic
and direction of the Bank to enhance optimal direction within a framework of rewards, incentives
performance and ensure that associated risks are and controls.
properly managed.
The Board has delegated the responsibility for day-
In addition to the Board’s direct oversight, the Board to-day operations of the Bank to Management and
exercises its oversight responsibilities through six ensures that Management strikes an appropriate
(6) Committees, namely Board Risk Management, balance between promoting long-term growth
Board Credit, Board Human Resources and and delivering short-term objectives. In fulfilling
Nominations, Board Remuneration, Board its primary responsibility, the Board is aware of
Information Technology Strategy, and the Board the importance of achieving a balance between
Audit. The Statutory Audit Committee of the Bank, conformance to governance principles and
which comprises equal numbers of representatives economic performance.
of the Board and Shareholders, also performs its
statutory role as stipulated by the Companies and Notwithstanding the delegation of the operation of
Allied Matters Act (2004). the Bank to Management, the Board reserved certain
powers which include; the approval of quarterly,
The Board of Directors of the Bank is made up of half-yearly and full year financial statements
seasoned professionals who have excelled in various (whether audited or unaudited) and any significant
sectors including Banking, Accounting, Engineering, change in accounting policies and/or practices,
Oil and Gas, as well as law. They possess the approval of major changes to the Bank’s corporate
requisite integrity, skills and experience to bring to structure and changes relating to the Bank’s capital
bear independent judgment on the deliberations structure or its status as a public limited company,
and decisions of the Board (without prejudice to the determination and approval of the strategic
Directors’ right to earn Directors’ fees and hold objectives and policies of the Bank to deliver long-
interest in shares). The Directors have a good term value, approval of the Bank’s strategy, medium
understanding of the Bank’s businesses and affairs and short term plan, the Bank’s annual operating
to enable them properly evaluate information and and capital expenditure budget, appointment or
responses provided by Management, and to provide removal of Company Secretary, recommendation
objective challenge to Management. Directors to shareholders of the appointment or removal of
challenge each other’s assumptions, beliefs or Auditors and the remuneration of Auditors, approval
viewpoints as necessary for the good of the Bank of resolutions and corresponding documentation
and question intelligently, debate constructively for shareholders in general meeting(s), shareholders
and make decisions dispassionately. circulars, prospectus and principal regulatory filings
with Regulators.
The Board meets quarterly and additional meetings
are convened as required. Material decisions may Other powers reserved for the Board are the
be taken between meetings by way of written determination of Board structure, size and
resolutions, as provided for in the Articles of composition, including appointment and removal
Association of the Bank. The Directors are provided of Directors, succession planning for the Board
with comprehensive group information at each of and senior management and Board Committee
the quarterly Board meetings and are also briefed on membership; approval of mergers and acquisitions,
business developments between Board meetings. branch expansion and establishment of subsidiaries,
approval of remuneration policy and packages of
The Board met four (4) times during the financial the Managing Director and other Board members,
year ended December 31, 2016. appointment of the Managing Director and other
Directors of subsidiaries nominated by the Bank,
approval of the Board performance evaluation
process, corporate governance framework and
review of the performance of the Managing

Director, approval of policy documents on Board, including gender as well as the balance and
significant issues including; Enterprise-wide Risk mix of appropriate skills and experience.
Management, Human Resources, Credit, Corporate
Governance, Anti – Money Laundering, and Shareholding in the Bank is not considered a
approval of all matters of importance to the Bank as criterion for the nomination or appointment of a
a whole because of their strategic, financial, risk or Director. The appointment of Directors is subject to
reputational implications or consequences. the approval of the shareholders and the Central
Bank of Nigeria.
Roles of Chairman and Chief Executive
Induction and Continuous Training
The Chairman and Chief Executive have separate
roles on the Board and no one individual combines Upon appointment to the Board and to Board
the two positions. The Chairman’s main responsibility Committees, all Directors receive an induction
is to lead and manage the Board to ensure that it tailored to meet their individual requirements.
operates effectively and fully discharges its legal
and regulatory responsibilities. The Chairman is The induction, which is arranged by the Company
responsible for ensuring that Directors receive Secretary, may include meetings with senior
accurate, timely and clear information to enable management staff and key external advisors, to assist
the Board take informed decisions and provide Directors in acquiring a detailed understanding of
advice to promote the success of the Bank. The the Bank’s operations, its strategic plan, its business
Chairman also facilitates the contribution of environment, the key issues the Bank faces, and
Directors and promotes effective relationships and to introduce Directors to their fiduciary duties and
open communications between Executive and Non- responsibilities.
Executive Directors, both inside and outside the
Boardroom. The Bank attaches great importance to training its
Directors and for this purpose, continuously offers
The responsibility for the day-to-day management training and education from onshore and offshore
of the Bank has been delegated by the Board to institutions to its Directors, in order to enhance
the Managing Director/Chief Executive Officer, who their performance on the Board and the various
is supported by the other Executive Directors. The committees to which they belong. All the Bank’s
Managing Director executes the powers delegated Non-Executive Directors attended foreign and/or
to him in accordance with guidelines approved local courses during the 2016 financial year.
by the Board of Directors. Executive Management
is accountable to the Board for the development Changes on the Board
and implementation of strategies and policies. The
Board regularly reviews group performance, matters In the course of the financial year ended December
of strategic concern and any other matter it regards 31, 2016, Mr. Akindele Akintoye and Mr. Andrew
as material. Alli retired from the Board, having served as
Independent Non-Executive Directors for two (2)
Director Nomination Process terms of four (4) years each (i.e. eight (8)years) in
line with the Code of Corporate Governance of the
The Board Human Resources and Nominations Bank and regulatory provisions, which stipulates a
Committee is charged with the responsibility of maximum of two (2) terms of four (4) years each for
leading the process for Board appointments and for Independent Directors.
identifying and nominating suitable candidates for
the approval of the Board. Messrs Akintoye and Alli were appointed to the
Board in June, 2008. Prior to retirement, Mr.
With respect to new appointments, the Board Akintoye served as the Chairman of the Board Credit
Human Resources and Nominations Committee Committee, while Mr. Alli served as the Chairman
identifies, reviews and recommends candidates for of the Board Human Resources and Nominations
potential appointment as Directors. In identifying Committee as well as the Board Audit Committee.
suitable candidates, the Committee considers
candidates on merit against objective criteria and Also in the course of the year, the Board appointed
with due regard for the benefits of diversity on the Mr. Babatunde Soyoye as a Non-Executive

(Independent) Director to fill the vacancy created served as a senior member of the corporate strategy
on the Board. The appointment of Mr. Soyoye has team at British Telecom, and manager of business
been approved by the Central Bank of Nigeria and development at Singapore Telecom International.
will be presented for Shareholders’ approval at this
Meeting. Mr. Soyoye played a key role in the execution of
over $3 billion of investments across Africa, Europe,
With the appointment of Mr. Soyoye, the Bank Asia and North America.
has two (2) Independent Non-Executive Directors,
appointed based on the criteria laid down by the He is in his late forties and is primarily resident in the
CBN for the appointment of Independent Directors. United Kingdom.
Worthy of note is the retirement of Mrs. Catherine Profile of Mr. Bolaji Lawal
Echeozo from the Board with effect from March
16, 2017, having served as an Executive Director Mr. Mobolaji Jubril Lawal holds a Bachelor of
of the Bank for three (3) terms of four (4) years, Laws degree from Obafemi Awolowo University
which is the maximum term stipulated for Executive (1990); B.L from the Nigerian Law School (1991)
Directors in line with the Bank’s Code of Corporate and a Master of Business Administration degree
Governance. from Oxford University, United Kingdom (2002).
He has attended several executive management
In view of Mrs. Echeozo’s scheduled retirement, developmental programs in leading educational
the Board appointed Mr. Mobolaji Jubril Lawal as institutions such as Harvard Business School,
an Executive Director, with effect from March 17, Stanford Graduate School of Business and Institut
2017, to fill the vacancy. Européen d’Administration des Affaires (INSEAD).
The appointment of Mr. Lawal has been approved Mr. Lawal joined the Bank in 1992 as an Executive
by the Central Bank of Nigeria and will be presented Trainee and rose through the ranks to become a
for Shareholders’ approval at this Meeting. General Manager, a position he held until his
appointment as an Executive Director.
Profile of Mr. Babatunde Soyoye
He has over twenty-four (24) years banking
Mr. Babatunde Soyoye holds a Bachelor of experience which covers various aspects of banking
Engineering degree in Electrical Engineering (1991) including; Credit Risk Management, Corporate
from Kings College, University of London, London, Banking Group, Commercial Banking Group,
England and Master of Business Administration Investment Banking and Corporate Finance, where
degree (1995) from Imperial College London, he served as Group Head. Under his leadership,
England. the Group worked on several landmark debt
syndications, capital market and project finance
Mr. Soyoye is a seasoned professional with over transactions both in Nigeria and abroad.
twenty-four (24) years work experience, twenty-
one (21) of which has been spent in investment/ Mr. Lawal is the Divisional Head, Digital Banking
financial advisory services. Division of the Bank.
He is the co-founder and Managing Partner of He is in his late forties and is resident in Nigeria.
Helios Investment Partners LLP, a private investment
firm with its principal office in the United Kingdom, Retirement by Rotation
formed to pursue alternative asset class investments
in Sub-Saharan Africa, specializing in investment in In compliance with the provisions of Article 84(b)
companies, growth capital for private enterprises, of the Articles of Association of the Bank which
restructurings, joint ventures, startups and requires one third of the Directors (excluding
structured investments. Executive Directors) or if their number is not a
multiple of three, the number nearest to but not
Prior to co-founding Helios Investment Partners, greater than one third, to retire from office at each
Mr. Soyoye was responsible for Telecoms & Media biennial Annual General Meeting, Mrs. Osaretin
investments across Europe for TPG Capital. He Demuren and Mr. Ibrahim Hassan will retire at

the 27th Annual General Meeting and both being accessibility to the Nigerian Public.
eligible, offer themselves for re-election.
She is an alumnus of several local and international
Profile of retiring Directors training programs on Management, Banking,
Finance, Trade and Investment at institutions such
1. Mrs. Osaretin Demuren as the Michigan Ross Business School, Detroit and
Mrs. Demuren is the Chairman of the Board of Institut Européen d’Administration des Affaires
Directors of the Bank. She holds a Master of Science (INSEAD), France.
Degree in Economics and Statistics from the Moscow
Institute of Economics and Statistics, Moscow, and Mrs. Demuren joined the Board on April 17, 2013.
a Diploma in Russian Language and Preliminary She attended all the Board Meetings during the
Studies from the Kiev State University, Kiev. She is a period under review. A record of her attendance
member of many professional associations including at Board Meetings is available on page 19 of this
the Society for Human Resource Management of Report.
America, Nigerian Statistical Association, Chartered
Institute of Personnel Management of Nigeria and Mrs. Demuren is in her sixties and resident in Nigeria.
the Chartered Institute of Bankers of Nigeria.
2. Mr. Ibrahim Hassan
Mrs. Demuren had a successful career with the A Petroleum Geologist, Mr. Hassan holds a Bachelor
Central Bank of Nigeria which spanned over of Technology in Geology degree (1992) from
thirty-three (33) years, during which she served as Federal University of Technology, Yola, Adamawa
Director, Trade and Exchange Department and was State, and a Master of Science degree in Oil and Gas
deployed to serve as the Director, Human Resource Enterprise Management (2005) from the University
Department, a position which she held until her of Aberdeen, United Kingdom. He is an experienced
retirement from the Central Bank of Nigeria in Petroleum Geologist with over 21 years work
December, 2009. experience in the Oil and Gas industry with various
multi-disciplinary Oil And Gas service companies.
Mrs. Demuren was at various times a Member and
Secretary to the Public Enlightenment Committee He is an alumnus of the Lagos Business School
on Second-tier Foreign Exchange Market and Executive Program (SMP - Senior Management
Representative of the Central Bank of Nigeria on Programme).
Special Investigation Panel on Trade Malpractices
of the Federal Ministry of Commerce and Tourism. Mr. Hassan is currently the Managing Director and
She has served on the boards of several public CEO of Summit Energy Limited, and a member
institutions including the National Social Insurance of several professional bodies, including Council
Trust Fund (NSITF), Nigerian Investment Promotion of Nigerian Mining Engineers and Geoscientists
Commission (NIPC) and Nigeria Export Processing (COMEG) and the Nigerian Association of Petroleum
Zone Authority (NEPZA). Explorationists (NAPE).
She was the nominee of the Central Bank of He joined the Board on April 22, 2010 and is
Nigeria on the Governing Council of the Nigerian the Chairman, Board Human Resources and
Investment Promotion Commission, nominee Nominations Committee. He is also a Member
of the Central Bank of Nigeria on the Board of the Board Credit Committee, the Board Audit
of Nigerian Export Processing Zone Authority, Committee and the Statutory Audit Committee of
Chairman, International Technical Committee on the Bank.
the Comprehensive Import Supervision Scheme,
Chairman, Interministerial Technical Committee on Mr. Hassan attended all Board and Board Committee
the Nigerian Export Supervision Scheme, Member, Meetings during the period under review. A record
Presidential committee on the Review of the Pre- of his attendance at Board and Board Committee
Shipment Inspection Scheme, Member, Presidential Meetings is available on page 19 of this Report.
Committee on the investigation of illegal siphoning
of foreign exchange outside Nigeria, Member, Mr. Hassan is in his forties and resident in Nigeria.
Presidential Committee on Trade Malpractices and
Co-ordinator, Implementation of Travelers Cheques

Non-Executive Directors’ Remuneration The Terms of Reference of the Board Risk

The Bank’s policy on remuneration of Non- Management Committee include:
Executive Directors is guided by the provisions of • To review and recommend for the approval
the CBN Code which stipulates that Non-Executive of the Board, the Bank’s Risk Management
Directors’ remuneration should be limited to sitting Policies including the risk profile and limits;
allowances, Directors’ fees and reimbursable travel
and hotel expenses. • To determine the adequacy and effectiveness
of the Bank’s risk detection and measurement
Details of remuneration paid to Executive and Non- systems and controls;
Executive Directors is contained in Note 47 of this
Report. • To evaluate the Group’s internal control and
assurance framework annually, in order to
Board Committees satisfy itself on the design and completeness
of the framework relative to the activities and
The Board carries out its responsibilities through risk profile of the Bank and its subsidiaries;
its Standing Committees, which have clearly
defined terms of reference, setting out their roles, • To oversee Management’s process for the
responsibilities, functions and scope of authority. identification of significant risks across the
The Board has six (6) Standing Committees in Bank and the adequacy of risk mitigation,
addition to the Statutory Audit Committee of the prevention, detection and reporting
Bank, namely; Board Risk Management Committee, mechanisms;
Board Credit Committee, Board Human Resources
and Nominations Committee, Board Remuneration • To review and recommend to the Board for
Committee, Board Information Technology Strategy approval, the contingency plan for specific
Committee and Board Audit Committee. risks;
Through these Committees, the Board is able to • To review the Bank’s compliance level with
effectively carry out its oversight responsibilities, applicable laws and regulatory requirements
and to take advantage of individual expertise to which may impact on the Bank’s risk profile;
formulate strategies for the Bank. The Committees
make recommendations to the Board, which retains • To conduct periodic review of changes in
responsibility for final decision making. the economic and business environment,
including emerging trends and other factors
All Committees in the exercise of their powers so relevant to the Bank’s risk profile;
delegated conform to the regulations laid down
by the Board, with well defined terms of reference • To handle any other issue referred to the
contained in the Charter of each Committee. The Committee from time to time by the Board.
Committees render reports to the Board at the
Board’s quarterly meetings. The Chief Risk Officer of the Bank presents regular
briefings to the Committee at its meetings.
A summary of the roles, responsibilities,
composition and frequency of meetings of each of The Committee meets quarterly and additional
the Committees are as stated hereunder: meetings are convened as required. The Committee
met four (4) times during the financial year ended
Board Risk Management Committee December 31, 2016.
This Committee is tasked with the responsibility of The Board Risk Management Committee comprised
setting and reviewing the Bank’s risk policies. The the following members during the period under
coverage of supervision includes the following: review:
Credit Risk, Reputational Risk, Operations Risk,
Technology risk, Market and Rate Risks, Liquidity
Risk and other pervasive risks as may be posed by
the events in the industry at any point in time.

• To ensure that the Bank complies with

S/No Name Status Designation regulatory requirements regarding the grant
1. Mr. H. A. Oyinlola Non-Executive Chairman of credit facilities;
Director (Current)1
2. Mr. A. F. Alli Non-Executive Chairman • To handle any other issue referred to the
(Independent) (Former)2 Committee from time to time by the Board.
Director
3. Mr. J. K. O. Agbaje Managing Director Member
In view of the volume of transactions that
4. Ms. I. L. Akpofure Non-Executive Member3
(Independent)
require Board Credit Committee approvals, there
Director are instances where the need arises for credits to
5. Mr. A. A. Odeyemi Executive Director Member be approved by members expeditiously between
6. Mrs. O. O. Omotola Executive Director Member Board Credit Committee Meetings. Such urgent
credits are circulated amongst the members for
Appointed as the Chairman of the Committee upon the retirement of
1
Mr. Alli;
consideration and approval in line with a defined
procedure that ensures that all members of the
2
Retired from the Board with effect from June 30, 2016, having served Committee are furnished with full information
the maximum term prescribed for Independent Directors;
on such credits. All credits considered as “Large
3
Appointed as a member of the Committee at the Board Meeting held Exposures” as defined by the Board of Directors
in April, 2016; from time to time are considered and approved by
the Board Credit Committee at a special meeting
Board Credit Committee
convened for that purpose.
This Committee is responsible for approval of credit
The Board Credit Committee meets at least once
facilities in the Bank. The Terms of Reference of the
in each quarter. However, additional meetings are
Board Credit Committee include:
convened as required. The Committee met four (4)
times during the financial year ended December 31,
• To consider and approve specific loans above
2016.
the Management Credit Committee’s authority
limit, as determined by the Board from time to
The Board Credit Committee is made up of the
time;
following members:
S/No Name Status Designation
• To review Management Credit Committee’s
authority level as and when deemed necessary 1 Mr. O. M. Agusto Non-Executive Chairman
and recommend new levels to the Board for Director (Current)1
consideration; 2 Mr. A. O. Akintoye Non-Executive (In- Chairman

dependent) Director (Former)2
3 Mrs. C. N. Echeozo Deputy Managing Member
• To conduct quarterly review of credits granted Director
by the Bank to ensure compliance with the
4 Mr. K. A. Adeola Non-Executive Member
Bank’s internal control systems and credit Director
approval procedures; 5 Mr. I. Hassan Non-Executive Member
Director
• To notify all Director related loans to the Board; 6 Mr. A. A. Oyedeji Executive Director Member
7 Mr. H. Musa Executive Director Member
• To monitor and notify the top debtors to the
1
attention of the Board; Mr. Akintoye;
• To review the Bank’s internal control procedures

2
Served as Chairman until his retirement from the Board with effect
from June 30, 2016, having served the maximum term prescribed for
in relation to credit risk assets and ensure that Independent Directors.
they are sufficient to safeguard the quality of
Board Human Resources and Nominations
the Bank’s risk assets;
Committee
• To review the Asset and Liability Management
This Committee is responsible for the approval
of the Bank;
of human resources matters, identification and
nomination of candidates for appointment to
the Board and Board Governance issues such
as annual evaluation of the performance of the following members during the period under review:
Managing Director and the Board, induction and
continuous education, approval of promotion of
top management staff, corporate governance, 1 Mr. O. M. Agusto Non-Executive Chairman
Director
succession planning, conflict of interest situations
and compliance with legal and regulatory provisions. 2 Mr. K.A. Adeola Non-Executive
Director
Member
3 Mr. A. O. Akintoye Non-Executive (In- Member1

The Committee is also responsible for the oversight dependent) Director
of strategic people issues, including employee
1
Retired from the Board with effect from June 30, 2016, having served
retention, equality and diversity as well as other
the maximum term prescribed for Independent Directors
significant employee relations matters.
The Committee is required to meet at least once a
The membership of the Committee is as follows: year, and additional meetings may be convened as
the need arises. The Committee met once during
S/No Name Status Designation the period.
1 Mr. I. Hassan Non-Executive Chairman
Director (Current)1 Board Information Technology
2 Mr. A. F. Alli Non-Executive (In- Chairman Strategy Committee
dependent) Director (Former)2
3 Mr. J.K.O. Agbaje Managing Director Member The Board Information Technology Strategy
4 Mr. A. O. Akintoye Non-Executive (In- Member3 Committee is responsible for the provision of
dependent) Director (Former)
strategic guidance to Management on Information
5 Mr. H.A. Oyinlola Non-Executive Member
Director
Technology issues and monitoring the effectiveness
6 Ms. I. L. Akpofure Non-Executive (In- Member4
and efficiency of Information Technology within the
dependent) Director Bank and the adequacy of controls.
7 Mrs. O. O. Omotola Executive Director Member
The Terms of Reference of the Board Information
1
Mr. Alli;
Technology Strategy Committee include:
2
Served as Chairman until his retirement from the Board with effect • To provide advice on the strategic direction of
from June 30, 2016, having served the maximum term prescribed for
Independent Directors;
Information Technology issues in the Bank;
3
Retired from the Board with effect from June 30, 2016, having served • To inform and advise the Board on important
the maximum term prescribed for Independent Directors;
Information Technology issues in the Bank;
4
Appointed as a member of the Committee at the Board Meeting held
in April, 2016.
• To monitor overall Information Technology
The Committee is required to meet at least once performance and practices in the Bank.
a year, and additional meetings may be convened
as the need arises. The Committee met three (3) The Board Information Technology Strategy
times during the financial year ended December 31, Committee comprised the following members
2016. during the period under review:
Board Remuneration Committee
1. Mr K. A. Adeola Non-Executive Chairman
Director
The Board Remuneration Committee has the
2. Mr J. K. O. Agbaje Managing Director Member
responsibility of setting the principles and
3. Mr A. A. Odeyemi Executive Director Member
parameters of Remuneration Policy across the
4. Mr. H. A. Oyinlola Non-Executive Attendee
Bank, determining the policy of the Bank on the Director
remuneration of the Managing Director and other 5 Ms. I. L. Akpofure Non-Executive (Inde- Attendee
Executive Directors and the specific remuneration pendent) Director
packages and to approve the policy relating to all
remuneration schemes and long term incentives for The Committee is required to hold its Meetings
employees of the Bank. twice in a year. The Committee met two (2) times
in the financial year ended December 31, 2016.
The Board Remuneration Committee comprised the

Board Audit Committee S/No Name Status Designation
1. Ms. I. L. Akpofure Non-Executive (Inde- Chairman

The Board Audit Committee is responsible for pendent) Director (Current)1
oversight of audit functions, without prejudice 2. Mr. A. F. Alli Non-Executive (Inde- Chairman
to the Statutory Audit Committee established in pendent) Director (Former)2
compliance with CAMA, which is not considered a 3. Mr. O. M. Agusto Non-Executive Member
board committee. Director
4. Mr. I. Hassan Non-Executive Member
Director
The Terms of Reference of the Board Audit
Committee include: 1
Mr. Alli
2
Ceased to be Chairman of the Committee upon his retirement, which
• To keep the effectiveness of the Bank’s system became effective June 30, 2016.
of accounting, reporting and internal control The Committee is required to hold its Meetings once
under review and to ensure compliance with every quarter. The Committee met four (4) times in
legal and agreed ethical requirements; the financial year ended December 31, 2016.
• To review the activities, findings, conclusions Statutory Audit Committee of the Bank
and recommendations of the external auditors
relating to the Bank’s annual audited financial This Committee is responsible for ensuring that
statements; the Bank complies with all the relevant policies and
procedures both from the regulators and as laid-
• To review the Management Letter of the down by the Board of Directors. Its major functions
External Auditors and Management’s response include the approval of the annual audit plan of the
thereto; internal auditors, review and approval of the audit
scope and plan of the external auditors, review of
• To review the appropriateness and the audit report on internal weaknesses observed
completeness of the Bank’s statutory accounts by both the internal and external auditors during
and its other published financial statements; their respective examinations and to ascertain
whether the accounting and reporting policies of
• To oversee the independence of the External the Bank are in accordance with legal requirements
Auditors; and agreed ethical practices.
• To receive a summary of whistle blowing cases The Committee also reviews the Bank’s annual
reported and the result of the investigation and interim financial statements, particularly the
from the Head of Internal Audit; effectiveness of the Bank’s disclosure controls
and systems of internal control as well as areas of
• To ensure that the Bank’s Investment Valuation judgment involved in the compilation of the Bank’s
Policy is updated to take into account changes results. The Committee is responsible for the review
in International Financial Reporting Standards of the integrity of the Bank’s financial reporting
(IFRS) as issued and/or amended from time and oversees the independence and objectivity of
to time by the International Accounting the External Auditors. The Committee has access
Standards Board and/or in valuation techniques to External Auditors to seek explanations and
as recommended by the European Venture additional information, while the Internal and
Capital Association and best practices. External Auditors have unrestricted access to the
Committee, which ensures that their independence
The Board Audit Committee comprised the is in no way impaired.
following members during the period under review:
The Committee is made up of three (3) Non-
Executive Directors and three (3) Shareholders’
representatives appointed at Annual General
Meetings, while the Chief Inspector/Chief Internal
Auditor of the Bank serves as the Secretary to the
Committee. The membership of the Committee at
the Board level is based on relevant experience of

the Board members, while one of the shareholders’ representatives serves as the Chairman of the Committee.
The Internal and External Auditors are invited from time to time to attend the Meetings of the Committee. The
Chief Financial Officer and appropriate members of Management also attend the meetings upon invitation. The
Committee is required to meet quarterly or at such other frequency as may be required.
The Statutory Audit Committee of the Bank met four (4) times during the period. The following members served
on the Committee during the financial year ended December 31, 2016:
S/No Name Status Designation Attendance
1 Mr. A. B. Akisanmi Shareholders’ Representative Chairman 4

2 Alhaji M. O. Usman Shareholders’ Representative Member 4
3 Mrs. S. O. J. Mbagwu-Fagbemi Shareholders’ Representative Member 4
4 Mr. I. Hassan Non-Executive Director Member 4
5 Mr. O. M. Agusto Non-Executive Director Member 4
6 Ms. I. L. Akpofure Non-Executive (Independent) Director Member 21
7 Mr. A. F. Alli Non-Executive (Independent) Director Member 22
1
Replaced Mr. Alli as a Member of the Committee upon his retirement in June 2016
2
Retired from the Board with effect from June 30, 2016, having served the maximum term prescribed for Independent Directors
Attendance of Board and Board Committee Meetings

The table below shows the frequency of meetings of the Board of Directors and Board Committees, as well as
Members’ attendance for the financial year ended December 31, 2016.
S/No DIRECTORS BOARD BOARD BOARD RISK BOARD HUMAN BOARD RE- BOARD IN- BOARD
CREDIT MANAGEMENT RESOURCES MUNERATION FORMATION AUDIT
COMMITTEE COMMITTEE & NOMINATIONS COMMITTEE TECHNOLOGY COMMITTEE
COMMITTEE STRATEGY
COMMITTEE
DATE OF MEETINGS 27- Jan-2016 26-Jan-2016 26-Jan-2016 25-Jan-2016 27-Jan-2016 18-Apr-2016 25-Jan-2016
20-Apr-2016 19-Apr-2016 19-Apr-2016 18-Apr-2016 17-Oct-2016 18-Apr-2016
27-Jul-2016 26-Jul-2016 26-Jul-2016 25-Jul--2016 25-Jul-2016
19-Oct-2016 18-Oct-2016 18-Oct-2016 17-Oct-2016
NUMBER OF MEETINGS 4 4 4 3 1 2 4
1 Mrs. O. A. Demuren1 4 N/A N/A N/A N/A N/A N/A
2 Mr. J. K. O. Agbaje 4 N/A 4 3 N/A 2 N/A
3 Mrs. C. N. Echeozo 4 4 N/A N/A N/A N/A N/A
4 Mr. A O. Akintoye2 2 2 N/A 2 1 N/A N/A
5 Mr. A. F. Alli2 2 N/A 2 2 N/A N/A 2
6 Mr. O. M. Agusto 4 4 N/A N/A 1 N/A 4
7 Mr. K. A. Adeola 4 4 N/A N/A 1 2 N/A
8 Mr. I. Hassan 4 4 N/A 3 N/A N/A 4
9 Mr. H. A. Oyinlola 4 N/A 4 3 N/A N/A N/A
10 Ms. I. Akpofure 4 N/A 2 1 N/A N/A 2
11 Mr. B. T. Soyoye3 N/A N/A N/A N/A N/A N/A N/A
12 Mr. A. A. Odeyemi 4 N/A 4 N/A N/A 2 N/A
13 Mrs. O. O. Omotola 4 N/A 4 3 N/A N/A N/A
14 Mr. A. Oyedeji 4 4 N/A N/A N/A N/A N/A
15 Mr. H. Musa 4 4 N/A N/A N/A N/A N/A
16 Mr. M. J. Lawal4 N/A N/A N/A N/A N/A N/A N/A

1
The Chairman is not a member of any Board Committee in compliance with the CBN Code which prohibits the Chairman of the Board from being a member of any Board Committee;
2
Retired from the Board with effect from June 30, 2016, having served the maximum term prescribed for Non-Executive (Independent) Directors;
3
Yet to be appointed to Board Committee(s) as at December 2016 | 4 Appointed with effect from March 17, 2017 | N/A - Not Applicable

Tenure of Directors The Bank ensures that institutional investors and

international holders of the Global Depositary
In order to ensure both continuity and injection of Receipts get frequent updates on the Bank’s
fresh ideas, the tenure for Non-Executive Directors progress via interactive conference calls, local and
is limited to a maximum of three (3) terms of four international investor presentations and meetings.
(4) years each, i.e. twelve (12) years whilst the These conference calls and investor meetings
maximum tenure for Independent Non-Executive provide our investors with direct access to senior
Directors is limited to a maximum of two (2) terms and executive Management.
of four (4) years each, i.e. eight (8) years.
Protection of Shareholders’ Rights
This is in compliance with the directives of the CBN
Code. The Board ensures the protection of the statutory
and general rights of shareholders at all times,
Board Appraisal particularly their right to vote at general meetings.
All shareholders are treated equally, regardless of
In the Bank’s customary manner of imbibing the volume of shareholding or social status.
best corporate governance practices, the Board
engaged an Independent Consultant, Ernst and Communication Policy
Young LP, to carry out the annual Board and
Directors appraisal for the 2016 financial year. The The Board and Management of the Bank ensure that
annual appraisal covered all aspects of the Board’s communication and dissemination of information
structure, composition, responsibilities, processes, regarding the operations and management of the
relationships, individual members’ competencies Bank to shareholders, stakeholders and the general
and respective roles in the Board performance, public is timely, accurate and continuous, to give a
as well as the Bank’s compliance status with the balanced and fair view of the Bank’s financial and
provisions of the CBN and SEC Codes. non-financial matters. Such information, which is
in plain language, readable and understandable, is
The Annual Board and Director Review/Appraisal available on the Bank’s website, www.gtbank.com.
Report for the 2016 financial year will be presented The website is constantly updated with information
to shareholders at the 27th Annual General Meeting, as events occur.
and a copy sent to the Central Bank of Nigeria, in
compliance with the requirements of the CBN Code. The website also has an Investors Relations portal
where the Bank’s Financial Reports and other relevant
Shareholders information about the Bank is published and made
accessible to its shareholders, stakeholders and the
The General Meeting of the Bank is the highest general public.
decision making body of the Bank. The Bank’s
General Meetings are conducted in a transparent and The main objective of the Bank’s Communication
fair manner. Shareholders have the opportunity to Policy is to support the Bank in achieving the overall
express their opinions on the Bank’s financial results goals described in the Bank’s core values which
and other issues affecting the Bank. The Annual strengthens the Bank’s culture of transparency in
General Meetings are attended by representatives pursuit of best corporate governance practices.
of regulators such as the Central Bank of Nigeria,
the Securities and Exchange Commission, the Nigeria In order to reach its overall goal on information
Deposit Insurance Corporation, the Nigerian Stock dissemination, the Bank is guided by the following
Exchange, Corporate Affairs Commission as well as principles:
representatives of Shareholders’ Associations.
(i) Compliance with Rules and Regulations:
The Bank has an Investors Relations Unit, which The Bank complies with the legislation
deals directly with enquiries from shareholders and and Codes of Corporate Governance of
ensures that shareholders’ views are escalated to the jurisdictions within which it operates.
Management and the Board. In addition, quarterly, These include the Banks and other Financial
half-yearly and annual financial results are published Institutions Act (BOFIA), the Companies and
in widely read national newspapers. Allied Matters Act (CAMA) and the Code of

Corporate Governance issued by the Central The Company Secretary

Bank of Nigeria, the Securities and Exchange
Commission, as well as the United Kingdom The Company Secretary provides a point of reference
Listing Authority (“UKLA”) (by virtue of the and support for all Directors. The Company
listing of Global Depositary Receipts by the Secretary also consults regularly with Directors
Bank on The London Stock Exchange in July to ensure that they receive required information
2007); promptly. The Board may obtain information from
external sources, such as consultants and other
(ii) Efficiency: The Bank uses modern advisers, if there is a need for outside expertise, via
communication technologies in a timely the Company Secretary or directly.
manner to convey its messages to its target
groups. Synergies are sought when it comes The Company Secretary is also responsible for assisting
to using different communication channels. the Board and Management in the implementation
The Bank replies without unnecessary delay of the Code of Corporate Governance of the Bank,
to information requests by the media, coordinating the orientation and training of new
shareholders and the public; Directors and the continuous education of Non-
Executive Directors, assisting the Chairman and
(iii) Transparency: As an international financial Managing Director to formulate an annual Board
institution, the Bank strives in its communication Plan and with the administration of other strategic
to be as transparent and open as possible issues at the Board level; organizing Board meetings
while taking into account the concept of and ensuring that the minutes of Board meetings
confidentiality between the Bank and its clearly and properly capture Board discussions and
customers and bank secrecy. This contributes decisions.
to maintaining a high level of accountability;
Independent Advice
(iv) Pro-activity: The Bank proactively develops
contacts with its target groups and identifies Independent professional advice is available, on
topics of possible mutual interest; request, to all Directors at the Bank’s expense when
such advice is required to enable a Member of the
(v) Clarity: The Bank aims at clarity, i.e. to send Board effectively perform certain responsibilities.
uniform and clear messages on key issues;
The Bank meets the costs of independent
(vi) Cultural awareness: As an international professional advice obtained jointly or severally by a
financial institution, the Bank operates in a Director or Directors where such advice is necessary
multicultural environment and accordingly to enable the obligations imposed on an individual,
recognizes the need to be sensitive to through membership of the Board, to be properly
the cultural peculiarities of its operating fulfilled.
environment;
Insider Trading and price sensitive information
(vii) Feedback: The Bank actively and regularly
seeks feedback on its image and communication The Bank has in place a policy regarding trading
activities both from the media as well as from in its shares by its Directors and employees on the
its key target groups. This feedback is used to terms and conditions similar to the standards set out
fine-tune communication activities. by the Securities and Exchange Commission and the
Nigerian Stock Exchange. The policy is periodically
Information Flow circulated on the Bank’s internal communication
network (“Intranet”) to serve as a reminder to staff
It is the responsibility of Executive Management of their obligations thereunder.
under the direction of the Board, to ensure that the
Board receives adequate information on a timely Directors, insiders and their related persons in
basis about the Bank’s businesses and operations at possession of confidential price sensitive information
appropriate intervals and in an appropriate manner, (“insider information”) are prohibited from dealing
to enable the Board to carry out its responsibilities. with the securities of the Bank where such would
amount to insider trading. Directors, insiders and

related parties are prohibited from disposing, Management Risk Committee

selling, buying or transferring their shares in the
Bank for a “lock up” period commencing from the This Committee is responsible for regular analysis
date of receipt of such insider information until such and consideration of risks in the Bank. The
a period when the information is released to the Committee meets from time to time and at least
public or any other period as defined by the Bank quarterly. However, additional meetings may be held
and the Regulators from time to time. if required. The Committee reviews and analyses
environmental issues and policies impacting either
In addition to the above, the Bank makes necessary directly or remotely on the Bank, brainstorms on
disclosure as required under Rule 111 of the such issues and recommends steps to be taken by
Securities and Exchange Commission (“SEC”) Rules the Bank. The Committee’s approach is risk based.
and Regulations which stipulates that Directors,
top Management employees and other insiders of The Committee provides inputs for the Board Risk
public companies shall notify the SEC of any sale or Management Committee and also ensures that
purchase of shares in the company, not later than the decisions and policies emanating from the
forty-eight (48) hours after such activity. Committee’s meetings are implemented.
The Directors of the Bank comply strictly with the The mandate of the Committee includes:
laid down procedure and policy regarding trading
in the Bank’s shares. ▪▪ The review of the effectiveness of GTBank’s
overall risk management strategy at the
Management Committees enterprise level;
These are Committees comprising senior ▪▪ The follow-up on management action plans
management staff of the Bank. The Committees are based on the status of implementation
risk driven as they are basically set up to identify, compiled by the Management Risk Committee;
analyze, synthesize and make recommendations on
risks arising from day to day activities of the Bank. ▪▪ The identification and evaluation of new
They also ensure that risk limits as contained in the strategic risks including corporate matters
Board and Regulatory policies are complied with at involving regulatory, business development
all times. They provide inputs for the respective Board issues, etc., and the suitability of mitigants;
Committees and also ensure that recommendations
of the Board Committees are effectively and ▪▪ The review of the enterprise risk scorecard and
efficiently implemented. They meet as frequently as determination of the risks to be escalated to
necessary to immediately take action and decisions the Board on a quarterly basis.
within the confines of their powers.
Management Credit Committee
The standing Management Committees in the Bank
are: This is the Committee responsible for ensuring
that the Bank complies fully with the Credit Policy
▪▪ Management Risk Committee; Guide as laid down by the Board of Directors.
The Committee also provides inputs for the Board
▪▪ Management Credit Committee; Credit Committee. This Committee reviews and
approves credit facilities to individual obligors not
▪▪ Criticized Assets Committee; exceeding an aggregate sum to be determined by
the Board from time to time. The Management
▪▪ Assets and Liability Management Committee; Credit Committee is responsible for reviewing and
approving all credits that are above the approval
▪▪ Information Technology (IT) Steering limit of the Managing Director as determined
Committee; by the Board. The Committee reviews the entire
credit portfolio of the Bank and conducts periodic
▪▪ Information Technology (IT) Risk Management assessment of the quality of risk assets in the
Committee. Bank. It also ensures that adequate monitoring of
credits is carried out. The Committee meets weekly

depending on the number of credit applications to 2. Ensuring Operational Excellence

be considered.
The secretary of the Committee is the Head of the ▪▪ Making recommendations to Management
Credit Administration Unit of the Bank. on strategies for new technology and
systems.
Criticized Assets Committee ▪▪ Review and approval of changes to IT
structure, key accountabilities, and practices.
This Committee is responsible for the assessment of ▪▪ Ensuring project priorities and success
the risk asset portfolio of the Bank. It highlights the measures are clearly defined, and effectively
status of the Bank’s assets in line with the internal monitored.
and external regulatory framework, and directs ▪▪ Conducting a review of exceptions and
appropriate actions in respect of delinquent assets. projects on selected basis.
The Committee ensures that adequate provisions ▪▪ Performing service catalogue reviews for
are taken in line with the regulatory guidelines. continued strategic relevance.
▪▪ Review and approval current and future
Assets and Liability Management Committee technology architecture for the Bank.
▪▪ Monitoring service levels, improvements
This Committee is responsible for the management and IT service delivery.
of a variety of risks arising from the Bank’s business ▪▪ Assessing and improving the Bank’s overall
including, market and liquidity risk management, IT competitiveness.
loan to deposit ratio analysis, cost of funds analysis,
establishing guidelines for pricing on deposit and 3. IT Risk Assurance
credit facilities, exchange rate risks analysis, balance
sheet structuring, regulatory considerations and ▪▪ Review and approval of governance, risk
monitoring of the status of implemented assets and control framework.
and liability strategies. The members of the ▪▪ Monitoring compliance with defined
Committee include the Managing Director, standards and agreed performance metrics.
Executive Directors, the Treasurer, the Head of the ▪▪ Ensuring that vulnerability assessments of
Financial Control Group, the Chief Risk Officer as new technology are performed.
well as a representative of the Assets and ▪▪ Reviewing and ensuring the effectiveness of
Liability Management Unit. the IT Risk Management and Security plan.
▪▪ Ensuring the effectiveness of disaster
Information Technology (IT) Steering recovery plans and review reports on
Committee periodic disaster recovery testing.
▪▪ Reviewing key IT risk and security issues
The Committee is responsible for assisting relevant to the Bank’s IT processes / systems.
Management with the implementation of IT strategy ▪▪ Ensuring that the Bank complies with
approved by the Board. The roles and responsibilities relevant laws and regulations.
of the Committee include:
Information Technology (IT) Risk Management
1. Planning, Budgeting and Monitoring Committee
▪▪ Review and approval of the Bank’s IT plan The Information Technology Risk Management
and budget (short and long term). Committee is responsible for establishing
▪▪ Review of IT performance against plans and standardised IT risk management practices and
budgets, and recommendation of changes, ensuring compliance, for institutionalising IT risk
as required. management in the Bank’s operations at all levels,
▪▪ Review, prioritization and approval IT and identifying and implementing cost effective
investment initiatives. solutions for IT risk mitigation. The Committee is
▪▪ Establishment of a balance in overall IT also responsible for the continuous development
investment portfolio in terms of risk, return of IT risk management expertise and ensuring
and strategy. that a proactive risk management approach is
adopted throughout the Bank to drive competitive
advantage.

Monitoring Compliance with Corporate and integrity in all aspects of their professional life
Governance as contained in the Code of Professional Conduct,
which prescribes the common ethical standards,
Chief Compliance Officer policies and procedures of the Bank relating to
employee values. The Bank also has a Code of
The Chief Compliance Officer monitors compliance Conduct for Directors.
with money laundering requirements and
the implementation of the code of Corporate Human Resources Policy
Governance of the Bank.
The Human Resources policy of the Bank is contained
The Company Secretary and the Chief Compliance in the Directors’ Report on page 65 of this Annual
Officer forward regular returns to the Central Report.
Bank of Nigeria on all whistle-blowing reports and
corporate governance compliance. Employee Share-ownership Scheme
Whistle Blowing procedures The Bank has in place an employee share ownership
scheme called the Staff Investment Trust (SIT)
In line with the Bank’s commitment to instill the scheme. Under the Bank’s Articles of Association,
best corporate governance practices, the Bank has the Scheme is authorized to hold up to a specified
established a whistle blowing procedure that ensures percentage of ordinary shares of the Bank for the
anonymity for whistle-blowers. The Bank has two benefit of eligible employees of the Bank.
(2) hotlines and a direct link on the Bank’s website,
provided for the purpose of whistle-blowing. The The scheme was established for the benefit of the
hotline numbers are 01-4480905 and 01-4480906 Bank’s staff as an incentive mechanism, by enabling
and the Bank’s website is www.gtbank.com. eligible staff invest in ordinary shares of the Bank at
a discount (the prevailing Net Assets Value (NAV)),
Internally, the Bank has a direct link on its Intranet for and buying-back their stock from the Bank at the
dissemination of information, to enable members market price, subject to attaining a determined
of staff report all identified breaches of the Bank’s length of service at the point of disengagement from
Code of Corporate Governance. the Bank and proper conduct at disengagement.
Codes of Conduct Internal Management Structure
The Bank has an internal Code of Professional The Bank operates an internal management structure
Conduct for Employees “the Bank’s Code”, which where all officers are accountable for duties and
all members of staff subscribe to upon assumption responsibilities attached to their respective offices
of duties. Staff are also required to reaffirm their and there are clearly defined and acceptable lines of
commitment to the Bank’s Code annually. authority and responsibility.
All members of staff are expected to strive to

maintain the highest standards of ethical conduct

SUBSIDIARY
GOVERNANCE

SUBSIDIARY GOVERNANCE
Subsidiary Governance and procedures established by management

for compliance with regulatory and financial
Subsidiary Governance is an integral part of a reporting requirements.
company’s risk management framework. It provides ▪▪ Board Risk Management Committee (BRC)
the structure through which the performance oversees and advises the Board on risk-related
objectives of the subsidiaries are set, the means matters and risk governance.
of achieving those objectives are defined and the ▪▪ Board Credit Committee (BCC) decides on
performance monitoring conducted. requests for the extension of existing or new
credit facilities with a proposed aggregate
GTBank’s governance strategy is implemented exposure above a limit fixed by the Board of
through the establishment of systems and processes Directors.
which will assure the Board that the subsidiaries ▪▪ Board Asset and Liability Committee (BALC)
reflect the same values, ethics, control and processes oversees a variety of risks arising from the
as that of the parent while remaining independent Subsidiaries’ business including market and
in the conduct of their business and abiding within liquidity risk management, loan to deposit ratio
the confines of local extant regulations. analysis, cost of funds analysis, establishing
guidelines for pricing on deposit and credit
As at 31 December 2016, Guaranty Bank had seven facilities, exchange rate risks analysis, balance
(7) international banking subsidiaries and two (2) sheet structuring, regulatory considerations
sub-subsidiaries. The operations and management and monitoring of the status of implemented
of these subsidiaries are monitored and controlled assets and liability strategies.
by GTBank Plc as described below:
Each of these Board Committees meet at least once
Oversight function per quarter to review the affairs of the bank.
The International Banking Directorate is responsible

for the coordination and implementation of
the Bank’s international expansion strategy. It
plays a pivotal role in driving and monitoring the
performance of existing subsidiaries. In this respect,
it performs an advisory role to the subsidiaries’
senior management and serves as an interface
between the parent and its subsidiaries, ensuring
that synergies are derived between both parties.
Subsidiary Board Representation
GTBank Plc has controlling representation on the

Board of each subsidiary. The Board representatives
are seasoned professionals with high level of integrity
and proven track records in their respective fields.
The Subsidiaries’ Board of Directors are responsible
for the governance of the Bank and accountable for Local Board and Board Committees
creating and delivering sustainable value through
the management of the Subsidiaries. A minimum of two non-executive directors
representing GTBank Plc sit on the board/board
Subsidiary Board Committees committees of the subsidiaries. They perform an
advisory role and provide strategic guidance on
The Subsidiaries’ Board also exercises its oversight the direction of the bank, expert knowledge on
responsibilities through four major committees as expansion and consolidation strategy, direction on
follows: appropriate technology to use to efficiently and
effectively dominate the local market.
▪▪ Board Audit Committee (BAC) reviews
accounting policies and practices, controls

SUBSIDIARY GOVERNANCE
Management of Subsidiaries areas of the offshore banks. This exercise is distinct

from the daily operations audit carried out by the
The bank appoints one of its Management staff to respective internal audit unit within the subsidiaries.
run the subsidiary. This is achieved by appointing
a staff from the parent company to act as the Annual Risk Management Audit
Managing Director of the subsidiary. In addition,
another management staff is seconded to act as This audit is carried out by the Credit Admin arm
a backup to the managing director and Head of of GTBank Plc. The areas of concentration during
Support and Operations Divisions within the bank. this audit include asset quality, loan performance,
review of security pledged, loan conformity with
The objective is to ensure enculturation, adoption credit policy, documentation check and review of
and continuity of GTBank Plc values in the subsidiary. central liability report among others.
It is also to ensure that the tried and tested approach
to corporate governance, systems and controls, Group Compliance Function
technology, credit approval processes and customer
service excellence is applied in a seamless manner. To ensure an effective and consistent compliance
culture across all entities, the Group Compliance
Existence of Group Co-ordination Unit function oversee compliance risk and promote
training and best practice implementation across
The business activities of GTBank Subsidiaries the subsidiaries, therefore affirming the group
are monitored through the Group Co-ordination commitment to a zero tolerance for regulatory
unit of GTBank Plc. The Unit is saddled with the breach.
responsibility of monitoring the subsidiaries and
addressing issues arising from their activities. The unit External Auditors’ Report
also prepares monthly report on the performance of
the subsidiary to the Board of Directors of the bank. GTBank Plc conducts a review of the management
The performance of the unit is assessed based on letters provided by the subsidiaries’ auditors on
the extent to which the subsidiaries are effectively completion of periodic audits. The objective is to
monitored and attended to. ensure that all identified deficiencies are promptly
corrected and recommendations implemented
Monthly Management Reporting in line with approved best practices and local
regulatory guidelines.
Subsidiaries furnish GTBank Plc with reports on their
business activities and operating environment on a
monthly basis. The reports cover the subsidiaries’
financial performance, risk assessment, regulatory
activities among others.
Business Performance Review Session
The Managing Directors of the respective GTBank

Subsidiaries attend the quarterly Group Business
Performance Review sessions during which their
performance is analyzed and recommendations
made towards achieving continuous stability and
improved profitability. This session also serves as
a platform for sharing and dissemination of best
practices and information among the subsidiaries’
executives.
Annual System and Control Audit
An annual audit is carried out by the system and

control group of GTBank Plc to review all operational

SUSTAINABILITY
REPORT

SUSTAINABILITY REPORT
platform for SME Businesses to showcase their

Introduction products and services.
As a foremost financial services provider, Guaranty
Trust Bank is strategically positioned to influence Community
national economic development through its bouquet
of customer-centric products and services. We As part of our sustainability goal, GTBank has
continuously ensure that our business operations continued to bolster existing CSR Initiatives
and activities are carried out in line with applicable and explore new avenues to enrich the lives of
regulations and international best practices. Our communities which we operate in. This touches
commitment is evident in the entrenchment of healthcare through the Orange Ribbon Initiative,
Environmental and Social considerations in our which funds children with special development
activities and operations. needs, to educational projects such as the Adopt-
A-School program designed to renovate public
These practices have also been extended to the schools.
activities of the Bank’s stakeholders – customers,
suppliers, workers and communities where The Bank also partnered with Work-in-Progress
we operate. The 2016 Sustainability Report is Alliance to sponsor She Leads Africa Accelerator
a representation of our journey in embedding Program designed to create a platform for young
sustainability into our corporate performance. The female entrepreneurs to acquire basic business skills
scope of the report covers areas of sustainability and grow their businesses. Full details of the Bank’s
such as Marketplace, Community, Environment and CSR Projects, as regards Sustainability, can be found
Workplace. in the Corporate Social Responsibility section of this
annual report.
Marketplace
Environment
Over the year in review, the Bank integrated the
Environmental & Social Risk Management (ESRM) In its drive to become more environmentally
into the review of activities it finances. This is done by sustainable, the bank monitors its carbon footprint.
conducting Due Diligence assessments on qualifying This is mainly done by actively tracking our energy
transactions and follow-up onsite visitations for consumption and use of paper. To this end, the
select projects to assess the customer’s level of procurement business line championed the Green
environmental performance. The ESRM ensures Ambassador Program which was implemented to
that the Bank continues to provide the highest level generally raise awareness about thinking green
of service to our customers whilst ensuring that and get people to be conscious about paper
the credits which we finance do not have adverse consumption. The core objectives was not only to
environmental and social implications. minimise paper usage and eliminate wastages but
also to reduce our environmental footprints and
In furtherance of the Financial Literacy drive, enhance our public image.
initiated by the Central Bank of Nigeria, we carried
out trainings in 7 schools across the 6 geopolitical As a bank we have recorded a steady reduction in
zones in Nigeria on the World Savings Day. In 2016, the consumption of paper under the year in review
we opened over 400,000 accounts through our by 39%. We expect a sustained performance in the
38 Agent Banking locations while we also utilized coming years as we continue to push awareness on
our ‘Bank 737’ to provide simple but effective the need to recycle paper.
financial services to the unbanked population. We
will continue to leverage on technology and explore Workplace
new locations with the core objective of bringing
first class financial services to the unbanked Nigerian The Bank facilitated an introductory training on E&S
demography. Risk Management and the Nigerian Sustainability
Banking Principles to its existing workforce and new
To support our strategic intent and also drive growth entrants in 2016. This was to create awareness on
and economic development, we sponsored the how to effectively screen projects we finance and
Food Fair and Fashion Weekend during the financial how the bank’s activities could pose a threat to the
year. The main aim was to create an international environment directly and indirectly.

SUSTAINABILITY REPORT
Also, during the year, the bank introduced the CSR

Challenge; an initiative aimed at encouraging all
employees to participate in CSR related projects.
The exercise was championed by Human Resources
and the main essence was to give back to the
environment where we operate in.
The drive for a safe and healthy work environment

was further sustained by inculcating a culture
that encourages staff to undertake periodic full
medical check-up annually. This is supported by the
circulation of various health related topics, every
Wednesday, on the intranet via our “Wellness
Wednesday” series. Other initiatives, such as the
establishment of a staff gymnasium and a crèche,
designed to promote work-life balance and ease
the work pressure on nursing mothers are still in
place.
In line with GTBank’s continuous commitment

to gender equality and women economic
empowerment, the ratio of women in the
employment of the Bank was recorded as 45%
while the ratio of women in the Senior Management
cadre increased to 36% in 2016.

COMPLAINTS
AND FEEDBACK

COMPLAINTS AND FEEDBACK
Introduction ▪▪ Customer feedback survey on the Bank’s

website;
At Guaranty Trust Bank plc. (“the Bank”), our ▪▪ One-on-one focus meetings with customers;
vision is to deliver the utmost in customer service. ▪▪ Interviews with randomly picked customers.
Accordingly ‘treating customers fairly’ principles
have been incorporated into our business strategy, Complaints Handling and Resolution Structure
because we appreciate the fact that our customers
are key stakeholders in our business. The Bank is committed to effective complaint
handling and values feedback through complaints if
We recognize that customer feedback is an and when they arise. The complaints and feedback
important tool in monitoring and responding to structure ensures the prompt resolution of
customer expectations. We therefore believe in the customers’ complaints. The Complaints Unit of the
value of implementing and maintaining a robust Bank is charged with the responsibility for receipt,
feedback management system and process. We are prompt investigation and resolution of customers’
attentive to our customers’ needs and we ensure complaints. It also serves as the liaison between
that appropriate responses are provided when the Bank and its customers as well as regulatory
enquiries are made. authorities.
In a bid to improve our products and services, we Complaints received are given a unique identifier
analyze data and feedback received to identify number for tracking purposes, acknowledged and
recurring systemic issues. The information gathered addressed promptly. Where a resolution can be
is used for root cause analysis which is reviewed by provided immediately, the customer is provided with
the relevant stakeholders for learning purposes and feedback, if not, the issue raised is referred to the
to prevent a reoccurrence of identified issues. appropriate team in the Bank for prompt resolution.
The customer is kept informed throughout the
Feedback Channels/Customer Touch points process until final feedback is provided and
resolution attained. The complaint is then marked
We value the feedback provided by our customers, as closed.
as such the following channels/touch points are
available to encourage our customers’ interaction The complaints handling process is reviewed
with the Bank: periodically and complaints received are categorized
and reviewed properly with the aim of enhancing
▪▪ The Complaints portal on the Bank’s website; the Bank’s delivery of efficient and effective services.
▪▪ GT Connect (a 24 hours self-service interactive
call center); The Bank ensures that complaints are dealt with in an
▪▪ Social Media feedback platform; equitable, objective and unbiased manner. We also
▪▪ The Customer Information Service desk at any endeavor to align our procedures with regulatory
of our branches; requirements and international best practice in a
▪▪ The Whistle Blowing portal on the Bank’s bid to ensure that the complaint handling process
website; is fair and reasonable
Customers’ opinion on products, services and Reports to the Central Bank of Nigeria
processes
In line with the Central Bank of Nigeria (CBN)
The Bank constantly evaluates valuable insights guidelines on resolution of customers’ complaints,
provided by customers and other stakeholders the Bank provides periodic reports to the CBN.
on our products, services and policies in order to
improve the business, products and overall customer Below is a breakdown of Complaints received and
experience. resolved by the Bank during the financial year ended
31 December 2016 pursuant to CBN circular dated
The review and evaluation is carried out using August 16, 2011.
various methods including:

COMPLAINTS AND FEEDBACK
Description Number Amount Claimed Amount Refunded

(N’000) (N’000)
2016 2015 2016 2015 2016 2015
1 Pending Complaints brought forward from prior

114 129 876,776 2,976,536 - -
period
2 Received Complaints 6,047 6,011 557,585 1,328,997 - -
3 Resolved Complaints 6,011 6,026 507,771 3,428,757 328,921 161,505
4 Unresolved Complaints escalated to CBN for

- - - - - -
intervention
5 Unresolved Complaints pending with the Bank
150 114 926,590 876,776 - -
carried forward
Some of the outstanding complaints include complaints on excess charges, loans and facilities availed by the Bank, unauthorised international card transactions and
dispense errors (which require a minimum of 45 working days for investigation and resolution).
The tables below show Complaints received and resolved by the Bank in other currencies for the year
ended December 2016 and December 2015 respectively.
RECEIVED COMPLAINTS (Per Currency)
Currency Amount Claimed
2016 2015
1 United States Dollars $115,594 $359,122
2 Great Britain Pounds £7,909 £23,700
3 Euros ₤39,516 ₤67,008
RESOLVED COMPLAINTS (Per Currency)
Currency Amount Claimed Amount Refunded
2016 2015 2016 2015
1 United States Dollars $116,494 $378,068 $96,727 $229,297
2 Great Britain Pounds £7,909 £25,200 £3,099 £20,254
3 Euros ₤39,516 ₤67,008 ₤22,012 ₤7,373
UNRESOLVED COMPLAINTS (Per Currency)
Currency Amount Claimed
2016 2015
1 United States Dollars $578 $1,478
2 Great Britain Pounds - -
3 Euros - -

AML/CFT
FRAMEWORK

AML/CFT FRAMEWORK
Anti-Money Laundering and Combating the and senior management with information to
Financing of Terrorism (AML/CFT) framework enable them assess the Bank’s compliance with its
regulatory obligations. The reports also ensures that
Guaranty Trust Bank plc is fully committed to the Directors and senior management are kept abreast
global fight against all forms of financial crimes, on current trends and developments in the financial
including money laundering and terrorist financing. industry, particularly in the area of AML/CFT risk
In this regard, the Bank has implemented a management.
framework for Anti-Money Laundering (“AML”),
Combating the Financing of Terrorism (“CFT”) and (iii) Know Your Customer (KYC) procedures:
the prevention of the financing and proliferation of A duly completed account opening form and the
weapons of mass destruction. collection of identification and other relevant
information and documents are the foundation/
The framework assures adherence to AML/CFT bedrock for on-boarding a customer in the Bank.
legislation and regulations in Nigeria as well as Customer Due Diligence (CDD) is conducted prior
leading best practices including but not limited to entering into any banking relationship with a
to the Financial Action Task Force (FATF) 40 customer. This includes at a minimum, identity
Recommendations. and address verification as well as ascertaining the
source of income and wealth of the customer.
Structure of the framework
Enhanced Due Diligence (EDD) is conducted on high
Policies and procedural guidelines have been set up risk customers including politically exposed persons.
by the Bank and are regularly reviewed/revised to The approval of senior management and Compliance
ensure that they remain relevant and current and is required prior to the commencement of banking
are in line with the evolving regulatory requirements relationship with such high risk customers.
and leading practices.
The Bank takes requisite and regulatory measures
The Bank has moved away from a “rule based and when embarking on relationships with Designated
tick box” approach for combating financial crime Non-Financial Businesses and Professionals (DNFBPs),
risk, to a risk based approach. Thus, the Bank due to their perceived risk and in compliance with
identifies and assesses the risks from a proactive regulatory requirements.
stance and allocates the requisite resources which
center around systems and controls to manage As part of the Bank’s KYC and CDD procedures,
these risks. identification documents are requested and obtained
to confirm the beneficial owners of a business and
Scope of the framework the organization’s control and structure.
The scope of the Bank’s AML/CFT framework covers The Bank as part of its regulatory requirements
the following: from the CBN, made it mandatory for customers
to acquire a Bank Verification Number (BVN) to
(i) Board and Management responsibilities: transact on their accounts and have access to loans
The Board of Directors of the Bank has oversight and purchase of foreign exchange.
responsibilities for the AML/CFT framework. The
Board ensures that the Bank’s Management and all (iv) Transaction Monitoring:
employees conform strictly with all regulatory and Transaction monitoring occurs on a manual and
internal procedures relating to AML/CFT and that automated basis. The former is performed by all
the Bank maintains a zero tolerance to regulatory members of staff, who are regularly provided with
infraction. In accordance with AML/CFT global best red flags to look out for and the latter resides within
practice, the “tone is set from the top”. the Compliance Unit.
(ii) Reports to Senior Management and the All members of staff are aware of the fact that
Board: suspicious activities/ transactions should immediately
AML & CFT reports are submitted monthly and be referred to the Compliance Unit.
quarterly to senior management and the Board
respectively. These reports provide the Board To properly monitor transactions passing through

AML/CFT FRAMEWORK
the Bank’s systems, the SAS AML tool, has been fully are required to screen names of individuals and
deployed in the Bank, providing an advancement in organizations who have or plan to enter a business
the means by which transactions are monitored and relationship or carry out a transaction with/through
investigated. the Bank against the Bank’s internal watch list.
(v) Transaction Reporting: The internal watch list contains the names of
Regulatory and statutory requirements provide individuals and entities, who have been blacklisted
that certain reports and returns are made to by various sanctions bodies. Employees are required,
regulatory bodies. In Nigeria, the Nigerian Financial as part of the Bank’s policy, to refrain from any
Intelligence Unit (NFIU) is the agency charged with relationship and/or transaction which yield a true or
the responsibility of receiving the following core positive match and follow the escalation procedure.
transaction based reports: Sanctions screening is done at account opening and
on a real time basis for all SWIFT transactions.
▪▪ Currency Transaction Report (CTR)
▪▪ Foreign Currency Transaction Report (FTR) (viii) Politically Exposed Persons (PEPs)
▪▪ Suspicious Transaction Report (STR) PEPs are individuals who are or have been entrusted
with prominent public functions and people or
The Bank renders reports to the NFIU and the entities associated with them. Enhanced due
Central Bank of Nigeria (CBN) in accordance with diligence measures are applied to PEPs, as with
the provisions of sections 2, 6 and 10 of the Money other high risk customers to mitigate the AML/
Laundering (Prohibition) Act of 2011 as amended CFT risk they pose. This is to ensure that the Bank
(“the Act”). is not unknowingly supporting fraudulent activities
such as money laundering and/or the financing of
Section 2 of the Act provides that financial terrorism.
institutions must submit a report on all international
transfer of funds and securities of a sum exceeding In line with FATF’s recommendation, the Bank
ten thousand dollars ($10,000) or its equivalent in employs the use of an automated monitoring tool
other foreign currencies. in identifying and monitoring PEP transactions.
This is achieved through the thorough review
Section 6 of the Act provides that a financial of information provided by customers and their
institution must submit a report on all unusual and transaction trends.
suspicious transactions.
Establishment of new accounts for PEPs as well
Section 10 of the Act provides that any lodgment as continuity of such accounts (for those already
or transfer of funds in excess of N5 million and existing in the system) is subject to the approval of
above for individuals and N10 million and above for an Executive Director and the Compliance Unit.
corporate customers must be reported.
(ix) AML/CFT principles for Correspondent
(vi) Relationship with Regulators and Law Banking:
Enforcement Agencies: The Bank only enters into and maintains
The Bank understands that part of its corporate and correspondent banking relationships with financial
social role is to cooperate with law enforcement institutions that have implemented sufficient AML/
agencies in the fight against financial crime. To this CFT policies and procedures. The Bank does not deal
end, the Bank maintains a cordial and supportive with shell banks nor maintain any payable through
relationship with all regulatory and law enforcement accounts. The Bank ensures that due diligence
agencies. The Bank promptly complies with all is performed annually on our correspondent
requests made, pursuant to the law, and provides relationships to avoid AML/CFT risks.
information to regulators including the NFIU, the
CBN and other relevant agencies. (x) AML/CFT Training:
The Bank as a policy, places a high value on the
(vii) Sanctions Compliance Management: training of its employees. Trainings are carried
The Bank as a policy, does not enter into any out to ensure employees are conversant with the
relationship with sanctioned individuals/entities. AML/CFT laws, KYC principles and other AML/CFT
All employees, as applicable to their functions, related information. Annual Compliance training is

AML/CFT FRAMEWORK
mandatory for all members of staff, including Senior

Management and Directors. Trainings are done via
e-learning or face to face media. Ad hoc training also
takes place by way of the dissemination of topical
national and international findings too employees.
(xi) AML/CFT Audits:

In order to adhere to regulations and to ensure
an ever evolving fit for use Compliance function,
internal audit of the AML/CFT function is conducted
on a quarterly basis. The purpose of the audit is to
test for, and ensure the effectiveness of the AML/
CFT measures put in place by the Bank.
The report and findings of the audit are circulated

to various levels of senior management. A follow-
up to the audits takes place to ensure that the
relevant issues are closed out and highlighted
recommendations have been implemented.
(xii) Record Retention:

As provided for within the “Act”, customer
identification documents are retained throughout
the life of the account and for five (5) years after
the cessation of the banking relationship, except in
cases of litigation and/or regulatory investigations.
In the case of the latter, the records will be kept for
as long as they are required.
(xiii) Subsidiaries
In compliance with international best practice, the
Bank ensures that its foreign subsidiaries AML/
CFT provisions are consistent with the Bank’s
framework which is based on global best practices.
These measures are applied to the extent that the
respective subsidiary’s local laws and regulations
permit; however, where there are discrepancies the
stricter will always apply.
Greater collaboration has been fostered and control

measures taken based on the current international
best practices, this is to ensure that all our
subsidiaries maintain the highest standard for AML/
CFT controls.

INTERNAL CONTROL
& RISK MANAGEMENT
SYSTEM

INTERNAL CONTROL & RISK MANAGEMENT SYSTEMS
Internal control and Risk Management Systems responsible for setting internal control policies
in relation to the financial reporting and monitoring the effectiveness of the internal
control systems. They ensure proper books of
Guaranty Trust Bank’s internal control and risk accounts are kept and accounting policies are in
Management systems ensure that material errors conformity with: International Financial Reporting
or inconsistencies in the financial statements are Standards; Prudential Guidelines for licensed Banks;
identified and corrected. The Bank’s internal control Circulars issued by the Central Bank of Nigeria;
framework is patterned after the Committee The requirements of the Banks and Other Financial
of Sponsoring Organizations of the Treadway Institutions Act; and The requirements of the
Commission’s (COSO) Framework. Companies and Allied Matters Act.
COSO defines internal control as “a process effected Risk Assessment

by an entity’s Board of Directors, Management and
other personnel, to provide reasonable assurance The Board and Senior Management regularly
regarding the achievement of objectives” in three assess the risks the Bank is exposed to, including
categories-effectiveness and efficiency of operations; risks relating to financial reporting. Management
reliability of financial reporting; and compliance Committees meets on a regular basis to assess
with applicable laws and regulations. The scope of the credit, market, interest rates, liquidity, legal
internal control therefore extends to policies, plans, and reputational risks facing the bank. Senior
procedures, processes, systems, activities, functions, Management also regularly considers whether the
projects, initiatives, and endeavors of all types at all existing internal controls are effective in relation to
levels of the Bank. the risks identified in the financial reporting process.
The Board also assesses the effectiveness of the
The internal control and risk Management systems Bank’s internal control over financial reporting on an
comprise the following areas: ongoing basis and specifically at mid-year and year
end. The Management letter issued by the external
▪▪ Control Environment auditors which contains the auditors’ observations
▪▪ Risk Assessment on the control environment in the Bank is discussed
▪▪ Control Activities at the Audit Committee meetings.
▪▪ Information and Communication
▪▪ Monitoring Control Activities
Control Environment Control activities are an integral part of the Bank’s

The Bank has three Board Committees (Board Risk day to day operations. Senior Management has set
Committee, Board Credit Committee and Board up control structure to ensure control activities are
Audit Committee) that have oversight function defined at every business area.
on the Bank’s Risk Management Processes.
The Committees are responsible for setting risk Examples of the Bank’s control activities include the
Management policies that ensure material risks following;
inherent in the Bank’s business are identified and
mitigated or controlled. The Bank also has an Audit Top Management Reviews
Committee which is made up of three shareholders’
representatives and three Non- Executive Directors; ▪▪ Internal Audit Reports eliciting control
one of the shareholders’ representatives is the weaknesses are presented periodically to
Chairman. The Audit Committee is therefore Management and Board Audit Committee.
independent. Its oversight functions include among ▪▪ Preparation of financial statements on a daily
others, ensuring that quality accounting policies, basis for Management review.
internal controls, independent and objective ▪▪ Monthly and quarterly profitability review,
statutory auditors are in place to prevent and detect where the Bank’s financial performance is
fraud and material errors in financial reporting. reviewed and compared with set budgets.
Quarterly reports of the Chief Risk Officer to
The Bank’s Management committees are the Board, eliciting the existing and potential
responsible for implementing risk Management risks facing the Bank and the mitigants
policies set out by the Board. They are also deployed.

INTERNAL CONTROL & RISK MANAGEMENT SYSTEMS
Activity Control highlights requirement for reporting, the frequency

of reporting as well as those within the organization
Control functions are embedded within each to whom the report would be directed to.
business area for self-checking of activities within
the areas (for instance, transactions call over for The following are some of the generic internal
timely detection of errors is carried out by all posting reports used by Management for decision making
units). and monitoring purposes:
Physical Controls ▪▪ FINSTAT- Financial Statements Report

▪▪ BPR- Business Performance Review Report
There are policies guiding access to the Bank’s ▪▪ MPR- Monthly Profitability Report
physical and financial assets, including dual custody, ▪▪ Liquidity Ratio Report
use of overrides etc. ▪▪ OPR - Operations Performance Report
▪▪ APR- Account Profitability Report
Compliance with Limits ▪▪ ECR- Expense Control Report
▪▪ CAC- Criticized Asset Committee Report
The Bank sets internal limits guiding its trading ▪▪ CLR- Criticized Loans Report
book activities, liquidity and interest rate gaps, ▪▪ ALCO- Asset and Liability Committee Report
credit concentration limits. The limits are monitored ▪▪ Overdraft Efficiency Report
on a daily basis by an independent unit outside the
business areas.
Approval and Authorisation Limits
▪▪ There are segregation of duties; no officer can

start and conclude transactions
▪▪ Limits exist for credit and expense approvals.
Transactions are approved at appropriate
levels.
Verifications and Reconciliations
All internal ledgers are regularly proofed and

reconciled; exception reports are generated.
Whistle Blowing
The Bank has instituted a strong whistle blowing

culture among staff and also created awareness
among its stakeholders. The whistle blowing
platform is accessible to all and the aim is primarily
to ensure that all cases of irregularities are made
known and addressed by the Bank.
Information and Communication/ Monitoring
The Bank’s Management understands the need for

a timely, reliable and accurate information flow
within the Bank, for effective decision making and
enhanced financial reporting. Every activity of the
Bank is codified in the Bank’s standard operating
procedure (SOP), which outlines the process flow
and specifies the duties and responsibilities of every
officer in relation to the activity. The SOP further

CHAIRMAN’S
STATEMENT

Chairman’s Statement
Leading the Future

Of Banking
MRS. OSARETIN DEMUREN

CHAIRMAN’S STATEMENT
Distinguished Shareholders, Members of the Board delay in passing the 2016 FG Budget and a void in
of Directors, Ladies and Gentlemen, welcome to policy clarity significantly dampened business and
the 27th Annual General Meeting of our Bank. investors’ confidence in the first quarter of the year.
In accordance with the mandate of my office as Against the backdrop of weak FX earnings from
Chairman, I am pleased to present an overview of crude oil which was further exacerbated by increase
our 2016 macroeconomic environment, a review of in the tempo of attacks on oil and gas installations
our achievements and operating results for the year by the militants, persistent fuel scarcity, attendant
and our outlook for 2017. queues and mounting fuel subsidy bill, the FG was
compelled to partially deregulate the downstream
As we look across our businesses, we see the tangible sector of the oil and gas industry in May, increasing
results of hard work and the relentless commitment the pump price of petrol from ₦97/L to ₦145/L.
to deliver the utmost in customer service. Driven by
these values, we have simplified, strengthened and In addition to the above, the CBN liberalized the
digitally transformed our Bank. Today, our bank is FX market after pegging the local currency for 16
stronger than ever before. Our strategy of putting months with a 42% devaluation of the Naira from
our customers at the centre of everything we do is ₦197/$ to ₦283/$ in June. The liberalization of
delivering good results, and all the skills, resources the FX market brought a sense of relief to market
and expertise we possess have come together in participants and the CBN further complemented the
producing a stronger financial institution. liberalization by clearing the pent-up FX demand via
sale of $4.02bn FX forwards. The clearance of the
I am happy to report that our Bank recorded backlog resulted in improved business optimism and
significant financial success despite a difficult was further accompanied by an increase in yield on
operating environment especially when viewed treasury securities to double digits. Although the
against the backdrop of weak oil earnings, Naira fiscal and monetary policy pronouncements eased
devaluation, amidst other regulatory headwinds the difficulties in the macro-environment to some
that characterized most of the year. The significant extent, they were unable to prevent the economy
progress we recorded in our profitability and capital from sliding into a recession in the second quarter—
position is a testament to the strength of our the first in 30 years—while the impact of the hike in
business model and the commitment of our people. electricity, fuel and currency devaluation triggered
an acceleration in inflation to the double-digits
MACROECONOMIC REVIEW region at the end of June.
Since the crash of oil prices in the mid-2014, the In the third quarter, the weak oil price coupled with
domestic macroeconomic environment in 2016 was the militancy-induced crash in crude oil output to
inarguably the most challenging thus far. The year an average of 1.63mbpd compared to the 2016
began on a rather sour note as crude prices fell below budget benchmark of 2.2mbpd and 2.1mbpd
$30pbl—the lowest in eleven years—compared peak in 2015, triggered another round of biting FX
to a Federal Government (FG) Budget benchmark scarcity. So severe was the acute dollar shortage
price of $38pbl. Besides worsening the impact of that it resulted in a wave of plant closures, massive
the persistent acute dollar shortage on prices of lay-offs and suppression in aggregate demand both
imported goods, the crash in oil price significantly in the public and private sectors. The apex bank
undermined the ability of the CBN to provide enough reacted to the new developments with another
Foreign Exchange (FX) to ensure continuous supply round of devaluation as Naira fell to ₦305/$ at the
of imported refined fuel. Subsequently, the acute official market while it also hiked the Monetary
dollar shortage precipitated the return of prolonged Policy Rate (MPR) by 200 basis points to 14% in
fuel queues which caused untold hardship for order to attract capital flows. At the state level, the
businesses and households. The situation was fiscal crisis continued as the FG granted the State
exacerbated by prolonged energy black-out as Governments a new ₦90bn Conditional Budget
power supply fell from an all-time peak of 5,074MW Support Facility to enable them clear long-running
in January to 1,581MW in February amidst a 45% arrears of civil servants salaries, overheads and meet
increase in electricity tariff by the Nigerian Electricity capital commitments. The monetary and fiscal policy
Regulatory Commission. These developments along measures recorded little success as the economic
with a single-digit yield on treasury securities, rising recession further deepened with a contraction in
inflation, resurgence of militancy in the Niger Delta, output by 2.24% in the third quarter.

Fourth quarter of 2016 brought some relief as oil SUSTAINABILITY

price rose above $50pbl following the deal by OPEC
and select non-OPEC member states to cut crude We understand that building a sustainable
oil output by 1.8mbpd in order to temper the global organization is about the underlying desire to make
supply glut and prop up prices. Besides Nigeria the right decisions that enable us remain in good
being exempted from the output cut, the attacks stead today and in the future. We think about this
on oil and gas installations by the militants subsided in a variety of ways, knowing that at every point in
due to the more conciliatory approach adopted by time, we are where we are because of the quality of
the FG in dealing with the leaders of the militants. our past decisions.
In order to further ease the financial burden on the
states, the President approved the refund of ₦523bn Another way we think about sustainability is the
Paris Club debt overcharge to states in December work we do to strengthen our local economies,
in order to assist them in offsetting the backlog of invest in our communities and be a great place for
salary arrears. In total, the ₦523bn refund brings our employees to work. As a global brand, we have
to ₦1.93tn, the aggregate bail-outs advanced to a role in finding sustainable solutions to some of
the state governments between July 2015 and society’s biggest challenges. In May, we held our
December 2016. Although the headline inflation first edition of the GTBank Food and Drink Fair
rose to 18.55% in December, the official exchange with the aim of enhancing the exposure and sales
rate stabilized at ₦305/$ while yield on Treasury of small businesses in the Nigerian food industry.
bills remained within the 14% - 22% band at the The consumer focused event which received very
close of the 2016 fiscal year. Given the challenges positive reviews nationally and internationally,
enumerated above, the Minister of Budget and had over 90 exhibitors from the food sector and
National Planning projected a contraction of 1.54% attracted over 25,000 guests over the 2 day period.
in economic output for the 2016 financial year. In November 2016, we became the first institution in
the Nigerian financial sector to pioneer an initiative
FINANCIAL SCORECARD geared towards unlocking growth opportunities
for businesses in the fashion industry through the
Our Bank recorded significant growth during the GTBank Fashion Weekend. We plan to continue
2016 financial year with Gross earnings growing such initiatives not just in the food and fashion
by 37.4% from N301.9 billion in 2015 to N414.6 industries but across viable sectors where we can
billion in 2016 and, Profit Before Tax increasing help small businesses boost their growth potential
by 36.8% to N165.1 billion in 2016 from N120.7 and productivity. Our focus on sustainable business
billion in 2015. practice gives us the opportunity to apply the size
and scale we have to make meaningful impact in
Total Assets as at December 2016 stood at ₦3.12 the lives of our customers.
trillion, which represents a 23.4% increase over
the ₦2.52 trillion recorded in 2015 while loan and Finally, and most importantly, being a sustainable
advances grew by 15.8% to close at ₦1.59 trillion organization means we value our people and give
in 2016 from ₦1.37 trillion in 2015. our employees the support they need to build a
career, achieve their goals, and have the resources
In spite of the stiff competition posed by the they need to improve their lives and the lives of their
attractive yield on treasury bills, Customer Deposits families. All that we are and all that we achieve is
grew by 23.3% from ₦1.61 trillion in 2015 to ₦1.99 because of our employees, and I want to thank
trillion in 2016. We also maintained our position as them for all they do.
the most efficient bank in Nigeria by recording a
Cost to Income Ratio (CIR) of 40.8% in 2016. As we think about all the ways we pursue
sustainability, the only reason we are able to do our
Given this performance, the Board of Directors part in building a better world is because we are
has proposed a final dividend per share of N1.75. profitable. Our ability to remain profitable in the long
Aggregating this with the ₦0.25 interim dividend, term give us tremendous resources to bring to a task
brings total dividend for the year to N2.00 per share, — whether supporting the economy, awareness
a 13% increase over ₦1.77 paid in 2015 which for children living with Autism, interventions in key
represents a dividend yield of 8.16% at a market economic sectors, providing financial support, or
price of ₦24.61 (As at March 09, 2017) building a great place for our people to work. We

are able to do all this and more, because we are the Managing Director, from designated phones
profitable. at our branches on a specified day of the month.
This year, we complemented the service with the
Our focus on doing business responsibly is recognised introduction of a toll free number – 0800 000 5000;
by the numerous awards we received from allowing customers call from wherever they are and
reputable local and international organizations for increasing access to the platform.
product and service innovation and sound corporate
governance principles. Some of the international Recognizing we live in a rapidly changing digital
awards received include Best Bank in Nigeria & environment - which offers customers more
Best Digital Bank in Africa from Euromoney, Best choices, lower costs and easier mobility in an
Banking Group Nigeria from World Finance, Most always-on, always-connected world - we have
Improved Retail Bank in Nigeria & Product of the continued to redefine our digital banking platforms
Year in Africa from Asian Banker, Most Innovative by making them simpler and more accessible for our
African Bank from African Banker, and Most customers. One of the ways we achieved this, was
Innovative Company from African Investor. through the introduction of Personal Identification
Number (PIN) authentication on our Mobile Banking
Our Managing Director/CEO, Mr Segun Agbaje was App. We listened to customers who wanted access
recognized as the African Banker of the Year at the to the App without the use of a hardware token
2016 African Banker awards. and introduced PIN authentication on our Mobile
Banking App. We also upgraded our Internet
PRODUCT & SERVICE CHANNEL IMPROVEMENTS banking platform by adding several features
designed to mimic customer lifestyle patterns such
In 2016, we launched the iRequire service to enable as funds transfers to telephone numbers, Cardless
our customers pre-order online for the collection of withdrawals, salary advance and more.
Token, Card, Cheque-Book and Bank Statements
and pick up at their convenience from designated We are meeting our customers’ needs by creating a
“iRequire Cache boxes” at select branches of the simpler, more responsive organisation and investing
Bank. in our digital capability by aggressively pursuing
innovative solutions for our customers. Today, we
A key part of customer engagement is knowing what have the largest digital bank in Africa as adjudged by
your customers want. Customers require different Euromoney, with “Bank 737” – a mobile platform
products and services at different stages of their that allows customers transfer funds from any bank
lives. Our ability to dimension our customers’ needs in Nigeria, buy airtime, pay bills, link their BVN and
enables us create innovative products and services. check account balances using their mobile devices
Young people require assistance in structuring without the need for data.
their finances whilst older people require support
during retirement. In the course of the year, we SUBSIDIARIES
launched the Spend-to-Save account; an e-account
that allows customers save a percentage of every Africa has been seen as the last frontier among
withdrawal made on their account. emerging markets offering good prospects for
realizing a dynamic, diversified and competitive
We continued the automation of simple banking economic zone. Despite the decline in key macro-
services such as account opening, low value retail economic variables and material devaluation in some
lending, funds transfer, token code generation African currencies, the continent remains a land
through our USSD banking proposition - Bank 737; of opportunity for both Africans and international
enabling us serve our customers faster and simpler. investors with positive changes taking place across
We also reduced the cost-to-serve through process the continent.
improvement and product innovation, making the
customer experience faster and more personalised. Of significant importance, are the contributions
of our subsidiaries whose steady growth has
In 2015, we introduced a service initiative called continued to resonate the success of our African
Call the MD. The initiative provides a platform growth strategy. Worthy of mention are the
for our customers to escalate unresolved service achievements GTBank Gambia and GTBank Sierra
issues and give feedback on our services directly to Leone, emerging as the most profitable bank in

their respective countries.

Guaranty Trust Bank (Gambia) Limited emerged Guaranty Trust Bank (Cote D’ivoire) Limited
double award winners; “Best Commercial Bank and continued operations in four strategic branches. In
Best Internet Bank” at the 2016 Global Banking terms of financial performance, the Bank recorded
& Finance Review Awards. The Bank delivered a reduced loss of 27% year on year. Its balance
an impressive Profit Before Tax of N1.58billion, sheet grew significantly by 121% from N6.0billion
an increase of N0.54billion or 52% over the in 2015 to N13.2billion in the year under review.
N1.04billion reported in December 2015. Total Customer Deposit remained strong growing at 79%
Assets grew by 60% from N25.8billion in December from N3.8billion in 2015 to N6.9billion in 2016
2015 to N41.4billion in 2016. Customer Deposits while loan to customers massively grew by 185%
grew by 67% from the 2015 corresponding figures. from N1.98billion in 2015 to N5.6billion in 2016.
Guaranty Trust Bank (Sierra Leone) Limited was Guaranty Trust Bank (UK) Limited financial
awarded “The Best Bank that meet its’ corporate performance grew significantly by 1,830% from
social responsibilities of the year 2016”. The N0.02billion in 2015 to N0.35billion in 2016. Total
award was presented by “Consortium for Health assets remained strong with 85% growth from
and Gender Equity (CHANGE). The Bank’s balance N68.0billion to N80.4billion for 2015 and 2016
sheet remained strong with 41% growth in Total respectively. Loan to customers for the year stood
Assets, from N27.5billion in 2015 to N38.7billion at N27.9billion, an increase of N10.8billion or 64%
in the year under review. Loans to customers grew over N17.0billion reported in 2015. Customer
by 79% to close at N13.9billion from N7.8billion in deposit also grew by 65% from N34.2 in 2015 to
2015 while Customer Deposits grew by 37% from N56.5 in 2016.
N21.9billion in 2015 to N30.1billion in 2016. The
Bank continued its strong financial performance by Guaranty Trust Bank (Kenya) Limited has both
recording a 27% growth in Profit Before Tax from GTBank Uganda and GTBank Rwanda as its
N1.9billion in 2015 to N2.4billion in 2016. subsidiaries. During the year under review, GTBank
Uganda established a new branch bringing the total
Guaranty Trust Bank (Liberia) Limited established a number of branches in the country to nine. The
new branch during the period under review bringing consolidated PBT figure for East Africa Bank grew
its operations to eight strategic branches. In terms significantly by a 101% from N0.89billion in 2015
of financial performance, the Bank recorded growth to N1.78billion in 2016. The Bank’s balance sheet
across all financial indices. Profits Before Tax grew remained strong with 57% growth in Total Assets,
significantly by 109% from N0.39billion in 2015 from N79.3billion in 2015 to N124.2billion in 2016.
to N0.82billion in 2016. The Bank’s balance sheet Customer Deposit grew by 56% from N38.1billion
remained strong with 80% growth in Total Assets, in 2015 to N59.3billion in 2016.
from N17.2billion in 2015 to N31 billion in the year
under review. Loans to customers grew by 126% to Our African operations continue to make significant
close at N14.6billion from N6.5billion in 2014 while strides within the various economies they operate,
Customer Deposits grew by 82% from N12.2billion contributing 8.29% of the Group’s PBT as at today
in 2015 to N22.3billion in 2016. compared to 6.8% in the corresponding period.
Guaranty Trust Bank (Ghana) Limited received two BOARD OF DIRECTORS

awards at the “Banker Africa - West Africa Awards
- 2016”. These awards are the “Most Innovative In the course of the year, Mr. Akindele Akintoye
Bank in West Africa” and “Best Online Platform and Mr. Andrew Alli retired from the Board, having
– Ghana”. This adds to the host of awards the served as Independent Non-Executive Directors
bank received during the Year within the areas of for two (2) terms of four (4) years each (i.e. eight
Innovation and Technology. The Bank grew at an years) in line with the provisions of the Code of
impressive profit of 52% from N4.7billion in 2015 Corporate Governance of the Bank and regulatory
to N7.2billion in 2016. The Bank’s balance sheet requirements, which stipulates a maximum of two
remained strong with 60% growth in Total Assets, (2) terms of four (4) years each for Independent
from N72.2billion in 2015 to N115.4billion in 2016. Directors.
Customer Deposit grew 65% from N50billion in
2015 to N82.6billion in 2016. Messrs Akintoye and Alli were appointed to the

Board in June, 2008. Prior to their retirement, Mr the business of the Bank. On behalf of the Board
Akintoye served as the Chairman of the Board Credit and Shareholders, I would like to acknowledge the
Committee, while Mr Alli served as the Chairman contributions of the erstwhile Deputy Managing
of the Board Human Resources and Nomination Director to the growth of the Bank and express
Committee as well as the Board Audit Committee. our sincere appreciation and gratitude for her
distinguished period of service.
Also in the course of the year, the Board appointed Mr
Babatunde Soyoye as a Non-Executive (Independent) CORPORATE SOCIAL RESPONSIBILITY
Director to fill the vacancy created on the Board.
Mr Soyoye is a seasoned professional with over Corporate Social Responsibility remained a key
twenty-four (24) years’ work experience, twenty- part of our operating model during the year, as we
one (21) of which has been spent in investment/ continued to support high impact initiatives with
financial advisory services. He is the co-founder and tangible benefit to our societies. A detailed summary
Managing Partner of Helios Investment Partners LLP, of our Corporate Social Responsibility interventions
a private investment firm with its principal office in for the year which cuts across four major
the United Kingdom. Prior to co-founding Helios developmental pillars: Community Development,
Investment Partners, Mr Soyoye was responsible Education, The Arts and The Environment is
for Telecoms & Media investments across Europe contained in the CSR section of this annual report.
for TPG Capital. He has also at various times served
as a senior member of the corporate strategy STAFF
team at British Telecom, and manager of business
development at Singapore Telecom International. As a global bank, we have a diverse and inclusive
Mr Soyoye has played a key role in the execution of workforce that reflects the diversity of the customers
over $3 billion of investments across Africa, Europe, and communities we serve across Africa and in the
Asia and North America. UK. To help employees develop in their careers, we
provide resources and strategies, to guide and equip
With the appointment of Mr Soyoye, the Bank them in becoming all they want to be. In 2016,
has two (2) Independent Non-Executive Directors, we strengthened the skills and competencies of our
appointed based on criteria laid down by the CBN people by implementing capacity building initiatives
for the appointment of Independent Directors. His specifically targeted at the core segments of our
appointment has been approved by the Central Bank business. In addition to this, we actively promoted
of Nigeria and will be presented for Shareholders’ the wellness of employees by implementing health
approval at this Meeting. awareness programs such as the Orange Walk,
Health Week and health checks.
In addition to the above, the Board at its Meeting held
on January 25, 2017, appointed Mr Mobolaji Jubril Recognising the importance of culture & employee
Lawal as an Executive Director. The appointment of engagement, several initiatives aimed at promoting
Mr Lawal has been approved by the Central Bank our core values – “Orange Rules” were implemented
of Nigeria and will be presented for Shareholders’ in the course of the year. We leveraged on employee
approval at this Meeting. recognition programmes such as the ‘Round of
Applause” and “Celebrating Excellence” initiatives
Worthy of note is the retirement of Mrs Catherine to motivate employees and enhance organizational
Echeozo from the Board on March 15, 2017, having performance.
served as an Executive Director of the Bank for three
(3) terms of four (4) years, which is the maximum When we look at where we stand today, our Bank is
term stipulated for Executive Directors in line with stronger and better positioned to deliver long term
regulatory directives. Mrs. Echeozo joined the Bank value to our shareholders; thanks to the drive to
in 1993 and was appointed an Executive Director in continually innovate and simplify our processes.
March, 2005. She was appointed Deputy Managing
Director of the Bank in October, 2011. During her All of this is made possible by more than 10,000
term as Executive Director and as Deputy Managing teammates who come to work every day to serve
Director, Mrs Echeozo was responsible for the customers and improve our communities. Through
Corporate Bank Group and Institutional Banking our recruitment programs and partnerships, we
Division respectively, and contributed immensely to are investing in the future of Africa by bringing

the best and brightest to work at Guaranty Trust on investment securities, expected improvement in
Bank. Together, we will continue to move the Bank business climate, increase in and trapping of inflows
forward and deliver more value to those we serve from diaspora remittances and finally, the planned
and to our shareholders. divestment from state-owned unproductive assets
by Federal Government.
MACRO-ECONOMIC OUTLOOK
While the year ahead will present its challenges
Given the current state of the economy, expectations and uncertainties with regards to the political,
are very high on the Federal Government to craft regulatory, economic and business environment, it
and implement appropriate policies that will lift is important that we look ahead with optimism. As
the economy out of recession in 2017. The recent we go into 2017, we face the future with a strong
sustained rise in crude oil to above $50pbl, strong foundation and an excellent franchise built to serve
commitment by the OPEC and non-OPEC member our customers.
states to cut output effective January 1, 2017, and
renewed attempts at calming the restiveness in Given the significant progress we have made in
the Niger-Delta in order to assure steady crude oil recent years, I believe we are very well placed to
production and ultimately boost output to the 2015 make the most of the opportunities that exist. We
peak, are all indicative of the improved prospects of are in a strong financial position to withstand the
Nigeria coming out of recession soon rather than macroeconomic uncertainties and deliver strong
later. and sustainable returns to our shareholders. We
remain committed to supporting the Nigerian
In demonstration of its strong intent to turn the economy and the communities in which we operate
economy around, the Federal Government has across Africa and in the UK.
proposed a 2017 financial year budget of ₦7.3tn—
20% higher that the ₦6.1tn for 2016. The 2017 At the core of our strategy is the commitment to
budget is predicated on a benchmark crude oil enrich the lives of our customers by connecting
price of $42.5pbl and crude oil output of 2.2mbpd. those we serve, to the resources and expertise they
The budget which was presented to a joint session need to achieve their goals.
of the National Assembly (NASS) in December is
currently undergoing review by the two chambers I thank you for your loyalty and continued support
of the National Assembly (NASS). Furthermore, the
Federal Government has proposed a 3-year $30bn
borrowing plan to fund critical infrastructure needed
to spur economic activities and drive growth on a
sustainable basis. To further complement the 2016 Mrs Osaretin Demuren
Budget and articulate the specific medium-term Chairman, Guaranty Trust Bank plc
action plans for economic recovery, the Federal
Government has promised to unveil the 2017-2020
National Economic Recovery and Growth Plan in the
first quarter of 2017.
While the Federal Government projected a growth

rate of 5.6% for Nigeria in the proposed 2017
Budget, the International Monetary Fund expects
the Nigerian economy to expand by 0.6% in 2017.
Also, leading international rating agency, Fitch,
projects a 2.6% growth for 2017. Fitch anchored
its projection on expected peace in the Niger Delta
area with resultant increase in crude oil volumes,
sustained rise in crude oil price, expected increase
in the level of borrowing and release of funds by
the Federal Government for capital projects. Others
include acceleration in capital formation, anticipated
increase in portfolio flows due to improved yield

MANAGING
DIRECTOR’S
STATEMENT

Managing Director’s Statement
A PLATFORM FOR
ENRICHING LIVES
SEGUN AGBAJE

MANAGING DIRECTOR’S STATEMENT
I am delighted to welcome you to the 27th Annual Shareholders’ Funds of ₦504.9Billion. The Group’s
General Meeting of Guaranty Trust Bank Plc, and non-performing loans remained low and within
present our Bank’s scorecard for the 2016 financial regulatory threshold at 3.66% (Bank: 3.29%) with
year. adequate coverage (inclusive of Regulatory Reserve)
of 222.91% (Bank: 257.6%). Increase in collective
At the beginning of 2016, we set out with two impairment was borne out of the prudent stance of
major objectives; to stay nimble in the face of rapidly the Bank, while Capital remains strong with CAR of
changing market variables and to enrich the lives of 19.79%. On the backdrop of this result, Return on
our customers, communities and stakeholders. We Equity (ROAE) and Return on Assets (ROAA) closed
knew that the business environment in 2016 would at 35.96% and 5.85% respectively.
be particularly challenging given the weakness of
the Naira, depressed oil earnings and inadequate Our performance in 2016 does not only reflect
supply of foreign exchange, all of which culminated the resilience of our franchise, it demonstrates
in the eventual slide of the Nigerian economy into the fundamental strength of our businesses to
recession. However, we played to our strength by deliver sustainable long-term growth. Today, we
leveraging technology to deliver superior payment are leading the future of payments and service
solutions, grow our customer base and enhance our delivery with “Bank 737” - a USSD based service
service delivery channels to make banking with us delivery channel that provides Simple Banking for
simpler, faster and better. every Nigerian. By simply dialling *737# from their
mobile phones, our customers can transfer money,
Ladies and Gentlemen, it gives me great pleasure buy airtime, link their BVN, check account balances,
to report that by focusing on these two major apply for salary advance amongst other banking
objectives, we delivered a strong financial and non- services. Within a year of the introduction of our
financial performance and consolidated our position “Bank 737” service, we have recorded uptake of
as one of Africa’s leading financial institutions. We this service channel by over 3 million customers,
successfully navigated the heightened economic and over ₦1 trillion in transactions via the platform.
uncertainty and regulatory headwinds, which The ubiquitous acceptance of Bank 737 has been
dominated the year without losing sight of the phenomenal, gaining global recognition for Product
reason we are here: to serve our customers and to of the Year in Africa from Asian Banker Magazine
create value for our shareholders. Our efforts in each and Best Digital Bank in Africa by Euro Money,
of these areas were guided by our founding values United Kingdom. Our Bank was also the recipient
of hard work, discipline and integrity, and driven by of six awards at the 2016 Electronic Payment
our belief that the most meaningful contribution that Incentive Scheme (EPIS) Awards organised by the
we can make to the socio-economic development Central Bank of Nigeria (CBN) in conjunction with
of our societies is to remain profitable and stay the Nigeria Inter-bank Settlement System (NIBSS) to
relevant to the societies we serve. recognise financial institutions, merchants and other
stakeholders at the forefront of driving electronic
We recorded a solid performance across key financial payments in Nigeria.
indices with gross earnings growing by 37% to
₦414.62billion in the year ended December 31, As part of our strategy to grow our retail business, we
2016 from ₦301.85billion reported in December are continuously making our banking processes and
2015, driven primarily by growth in fee & commission touch points simpler, easier and faster, irrespective
income as well as foreign exchange income. Profit of where and when our customers choose to bank.
before tax stood at ₦165.14billion, representing a This has enabled us improve the customer experience
growth of 37% over ₦120.69billion recorded in across all our touch points; from expanding the
the corresponding period of 2015. The Bank’s loan range of functionality we offer on our internet,
book grew by 16% from ₦1.373trillion in 2015 to mobile and USSD banking platforms, to ensuring
₦1.590trillion in June 2016, with corresponding better experience in our branches and providing
growth in total deposits which increased by 29% more intelligent Automated Teller Machines (ATM)
to ₦2.111trillion from ₦1.637trillion in December to allow customers save time through efficient self-
2015. service. As a result of this approach, our customer
base has tripled over the last five years to 9.68
The bank closed the year ended December 2016 with million customers as at December 31, 2016, and
Total Assets and Contingents at ₦3.70trillion and we have also seen tremendous growth in customer

adoption of our digital services. in our dominance of the social media space.
With over 4.7 million followers on Facebook and
Dear Shareholders, over the years, I have shared 850,000 followers on Twitter, we have the highest
with you how digital technologies have changed social media presence among African financial
our competitive landscape. Digital Technologies institutions. We are also available on Google+,
have dissolved the boundaries between industry Instagram, LinkedIn and Blackberry Messenger.
sectors and Banking has not been spared from this
disruption. Non-bank digital players could become Building on the success of the SME MarketHub,
as integral in the banking value chain as we are to which now has over 12,000 storefronts run
our customers, and competition from these non- by small businesses, we further strengthened
bank players could erode as much as one-third of our commitment to the SME sector by creating
traditional retail banking revenues in the coming consumer-focused initiatives that serve to boost
years. This means that as a Bank that intends to their expertise, exposure and business growth. In
continue to win and dominate, we will need to move May 2016, we held our first edition of the GTBank
beyond our traditional role as enablers of financial Food and Drink Fair; a completely free business
transactions and providers of financial products, to platform, with the aim of enhancing the exposure
playing a deeper role in the digital and commercial and sales of small businesses in the Nigerian food
lives of our customers, building and positioning our industry. This was followed by the first edition of
Bank in the centre of an extended ecosystem that the GTBank Fashion Weekend in November, which
offers customers benefits, beyond banking. We was targeted at unlocking growth opportunities for
are however, mindful of the inherent competitive small businesses in the fashion industry. Both events
advantages that we possess in the digital world were as unique as they were successful, with more
and we have created new divisions and aligned than 200 small business retailers participating and
our structure to ensure that we are positioned to over 50,000 guests in attendance. Through these
take advantage of the opportunities birthed by the events, we are intervening in key economic sectors
digital revolution. to strengthen small businesses whilst presiding
over the unveiling of new ideas and the creation of
We are investing and building our digital business relationships.
capabilities, and also actively seeking to collaborate
with FinTech companies. Whether we compete or Beyond our core business of supporting individuals
collaborate, we will be aggressively pursuing these and businesses directly, we continue to give back
digital opportunities to strengthen our traditional to the communities in which we operate through
businesses, and going beyond being a bank to sustainable Corporate Social Responsibility (CSR)
becoming a platform that enriches the lives of all the initiatives, which are motivated by our belief that
customers that it serves. As a platform for enriching creating a strong business and building a better
lives, we are transforming our organization into a world are both essential ingredients for long-term
business enterprise that is all about creating value success. In 2016 we invested N450 million in our CSR
for its customers. By providing our retail customers intervention projects across the four major pillars
with the information and access that they need to of Education, Community Development, Arts, and
make decisions, offering our financial capabilities to the Environment, which, we believe, are essential
high end corporate institutions and leveraging our building blocks for the society and prerequisites for
brand and networks to support small businesses we economic growth.
will ensure that we continue to add value to our
customers and develop meaningful relationships We believe that quality education is an important
and partnerships. Simply put, we are putting our pre-requisite for nation building and a fundamental
customers first in everything that we do by offering right of every child irrespective of background, race
a differentiated and personalised user experience. or economic status. We continued to invest in our
Adopt-a-School Programme to ensure that young
As we continue to grow our digital services and take people in our communities do not stop learning
everyday banking services outside of the banking and developing capacity to make meaningful
halls, we are also ensuring that we create digital contributions to the society. In 2016, we re-
touch points to stay in touch with our customers. constructed 25 classroom blocks in Kano State,
We are constantly engaging with our customers provided scholarships to 98 students across primary,
across all digital and social touch points, as reflected secondary and tertiary levels. We also trained more

than 870 students across the 6 geopolitical zones development, our members of staff reiterated the
on financial literacy and provided sports education Bank’s belief that of far greater importance to us,
through football tournaments, for 763 secondary beyond providing first class service, is the role we
schools in Lagos and Ogun States. play in our host communities.
We continued to record year-on-year growth in In 2016 we redefined our support for Arts through
the number of participating schools in our football our ART635 initiative; a Virtual Art Gallery that
competitions, namely: The GTBank Lagos State serves as an online repository and marketplace
Principals Cup, The GTBank Ogun state Principals for African Art, connecting Artists and Art lovers.
Cup and The GTBank Masters Cup. Since the Understanding that there are infrastructural gaps
inception of our football sponsorships, we have that limit the experience of African Art and knowing
awarded a total of N55,000,000.00 in cash prizes, that our communities are increasingly mobile and
built two ultramodern sport facilities and provided digital, we created this online platform which offers
more than 5,000 players with sports kits. We have a differentiated experience for engaging with,
also launched the professional careers of several appreciating and understanding African Art. It is
talented players such as Yetunde Fajobi who joined important to note that “Art635.gallery.com” is
the Nigeria U17 Female Team – The Flamingos- a wholly free and open platform admitting artists
having played in the 2014 edition, where she without any financial obligations, only requiring
powered her school, Government Secondary School that the works listed are originally theirs. In less
Agege to victory and emerged the most valuable than 6 months, Art635 has grown to house over
player of the 2014 season. The 2012 GTBank Lagos 300 works of 50 professional artists. We have also
Principals Cup Most Valuable Player, Steven Odey, linked the virtual art gallery to the SMEMarketHub
also joined the MFM FC in the Nigerian Professional to create a full value chain that helps boost the
League in 2016, and is the leading scorer for the enterprise of the artists and the growth of the local
club. Other talented players who have come through art industry.
our football sponsorships include Opeyemi Qudus,
Akin Ayinde, and Ibrahim Deinde who played in the We also partnered with the British Council to
2014 and 2015 editions of the GTBank Ogun State sponsor the installation and three-month exhibition
Principals Cup tournament, and were selected to of the Wind Sculpture VI by renowned British-
join the Nigerian Under-15 National Team. Nigerian artist, Yinka Shonibare MBE, in order
to expand the participation of African artists in
Under our support for community development, global conversations and cultural exchanges. The
we expanded the reach of our Autism programmes installation of the Wind Sculpture VI, which marked
by extending our free one-on-one child-focused the first time that Shonibare’s work has gone on
consultation services to over 350 children with public display in Nigeria, set a new paradigm for the
Autism and other developmental difficulties in role of public art in the country and led to several
Ogun State. We undertake these programmes workshops, seminars and exhibitions which helped
and initiatives aware that we are a voice for people enhance the creativity, expertise and exposure of
who don’t have a voice and, to ensure that through indigenous artists whilst raising the profile of art
us, the world can hear them. We also embarked among the general public.
on public enlightenment campaigns electronically,
through various radio and TV stations, as well as The value we bring to the communities we serve
through offline activations such as Walking & in terms of our core banking business and our CSR
Cycling the Lagos metropolis to create awareness efforts have not gone unnoticed. In recognition
for autism. of our collective effort to building an enduring
Proudly African and Truly International Bank, we
Our members of staff, as individual embodiment received numerous International and National
of the Bank’s philosophy of giving back to society, awards from reputable organizations for product
collectively make donations through the Staff and service innovation and sound corporate
Charity Initiative to support causes and make governance practices. Some of the international
positive change in our communities. Staff donation awards received include the Best Banking Group
in 2016 was used to provide comprehensive health from World Finance Magazine, Most Innovative
insurance to people with Sickle Cell Anaemia. By African Bank from African Banker Magazine, Best
investing their time and money in community Bank in Nigeria and Best Digital Bank in Africa from

Euromoney Magazine as well as the Most Improved

Bank in Nigeria and Product of the Year in Africa
by The Asian banker Excellence In Retail Financial
Services Awards.
Going into 2017, we know that challenges in our

macroeconomic environment are likely to persist,
but our commitment to staying positive, delivering
exceptional financial services to our customers, and
adding value to all stakeholders has never been
stronger. With the repositioning of our business
structures and significant investment in our digital
abilities, we are confident in our capability to
deliver differentiated products and services to our
customers whilst enhancing cost-efficiency and
reducing risk.
Ultimately, we understand that becoming a

Platform for Enriching Lives means building strong,
value adding relationships with our customers,
stakeholders and the communities in which we
operate. We will continue to focus on strengthening
these relationships in order to ensure long-term
franchise value and deliver sustainable returns to
our shareholders. This strategy, which has served
us well in the past, and is serving us well in the
present, we believe, will continue to serve us well
into the future.
Thank you for your continued support.
Segun Agbaje
Managing Director/CEO
Guaranty Trust Bank plc

DIRECTORS’
REPORT

DIRECTORS’ REPORT
Mr. J.K.O. Agbaje

MANAGING DIRECTOR/CEO
Mrs. O.A. Demuren Mrs. C.N. Echeozo

CHAIRMAN, BOARD OF DIRECTORS DEPUTY MANAGING DIRECTOR
(Retired with effect from March 16, 2017)
Mr. A.O. Akintoye Mr. O.M. Agusto Mr. K.A Adeola

NON-EXECUTIVE (INDEPENDENT) DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR

DIRECTORS’ REPORT
Mr. A.F. Alli Mr. I. Hassan Mr. H.A. Oyinlola

NON-EXECUTIVE Ms. I. L. Akpofure
(INDEPENDENT) DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE
(Retired with effect from June 30, (INDEPENDENT) DIRECTOR
2016)
Mr. B.T. Soyoye Mr. A.A Odeyemi Mrs. O.O. Omotola Mr. A.A. Oyedeji
NON-EXECUTIVE (INDEPENDENT) EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR
DIRECTOR
(Appointed with effect from July 27, 2016)
Mr. H. Musa Mr. J.M. Lawal Mr. E.E. Obebeduo

EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR COMPANY SECRETARY
(Appointed with effect from
March 17, 2017)

DIRECTORS’ REPORT
Directors’ Report - The Bank’s principal activity remains the provision of

commercial banking services to its customers, such
For the financial year ended December 31, 2016 as retail banking, granting of loans and advances,
corporate finance, money market activities and
The Directors of Guaranty Trust Bank Plc (“the related services, as well as foreign exchange
Bank”) are pleased to present their report on operations.
the affairs of the Bank and its subsidiaries (“the
Group”), together with the Group audited financial The Bank has the following overseas subsidiaries:
statements and the auditor’s report for the financial Guaranty Trust Bank (Gambia) Limited, Guaranty
year ended December 31, 2016. Trust Bank (Sierra Leone) Limited, Guaranty Trust
Bank (Ghana) Limited, Guaranty Trust Bank (United
Legal form and principal activity Kingdom) Limited, Guaranty Trust Bank (Liberia)
Limited, Guaranty Trust Bank (Cote d’Ivoire) S.A,
Guaranty Trust Bank Plc was incorporated as a Guaranty Trust Bank (Kenya) Limited, Guaranty
private limited liability company on July 20, 1990, Trust Bank (Rwanda) Limited, Guaranty Trust Bank
and obtained a license to operate as a commercial (Uganda) Limited; as well as GTB Finance B.V.
bank on August 1, 1990. The Bank commenced Netherlands, the special purpose entity used to
operations on February 11, 1991. It became a raise funds from the international financial market.
public limited company on April 2, 1996, with the
listing of its shares on The Nigerian Stock Exchange The financial results of all the subsidiaries have been
on September 9, 1996. The Bank was issued a consolidated in these financial statements.
Universal Banking license by the Central Bank of
Nigeria on February 5, 2001. Operating results
The Bank was issued a Commercial Banking License The Group’s Gross earnings increased by 37%.
with International Scope on December 20, 2012, Highlights of the Group’s operating results for the
by the Central Bank of Nigeria, following the year ended 31 December 2016 are as follows:
divestment from all its non-banking subsidiaries
in compliance with the Central Bank of Nigeria
Regulation on Scope of Banking Activities and other
Ancillary Matters.
Group Group Parent Parent

Dec-2016 Dec-2015 Dec-2016 Dec-2015
N’000 N’000 N’000 N’000
Gross Earnings 414,615,588 301,850,111 365,916,860 268,876,290
Profit before income tax 165,136,461 120,694,804 154,005,487 113,027,057
Income tax expense (32,855,806) (21,257,923) (27,168,695) (18,718,934)
Profit for the year 132,280,655 99,436,881 126,836,792 94,308,123
Profit attributable to:
Equity holders of the parent entity 131,341,742 98,678,427 126,836,792 94,308,123
Non-controlling interests 938,913 758,454 - -
132,280,655 99,436,881 126,836,792 94,308,123
Earnings Per Share (Kobo) - Basic 467 351 431 320

Earnings Per Share (Kobo) - Diluted 467 351 431 320

DIRECTORS’ REPORT
Dividend The Directors recommend the payment of a final

dividend of ₦1.75k (one Naira, seventy-five Kobo
During the 2016 financial year, Directors declared only) per ordinary share of 50 Kobo (bringing the
and paid an interim dividend of 25 Kobo per ordinary total dividend for the financial year ended December
share on the issued capital of 29,431,179,224 31, 2016 to ₦2.00k (2015: ₦1.77k per share)).
Ordinary Shares of 50 Kobo each, for the half-year Withholding tax would be deducted at the point of
period ended June 30, 2016. payment.
Withholding tax was deducted at the time of Directors and their interest
payment.
The Directors who held office during the period,
There was no income tax consequence on the Bank together with their direct and indirect interests
as a result of the dividend pay-out, as the Bank is in the issued share capital (including the Global
only required to deduct this tax at source on behalf Depositary Receipts (GDRs)) of the Bank as recorded
of Tax authorities in Nigeria. The tax so withheld in the Register of Directors’ Shareholding and/or as
represents advance payment of income tax by the notified by the Directors for the purposes of sections
recipient shareholders. 275 and 276 of the Companies and Allied Matters
Act and the listing requirements of The Nigerian
Stock Exchange is noted below:
Direct *Indirect Direct *Indirect

Holding Holding Holding Holding
Names
December2016 December 2016 December 2015 December 2015
Shares of 50k each Shares of 50k each

1 Mrs. O. A. Demuren 356,581 0 356,581 0
2 Mr. J. K. O. Agbaje 32,146,651 9,481,3501 32,146,651 9,481,3501
3 Mrs. C. N. Echeozo 5,608,118 2,940,3001 5,608,118 2,940,3001
4 Mr. A. F. Alli2 1,284,548 0 1,163,975 0
5 Mr. A. O. Akintoye 2
13,800 0 13,800 0
6 Mr. K. A. Adeola 3,181,640 0 3,281,640 0
7 Mr. I. Hassan 630,838 0 630,838 0
8 Mr. O. M. Agusto 1,000,000 0 500,000 0
9 Mr. H. A. Oyinlola 0 0 0 0
10 Ms. I. L. Akpofure 0 0 0 0
11 Mr. B. T. Soyoye 3
0 0 0 0
12 Mrs. O. O. Omotola 452,531 234,3501 452,531 234,3501
13 Mr. A. A. Odeyemi 7,661,601 1,688,5501 7,661,601 1,688,5501
14 Mr. A. A Oyedeji 492,787 0 492,787 0
15 Mr. H. Musa 2,875 0 2,875 12,500
16 Mr. M. J. Lawal4 20,195 0 20,195 0
1
Indirect Shareholding includes underlying shares of GDRs (Global Depository Receipts)
2
Retired with effect from June 30, 2016
3
Appointed to the board with effect from July 27, 2016
4
Appointed to the Board with effect from March 17, 2017
There has been no material changes to Directors’ shareholdings within the period under review.
DIRECTORS’ REPORT
Directors’ Remuneration
The Bank ensures that remuneration paid to its Directors complies with the provisions of the Codes of
Corporate Governance issued by its regulators.
In compliance with Section 34(5) of the Code of Corporate Governance for Public Companies as issued by
the Securities and Exchange Commission, the Bank makes disclosure of the remuneration paid to its directors
as follows:
Type of package Fixed Description Timing
Basic Salary ▪▪ Part of gross salary package for Executive Directors

only.
Paid monthly during the
▪▪ Reflects the banking industry competitive salary
financial year
package and the extent to which the bank’s objectives
have been met for the financial year.
13th month salary ▪▪ Part of gross salary package for Executive Directors
only.
Paid last month of the
▪▪ Reflects the banking industry competitive salary pack-
financial year
age and the extent to which the bank’s objectives
have been met for the financial year.
Directors’ fee ▪▪ Paid annually on the day of the Annual General Meet-
Paid annually on the day
ing (‘AGM’) to Non-Executive Directors only.
of the AGM
Sitting allowances ▪▪ Allowances paid to Non-Executive Directors only for

attending Board and Board Committee Meetings. Paid after each Meeting
Changes on the Board has two (2) Independent Non-Executive Directors,

appointed based on the criteria laid down by the
In the course of the financial year ended December CBN for the appointment of Independent Directors.
31, 2016, Mr. Akindele Akintoye and Mr. Andrew
Alli retired from the Board, having served as Worthy of note is the retirement of Mrs. Catherine
Independent Non-Executive Directors for two (2) Echeozo from the Board with effect from March
terms of four (4) years each (i.e. eight (8) years) in 16, 2017, having served as an Executive Director
line with the Code of Corporate Governance of the of the Bank for three (3) terms of four (4) years,
Bank and regulatory provisions, which stipulates a which is the maximum term stipulated for Executive
maximum of two (2) terms of four (4) years each for Directors in line with the Bank’s Code of Corporate
Independent Directors. Governance.
Also in the course of the year, the Board appointed Mrs. Echeozo joined the Bank in 1993 and was
Mr. Babatunde Soyoye as a Non-Executive appointed an Executive Director in March, 2005.
(Independent) Director to fill the vacancy created She was appointed Deputy Managing Director of
on the Board. The appointment of Mr. Soyoye has the Bank in October, 2011.
been approved by the Central Bank of Nigeria (CBN)
and will be presented for Shareholders’ approval at During her term as Executive Director and as Deputy
this Meeting. Managing Director, Mrs. Echeozo was responsible
for the Corporate Bank Group and Institutional
With the appointment of Mr. Soyoye, the Bank Banking Division respectively, and contributed

DIRECTORS’ REPORT
immensely to the business of the Bank. The Profile of Mr. Bolaji Lawal
Board is deeply appreciative of Mrs. Echeozo, for
her hardwork and contribution to the success of Mr. Mobolaji Jubril Lawal holds a Bachelor of Laws
the Bank, while wishing her success in her future degree from Obafemi Awolowo University (1990);
endeavors. B.L from the Nigerian Law School (1991) and a
Master of Business Administration from Oxford
In view of Mrs. Echeozo’s scheduled retirement, University, United Kingdom (2002). He has attended
the Board appointed Mr. Mobolaji Jubril Lawal as several executive management and banking specific
an Executive Director, with effect from March 17, developmental programs in leading educational
2017, to fill the vacancy. institutions such as Harvard Business School,
Stanford Graduate School of Business and Institut
The appointment of Mr. Lawal has been approved Européen d’Administration des Affaires (INSEAD).
by the Central Bank of Nigeria and will be presented
for Shareholders’ approval at this Meeting. Mr. Lawal joined the Bank in 1992 as an Executive
Trainee and rose through the ranks to become a
Profile of Mr. Babatunde Soyoye General Manager, a position he held until his
appointment as Executive Director.
Mr. Babatunde Soyoye holds a Bachelor of
Engineering degree in Electrical Engineering (1991) He has over twenty-four (24) years banking
from Kings College, University of London, London, experience which covers various aspects of banking
England and a Master of Business Administration including Credit Risk Management, Corporate
Degree (1995) from Imperial College London, Banking Group; Commercial Banking Group,
England. Investment Banking and Corporate Finance where
he served as Group Head. Under his leadership,
Mr. Soyoye is a seasoned professional with over the Group worked on several landmark debt
twenty-four (24) years work experience, twenty- syndications, capital market and project finance
one (21) of which has been spent in investment/ transactions both in Nigeria and abroad.
financial advisory services.
Mr. Lawal is the Divisional Head, Digital Banking
He is the co-founder and Managing Partner of Division of the Bank.
Helios Investment Partners LLP, a private investment
firm with its principal office in the United Kingdom, He is in his late forties and is resident in Nigeria.
formed to pursue alternative asset class investments
in Sub-Saharan Africa, specializing in investment in Retirement by Rotation
companies, growth capital for private enterprises,
restructurings, joint ventures, startups and In compliance with the provisions of Article 84(b)
structured investments. of the Articles of Association of the Bank which
requires one third of the Directors (excluding
Prior to co-founding Helios Investment Partners, Executive Directors) or if their number is not a
Mr. Soyoye was responsible for Telecoms & Media multiple of three, the number nearest to but not
investments across Europe for TPG Capital. He greater than one third, to retire from office at each
served as a senior member of the corporate strategy biennial Annual General Meeting, Mrs. Osaretin
team at British Telecom, and manager of business Demuren and Mr. Ibrahim Hassan will retire at
development at Singapore Telecom International. the 27th Annual General Meeting and both being
eligible, offer themselves for re-election.
Mr. Soyoye played a key role in the execution of
over $3 billion of investments across Africa, Europe, The profiles of the retiring Directors are available on
Asia and North America. page 14 of this Report.
He is in his late forties and is primarily resident in the In the course of the period under review, both
United Kingdom. Directors attended all Board and Board Committee
Meetings (where applicable). A record of their
attendance at Meetings is available on page 19 of
this Report.

DIRECTORS’ REPORT
Touchdown Travels Limited provided airline tickets

Directors’ interest in Contracts to the Bank in the course of the financial year on an
ad-hoc basis.
For the purpose of Section 277 of the Companies
and Allied Matters Act (2004), Mr. K. A. Adeola The selection and conduct of the company is in
disclosed to the Board his indirect interest in conformity with rules of ethics and acceptable
Touchdown Travels Limited, a travel agency in standards. In addition, the Bank ensures that all
which his brother serves as director. transactions with the company are conducted at
arm’s length.
Shareholding analysis
The analysis of the distribution of the shares of the Bank as at December 31, 2016, is as follows:
Share Range Number of Shareholders % of Shareholder Number of Holdings % Shareholding
1 - 10,000 251,893 75.4329 778,439,690 2.6449
10,001 - 50,000 61,352 18.3727 1,328,733,628 4.5147
50,001 - 100,000 9,807 2.9368 689,840,914 2.3439
100,001 - 500,000 8,636 2.5862 1,762,766,562 5.9895
500,001 - 1,000,000 986 0.2953 688,469,532 2.3393
1,000,001 - 5,000,000 958 0.2869 1,923,906,222 6.5370
5,000,001 - 10,000,000 138 0.0413 899,680,465 3.0569
10,000,001 - 50,000,000 111 0.0332 2,534,521,441 8.6117
50,000,001 - 100,000,000 19 0.0057 1,348,411,607 4.5816
100,000,001 - 500,000,000 22 0.0066 4,968,251,114 16.8809
500,000,001 - 1,000,000,000 2 0.0006 1,384,516,947 4.7043
1,000,000,001 - 2,000,000,000 4 0.0012 4,710,121,063 16.0038
2,000,000,001 - 5,000,000,000 1 0.0003 3,377,404,124 11.4768
SUB TOTAL 333,929 99.9997 26,393,537,587 89.6788
GTBANK GDR UNDERLYING SHARES 1 0.0003 3,037,641,637 10.3212
TOTAL 333,930 100.0000 29,431,179,224 100.0000
According to the Register of Members as at December 31, 2016, no individual shareholder held more than
5% of the issued share capital of the Bank except for the following:
SHAREHOLDER NO. OF SHARES HELD PERCENTAGE OF SHAREHOLDING

GTBank GDR (underlying shares) 3,037,641,637 10.3212
Stanbic Nominees Nigeria Limited 8,297,833,591 28.1939
Citibank Nigeria Limited (“Citibank”) held the 28.19% of the Bank’s shares largely in trading
3,037,641,637 units of shares in its capacity as accounts on behalf of various investors. Stanbic
custodian for the underlying shares of the Global does not exercise personal voting rights on the said
Depositary Receipts (GDRs) issued by the Bank in shares.
July 2007, and listed on the London Stock Exchange.
The role merely confers legal responsibility for the Donations and charitable gifts
safe custody of the shares on Citibank as custodian.
Citibank does not exercise any investor rights over In order to identify with the aspirations of various
the underlying shares as beneficial owner. All the sections of the society, the Group donated a total
rights reside with the various GDR holders who have sum of ₦449,616,533 (Dec. 2015: ₦398,211,628)
the right to convert their GDRs to ordinary shares. as donations and charitable contributions during
the year. It comprises contributions to Educational
Stanbic Nominees Nigeria Limited (“Stanbic”) held organizations, Art and Cultural organizations,

DIRECTORS’ REPORT
and Professional organizations amongst others. A listing of the beneficiary organizations and the amounts
donated to them is shown below:
SECTOR BENEFICIARY/PROJECT AMOUNT (₦)
Arts Art 635 Gallery Project 726,500
Global Art Documentary 2,000,000
Tate Partnership 15,409,000
Virtual Arts Gallery 1,510,692
Yinka Shonibare Exhibition 22,808,349

Community Development
Beibei Haven Foundation 500,000
Child and Maternal Health Care 1,000,000
Massey Hospital Support 528,290
Nigerwives Support 4,124,432
Orange Ribbon Initiative - Autism 66,699,971
She Leads Africa 6,100,037
Special Olympics Support 1,000,000
Support towards special persons 100,000
Swiss Red Cross Partnership 48,322,045
She Leads Africa 5,690,688
Kick Against Indiscpline 3,491,250
Women In Leadership 780,000
Lindy's Gem Foundation 500,000
CBN Multi Purpose 500,000
IFWA Conference 500,000
Child Life Line Charity 162,000
Tristste Heart Foundation 1,000,000
Honey Bee Foundation 462,406
Education Adopt-a-school 22,551,894
CBG Match 250,000
Day Waterman College 20,000,000
Emir's Palace Schools Renovation 918,750
Herbert Macaulay Library Renovation 40,571,150
Infrastructure Upgrade 221,700
Masters Cup 22,120,331
OMR Form for Tetiary Institutions 5,959,500
OrangeVolunteer 1,170,000
Principals Cup 124,724,081
Ready Set Work Partnership 420,157

DIRECTORS’ REPORT
School Infrastructure Development 221,700

School Monopoly Championship 244,650
School Support 500,000
Principals Cup 17,870,000
Orange Volunteer Initiative 1,170,000
World Savings Day 887,680
Financial Literacy Initiative 479,542
Ogun State Summer Camp 1,000,000
CFA Investment Conference 500,000
Environment CSR Profiling 840,000
Roundabout Maintenance 480,000
Others Others 2,034,240
Kellogg Emerging Market Conference 565,500
Grand Total 449,616,533
Post balance sheet events

There were no post balance sheet events which could have a material effect on the financial position of the
Group as at 31 December, 2016 and profit attributable to equity holders on the date other than as disclosed in
the financial statements.
Research and development

The Bank - on a continuous basis - carries out research into new banking products and services.
Gender Analysis
The average number and percentage of males and females employed during the year ended December 31,
2016 vis-a-vis total workforce is as follows:
Male Female Total Male Female

Number Percentage
Employees 1,834 1,515 3,349 55% 45%
Gender analysis in average terms of Board and Top Management as at 31 December,

2016 is as follows:
Number Percentage
Board 10 4 14 71% 29%
Top Management (AGM - GM) 39 22 57 61% 39%
Total 45 26 71 63% 37%

DIRECTORS’ REPORT
Detailed Gender analysis in average terms of Board and Top Management as at 31 December,
2016 is as follows:
Number Percentage
Assistant General Manager 13 10 23 57% 43%
Deputy General Manager 13 6 19 68% 32%
General Manager 9 6 15 60% 40%
Executive Director & Deputy Managing Director 3 2 5 60% 40%
Managing Director 1 0 1 100% 0%
Non-Executive Directors 6 2 8 75% 25%
Total 45 26 71 63% 37%
Human Resources Policy including those received from physically challenged

persons.
(1) Recruitment
In the event of any employee becoming physically
The Bank conforms with all regulatory requirements challenged in the course of employment, where
in the employment of staff, whilst also ensuring possible, the Bank is in a position to arrange
that only fit and proper persons are approved appropriate training to ensure the continuous
for appointment to board or top management employment of such a person without subjecting
positions. All prescribed pre-employment screening him/her to any disadvantage in his/her career
for prospective employees and other requirements development. In the year under review, the Bank
for regulatory confirmation of top management had three persons on its staff list with physical
appointments are duly implemented. challenges.
(2) Diversity and Inclusion (4) Employee Involvement and Training
The Bank treats all employees, prospective employees The Bank encourages participation of employees in
and customers fairly and equally, regardless of arriving at decisions in respect of matters affecting
their gender, sexual orientation, family status, their well-being through various forums including
race, colour, nationality, ethnic or national origin, town hall meetings. Towards this end, the Bank
religious belief, age, physical or mental disability, or provides opportunities where employees deliberate
any such factor. on issues affecting the Bank and employee interests,
with a view to making inputs to decisions thereon.
The Bank seeks to achieve a minimum of 30%
and 40% female representation at Board and The Bank places a high premium on the development
Top Management levels respectively, subject to of its workforce. Consequently, the Bank sponsored
identification of candidates with appropriate skills. its employees for various training courses, both
For the purpose of this statement, “Board” refers locally and overseas, in the year under review.
to Managing Director/CEO, Deputy Managing The Bank has also gone into partnership with top-
Director, Executive Directors and Non-Executive notch executive business schools in Europe and
Directors while “Top Management” refers to North America to deliver world-class technical and
General Manager, Deputy General Manager and leadership training to employees in Nigeria.
Assistant General Manager grades.
(5) Health, Safety and Welfare of Employees
(3) Employment of Physically Challenged
Persons The Bank maintains business premises designed
with a view to guaranteeing the safety and healthy
The Bank operates a non-discriminatory policy in living conditions of its employees and customers
the consideration of applications for employment, alike. Employees are adequately insured against

DIRECTORS’ REPORT
occupational and other hazards. In addition, the The Bank operates a Group Life and Group
Bank provides medical facilities to its employees Personal Accident (formerly known as Workmen’s
and their immediate families at its expense. In Compensation) Insurance covers and Employee
line with the status of the Bank as a family-friendly Compensation Act contributions for the benefits
organization, we operate a crèche facility at our of its employees. It also operates a contributory
Head Office and have plans to expand to other pension plan in line with the Pension Reform Act
locations in due course. There is a state-of-the- 2004 (amended in 2014) as well as a terminal
art gymnasium for staff at our Head Office. This is gratuity scheme for its employees
in addition to the registration of staff members at
fitness centres (within their vicinity) and social clubs
towards achieving employee wellness. BY ORDER OF THE BOARD
The Bank has in place a number of training

programmes, workshops and enlightenment
programmes/publications designed to equip staff
members with basic health management tips, First
Aid, fire prevention and other occupational safety Erhi Obebeduo
skills. Company Secretary
FRC/2017/NBA/00000016024
Fire prevention and fire-fighting equipment are Plot 635, Akin Adesola Street, Victoria Island, Lagos
installed in strategic locations within the Bank’s January 25, 2017
premises.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES
Statement of Directors’ Responsibilities in Going Concern:

Relation to the Financial Statements for the The Directors have made assessment of the
year ended December 31, 2016 Company’s ability to continue as a going concern
and have no reason to believe that the Bank will not
The Directors accept responsibility for the preparation remain a going concern in the years ahead.
of the financial statements set out from pages 77-
307 that give a true and fair view in accordance Resulting from the above, the directors have a
with the requirements of the International Financial reasonable expectation that the company has
Reporting Standards. adequate resources to continue operations for the
foreseeable future. Thus, directors continued the
The Directors further accept responsibility for adoption of the going concern basis of accounting
maintaining adequate accounting records as in preparing the annual financial statements.
required by the Companies and Allied Matters Act of
Nigeria and for such internal control as the Directors
determine is necessary to enable the preparation
of financial statements that are free from material
misstatement whether due to fraud or error.
SIGNED ON BEHALF OF THE DIRECTORS BY:
CATHY ECHEOZO SEGUN AGBAJE

FRC/2013/ICAN/00000001319 FRC/2013/CIBN/00000001782
25 January, 2017 25 January, 2017

REPORT OF THE AUDIT COMMITTEE
Report of the Audit Committee

For the year ended 31 December, 2016
To the members of Guaranty Trust Bank Plc
In accordance with the provisions of Section 359 (6) of the Companies and Allied Matters Act 2004, the
members of the Audit Committee of Guaranty Trust Bank Plc hereby report as follows:
▪▪ We have exercised our statutory functions under Section 359 (6) of the Companies and Allied Matters
Act, 2004 and acknowledge the co-operation of management and staff in the conduct of these
responsibilities.
▪▪ We are of the opinion that the accounting and reporting policies of the Bank and Group are in
accordance with legal requirements and agreed ethical practices and that the scope and planning of
both the external and internal audits for the year ended 31 December, 2016 were satisfactory and
reinforce the Group’s internal control systems.
▪▪ We are satisfied that the Bank has complied with the provisions of Central Bank of
Nigeria circular BSD/1/2004 dated 18 February, 2004 on “Disclosure of directors’ related credits in
the financial statements of banks”, and hereby confirm that an aggregate amount of N438,857,000
(31 December, 2015: N1,585,455,000) was outstanding as at 31 December, 2016. The status of
performance of insider related credits is as disclosed in Note 47(d).
▪▪ We have deliberated with the External Auditors, who have confirmed that necessary cooperation
was received from management in the course of their statutory audit and we are satisfied with
management’s responses to the External Auditor’s recommendations on accounting and internal
control matters and with the effectiveness of the Bank’s system of accounting and internal control.
Mr. Akinola B. Akisanmi

Chairman, Audit Committee
FRC/2014/ICAN/00000005627
23 January, 2017
Members of the Audit Committee are:

1. Mr. Akinola B. Akisanmi - Chairman
2. Alhaji M.A. Usman
3. Mrs. Sandra Mbagwu-Fagbemi Shareholder’s Representatives
4. Mr. Bode Agusto
5. Ibrahim Hassan
6. Andrew Alli-
7. Ms. Imoni Akpofure+
In attendance:
Mr. Segun Fadahunsi - Secretary
- Retired with effect from June 30, 2016

+Appointed to the committee with effect from June 30, 2016

REPORT OF THE INDEPENDENT CONSULTANTS ON THE APPRAISAL OF THE BOARD OF
GUARANTY TRUST BANK PLC
Guaranty Trust Bank Plc is committed to maintaining a high standard of corporate governance and is
required to comply with Section 2.8.3 of the Central Bank of Nigeria (CBN) Revised Code of Corporate
Governance (CCG) 2014 which requires that an annual Board appraisal should be conducted by an in-
dependent consultant. In view of this, the Board of Directors of Guaranty Trust Bank Plc engaged Ernst
& Young LP to conduct a Board appraisal for the year ended 31st December 2016.
We established that the current state of the Board significantly conforms to the Revised CBN Code of
Corporate Governance 2014 and Securities and Exchange Commission (SEC) Code of Corporate Gov-
ernance for Public Companies in Nigeria 2011 guidelines. Our procedures included:
§§ The review of relevant documents / information such as the Board composition, Board charters
and policies, Director Code of Conduct, Memorandum and Articles of Association, minutes of
Board meetings, Board reports and Risk management policies etc.;
§§ Interviews with members of the Board;
§§ Analysis of responses to questionnaires administered to Board members.
In considering current practices, we have highlighted the Induction & continuing education arrange-
ment, and the update of Board Charters as areas that we believe are fundamental to improving the
effectiveness of the Board. Our recommendations bordered on continuing to maintain and improve on
the high Corporate Governance standards based on the requirements of the Central Bank of Nigeria
(CBN) Revised Code of Corporate Governance 2014, Securities and Exchange Commission (SEC) Code
of Corporate Governance for Public Companies in Nigeria 2011 guidelines, feedback from interviews
and our analysis of the responses to the questionnaires provided by Directors.
Overall, we observed that Guaranty Trust Bank Plc’s corporate governance as a practice is maturing
towards the advanced stage. The Board has integrated its policies across the entire Group and also em-
bedded the best practices on good corporate governance.
Bunmi Akinde
Partner, Ernst & Young LP
FRC/2012/ICAN/00000000187
25 January, 2017

Independent auditor’s report
To the Members of Guaranty Trust Bank Plc
Report on the audit of the consolidated and separate financial statements
Our opinion ▪▪ the consolidated and separate statements of financial

position as at 31 December 2016;
In our opinion, the consolidated and separate financial
statements give a true and fair view of the consolidated ▪▪ the consolidated and separate income statements for
and separate financial position of Guaranty Trust Bank Plc the year then ended;
(“the bank”) and its subsidiaries (together “the group”)
as at 31 December 2016, and of their consolidated and ▪▪ the consolidated and separate statements of compre-
separate financial performance and their consolidated hensive income for the year then ended;
and separate cash flows for the year then ended in accor-
dance with International Financial Reporting Standards ▪▪ the consolidated and separate statements of changes
and the requirements of the Companies and Allied Mat- in equity for the year ended;
ters Act, the Banks and Other Financial Institutions Act
and the Financial Reporting Council of Nigeria Act. ▪▪ the consolidated and separate statements of cash
flows for the year then ended; and
What we have audited
▪▪ the notes to the consolidated and separate financial
Guaranty Trust Bank Plc’s consolidated and separate fi- statements, which include a summary of significant
nancial statements comprise: accounting policies.
Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the consolidated and separate
financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code
of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance
with the IESBA Code.
Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated and separate financial statements of the current period. These matters were addressed in the context of
our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
..............................................................................................................................................................................................................................
PricewaterhouseCoopers Chartered Accountants, Landmark Towers, 5B Water Corporation Road, Victoria Island, Lagos, Nigeria

Key audit matter How our audit addressed the key audit matter
Allowance for impairment assessment

(N80.65billion) We understood and evaluated the design and operating
We focused on this area due to the size of the loans and effectiveness of the controls over loan loss reserves as-
advances balance net of impairment (N1.4trillion) and sessment across the bank to determine the extent of sub-
because it requires significant judgement both for the stantive testing required. We applied a risk based target
timing and recognition of impairment and the estimation testing approach in selecting a sample of credit facilities
of the size of any such impairment. for detailed reviews of related customer files and account
statements.
The main components are a specific loss component that
relates to individually significant exposures, and a collec- Our reviews included checking the details of the borrow-
tive loan loss impairment, established for a group of fi- ers and the account history, the nature of the facility, the
nancial assets with similar credit risk characteristics that industry and other factors that could indicate deteriora-
were collectively assessed for impairment. tion in the financial condition and the borrowers’ capac-
ity to repay.
See notes 4(f), 6, 11, 28 and 29 to the consolidated and
separate financial statements. For those facilities individually assessed for specific im-
pairment, we formed our own judgement as to the clas-
We focused on: sification of the facility and challenged management
where our classification differed from theirs.
• The valuation of collaterals used in the impairment
calculation for the facilities individually assessed for We obtained and reviewed the valuation reports for as-
specific impairment because of their impact on the de- sessment of the collateral values included in the impair-
termination of recoverable amount. ment calculation for significant facilities where impair-
ment triggers were identified.
• Internal rating model developed by management to
assess the credit quality and measure the default risk We assessed the reasonableness of management’s as-
of the obligors. Management’s assumptions in arriving sumptions with respect to inputs into the incurred loan
at the risk rating in the model is subjective and highly loss model. We then verified the accuracy of the inputs
sensitive to the changes in economic and credit condi- and recalculated the collective impairment amount.
tions across the different segments and industries.
For facilities denominated in foreign currency experi-
• Foreign currency denominated usance facilities which encing economic stress due to the limited availability of
were grouped on the basis of similar credit risk char- foreign currency and the increased cost to source for-
acteristics. The calculation of probability of default for eign exchange from alternative markets, we evaluated
this group of facilities was more stringent than other management’s assessment that they were not specifically
collectively impaired facilities as management consid- impaired by reviewing the borrowers’ accounts to assess
ered that the marked depreciation of the Naira against whether there is a shortfall in Dollars or whether the total
Dollars could pose future challenges on the ability Naira account balance is sufficient to service the facilities
if converted to Naira at the prevailing exchange rate. We
also assessed the extent to which collateral held against
the facilities can cover the Naira/Dollar shortfall.

of the obligors to service maturing obligations as at when We obtained sufficient documentation on the measures
due. Approximately 80% of the increase in collective im- taken by the borrowers to source the foreign currency
pairment is attributable to the more stringent assessment required to service the facilities.
for the foreign currency denominated usance facilities.
We assessed the probability of default for the foreign
Allowance for impairment is considered a key audit mat- currency denominated facilities which at 84% was more
ter in the consolidated and separate financial statements. stringent than the probability of default for the respective
industry buckets within the collective impairment model.
We obtained evidence of approval from senior manage-
ment for the more stringent probability of default.
Assessment for impairment of goodwill

(N8.67billion)
See notes 3(p), 6 and 32(c) to the consolidated
and separate financial statements
We focused on this area because of the significant judge- We reviewed management’s identification of CGUs
ments involved in estimating the carrying amount of which is based on each geographical area the group has
goodwill at the period end date (N8.6billion). In partic- invested in rather than each subsidiary as there are syn-
ular, the directors exercised judgement in identifying the ergetic effects affecting subsidiaries in a particular geo-
Cash Generating Units (CGUs) to which goodwill is allo- graphic area.
cated, determining the recoverable amounts of the Cash
Generating Units (CGUS) and the assumptions applied Furthermore, we evaluated the composition of manage-
within the Value-in-use calculations. ment’s future cash flow forecasts for each CGU and as-
sessed the reasonableness of assumptions made by man-
This matter is considered a key audit matter in the consol- agement in relation to growth rates and the weighted
idated financial statements only. average cost of capital. We compared management’s
cash flow forecasts to actual results obtained based on
audited financial statement numbers from prior years.
We considered the country’s risk profile, market con-

ditions and industry forecast and challenged manage-
ment’s assumptions in the forecasts for long term growth
rate and discount rate.
Other information
The directors are responsible for the other information. The other information include Corporate governance report,
Sustainability report, Reports and feedback, Anti-money laundering and combating terrorist financing framework,
Internal control and risk management systems in relation to the financial reporting, Statement of directors’ respon-
sibilities, Report of the audit committee, Regulatory requirements under IFRS regime, Operational risk management,
Activities of card operations, Value added statements, Five year financial summary, Share Capitalisation history and
Corporate social responsibility report (but does not include the consolidated and separate financial statement and
our auditor’s report thereon) which we obtained prior to the date of this auditor’s report, and the Subsidiary gov-
ernance report, Chairman’s statement, Managing Director’s statement, Report of the independent consultants on
the appraisal of the Board of Guaranty Trust Bank Plc, Corporate information, Products and services and Corporate

directory which are expected to be made available to us the work we have performed on the other information
after that date. that we obtained prior to the date of this auditor’s report,
we conclude that there is a material misstatement of this
Our opinion on the consolidated and separate financial other information, we are required to report that fact.
statements does not cover the other information and we We have nothing to report in this regard.
do not and will not express any form of assurance con-
clusion thereon. When we read the reports not made available to us be-
fore the date of this auditor’s report, if we conclude that
In connection with our audit of the consolidated and there is a material misstatement therein, we are required
separate financial statements, our responsibility is to read to communicate the matter to those charged with gov-
the other information identified above and, in doing so, ernance.
consider whether the other information is materially in-
consistent with the consolidated and separate financial
statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on
Responsibilities of the directors and those charged with governance for the consolidated
and separate financial statements
The directors are responsible for the preparation of the In preparing the consolidated and separate financial
consolidated and separate financial statements that give statements, the directors are responsible for assessing
a true and fair view in accordance with International Fi- the Group’s ability to continue as a going concern, dis-
nancial Reporting Standards and the requirements of the closing, as applicable, matters related to going concern
Companies and Allied Matters Act, the Financial Report- and using the going concern basis of accounting unless
ing Council of Nigeria Act, the Banks and Other Financial the directors either intend to liquidate the Group or to
Institutions Act, and for such internal control as the direc- cease operations, or have no realistic alternative but to
tors determine is necessary to enable the preparation of do so.
consolidated and separate financial statements that are
free from material misstatement, whether due to fraud Those charged with governance are responsible for over-
or error. seeing the Group’s financial reporting process.
Auditor’s responsibilities for the audit of the consol- reasonably be expected to influence the economic de-
idated and separate financial statements cisions of users taken on the basis of these consolidated
and separate financial statements.
Our objectives are to obtain reasonable assurance about
whether the consolidated and separate financial state- As part of an audit in accordance with ISAs, we exercise
ments as a whole are free from material misstatement, professional judgment and maintain professional scepti-
whether due to fraud or error, and to issue an auditor’s cism throughout the audit. We also:
report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that • Identify and assess the risks of material misstatement
an audit conducted in accordance with ISAs will always of the consolidated and separate financial statements,
detect a material misstatement when it exists. Misstate- whether due to fraud or error, design and perform au-
ments can arise from fraud or error and are considered dit procedures responsive to those risks, and obtain
material if, individually or in the aggregate, they could

audit evidence that is sufficient and appropriate to pro- the underlying transactions and events in a manner
vide a basis for our opinion. The risk of not detecting a that achieves fair presentation.
material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collu- • Obtain sufficient appropriate audit evidence regarding
sion, forgery, intentional omissions, misrepresentations, the financial information of the entities or business ac-
or the override of internal control. tivities within the Group to express an opinion on the
consolidated financial statements. We are responsible
• Obtain an understanding of internal control relevant for the direction, supervision and performance of the
to the audit in order to design audit procedures that group audit. We remain solely responsible for our au-
are appropriate in the circumstances, but not for the dit opinion.
purpose of expressing an opinion on the effectiveness
of the Group’s internal control. We communicate with those charged with governance
regarding, among other matters, the planned scope and
• Evaluate the appropriateness of accounting policies timing of the audit and significant audit findings, includ-
used and the reasonableness of accounting estimates ing any significant deficiencies in internal control that we
and related disclosures made by the directors. identify during our audit.
• Conclude on the appropriateness of the directors’ use We also provide those charged with governance with a
of the going concern basis of accounting and, based statement that we have complied with relevant ethical
on the audit evidence obtained, whether a material requirements regarding independence, and to commu-
uncertainty exists related to events or conditions that nicate with them all relationships and other matters that
may cast significant doubt on the Group’s ability to may reasonably be thought to bear on our independence,
continue as a going concern. If we conclude that a and where applicable, related safeguards.
material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclo- From the matters communicated with those charged
sures in the consolidated and separate financial state- with governance, we determine those matters that were
ments or, if such disclosures are inadequate, to modify of most significance in the audit of the consolidated and
our opinion. Our conclusions are based on the audit separate financial statements of the current period and
evidence obtained up to the date of our auditor’s re- are therefore the key audit matters. We describe these
port. However, future events or conditions may cause matters in our auditor’s report unless law or regulation
the Group to cease to continue as a going concern. precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a mat-
• Evaluate the overall presentation, structure and con- ter should not be communicated in our report because
tent of the consolidated and separate financial state- the adverse consequences of doing so would reasonably
ments, including the disclosures, and whether the con- be expected to outweigh the public interest benefits of
solidated and separate financial statements represent such communication.
Report on other legal and regulatory requirements i) we have obtained all the information and explanations
which to the best of our knowledge and belief were nec-
The Companies and Allied Matters Act and the Banks essary for the purposes of our audit;
and Other Financial Institutions Act require that in carry-
ing out our audit we consider and report to you on the ii) the bank has kept proper books of account, so far as
following matters. We confirm that: appears from our examination of those books and re-
turns adequate for our audit have been received from
branches not visited by us;

iii) the bank’s statements of financial position, income statement and statement of comprehensive income are in
agreement with the books of account.
iv) the information required by Central Bank of Nigeria Circular BSD/1/2004 on insider related credits is disclosed in
Note 47 (d) to the financial statements;
v) except for the contraventions disclosed in Note 48 to the financial statements, the bank has complied with the
requirements of the relevant circulars issued by the Central Bank of Nigeria.
For: PricewaterhouseCoopers
Chartered Accountants
Lagos, Nigeria
Engagement Partner: Obioma Ubah
FRC/2013/ICAN/00000002002 2 March 2017

FINANCIALS

FINANCIALS
Statements of financial position

As at 31 December 2016

Notes
In thousands of Nigerian Naira Dec-2016 Dec-2015 Dec-2016 Dec-2015
Assets
Cash and cash equivalents 4, 8, 23 455,863,305 254,633,215 233,847,233 173,133,109
Financial assets held for trading 4, 8, 24 12,053,919 34,626,186 6,321,370 25,075,618
Derivative financial assets 25 1,042,470 - 1,042,470 -
Investment securities:
– Available for sale 4, 8, 26 448,056,733 364,180,150 408,246,905 327,585,822
– Held to maturity 4, 8, 26 80,155,825 29,408,045 5,219,262 3,210,575
Assets pledged as collateral 4, 8, 27 48,216,412 61,954,777 48,205,702 61,946,270
Loans and advances to banks 4, 8, 28 653,718 1,051,521 29,943 638,817
Loans and advances to customers 4, 8, 29 1,589,429,834 1,371,925,547 1,417,217,952 1,265,207,443
Investment in subsidiaries 30 - - 43,968,474 41,905,781
Property and equipment 31 93,488,055 87,988,778 81,710,025 79,192,748
Intangible assets 32 13,858,906 12,470,612 3,377,961 2,492,959
Deferred tax assets 33 1,578,427 3,244,141 - -
Restricted deposits and other assets 34 371,995,835 303,110,737 364,152,777 297,240,082
Total assets 3,116,393,439 2,524,593,709 2,613,340,074 2,277,629,224
Liabilities
Deposits from banks 4, 8, 35 125,067,848 26,256,839 40,438 39,941
Deposits from customers 4, 8, 36 1,986,246,232 1,610,349,689 1,681,184,820 1,422,550,125
Financial liabilities held for trading 4, 8, 37 2,065,402 - 2,065,402 -
Derivative financial liabilities 25 987,502 - 987,502 -
Other liabilities 8, 39 115,682,490 104,605,713 90,060,440 85,126,211
Current income tax liabilities 21 17,928,279 17,739,676 17,819,039 19,378,526
Deferred tax liabilities 33 17,641,384 6,839,522 11,946,699 6,345,773
Debt securities issued 4, 8, 38 126,237,863 180,117,424 - -
Other borrowed funds 4, 8, 41 219,633,604 165,122,908 332,317,881 338,580,300
Total liabilities 2,611,490,604 2,111,031,771 2,136,422,221 1,872,020,876

FINANCIALS
Statements of financial position (Continued)

As at 31 December 2016

Notes
Equity
Capital and reserves attributable to equity hold- 42
ers of the parent entity
Share capital 14,715,590 14,715,590 14,715,590 14,715,590
Share premium 123,471,114 123,471,114 123,471,114 123,471,114
Treasury shares (5,291,245) (4,754,156) - -
Retained earnings 90,273,587 51,089,585 83,989,499 46,048,031
Other components of equity 272,891,094 222,651,255 254,741,650 221,373,613
Total equity attributable to owners of the Parent 496,060,140 407,173,388 476,917,853 405,608,348
Non-controlling interests in equity 8,842,695 6,388,550 - -
Total equity 504,902,835 413,561,938 476,917,853 405,608,348
Total equity and liabilities 3,116,393,439 2,524,593,709 2,613,340,074 2,277,629,224
Approved by the Board of Directors on 25 January 2017:
Chief Financial Officer Deputy Managing Director

Banji Adeniyi Cathy Echeozo
FRC/2013/ICAN/00000004318 FRC/2013/ICAN/00000001319

Group Managing Director
Segun Agbaje
FRC/2013/CIBN/00000001782
The accompanying notes are an integral part of these financial statements

FINANCIALS
Income statements
For the year ended 31 December 2016
In thousands of Nigerian Naira Notes Group Group Parent Parent

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Interest income 9 262,494,101 229,236,715 226,579,479 206,478,499
Interest expense 10 (67,093,923) (69,289,592) (55,551,522) (61,445,632)
Net interest income 195,400,178 159,947,123 171,027,957 145,032,867
Loan impairment charges 11 (65,290,310) (12,408,194) (63,542,640) (11,769,374)
Net interest income after loan impairment charges 130,109,868 147,538,929 107,485,317 133,263,493
Fee and commission income 12 51,273,910 51,865,608 40,397,778 44,034,897
Fee and commission expense 13 (3,456,257) (3,079,439) (2,947,714) (2,689,751)
Net fee and commission income 47,817,653 48,786,169 37,450,064 41,345,146
Net gains on financial instruments classified as held for trading 14 5,218,451 12,237,394 2,248,241 9,189,686
Other income 15 95,629,125 8,510,394 96,691,361 9,173,208
Personnel Expenses 17 (29,453,465) (27,721,723) (20,704,772) (20,727,835)
Operating lease expenses 18 (1,375,228) (1,124,691) (670,172) (674,958)
Depreciation and amortization 19 (15,249,366) (12,594,522) (12,730,298) (10,787,370)
Other operating expenses 20 (67,560,577) (54,937,146) (55,764,254) (47,754,313)
Profit before income tax 165,136,461 120,694,804 154,005,487 113,027,057
Income tax expense 21 (32,855,806) (21,257,923) (27,168,695) (18,718,934)
Profit attributable to:

Non-controlling interests 938,913 758,454 - -
132,280,655 99,436,881 126,836,792 94,308,123
Earnings per share for the profit from continuing operations attributable
to the equity holders of the parent entity during the year
(expressed in naira per share):
– Basic 22 4.67 3.51 4.31 3.20

– Diluted 22 4.67 3.51 4.31 3.20

FINANCIALS
Statements of comprehensive income


In thousands of Nigerian Naira Notes
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Other comprehensive income:

Other comprehensive income not to be reclassified
to profit or loss in subsequent years:
Actuarial gains and losses 1,902,940 (1,342,733) 1,902,940 (1,342,733)

Income tax relating to actuarial gains and losses (570,882) 402,820 (570,882) 402,820
1,332,058 (939,913) 1,332,058 (939,913)
Other comprehensive income to be reclassified to

profit or loss in subsequent years:
Foreign currency translation differences for foreign operations 22,134,976 (1,653,527) - -

Income tax relating to foreign currency translation differences
for foreign operations 21 (6,640,493) 496,058 - -
Net change in fair value of available for sale financial assets (6,445,561) 5,303,424 (6,878,440) 5,231,517
Income tax relating to net change in fair value of available for
sale financial assets 21 1,982,410 (1,420,464) 2,112,274 (1,398,892)
11,031,332 2,725,491 (4,766,166) 3,832,625
Other comprehensive income for the year, net of tax 12,363,390 1,785,578 (3,434,108) 2,892,712
Total comprehensive income for the year 144,644,045 101,222,459 123,402,684 97,200,835
Total comprehensive income attributable to:

Non-controlling interests 3,127,025 812,903 - -
Total comprehensive income for the year 144,644,045 101,222,459 123,402,684 97,200,835

FINANCIALS
Consolidated Statement of Changes in Equity

December 2016
Group
Share Share Regulatory risk Other Treasury Fair value Foreign Retained Total equity Non- Total
capital premium reserves regulatory shares reserve currency earnings attributable controlling equity
In thousands of Nigerian Naira reserves translation to parent interest
reserve
Balance at 1 January 2016 14,715,590 123,471,114 53,793,105 169,730,267 (4,754,156) 3,938,817 (4,810,934) 51,089,585 407,173,388 6,388,550 413,561,938
Total comprehensive income for the year:

Profit for the year - - - - - - - 131,341,742 131,341,742 938,913 132,280,655
Other comprehensive income, net of tax:

Foreign currency translation difference - - - - - - 13,445,724 - 13,445,724 2,048,759 15,494,483
Actuarial gains - - - - - - - 1,332,058 1,332,058 - 1,332,058
Fair value adjustment - - - - - (4,602,504) - - (4,602,504) 139,353 (4,463,151)
Total other comprehensive income - - - - - (4,602,504) 13,445,724 1,332,058 10,175,278 2,188,112 12,363,390
Total comprehensive income - - - - - (4,602,504) 13,445,724 132,673,800 141,517,020 3,127,025 144,644,045
Transactions with equity holders,

recorded directly in equity:
Transfers for the year - - 1,941,500 39,455,119 - - - (41,396,619) - - -
Outflow to non-controlling interest - - - - - - - - - (470,293) (470,293)
Acquisition of own shares - - - - (537,089) - - - (537,089) - (537,089)
Dividend to equity holders - - - - - - - (52,093,179) (52,093,179) (202,587) (52,295,766)
- - 1,941,500 39,455,119 (537,089) - - (93,489,798) (52,630,268) (672,880) (53,303,148)
Balance at 31 December 2016 14,715,590 123,471,114 55,734,605 209,185,386 (5,291,245) (663,687) 8,634,790 90,273,587 496,060,140 8,842,695 504,902,835

FINANCIALS
Consolidated Statement of Changes in Equity

December 2015
Group
Share Share Regulatory risk Other Treasury Fair value Foreign Retained Total equity Non- Total
capital premium reserves regulatory shares reserve currency earnings attributable controlling equity
In thousands of Nigerian Naira reserves translation to parent interest
reserve
Balance at 1 January 2015 14,715,590 123,471,114 28,540,673 148,413,152 (3,987,575) 127,688 (3,670,847) 51,425,181 359,034,976 5,679,322 364,714,298

Profit for the year - - - - - - - 98,678,427 98,678,427 758,454 99,436,881

Foreign currency translation difference - - - - - - (1,140,087) - (1,140,087) (17,382) (1,157,469)
Actuarial gains - - - - - - - (939,913) (939,913) - (939,913)
Fair value adjustment - - - - - 3,811,129 - - 3,811,129 71,831 3,882,960
Total other comprehensive income - - - - - 3,811,129 (1,140,087) (939,913) 1,731,129 54,449 1,785,578
Total comprehensive income - - - - - 3,811,129 (1,140,087) 97,738,514 100,409,556 812,903 101,222,459
Transactions with equity holders,

recorded directly in equity:
Transfers for the year - - 25,252,432 21,317,115 - - - (46,569,547) - - -
Acquisition of own shares - - - - (766,581) - - - (766,581) - (766,581)
Dividends to equity holders - - - - - - - (51,504,563) (51,504,563) (103,675) (51,608,238)
- - 25,252,432 21,317,115 (766,581) - - (98,074,110) (52,271,144) (103,675) (52,374,819)
Balance at 31 December 2015 14,715,590 123,471,114 53,793,105 169,730,267 (4,754,156) 3,938,817 (4,810,934) 51,089,585 407,173,388 6,388,550 413,561,938

FINANCIALS
Statement of Changes in Equity

December 2016
Parent
Share Share Regulatory risk Other Fair value Retained Total

capital premium reserves regulatory reserve earnings equity
In thousands of Nigerian Naira reserves 1
Balance at 1 January 2016 14,715,590 123,471,114 52,241,013 165,367,114 3,765,486 46,048,031 405,608,348

Profit for the year - - - - - 126,836,792 126,836,792

Actuarial gains - - - - - 1,332,058 1,332,058
Fair value adjustment - - - - (4,766,166) - (4,766,166)
Total other comprehensive income - - - - (4,766,166) 1,332,058 (3,434,108)
Total comprehensive income - - - - (4,766,166) 128,168,850 123,402,684
Transactions with equity holders, recorded

directly in equity:
Transfers for the year - - 83,165 38,051,038 - (38,134,203) -
Dividend to equity holders - - - - - (52,093,179) (52,093,179)
- - 83,165 38,051,038 - (90,227,382) (52,093,179)
Balance at 31 December 2016 14,715,590 123,471,114 52,324,178 203,418,152 (1,000,680) 83,989,499 476,917,853
1
Please refer to Note 42 for further breakdown

FINANCIALS
Statement of Changes in Equity

December 2015
Parent
Share Share Regulatory risk Other Fair value Retained Total

capital premium reserves regulatory reserve earnings equity
In thousands of Nigerian Naira reserves
Balance at 1 January 2015 14,715,590 123,471,114 28,349,056 144,619,327 (67,139) 48,824,128 359,912,076

Profit for the year - - - - - 94,308,123 94,308,123

Actuarial gains - - - - - (939,913) (939,913)
Fair value adjustment - - - - 3,832,625 - 3,832,625
Total other comprehensive income - - - - 3,832,625 (939,913) 2,892,712
Total comprehensive income - - - - 3,832,625 93,368,210 97,200,835
Transactions with equity holders, recorded

directly in equity:
Transfers for the year - - 23,891,957 20,747,787 - (44,639,744) -
Dividend to equity holders - - - - - (51,504,563) (51,504,563)
- - 23,891,957 20,747,787 - (96,144,307) (51,504,563)
Balance at 31 December 2015 14,715,590 123,471,114 52,241,013 165,367,114 3,765,486 46,048,031 405,608,348

FINANCIALS
Statements of cash flows


Dec-2016 Dec-2015 Dec-2016 Dec-2015
Cash flows from operating activities
Adjustments for:
Depreciation of property and equipment 19, 31 13,537,146 11,417,644 11,461,319 9,858,957
Amortisation of Intangibles 1,712,220 1,176,878 1,268,979 928,413
Gain on disposal of property and equipment (74,948) (87,966) (36,266) (71,709)
Gain on repossessed collateral and other valuation gains (7,578,407) - (7,578,407) -
Impairment on financial assets 66,127,118 12,848,841 64,026,771 11,874,199
Net interest income (195,400,178) (159,947,123) (171,027,957) (145,032,867)
Foreign exchange gains 15 (87,289,532) (5,195,652) (86,358,293) (4,632,908)
Fair value changes for FVTPL 7,754 (2,854,509) 7,754 (2,854,509)
Derivatives fair value changes (54,968) 276,358 (54,968) 276,358
Dividend received (93,237) (99,740) (2,546,148) (1,614,082)
Income tax expense 21, 34 32,855,806 21,257,923 27,168,695 18,718,934
Other non-cash items (38,212) 406,691 (38,212) 406,691
(44,008,783) (21,363,774) (36,869,941) (17,834,400)
Net changes in:
Financial assets held for trading 26,837,030 (21,784,261) 18,746,494 (16,545,564)
Assets pledged as collateral 13,742,539 (22,775,784) 13,740,568 (22,772,630)
Loans and advances to banks (22,730,007) 4,752,092 (22,376,554) (608,245)
Loans and advances to customers 203,461,473 (52,137,312) 118,596,170 (46,762,811)
Restricted deposits and other assets (52,315,214) 5,415,252 (53,342,557) 7,847,473
Deposits from banks 78,759,321 (5,075,276) 497 (103,772)
Deposits from customers 150,059,142 (32,289,055) 113,021,266 (44,042,116)
Financial liabilities held for trading 2,065,402 - 2,065,402 -
Other liabilities (11,827,395) 42,478,592 (13,730,934) 31,828,021
388,052,291 (81,415,752) 176,720,352 (91,159,644)
Interest received 259,818,523 224,019,106 223,903,900 201,260,889

Interest paid (66,826,707) (69,459,262) (55,284,307) (61,615,302)
537,035,324 51,780,318 308,470,004 30,651,543
Income tax paid (26,070,542) (23,307,163) (21,585,865) (20,222,395)
Net cash/(used in) provided by operating activities 510,964,782 28,473,155 286,884,139 10,429,148

FINANCIALS
Statements of cash flows


Dec-2016 Dec-2015 Dec-2016 Dec-2015
Cash flows from investing activities

Redemption of investment securities 894,817,978 798,990,946 894,817,978 798,990,946
Purchase of investment securities (1,005,131,946) (808,879,886) (981,030,167) (801,889,906)
Dividends received 93,237 99,740 2,546,148 1,614,082
Purchase of property and equipment 31 (15,753,352) (23,155,245) (14,049,044) (21,078,594)
Proceeds from the sale of property and equipment 420,630 143,928 106,714 140,696
Purchase of intangible assets 32 (2,392,426) (1,198,372) (2,153,981) (1,003,673)
Additional investment in subsidiary - - (2,062,693) (1,775,497)
Net cash provided by/(used in) investing activities (127,945,879) (33,998,889) (101,825,045) (25,001,946)
Cash flows from financing activities

Increase in debt securities issued - 1,057,751 - -
Repayment of debt securities issued (156,447,729) - - -
Repayment of long term borrowings (138,920,556) (27,471,139) (196,959,871) (16,030,387)
Increase in long term borrowings 43,770,500 87,044,828 43,770,500 87,044,828
Finance lease repayments (1,331,093) (790,947) (1,331,093) (790,947)
Purchase of treasury shares (537,089) (766,581) - -
Dividends paid to owners 43 (52,093,179) (51,504,563) (52,093,179) (51,504,563)
Dividends paid to non-controlling interest (202,587) (103,675) - -
Decrease in non-controlling interest (470,293) - - -
Net cash provided by financing activities (306,232,026) 7,465,674 (206,613,643) 18,718,931
Net (decrease) /increase in cash and cash 76,786,877 1,939,940 (21,554,549) 4,146,133
equivalents
Cash and cash equivalents at beginning of year 254,633,215 246,939,868 173,133,109 161,778,647
Effect of exchange rate fluctuations on cash held 101,128,332 5,753,407 59,284,102 7,208,329
Cash and cash equivalents at end of the year 23b 432,548,424 254,633,215 210,862,662 173,133,109

ACCOUNTING
POLICIES

ACCOUNTING POLICIES
1. Reporting entity assets cannot be measured reliably, they are

measured at cost less impairment.
Guaranty Trust Bank Plc (“the Bank” or “the ▪▪ Liabilities for cash-settled share-based payment
Parent”) is a company domiciled in Nigeria. The arrangements are measured at fair value.
address of the Bank’s registered office is Plot 635, ▪▪ The liability for defined benefit obligations is
Akin Adesola Street, Victoria Island, Lagos. These recognized as the present value of the defined
separate and consolidated financial statements, benefit obligation less the fair value of the plan
for the year ended 31 December 2016, are assets.
prepared for the Parent and the Group (Bank and ▪▪ The plan assets for defined benefit obligations
its `subsidiaries, separately referred to as “Group are measured at fair value.
entities”) respectively. The Parent and the Group ▪▪ Assets and liabilities held for trading are
are primarily involved in investment, corporate, measured at fair value
commercial and retail banking. ▪▪ Assets and Liabilities held to maturity are
measured at amortised cost
2. Basis of preparation ▪▪ Loans and Receivables are measured at
amortised cost.
The Consolidated and separate financial statements
of the parent and the Group have been prepared (c) Use of Estimates and Judgements
in accordance with International Financial Reporting The preparation of the financial statements in
Standards as issued by the IASB, the requirements conformity with IFRS requires the directors to make
of the Companies and Allied Matters Act and with judgements, estimates and assumptions that affect
the Banks and Other Financial Institutions Act. the application of policies and reported amounts
of assets and liabilities, income and expenses. The
These Consolidated and Separate financial estimates and associated assumptions are based
statements have been audited and were authorised on historical experience and various other factors
for issue by the directors on 25 January 2017. that are believed to be reasonable under the
circumstances, the results of which form the basis
of making the judgements about carrying values of
3. (a) Significant Accounting Policies assets and liabilities that are not readily apparent
from other sources. Actual results may differ from
The accounting policies set out below have been these estimates.
applied consistently to all periods presented in these
financial statements. All entities within the group The estimates and underlying assumptions are
apply the same accounting policies. reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period
(a) Functional and presentation currency in which the estimate is revised and in any future
These Consolidated and Separate financial periods affected. Information about significant areas
statements are presented in Nigerian Naira, which of estimation, uncertainties and critical judgements
is the Parent’s functional currency. Except where in applying accounting policies that have the most
indicated, financial information presented in Naira significant effect on the amounts recognised in
has been rounded to the nearest thousand. the financial statements are described in note 6.
(b) Basis of measurement (d) Changes to accounting policies

These financial statements have been prepared on
the historical cost basis except for the following: New and amended standards and
interpretations
▪▪ Derivative financial instruments which are The accounting policies adopted are consistent with
measured at fair value. those of the previous financial period.
▪▪ Non-derivative financial instruments, carried at
fair value through profit or loss, are measured Standards and interpretations effective during
at fair value. the reporting period
▪▪ Available-for-sale financial assets are measured Amendments to the following standard(s) became
at fair value through equity. However, when effective in the reporting period from 1st January,
the fair value of the Available-for-sale financial 2016. They do not have any material impact

ACCOUNTING POLICIES
on the accounting policies, financial position or for investments in subsidiaries. Hence, the
performance of the Group. amendment does not in any way affect
the bank nor its financial statements and
▪▪ Amendments to IFRS 11 - Accounting accounting policies.
for Acquisitions of Interests in Joint
Operations ▪▪ Amendments to IAS 16 – Property, Plant
Amends IFRS 11 Joint Arrangements to require and Equipment
an acquirer of an interest in a joint operation
in which the activity constitutes a business (as Amends IAS 16 to clarify that the use of
defined in IFRS 3 Business Combinations) to: revenue based methods to calculate the
- apply all of the business combinations depreciation of an asset is not appropriate
accounting principles in IFRS 3 and other because revenue generated by an activity that
IFRSs, except for those principles that includes the use of an asset generally reflects
conflict with the guidance in IFRS 11 factors other than the consumption of the
- disclose the information required by economic benefit embodied in the asset. The
IFRS 3 and other IFRSs for business IASB has also clarified that revenue is generally
combinations. presumed to be an inappropriate basis for
measuring the consumption of the economic
The amendments apply both to the initial benefits in an intangible asset. The Group’s
acquisition of an interest in joint operation, property, plant and equipment are depreciated
and the acquisition of an additional interest in using the straight line method and is therefore
a joint operation (in the latter case, previously not impacted by the amendment.
held interests are not remeasured).
▪▪ IAS 38 – Intangible Assets
The Group does not have any interest in
joint operations and does not plan to acquire Amends IAS 38 to introduce a rebuttable
interests in same. Hence, the amendment does presumption that a revenue-based amortization
not impact the bank. method for intangible assets is inappropriate
for the same reasons as stated in amendment
▪▪ Amendments to IAS 1 - Presentation of to IAS 16 above. The amendment stated that
financial statements there are limited circumstances where the
Amends IAS 1 to clarify guidance on materiality rebuttable presumption can be overcome.
and aggregation, the presentation of subtotals, This is when the intangible asset is expressed
the structure of financial statements and the as a measure of income and when it can be
disclosure of accounting policies. demonstrated that revenue and consumption
of economic benefits of the intangible asset
These amendments are intended to assist are highly correlated although there are no
entities in applying judgement when meeting clear details as to the admissible evidence
the presentation and disclosure requirements that is required to overcome the presumption.
in IFRS, and do not affect recognition and Amortisation is recognised in profit or loss on a
measurement. The amendment does not straight-line basis over the estimated useful life
in any way affect the bank nor its financial of Group’s intangible asset (Software), hence
statements and accounting policies. the amendment does not impact the Group.
▪▪ Amendments to IAS 27 - Presentation of ▪▪ IAS 41 – Agriculture and IAS 16 – Property,

financial statements Plant and Equipment
Amends IAS 27 to restore the option to use The amendment seek to move biological assets
the equity method to account for investments that meet the definition of a “Bearer Plant”
in subsidiaries, joint ventures and associates (e.g. Fruit trees) away from the fair value
in an entity’s separate financial statements. measurement approach as prescribed by IAS
The bank only has investments in subsidiaries 41, Agriculture and bring it within the scope
which it accounts for using the cost method, of IAS 16, Property, Plant and Equipment. This
one of the allowable methods of accounting will enable entities to measure bearer plants

ACCOUNTING POLICIES
at cost subsequent to initial recognition or at from paragraph 44R, clarifying that offsetting
revaluation. The amendment also introduced disclosures is not required in the condensed
an appropriate definition of a bearer plant. interim financial report . However, if the IFRS
The Group does not have any operational 7 disclosures provide a significant update to
business related to Agriculture and therefore the information reported in the most recent
is not in any way impacted by the standard or annual report, an entity is required to include
its amendments. the disclosures in the condensed interim
financial report.
▪▪ IFRS 14- Regulatory deferral accounts:
IFRS 14 is designed as a limited scope Standard On servicing contract, it clarifies that a servicing
to provide an interim, short-term solution contract that includes a fee can constitute
for rate-regulated entities that have not yet continuing involvement in a financial asset.
adopted International Financial Reporting An entity must assess the nature of the fee
Standards (IFRS). Its purpose is to allow rate- and arrangement against the guidance for
regulated entities adopting IFRS for the first- continuing involvement in paragraphs IFRS
time to avoid changes in accounting policies 7.B30 and IFRS 7.42C in order to assess
in respect of regulatory deferral accounts until whether the disclosures are required. This
such time as the International Accounting standard does not have any impact on this
Standards Board (IASB) can complete its financial statement.
comprehensive project on rate regulated
activities. This standard would not have an ▪▪ Amendments to IAS 19 - Defined Benefit
impact on the Group as it is not a first time Plans: Employee Contributions
preparer of IFRS financial statements. This is Amends IAS 19 to clarify that high quality
in addition to the fact that the regulators of corporate bonds used in estimating the
the countries where we operate do not allow discount rate for post employment benefits
creation of any regulatory deferral account. should be denominated in the same currency
as the benefits to be paid (thus, the depth of
▪▪ Amendments to IFRS 10, IFRS 12 and IAS the market for high quality corporate bonds
28 – Investment Entities : should be assessed at currency level).
Applying the consolidation exception
The amendments address issues that have ▪▪ Amendments to IAS 34 – Interim Financial
arisen in applying the investment entities Reporting
exception under IFRS 10. The amendments Amends IAS 34 to clarify that the required
to IFRS 10 clarify that the exemption from interim disclosures must either be in the
presenting consolidated financial statements interim financial statements or incorporated
applies to a parent entity that is a subsidiary by cross reference between the financial
of an investment entity, when the investment statements and wherever they are included
entity measures all of its subsidiaries at fair within the greater interim financial report (e.g.
value. management commentary or risk report). This
standard does not have any impact on this
Furthermore, the amendments to IFRS 10 clarify financial statement.
that only a subsidiary of an investment entity
that is not an investment entity itself and that ▪▪ Amendments to IFRS 5 - Non Current Asset
provides support services to the investment Held for Sale and Discontinued Operations
entity is consolidated. All other subsidiaries Amends IFRS 5 with specific guidance on
of an investment entity are measured at fair changes in disposal methods, for cases in which
value. These amendments do not have any an entity reclassifies an asset from held for sale
impact on the Group as no member of the to held for distribution or vice versa and cases
Group is an investment entity. for which held for distribution accounting is
discontinued. The amendment clarifies that
▪▪ Amendments to IFRS 7 - Financial changing from one of these disposal methods
Instruments: Disclosures to the other should not be considered to be a
Amends IFRS 7 to remove the phrase ’and new disposal plan, rather it is a continuation of
interim periods within those annual periods’ the original plan. This standard does not have

ACCOUNTING POLICIES
any impact on this financial statement.
Standards and interpretations issued/amended but not yet effective
A number of new standards and amendments to standards are effective for annual periods beginning after
1 January 2016. The Group has not applied the following new or amended standards in preparing these
consolidated and separate financial statements. The Group plans to adopt these standards at their respective
effective dates.
Standard Content Effective Year

Amendments to IAS 12 Income Taxes 1-Jan-17
IFRS 15 Revenue from Contracts with Customers 1-Jan-18
Amendments to IAS 7 Statement of Cash Flows 1-Jan-17
IFRS 9 Financial instruments 1-Jan-18
IFRS 16 Leases 1-Jan-19
Amendments to IFRS 10 and IAS Sale or contribution of Assets between an investor and its Deferred indefinitely
28 Associate and Joint Venture
IFRS 1 First time Adopters: Deletion of short- term exemptions for 1-Jan-18
first time adopters
Amendments to IFRS 12 Disclosure of Interests in Other Entities - Clarification of the 1-Jan-17
scope of the standard
Amendments to IFRS 2 Share Based Payment - Classification and measurment of 1-Jan-18
share based payment transactions
Amendments to IAS 40 Investment Property - Transfers of Investment Property 1-Jan-18
IAS 28 Investment in Associates and Joint ventures 1-Jan-18
to fall outside the scope of IFRS 15 and will

Commentaries on these new standards/amendments be regulated by the other applicable standards
are provided below. (e.g., IFRS 9, and IFRS 16 Leases).
▪▪ Amendments to IAS 12 – Income Taxes Revenue under IFRS 15 will need to be

In January 2016, through issuing amendments recognised as goods and services are
to IAS 12, the IASB clarified the accounting transferred, to the extent that the transferror
treatment of deferred tax assets of debt anticipates entitlement to goods and services.
instruments measured at fair value for The standard also specifies a comprehensive
accounting, but measured at cost for tax set of disclosure requirements regarding
purposes. The amendment is effective from the nature, extent and timing as well as any
1 January 2017. The Group is currently uncertainty of revenue and the corresponding
evaluating the impact, but does not anticipate cash flows with customers. The Group does
that adopting the amendments would have a not anticipate early adopting IFRS 15 and is
material impact on its financial statements. currently evaluating its impact.
▪▪ IFRS 15 - Revenue from Contracts with ▪▪ Amendments to IAS 7 - Statement of Cash

Customers Flows
In May 2014, the IASB issued IFRS 15 Revenue In January 2016, the IASB issued amendments
from Contracts with Customers, effective for to IAS 7 Statement of Cash Flows with the
periods beginning on 1 January 2018 with intention to improve disclosures of financing
early adoption permitted. IFRS 15 defines activities and help users to better understand
principles for recognising revenue and will the reporting entities’ liquidity positions.
be applicable to all contracts with customers. Under the new requirements, entities will need
However, interest and fee income integral to to disclose changes in their financial liabilities
financial instruments and leases will continue as a result of financing activities such as

ACCOUNTING POLICIES
changes from cash flows and non-cash items The Bank expects to enter the Design phase
(e.g.,gains and losses due to foreign currency by Q1, 2017. This phase will involve obtaining
movements). The amendment is effective information from current systems, adjusting
from 1 January 2017. The Group is currently the IT systems to capture the additional data
evaluating the impact. requirements and determination of what
constitutes a default and significant credit loss.
▪▪ IFRS 9 - Financial instruments By Q2 2017, will be ready for a parallel run of
IFRS 9, published in July 2014, replaces the IFRS 9 and IAS 39 standards.
the existing guidance in IAS 39 Financial
Instruments: Recognition and Measurement. ▪▪ IFRS 16 – Leases
IFRS 9 includes revised guidance on the The IASB issued the new standard for
classification and measurement of financial accounting for leases - IFRS 16 Leases in
instruments, including a new expected credit January 2016. The new standard does not
loss model for calculating impairment on significantly change the accounting for leases
financial assets, and the new general hedge for lessors. However it requires lessees to
accounting requirements. It also carries recognise most leases on their balance sheets
forward the guidance on recognition and as lease liabilities, with the corresponding
derecognition of financial instruments from right-of-use assets. Lessees must apply a single
IAS 39. IFRS 9 is effective for annual reporting model for all recognised leases, but will have
periods beginning on or after 1 January 2018, the option not to recognise ‘short-term’ leases
with early adoption permitted. and leases of ‘low-value’ assets. Generally,
the profit or loss recognition pattern for
While the Group is still undertaking a detailed recognised leases will be similar to today’s
assessment of the impact of the application of finance lease accounting, with interest and
IFRS 9 on its financial statements, the initial gap depreciation expense recognised separately in
assessments indicate that there are no major the statement of profit or loss.
gaps in the current measurement of financial
assets as they are largely in line with IFRS 9. IFRS 16 is effective for annual periods beginning
There will also be no impact on the Group’s on or after 1 January 2019. Early application
accounting for financial liabilities, as the new is permitted provided the new revenue
requirements only affect the accounting for standard, IFRS 15, is applied on the same
financial liabilities that are designated at fair date. Lessees must adopt IFRS 16 using either
value through profit or loss and the group a full retrospective or a modified retrospective
does not have any such liabilities. The new approach.
hedging rules are also not expected to impact
the Group. The Group does not anticipate early adopting
IFRS 16 and is currently evaluating its impact.
The impairment model under IFRS 9 is an
expected credit loss model which is likely to ▪▪ Amendments to IFRS 10 and IAS 28 -
result in the earlier recognition of credit losses. Sale or contribution of Assets between
The Group is however still assessing how its an investor and its Associate and Joint
impairment provisions will be affected by the Venture
new impairment model for IFRS 9.
The amendments address the conflict between
The Bank is currently at the impact assessment IFRS 10 and IAS 28 in dealing with the loss
phase of the IFRS 9 journey. The focus is of control of a subsidiary that is sold or
on understanding the IFRS 9 financial and contributed to an associate or joint venture.
operational implications, with outcomes being The amendments clarify that the gain or loss
key inputs to the design and implementation resulting from the sale or contribution of assets
phases. Also, the phase will help the bank that constitute a business, as defined in IFRS 3,
identify any gaps with the implementation between an investor and its associate or joint
of IFRS 9, especially in terms of the people, venture, is recognised in full. Any gain or loss
processes, technology and controls that will be resulting from the sale or contribution of assets
necessary to drive an effective implementation. that do not constitute a business, however,

ACCOUNTING POLICIES
is recognised only to the extent of unrelated of investment property should be made

investors’ interests in the associate or joint only when there has been a change in use
venture. The IASB has deferred the effective of the property; and such a change in use
date of these amendments indefinitely, but an would involve an assessment of whether the
entity that early adopts the amendments must property qualifies as an investment property.
apply them prospectively. This amendment That change in use should be supported by
does not have any impact on the Group. evidence. This amendment does not have any
impact on the Group.
▪▪ IFRS 1 - First time Adopters: Deletion
of short- term exemptions for first time ▪▪ Amendments to IAS 28 - Investment in
adopters Associates and Joint ventures
The IASB deleted short term exemptions The amendments allow the investor, when
granted to first time adopters of IFRS as applying the equity method, to retain the fair
those reliefs are no longer necessary. This value measurement applied by the investment
amendment does not have any impact on the entity associate or joint venture to its interests
Group in subsidiaries.
▪▪ Amendments to IFRS 12 - Disclosure of Furthermore, amendments also clarify that a

Interests in Other Entities - Clarification of full gain or loss is recognised when a transfer to
the scope of the standard an associate or joint venture involves a business
This standard clarifies the disclosure as defined in IFRS 3 Business Combinations.
requirements of IFRS 12 for Other Entities Any gain or loss resulting from the sale or
classified as held for sale and reported in line contribution of assets that does not constitute
with IFRS 5 - Non-current Assets Held for Sale a business, however, is recognised only to the
or Discontinued Operations. This amendment extent of unrelated investors’ interests in the
does not have any impact on the Group. associate or joint venture. These amendment
does not impact the group in anyway as the
▪▪ Amendments to IFRS 2 - Share Based Group does not have investments in Associates
Payment - Classification and measurment and Joint Ventures.
of share based payment transactions
This standard clarifies classification and 3.(b ) Other Accounting Policies
measurement of share based payment
transactions with net settlement features Other accounting policies that have been applied
for withholding tax obligations (i.e. equity are:
settled share based payment for employees
and cash settled share based payment for (a) Consolidation
withholding taxes). It grants an exeption to The financial statements of the subsidiaries used to
alleviate operational issues encountered in prepare the consolidated financial statements were
dividing the share based payment into cash- prepared as of the parent company’s reporting
settled and equity-settled component. The date. The consolidation principles are unchanged as
amendments also clarify modifications to terms against the comparative period.
and conditions that change classifications
from cash-settled to equity-settled as well as (i) Subsidiaries
application of non-market vesting conditions
and market non-vesting conditions. These Subsidiaries are entities controlled by the Parent.
amendments do not have any material impact Control exists when the Parent has:
on the Group. o power over the investee;
o exposure, or rights, to variable returns from its
▪▪ Amendments to IFRS 40 – Investment involvement with the investee; and
Property – Transfers of Investment o the ability to use its power over the investee to
Property affect the amount of the investor’s returns.
The IASB amends IAS 40 in order to clarify
the requirements on transfers to, or from, Acquisition of subsidiaries
investment property. Transfer into, or out Business combinations are accounted for using the

ACCOUNTING POLICIES
acquisition method as at the acquisition date, which as appropriate. The integration of the subsidiaries
is the date on which control is transferred to the into the consolidated financial statements is based
Parent. The Group measures goodwill as the fair on consistent accounting and valuation methods
value of the consideration transferred including the for similar transactions and other occurrences under
recognised amount of any non-controlling interest similar circumstances.
in the acquiree, less the net recognised amount
(generally fair value) of the identifiable assets (iv) Transactions eliminated on consolidation
acquired and liabilities assumed, all measured as of Intra-group balances, income and expenses (except
the acquisition date. When the excess is negative, a for foreign currency translation gains or losses)
bargain purchase gain is recognised immediately in arising from intra-group transactions, are eliminated
profit or loss. in preparing the consolidated financial statements.
Unrealised gains arising from transactions with
The Group elects on a transaction-by-transaction subsidiaries, associates and jointly controlled entities
basis whether to measure at the acquisition date are eliminated to the extent of the Group’s interest
components of non-controlling interests in the in the entity. Unrealised losses are eliminated in the
acquiree at its fair value, or at its proportionate same way as unrealised gains, but only to the extent
share of the acquiree’s identifiable net assets. All that there is no evidence of impairment. Profits and
other components of non-controlling interests are losses resulting from intra-group transactions are
measured at their acquisition-date fair values, unless also eliminated.
another measurement basis is required by IFRS.
Transaction costs, other than those associated with (v) Non-controlling interest
the issue of debt or equity securities, that the Group The group applies IFRS 10 Consolidated Financial
incurs in connection with a business combination Statements (2011) in accounting for acquisitions
are expensed as incurred. of non-controlling interests. Under this accounting
policy, acquisitions of non-controlling interests are
(ii) Structured entity accounted for as transactions with equity holders in
their capacity as owners and therefore no goodwill
A structured entity is an entity that has been is recognised as a result of such transactions. The
designed so that voting or similar rights are not adjustments to non-controlling interests are based
the dominant factor in deciding who controls the on the proportionate amount of the net assets of
entity, such as when any voting rights relate to the subsidiary.
administrative tasks only and the relevant activities
are directed by means of contractual arrangements. (b) Foreign currency translation
A structured entity is consolidated if the Group is (i) Functional and presentation currency
exposed, or has rights to variable returns from its Items included in the financial statements of each of
involvement with the Structured Entity and has the the Group entities are measured using the currency
ability to affect those returns through its power over of the primary economic environment in which the
the Structured Entity. Power is the current ability entity operates (‘the functional currency’).
to direct the activities that significantly influence
returns.
(ii) Transactions and balances
The Group established GTB Finance B.V. Netherlands Foreign currency transactions, that is transactions
as a Structured Entity to raise funds from the denominated, or that require settlement in a foreign
international financial market. Accordingly, the currency, are translated into the functional currency
financial statements of GTB Finance B.V. have been using the exchange rates prevailing at the dates of
consolidated. the transactions.
(iii) Accounting method of consolidation Monetary items denominated in foreign currency

Subsidiaries are fully consolidated from the date on are translated using the closing rate as at the
which control is transferred to the Group. The results reporting date. Non-monetary items measured at
of the subsidiaries acquired or disposed of during historical cost denominated in a foreign currency
the period are included in the consolidated financial are translated with the exchange rate as at the
statements from the effective acquisition date and date of initial recognition; non monetary items in
or up to the effective date on which control ceases, a foreign currency that are measured at fair value

ACCOUNTING POLICIES
are translated using the exchange rates at the date

when the fair value was determined. Exchange differences arising from the above
process are reported in shareholders’ equity as
Foreign exchange gains and losses resulting from ‘Foreign currency translation reserve’.
the settlement of foreign currency transactions and
from the year end translation of monetary assets On consolidation, exchange differences arising
and liabilities denominated in foreign currencies are from the translation of the net investment in
recognised in the Income statement, except when foreign entities, and of borrowings and other
deferred in equity as gains or losses from qualifying currency instruments designated as hedges of such
cash flow hedging instruments or qualifying net investments, are taken to ‘Other comprehensive
investment hedging instruments. income’. When a foreign operation is disposed of, or
partially disposed of, such exchange differences are
All foreign exchange gains and losses recognised recognised in the consolidated income statement as
in the Income statement are presented net in part of the gain or loss on sale.
the Income statement within the corresponding
item. Foreign exchange gains and losses on other Goodwill and fair value adjustments arising on the
comprehensive income items are presented in other acquisition of a foreign entity are treated as assets
comprehensive income within the corresponding and liabilities of the foreign entity and translated at
item. the closing rate.
In the case of changes in the fair value of monetary (c) Interest

assets denominated in foreign currency classified
as available for sale, a distinction is made between Interest income and expense for all interest-earning
translation differences resulting from changes in and interest-bearing financial instruments are
amortised cost of the security and other changes recognised in the income statement within “interest
in the carrying amount of the security. Translation income” and “interest expense” using the effective
differences related to changes in the amortised cost interest method.
are recognised in profit or loss, and other changes
in the carrying amount, except impairment, are The effective interest rate is the rate that exactly
recognised in equity. discounts the estimated future cash payments and
receipts through the expected life of the financial
(iii) Group Entities asset or liability (or, where appropriate, the next re-
The results and financial position of all the Group pricing date) to the carrying amount of the financial
entities (none of which has the currency of a asset or liability. When calculating the effective
hyperinflationary economy) that have a functional interest rate, the Group estimates future cash flows
currency different from the presentation currency considering all contractual terms of the financial
are translated into the presentation currency as instruments but not future credit losses.
follows:
The calculation of the effective interest rate includes
▪▪ Assets and liabilities for each statement of contractual fees paid or received , transaction costs,
financial position presented are translated at and discounts or premiums that are an integral part
the closing rate at the date of that statement of the effective interest rate.
of financial position;
Transaction costs are incremental costs that are
▪▪ Income and expenses for each Income directly attributable to the acquisition, issue or
statement are translated at average exchange disposal of a financial asset or liability.
rates (unless this average is not a reasonable
approximation of the cumulative effect of the Interest income and expense presented in the
rates prevailing on the transaction dates, in Income statement include:
which case income and expenses are translated
at the dates of the transactions); ▪▪ Interest on financial assets and liabilities
measured at amortised cost calculated on an
▪▪ All resulting exchange differences are effective interest rate basis.
recognised in other comprehensive income.

ACCOUNTING POLICIES
▪▪ Interest on financial assets measured at fair

value through profit or loss calculated on an (g) Dividend income
effective interest rate basis.
Dividend income is recognised when the right to
▪▪ Interest on financial assets measured at fair receive income is established. Dividends on trading
value through OCI calculated on an effective equities are reflected as a component of net trading
interest rate basis. income. Dividend income on long term equity
investments is recognised as a component of other
operating income.
(d) Fees and commission
(h) Leases
Fees and Commission that are integral to the effective
interest rate on a financial asset are included in the Leases are accounted for in accordance with IAS 17
measurement of the effective interest rate. Fees, and IFRIC 4. They are divided into finance leases and
such as processing and management fees charged operating leases.
for assessing the financial position of the borrower,
evaluating and reviewing guarantee, collateral (a) The Group is the lessee
and other security, negotiation of instruments’
terms, preparing and processing documentation (i) Operating lease
and finalising the transaction are an integral part Leases in which a significant portion of the risks
of the effective interest rate on a financial asset or and rewards of ownership are retained by another
liability and are included in the measurement of the party, the lessor, are classified as operating leases.
effective interest rate of financial assets or liabilities. Payments, including prepayments, made under
operating leases (net of any incentives received from
Other fees and commissions which relates mainly the lessor) are charged to the income statements
to transaction and service fees, including loan on a straight-line basis over the period of the lease.
account structuring and service fees, investment When an operating lease is terminated before the
management and other fiduciary activity fees, sales lease period has expired, any payment required to
commission, placement line fees, syndication fees be made to the lessor by way of penalty is recognised
and guarantee issuance fees are recognised as the as an expense in the period in which termination
related services are provided / performed. takes place.
(e) Net trading income (ii) Finance lease

Leases, where the Group has substantially all the
Net trading income comprises gains less losses risks and rewards of ownership, are classified as
related to trading assets and liabilities, and finance leases. Finance leases are capitalised at the
it includes all fair value changes, dividends and lease’s commencement at the lower of the fair value
foreign exchange differences. of the leased property and the present value of the
minimum lease payments. Each lease payment is
(f) Net income from other financial allocated between the liability and finance charges
instruments at fair value through profit or so as to achieve a constant rate on the outstanding
loss balance of the finance lease.
Net income from other financial instruments at fair The corresponding rental obligations, net of finance
value through profit or loss relates to derivatives charges, are included in other liabilities. The interest
held for risk management purposes that do not element of the finance cost is charged to the Income
form part of qualifying hedge relationships. statement over the lease period so as to produce a
constant periodic rate of interest on the remaining
Fair value changes on other derivatives held for risk balance of the liability for each period.
management purposes, and other financial assets
and liabilities carried at fair value through profit or (b) The Group is the lessor
loss, are presented in Other operating income –
Mark to market gain/(loss) on trading investments When assets are leased to a third party under
in the Income statement. finance lease terms, the present value of the lease

ACCOUNTING POLICIES
income is recognised as a receivable. The difference for:

between the gross receivable and the present value ▪▪ temporary differences on the initial recognition
of the receivable is recognised as unearned finance of assets or liabilities in a transaction that is
income. Lease income is recognised over the term not a business combination and that affects
of the lease using the net investment method neither accounting nor taxable profit or loss;
(before tax), which reflects a constant periodic rate ▪▪ temporary differences related to investments
of return. in subsidiaries where the timing of the reversal
of the temporary difference is controlled by
(i) Income Tax the Group and it is probable that they will not
reverse in the foreseeable future; and
(a) Current income tax ▪▪ temporary differences arising on the initial
Income tax payable is calculated on the basis of the recognition of goodwill.
applicable tax law in the respective jurisdiction and
it consists of Company Income Tax, Education tax Deferred tax assets are recognised when it is
and NITDEF tax. probable that future taxable profit will be available
Company Income tax is assessed at a statutory rate against which these temporary differences can be
of 30% of total profit or Dividend Paid, whichever utilised. The tax effects of carry-forwards of unused
is higher. Education tax is computed as 2% of losses or unused tax credits are recognised as an
assessable profit while NITDEF tax is a 1% levy on asset when it is probable that future taxable profits
Profit before tax of the Bank. will be available against which these losses can
be utilised. Deferred tax related to fair value re-
Current income tax is recognised as an expense measurement of available-for-sale investments and
for the period except to the extent that current tax cash flow hedges, which are recognised in other
is related to items that are charged or credited in comprehensive income, is also recognised in the
other comprehensive income or directly to equity. other comprehensive income and subsequently in
In these circumstances, deferred tax is charged the income statement together with the deferred
or credited to other comprehensive income or to gain or loss.
equity (for example, current tax on available-for-
sale investment). Deferred tax assets and liabilities are offset if there
is a legally enforceable right to offset current tax
Where the Group has tax losses that can be liabilities against current tax assets, and they relate
relieved only by carrying it forward against taxable to taxes levied by the same tax authority on the
profits of future periods, a deductible temporary same taxable entity, or on different tax entities, but
difference arises. Those losses carried forward are they intend to settle current tax liabilities and assets
set off against deferred tax liabilities carried in the on a net basis or their tax assets and liabilities will be
consolidated statement of financial position. realised simultaneously.
The Group evaluates positions stated in tax returns; (j) Financial assets and liabilities
ensuring information disclosed are in agreement
with the underlying tax liability, which has been (i) Recognition
adequately provided for in the financial statements.
The Group initially recognises loans and advances,
(b) Deferred income tax Deposits, Debt securities issued and Subordinated
Deferred income tax is provided in full, using the liabilities on the date that the Bank becomes a
liability method, on temporary differences arising party to the contract. All other financial assets and
between the tax bases of assets and liabilities and liabilities (including assets and liabilities designated
their carrying amounts in the financial statements. at fair value through profit or loss) are initially
Deferred income tax is determined using tax rates recognised on the trade date at which the Group
(and laws) that have been enacted or substantively becomes a party to the contractual provisions of the
enacted by the end of the reporting period and instrument.
are expected to apply when the related deferred
income tax asset is realised or the deferred income (ii) Classification
tax liability is settled. The classification of financial instruments depends
However, the deferred income tax is not recognised on the purpose and management’s intention for

ACCOUNTING POLICIES
which the financial instruments were acquired and is sold or impaired whereupon the cumulative
their characteristics. The Group’s classification of gains and losses previously recognised in other
financial assets and liabilities are in accordance with comprehensive income are recognised in profit or
IAS 39, viz: loss as a reclassification adjustment.
a) Loans and Receivables A non-derivative financial asset may be reclassified

from the available-for-sale category to the loans
The group’s loans and receivable comprises loans and receivable category if it otherwise would have
and advances, cash and cash equivalent and other met the definition of loans and receivables and if
receivables. the Group has the intention and ability to hold that
financial asset for the foreseeable future or until
Loans and advances are non-derivative financial maturity.
assets with fixed or determinable payments that are
not quoted in an active market and that the Group c) Held-to-maturity
does not intend to sell immediately or in the near
term. Held-to-maturity investments are non-derivative
assets with fixed or determinable payments and
When the Group purchases a financial asset and fixed maturity that the Group has the positive intent
simultaneously enters into an agreement to resell and ability to hold to maturity, and which are not
the asset (or a substantially similar asset) at a fixed designated at fair value through profit or loss or
price on a future date (“reverse repo or stock available-for-sale.
borrowing”), the arrangement is accounted for as
a loan or advance, and the underlying asset is not Held-to-maturity investments are carried at
recognised in the Group’s financial statements. amortised cost using the effective interest method.
A sale or reclassification of a significant amount of
Cash and cash equivalents include notes and coins held-to-maturity investments would result in the
on hand, Unrestricted balances held with central reclassification of all held-to-maturity investments
banks, Balances held with other banks , Money as available-for-sale, and prevent the Group from
market placements and highly liquid financial assets classifying investment securities as held-to-maturity
with original maturities of less than three months, for the current and the following two financial
which are subject to insignificant risk of changes in years. However, sales and reclassifications in any
their fair value, and are used by the Group in the of the following circumstances would not trigger a
management of its short-term commitments. Cash reclassification:
and cash equivalents are carried at amortised cost in
the Statements of financial position. ▪▪ Sales or reclassifications that are so close to
maturity that changes in the market rate of
b) Available-for-sale investments interest would not have a significant effect on
the financial asset’s fair value.
Available-for-sale investments are non-derivative
investments that are not designated as another ▪▪ Sales or reclassifications after the Group have
category of financial assets. Unquoted equity collected substantially all the asset’s original
securities whose fair value cannot be reliably Principal.
measured are carried at cost. All other available-for-
sale investments are carried at fair value . ▪▪ Sales or reclassification attributable to non-
recurring isolated events beyond the Group’s
Interest income is recognised in profit or loss using control that could not have been reasonably
the effective interest method. Dividend income anticipated.
is recognised in profit or loss when the Group
becomes entitled to the dividend. Foreign exchange d) Financial assets and liabilities at fair value
gains or losses on available-for-sale debt security through profit or loss
investments are recognised in profit or loss.
This category comprises two sub-categories:
Other fair value changes are recognised directly in financial assets and liabilities classified as held for
other comprehensive income until the investment trading, and financial assets designated by the
Group as at fair value through profit or loss upon

ACCOUNTING POLICIES
initial recognition. IAS 39 are not fulfilled. The loans would have been
Financial liabilities for which the fair value option otherwise accounted for at amortised cost, whereas
is applied are recognised in the Statements of the derivatives are measured at fair value through
financial position as ‘Financial liabilities designated profit or loss.
at fair value’. Fair value changes relating to financial
liabilities designated at fair value through profit or The fair value option is also applied to investment
loss are recognised in ‘Net gains/(losses) on financial funds that are part of a portfolio managed on a
instruments designated at fair value through profit fair value basis. Furthermore, the fair value option
or loss’. is applied to structured instruments that include
embedded derivatives.
- Financial assets and liabilities classified as
held for trading Financial assets for which the fair value option is
applied are recognised in the Statements of financial
Trading assets and liabilities are those assets position as ‘Financial assets held for trading’ and
and liabilities that the Group acquires or ‘Derivative financial assets’. Fair value changes
incurs principally for the purpose of selling or relating to financial assets designated at fair value
repurchasing in the near term, or holds as part through profit or loss are recognised in ‘Net gains/
of a portfolio that is managed together for (losses) on financial instruments classified as held
short-term profit. for trading’.
Trading assets and liabilities (including (iii) Measurement

derivatives other than those designated as
hedging instruments) are initially recognised All financial instruments are measured initially at their
and subsequently measured at fair value fair value plus transaction costs, except in the case
in the statement of financial position with of financial assets and financial liabilities recorded
transaction costs recognised in profit or loss. at fair value through profit or loss where transaction
All changes in fair value are recognised as part cost are expensed in the income statement.
of net trading income in profit or loss.
Financial assets at fair value through profit or loss
- Designation at fair value through profit or are subsequently measured at fair value. Held to
loss maturity financial assets and Loans and receivables
The Group designates certain financial are subsequently measured at amortised cost using
assets upon initial recognition at fair value the effective interest rate. Available for sale financial
through profit or loss (fair value option). This assets are subsequently measured at fair value
designation cannot subsequently be changed. through equity except where the fair value cannot
According to IAS 39, the fair value option is be reliably measured.
only applied when the following conditions
are met: Non-trade financial liabilities are measured at
amortised cost. Liabilities held for trading are
▪▪ the application of the fair value option measured at fair value. Subsequent recognition of
reduces or eliminates an accounting financial assets and liabilities is at amortised cost or
mismatch that would otherwise arise or fair value.
▪▪ the financial assets are part of a portfolio of
financial instruments which is risk managed Changes in the fair value of monetary and non
and reported to senior management on a monetary securities classified as available-for-sale
fair value basis or are recognised in other comprehensive income
▪▪ the financial assets consists of debt host (OCI). When securities classified as available for sale
and an embedded derivative that must be are sold or impaired, the accumulated fair value
separated. adjustments recognized in equity are included in
the income statements as “gains or losses from
To reduce accounting mismatch, the fair value option investment securities”.
is applied to certain loans and receivables that are
hedged with credit derivatives or interest rate swaps a) Amortised cost measurement
but for which the hedge accounting conditions of The amortised cost of a financial asset or liability

ACCOUNTING POLICIES
is the amount at which the financial asset or for which markets were or have become illiquid.
liability is measured at initial recognition, minus Some of the inputs to these models may not be
principal repayments, plus or minus the cumulative market observable and are therefore estimated
amortisation using the effective interest method based on assumptions.
of any difference between the initial amount
recognised and the maturity amount, minus any In cases when the fair value of unlisted equity
reduction for impairment. instruments cannot be determined reliably, the
instruments are carried at cost less impairment. For
b) Fair value measurement the purpose of disclosure, the fair value for loans
Fair Value is the price that would be received to sell and advances as well as liabilities to banks and
an asset or paid to transfer a liability in customers are determined using a present value
an orderly transaction between market participants model on the basis of contractually agreed cash
at the measurement date. flows, taking into account credit quality, liquidity
and costs.
For financial instruments traded in active markets,
the determination of fair values of financial assets (iv) Offsetting
and financial liabilities is based on quoted market
prices or dealer price quotations. This includes listed Financial assets and liabilities are set off and the net
equity securities and quoted debt instruments on amount presented in the statements of financial
major exchanges (for example, NSE, LSE) and broker position when, and only when, the Group has a
quotes from Bloomberg and Reuters. legal right to set off the amounts and intends either
to settle on a net basis or to realise the asset and
A financial instrument is regarded as quoted in settle the liability simultaneously.
an active market if it is traded in a market with Income and expenses are presented on a net basis
sufficient frequency and volume to provide pricing only when permitted under IFRSs, or for gains and
information on an ongoing basis on the instrument. losses arising from a group of similar transactions
Otherwise, the market is to be regarded as inactive. such as in the Group’s trading activity.
For financial instruments with no readily available

quoted market price , fair value is determined using (v) De-recognition
valuation techniques. In these techniques, fair
values are estimated from observable data in respect On derecognition of a financial asset, the difference
of similar financial instruments, using models to between the carrying amount of the asset (or the
estimate the present value of expected future cash carrying amount allocated to the portion of the asset
flows or other valuation techniques, using inputs transferred), and the sum of (i) the consideration
(for example, NIBOR, LIBOR yield curve, FX rates, received (including any new asset obtained less
volatilities and counterparty spreads) existing at the any new liability assumed) and (ii) any cumulative
end of the reporting period. gain or loss that had been recognized in other
comprehensive income is recognized in profit or
The Group uses widely recognised valuation models loss.
for determining fair values of non-standardised
financial instruments of lower complexity, such as The Group derecognizes a financial asset when
options or interest rate and currency swaps. For the contractual rights to the cash flows from the
these financial instruments, inputs into models are financial asset expire, or it transfers the rights to
generally market-observable. receive the contractual cash flows in a transaction
in which substantially all the risks and rewards of
For more complex instruments, the Group uses ownership of the financial asset are transferred or
internally developed models, which are usually in which the Group neither transfers nor retains
based on valuation methods and techniques substantially all the risks and rewards of ownership
generally recognised as standard within the and it does not retain control of the financial asset.
industry. Valuation models are used primarily to Any interest in such transferred financial asset that
value derivatives transacted in the over-the-counter qualify for derecognition that is created or retained
market, unlisted debt securities (including those with by the Group is recognized as a separate asset or
embedded derivatives) and other debt instruments liability.

ACCOUNTING POLICIES
In certain transactions the Group retains the as available for sale or held to maturity. Where
obligations to service the transferred financial asset the assets pledged as collateral are designated as
for a fee. The transferred asset is derecognized if it available for sale, subsequent measurement is at fair-
meets the derecognition criteria. An asset or liability value through equity. Assets pledged as collateral
is recognized for the servicing contract, depending designated as held to maturity are measured at
on whether the servicing fee is more than adequate amortized cost.
(asset) or is less than adequate (liability) for
performing the servicing.
(vii) Sale and repurchase agreements
The Group enters into transactions whereby it
transfers assets recognized on its statement of Securities sold under repurchase agreements
financial position, but retains either all or substantially (‘repos’) remain on the statements of financial
all of the risks and rewards of the transferred assets position; the counterparty liability is included in
or a portion of them. If all or substantially all risks amounts due to other banks, deposits from banks,
and rewards are retained, then the transferred other deposits or deposits due to customers, as
assets are not derecognized. Transfers of assets appropriate. Securities purchased under agreements
with retention of all or substantially all risks and to resell (reverse repos’) are recorded as money
rewards include, for example, securities lending and market placement. The difference between sale and
repurchase transactions. repurchase price is treated as interest and accrued
over the life of the agreements using the effective
When assets are sold to a third party with a interest method.
concurrent total rate of return swap on the
transferred assets, the transaction is accounted Securities lent to counterparties are also retained in
for as a secured financing transaction similar to the financial statements. Securities borrowed are
repurchase transactions as the Group retains all or not recognised in the financial statements, unless
substantially all the risks and rewards of ownership these are sold to third parties, in which case the
of such assets. purchase and sale are recorded with the gain or loss
included in trading income.
In transactions in which the Group neither retains
nor transfers substantially all the risks and rewards (viii) Identification and measurement of
of ownership of a financial asset and it retains impairment
control over the asset, the Group continues to
recognize the asset to the extent of its continuing (a) Assets carried at amortised cost
involvement, determined by the extent to which it is The Group assesses at each reporting date whether
exposed to changes in the value of the transferred there is objective evidence that a financial asset or
asset. group of financial assets is impaired. A financial
Derecognition of a financial liability occurs only asset or a group of financial assets is impaired
when the obligation is extinguished. A financial and impairment losses are incurred only if there
liability is said to be extinguished when the is objective evidence of impairment as a result of
obligation is discharged, cancelled or expired. one or more events that occurred after the initial
recognition of the asset (a ‘loss event’) and that loss
(vi) Pledge of assets as collateral event (or events) has an impact on the estimated
future cash flows of the financial asset or group of
Financial assets transferred to external parties that financial assets that can be reliably estimated. The
do not qualify for de-recognition are reclassified in criteria that the Group uses to determine that there
the statement of financial position from investment is objective evidence of an impairment loss include:
securities to assets pledged as collateral, if the
transferee has received the right to sell or re-pledge (i) significant financial difficulty of the issuer or
them in the event of default from agreed terms. obligor;
Initial recognition of assets pledged as collateral (ii) a breach of contract, such as a default or
is at fair value, whilst subsequent measurement is delinquency in interest or principal payments;
based on the classification of the financial asset.
Assets pledged as collateral are either designated (iii) the lender, for economic or legal reasons

ACCOUNTING POLICIES
relating to the borrower’s financial difficulty, investment has a variable interest rate, the discount
granting to the borrower a concession that the rate for measuring any impairment loss is the
lender would not otherwise consider; current effective interest rate determined under the
(iv) it becomes probable that the borrower contract. As a practical expedient, the Group may
will enter bankruptcy or other financial re- measure impairment on the basis of an instrument’s
organisation; fair value using an observable market price.
(v) the disappearance of an active market for that The calculation of the present value of the estimated
financial asset because of financial difficulties; future cash flows of a collateralized financial
or asset reflects the cash flows that may result from
foreclosure less costs for obtaining and selling the
(vi) observable data indicating that there is a collateral, whether or not foreclosure is probable.
measurable decrease in the estimated future
cash flows from a portfolio of financial assets For the purposes of a collective evaluation of
since the initial recognition of those assets, impairment, financial assets are grouped on the
although the decrease cannot yet be identified basis of similar credit risk characteristics (that
with the individual financial assets in the is, on the basis of the Group’s grading process
portfolio, including: that considers asset type, industry, geographical
location, collateral type, past-due status and other
(i) adverse changes in the payment status of relevant factors). Those characteristics are relevant
borrowers in the portfolio; and to the estimation of future cash flows for groups of
such assets by being indicative of the debtors’ ability
(ii) national economic conditions that correlate to pay all amounts due according to the contractual
with defaults on the assets in the portfolio. terms of the assets being evaluated.
The estimated period between a loss occurring and Future cash flows in a group of financial assets that are
its identification is determined by local management collectively evaluated for impairment are estimated
for each identified portfolio. In general, the periods on the basis of the contractual cash flows of the
used vary between three months and 12 months. assets in the Group and historical loss experience for
assets with credit risk characteristics similar to those
The Group first assesses whether objective evidence in the Group. Historical loss experience is adjusted
of impairment exists individually for financial assets on the basis of current observable data to reflect
that are individually significant, and individually the effects of current conditions that did not affect
or collectively for financial assets that are not the period on which the historical loss experience is
individually significant. If the Group determines based and to remove the effects of conditions in the
that no objective evidence of impairment exists for historical period that do not currently exist.
an individually assessed financial asset, whether
significant or not, it includes the asset in a group of Estimates of changes in future cash flows for
financial assets with similar credit risk characteristics groups of assets should reflect and be directionally
and collectively assesses them for impairment. consistent with changes in related observable data
Assets that are individually assessed for impairment from period to period (for example, changes in
and for which an impairment loss is or continues unemployment rates, property prices, payment
to be recognised are not included in a collective status, or other factors indicative of changes in
assessment of impairment. the probability of losses in the Group and their
magnitude). The methodology and assumptions
The amount of the loss is measured as the used for estimating future cash flows are reviewed
difference between the asset’s carrying amount and regularly by the Group to reduce any differences
the present value of estimated future cash flows between loss estimates and actual loss experience.
(excluding future credit losses that have not been
incurred) discounted at the financial asset’s original When a loan is uncollectible, it is written off
effective interest rate. The carrying amount of the against the related allowance for loan impairment.
asset is reduced through the use of an allowance Such loans are written off after all the necessary
account and the amount of the loss is recognised in procedures have been completed and the amount
the Income statement. If a loan or held-to-maturity of the loss has been determined. Impairment
charges relating to loans and advances to banks and

ACCOUNTING POLICIES
customers are classified in loan impairment charges

whilst impairment charges relating to investment
securities (held to maturity category) are classified (l) Derivatives held for risk management
in ‘Net gains/ (losses) on investment securities’. purposes
If, in a subsequent period, the amount of the Derivatives held for risk management purposes
impairment loss decreases and the decrease include all derivative assets and liabilities that
can be related objectively to an event occurring are not classified as trading assets or liabilities.
after the impairment was recognised (such as an Derivatives are recognised initially at fair value;
improvement in the debtor’s credit rating), the attributable transaction costs are recognised in
previously recognised impairment loss is reversed profit or loss when incurred. Subsequent to initial
by adjusting the allowance account. The amount of recognition, derivatives are measured at fair value
the reversal is recognised in the Income statement. with changes in fair value recognised in profit or
loss.
(b) Assets classified as available for sale
(m) Investment in subsidiaries
The Group assesses at the end of each reporting
period whether there is objective evidence that Investments in subsidiaries are reported at cost less
a financial asset or a group of financial assets any impairment (if any) in the separate financial
is impaired. In the case of equity investments statement of the Bank.
classified as available for sale, a significant or
prolonged decline in the fair value of the security (n) Property and equipment
below its cost is objective evidence of impairment
resulting in the recognition of an impairment loss. (i) Recognition and measurement
If any such evidence exists for available-for-sale The bank recognizes items of property, plant and
financial assets, the cumulative loss – measured as equipment at the time the cost is incurred. These
the difference between the acquisition cost and costs include costs incurred initially to acquire or
the current fair value, less any impairment loss on construct an item of property, plant and equipment
that financial asset previously recognised in profit or as well as the costs of its dismantlement, removal
loss – is removed from equity and recognised in the or restoration, the obligation for which an entity
Income statement. Impairment losses recognised incurs as a consequence of using the item during a
in the Income statement on equity instruments particular period.
are not reversed through the Income statement.
If, in a subsequent period, the fair value of a debt Items of property and equipment are measured at
instrument classified as available for sale increases cost less accumulated depreciation and impairment
and the increase can be objectively related to an losses. Cost includes expenditures that are directly
event occurring after the impairment loss was attributable to the acquisition of the asset. When
recognised in profit or loss, the impairment loss is parts of an item of property or equipment have
reversed through the Income statement. different useful lives, they are accounted for as
separate items (major components) of property and
Assets classified as available for sale are assessed for equipment.
impairment in the same manner as assets carried at
amortised cost. The assets’ carrying values and useful lives are
reviewed, and written down if appropriate, at
(k) Investment securities each reporting date. Assets are impaired whenever
events or changes in circumstances indicate that the
Investment securities are initially measured at fair carrying amount is less than the recoverable amount;
value plus, in case of investment securities not at see note (p) on impairment of non-financial assets.
fair value through profit or loss, incremental direct
transaction costs and subsequently accounted for (ii) Subsequent costs
depending on their classification as either held for The cost of replacing part of an item of property or
trading, held-to-maturity, fair value through profit equipment is recognised in the carrying amount of
or loss or available-for-sale. See description in the item if it is probable that the future economic
accounting policy Note J (ii) above. benefits embodied within the part will flow to

ACCOUNTING POLICIES
the Group and its cost can be measured reliably. equipment. Leased assets under finance lease are
The carrying amount of the replaced part is depreciated over the shorter of the lease term and
derecognised. The costs of the day-today servicing their useful lives.
of property and equipment are recognised in the
income statement as incurred. Depreciation begins when an asset is available for
use and ceases at the earlier of the date that the
(iii) Depreciation asset is derecognised or classified as held for sale
Depreciation is recognised in the income statement in accordance with IFRS 5. A non-current asset or
on a straight-line basis to write down the cost of disposal group is not depreciated while it is classified
each asset, to their residual values over the estimated as held for sale.
useful lives of each part of an item of property and
The estimated useful lives for the current and comparative periods are as follows:
Item of Property, Plant and Equipment Estimated Useful Life

Leasehold improvements Over the shorter of the useful life of the item or lease term
Buildings 50 years
Leasehold Land Over the remaining life of the lease
Furniture and equipment 5years
Computer hardware 3years
Motor vehicles 4years
Aircraft 10years
Capital work in progress is not depreciated. Upon it is recognised immediately in profit or loss;
completion it is transferred to the relevant asset Goodwill on acquisition of subsidiaries is included
category. Depreciation methods, useful lives and in intangible assets.
residual values are reassessed at each reporting
date. Subsequent measurement
Goodwill is allocated to cash-generating units or
Cost of leasehold land is amortised over the groups of cash-generating units for the purpose of
remaining life of the lease as stated in the certificate impairment testing. The allocation is made to those
of occupancy issued by Government. cash-generating units or groups of cash-generating
units that are expected to benefit from the business
(iv) De-recognition combination in which the goodwill arose identified
An item of property and equipment is derecognised in accordance with IFRS 8. Goodwill is tested
on disposal or when no future economic benefits are annually as well as whenever a trigger event has
expected from its use or disposal. Any gain or loss been observed for impairment by comparing the
arising on de-recognition of the asset (calculated as present value of the expected future cash flows
the difference between the net disposal proceeds from a cash generating unit with the carrying value
and the carrying amount of the asset) is included of its net assets, including attributable goodwill and
in the income statement in the year the asset is carried at cost less accumulated impairment losses.
derecognised. Impairment losses on goodwill are not reversed.
Gains and losses on the disposal of an entity include
(o) Intangible assets the carrying amount of goodwill relating to the
entity sold.
(i) Goodwill
Goodwill represents the excess of the cost of the (ii) Software
acquisition over the Group’s interest in the net Software acquired by the Group is stated at cost
fair value of the identifiable assets, liabilities and less accumulated amortisation and accumulated
contingent liabilities of the acquired subsidiaries at impairment losses.
the date of acquisition. When the excess is negative,

ACCOUNTING POLICIES
Expenditure on internally developed software is of the other assets in the unit (group of units) on a
recognised as an asset when the Group is able to pro rata basis.
demonstrate its intention and ability to complete
the development and use the software in a manner The recoverable amount of an asset or cash-
that will generate future economic benefits, generating unit is the greater of its value in use and
and can reliably measure the costs to complete its fair value less costs to sell. In assessing value in
the development. Development costs previously use, the estimated future cash flows are discounted
expensed cannot be capitalised. The capitalised costs to their present value using a pre-tax discount rate
of internally developed software include all costs that reflects current market assessments of the time
directly attributable to developing the software and value of money and the risks specific to the asset.
capitalised borrowing costs, and are amortised over
its useful life. Internally developed software is stated An impairment loss in respect of goodwill is not
at capitalised cost less accumulated amortisation reversed. In respect of other assets, impairment
and impairment. losses recognised in prior periods are assessed at
each reporting date for any indications that the loss
Subsequent expenditure on software assets is has decreased or no longer exists. An impairment
capitalised only when it increases the future loss is reversed if there has been a change in the
economic benefits embodied in the specific asset to estimates used to determine the recoverable
which it relates. All other expenditure is expensed amount only to the extent that the asset’s carrying
as incurred. amount does not exceed the carrying amount that
would have been determined, net of depreciation
Amortisation is recognised in profit or loss on a or amortisation, if no impairment loss had been
straight-line basis over the estimated useful life of recognised.
the software, from the date that it is available for
use since this most closely reflects the expected
pattern of consumption of the future economic (q) Deposits, debt securities issued
benefits embodied in the asset. The maximum
useful life of software is five years. Deposits and debt securities issued are the Group’s
sources of debt funding. When the Group sells a
Amortisation methods, useful lives and residual financial asset and simultaneously enters into a
values are reviewed at each financial year-end and “repo” or “stock lending” agreement to repurchase
adjusted if appropriate. the asset (or a similar asset) at a fixed price on a
future date, the arrangement is accounted for as a
(p) Impairment of non-financial assets deposit, and the underlying asset continues to be
recognised in the Group’s financial statements.
The carrying amounts of the Group’s non-financial
assets, inclusive of deferred tax assets are reviewed The Group classifies capital instruments
at each reporting date to determine whether as financial liabilities or equity instruments in
there is any indication of impairment. If any such accordance with the substance of the contractual
indication exists then the asset’s recoverable amount terms of the instruments.
is estimated. For goodwill and intangible assets that
have indefinite useful lives or that are available for
use, the recoverable amount is estimated each year. Deposits and debt securities issued are initially
measured at fair value plus transaction costs, and
An impairment loss is recognised in the income subsequently measured at their amortised cost
statement if the carrying amount of an asset or using the effective interest method, except where
its cash-generating unit exceeds its recoverable the Group chooses to carry the liabilities at fair value
amount. A cash-generating unit is the smallest through profit or loss.
identifiable asset group that generates cash flows
that largely are independent from other assets and (r) Provisions
groups. Impairment losses recognised in respect of
cash-generating units are allocated first to reduce A provision is recognized if, as a result of a past
the carrying amount of any goodwill allocated to event, the Group has a present legal or constructive
the units and then to reduce the carrying amount obligation that can be estimated reliably, and it is

ACCOUNTING POLICIES
probable that an outflow of economic benefits will benefits relating to employee service in the current
be required to settle the obligation. Provisions are and prior periods.
determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market For defined contribution plans, the Group pays
assessments of the time value of money and, where contributions to publicly or privately administered
appropriate, the risks specific to the liability. Pension Fund Administrators (PFA) on a mandatory,
contractual or voluntary basis. The Group has no
A provision for restructuring is recognised when further payment obligations once the contributions
the Group has approved a detailed and formal have been paid. The contributions are recognised
restructuring plan, and the restructuring either has as employee benefit expense in the Statements
commenced or has been announced publicly. The of Comprehensive Income when they are due.
Group recognizes no provision for future operating Prepaid contributions are recognised as an asset to
losses. the extent that a cash refund or a reduction in the
future payments is available.
A provision for onerous contracts is recognised when
the expected benefits to be derived by the Group (ii) Defined benefit plans
from a contract are lower than the unavoidable A defined benefit plan is a pension plan that defines
cost of meeting its obligations under the contract. an amount of pension benefit that an employee will
The provision is measured at the present value of receive on retirement, usually dependent on one
the lower of the expected cost of terminating the or more factors, such as age, years of service and
contract and the expected net cost of continuing compensation.
with the contract. Before a provision is established,
the Group recognises any impairment loss on the The liability recognised in the Statements of financial
assets associated with that contract. position in respect of defined benefit pension plans
is the present value of the defined benefit obligation
at the date of the Statements of financial position
(s) Financial guarantees less the fair value of plan assets. The defined benefit
Financial guarantees are contracts that require the obligation is calculated annually by independent
Group to make specified payments to reimburse the actuaries using the projected unit credit method.
holder for a loss it incurs because a specified debtor In determining the appropriate discount rate, the
fails to make payment when due in accordance with Group considers the market yields on Government
the terms of a debt instrument. Financial guarantee Bonds of medium duration as compiled by the Debt
liabilities are initially recognised at their fair value, Management Organisation.
and the initial fair value is amortised over the life
of the financial guarantee. The guarantee liability is Remeasurements arising from experience
subsequently carried at the higher of this amortised adjustments and changes in actuarial assumptions
amount and the present value of any expected in excess of the plan assets or of the defined
payment (when a payment under the guarantee has benefit obligation are charged or credited to Other
become probable). Financial guarantees, principally Comprehensive Income in the financial year in
consisting of letters of credit are included within which they arise. Past-service costs are recognised
other liabilities. immediately in the Income statement.
(iii) Termination Benefits

(t) Employee benefits Termination benefits are recognised as an expense
when the Group is demonstrably committed,
(i) Defined contribution plans without realistic possibility of withdrawal, to a formal
A defined contribution plan is a pension plan detailed plan to terminate employment before
under which the Group pays fixed contributions to the normal retirement date. Termination benefits
a separate entity. The rate of contribution by the for voluntary redundancies are recognised if the
Bank and its employee is 10% and 8% respectively Group has made an offer encouraging voluntary
of basic salary, housing and transport allowance. redundancy, it is probable that the offer will be
The Group has no legal or constructive obligations accepted, and the number of acceptances can be
to pay further contributions if the fund does not estimated reliably.
hold sufficient assets to pay all employees the

ACCOUNTING POLICIES
(iv) Short-term employee benefits (a) Represents a separate major line of business or
Short-term employee benefit obligations are geographical area of operations;
measured on an undiscounted basis and are (b) Is part of a single co-ordinated plan to
expensed as the related service is provided. dispose of a separate major line of business or
geographical area of operations; or
A liability is recognised for the amount expected (c) Is a subsidiary acquired exclusively with a view
to be paid under short-term cash bonus or profit- to resale
sharing plans if the Group has a present legal or Net profit from discontinued operations includes
constructive obligation to pay this amount as a the net total of operating profit and loss before tax
result of past service provided by the employee and from operations, including net gain or loss on sale
the obligation can be estimated reliably. before tax or measurement to fair value less costs
to sell and discontinued operations tax expense.
(v) Share-based payment transactions A component of an entity comprises operations
Guaranty Trust Bank operates a cash settled share and cash flows that can be clearly distinguished,
based compensation scheme managed by a Special operationally and for financial reporting purposes,
Purpose Vehicle (SPV) - Guaranty Trust Bank Staff from the rest of the Group´s operations and cash
Investment Trust. The scheme was introduced as flows. If an entity or a component of an entity is
a compensation plan for the bank’s management classified as a discontinued operation, the Group
personnel to enhance employee retention, by restates prior periods in the Income statement.
offering the shares acquired by the SPV by way of
Share Appreciation Rights (SARs) and Stock Options Non-current assets classified as held for sale are
(hybrid plan) to qualifying members of staff at measured at the lower of carrying amount and
prevailing net book value. fair value less costs to sell. Non-current assets are
classified as held for sale if their carrying amount will
Acquisition of the bank’s shares by the SPV was be recovered through a sale transaction rather than
by means of an overdraft facility extended to the through continuing use. This condition is regarded
scheme. The hybrid nature (i.e. mix of SARs and as met only when the sale is highly probable and
Stock Options) entitles the scheme to cash dividend the asset is available for immediate sale in its
which it uses to defray its obligations on the present condition, subject to terms that are usual
facility, make dividend payments to members that and customary for sales of such assets.
furnished consideration and extinguish its liability
to exiting members. Employees exiting the scheme (v) Assets acquired in exchange for loans
are granted the right to redeem their holdings for
cash at the prevailing market price on fulfilment of Non-financial assets acquired in exchange for loans
specified vesting conditions. as part of an orderly realisation are recorded as
assets held for sale and reported in ‘Other assets’
At each reporting period, the fair value of the if the carrying amounts of the assets are recovered
amount payable to employees in respect of share principally through sale, the assets are available for
appreciation rights, which are settled in cash, is sale in their present condition and their sale is highly
recognized as an expense, with a corresponding probable.
increase in liabilities, over the period in which the
employees become unconditionally entitled to The asset acquired is recorded at the lower of its fair
payment. Any change in the fair value of the liability value less costs to sell and the carrying amount of
is recognized as personnel expense in the bank’s the loan (net of impairment allowance) at the date
income statement. of exchange. No depreciation is charged in respect
of assets held for sale. Any subsequent write-down
of the acquired asset to fair value less costs to sell
(u) Discontinued operations is recognised in the income statement, in ‘Other
operating income’. Any subsequent increase in
The Group presents discontinued operations in a the fair value less costs to sell, to the extent this
separate line in the Income statement if an entity or does not exceed the cumulative write-down, is also
a component of an entity has been disposed of or is recognised in ‘Other operating income’, together
classified as held for sale and: with any realised gains or losses on disposal.

ACCOUNTING POLICIES
(w) Share capital and reserves

Diluted EPS is determined by adjusting the profit or
(i) Share issue costs loss that is attributable to ordinary shareholders and
Incremental costs directly attributable to the issue of the weighted-average number of ordinary shares
an equity instrument are deducted from the initial outstanding for effects of all dilutive potential
measurement of the equity instrument. ordinary shares.
(ii) Dividend on the Bank’s ordinary shares (y) Segment reporting

Dividends on the Bank’s ordinary shares are
recognised in equity when approved by the Bank’s An operating segment is a component of the Group
shareholders. that engages in business activities from which it
can earn revenues and incur expenses, including
(iii) Treasury shares revenues and expenses that relate to transactions
Where the Bank or any member of the Group with any of the Group’s other components,
purchases the Bank’s shares, the consideration paid whose operating results are reviewed regularly by
is deducted from shareholders’ equity as treasury the Executive Management Committee to make
shares until they are cancelled. Where such shares decisions about resources allocated to each segment
are subsequently sold or reissued, any consideration and assess its performance, and for which discrete
received is included in shareholders’ equity. financial information is available. All costs that are
directly traceable to the operating segments are
allocated to the segment concerned, while indirect
(x) Earnings per share cost are allocated based on the benefits derived
from such costs.
The Group presents Basic Earnings Per Share (EPS)
for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary
shareholders of the Bank by the weighted average
number of ordinary shares outstanding during the
period.

FINANCIAL RISK
MANAGEMENT

FINANCIAL RISK MANAGEMENT
4. Financial Risk Management This philosophy is further cascaded into work-

ing statements via the following risk princi-
(a) Introduction and overview ples:
Guaranty Trust Bank has a strong risk culture
and follows best practice Enterprise wide Risk ▪▪ The Bank’s decisions will be based on care-
Management, which aligns people, strategy, ful analysis of its operating environment
policies, processes, technology and business as well as the implications of risks to the
intelligence in order to evaluate, manage and achievement of its strategic goals.
optimize the opportunities and threats it may ▪▪ The Bank will not take any action that will
face in its efforts to maximize sustainable compromise its integrity
stakeholders’ value within the defined risk ap- ▪▪ Risk control will not constitute an imped-
petite. iment to the achievement of strategic ob-
jectives.
To continually sustain this strong risk culture, ▪▪ The Bank will always comply with all gov-
the bank adopted the COSO definition of En- ernment regulations and embrace global
terprise Risk Management which depicts ERM best practice.
as a process driven by an entity’s Board of Di- ▪▪ Risk management will form an integral part
rectors, Management and other personnel, of the Bank’s strategy setting process
applied in strategy setting and across the en- ▪▪ The Bank will only assume risks that fall
terprise, to identify potential events that may within its risk appetite with commensurate
affect the entity, and manage risk to be within returns.
its risk appetite, to provide reasonable assur- ▪▪ The Bank shall adhere to the risk manage-
ance regarding the achievement of the entity’s ment cycle of identifying, measuring, con-
objectives. trolling and reporting risks.
▪▪ The Bank shall continually review its activ-
This involves the application of risk manage- ities to determine the level of risks inher-
ment principles and processes in every busi- ent in them and adopt appropriate risk re-
ness activity to determine potential threats, sponses at all time.
and adopt appropriate control measures, to
contain risks with the aim of achieving its ob- Risk Appetite
jectives. The bank recognises that there are risk elements
associated with the pursuit of growth opportu-
The Bank has recognised its major risk areas as nities to achieve its strategic objectives. While its
Credit, Operational, Information Technology, risk philosophy articulates how inherent risks are
Market and Liquidity Risks. Risk identification considered when making decisions, the Board and
in these areas is carried out by the relevant Management of the bank determine the risks that
risk owners, in collaboration with the ERM Di- are acceptable based on its capabilities in terms of
vision. capital, technology and people.
(b) Risk Management Philosophy Risk Appetite Statement

GTBank’s Risk Management philosophy de- “Guaranty Trust Bank maintains a moderate risk
scribes its attitude to risk taking. It is the driv- appetite in pursuit of its core strategies to dom-
ing force behind its officers’ behavior in the inate its priority sectors, expand its franchise on
conduct of business activities and operations Africa continent, contain its operating cost whilst
from a risk perspective. This is summarized in leveraging on technology and remain the most
the statement: profitable, without taking unnecessary risks.”
“To enhance shareholders’ value by creat- The bank’s risk appetite statement expresses the
ing and maintaining a culture of intelligent opinion of the Board and Management on the
risk-taking”. approach to risk that will be adopted across all
business levels, in relation to the Bank’s set strate-

gic objectives. This statement is interpreted in both (c) Risk Management Framework
quantitative and qualitative risk factors that measure
the bank’s risk profile at any time. These risk factors The Group’s Risk Management Framework is built
include: on a well-defined organisational structure and estab-
▪▪ Capital Adequacy lished policies to guide in the function of identifying,
▪▪ Earnings growth (Profit Before Tax) analysing, managing and monitoring the various risks
▪▪ Earnings quality (Net Interest Margin) inherent in the business as well as setting appropriate
▪▪ Return on Asset risk limits and controls to align the risks with the stra-
▪▪ Issuer Debt Rating tegic objectives.
▪▪ Return on Equity
▪▪ Cost-to-Income The risk management policies are subject to review
▪▪ Asset quality (Non-Performing Loan), at least once a year. However more frequent reviews
▪▪ Coverage may be conducted at the instance of the Board, when
▪▪ Cost of Risk changes in laws, regulations, market conditions or the
▪▪ Liquidity Group’s activities are material enough to impact on
▪▪ Risk Asset Funding the continued adoption of the existing policies. The
▪▪ Staff Attrition Group, through its trainings and management stand-
ards and procedures, aims to develop a disciplined,
Risk Tolerance engaging and controlled environment, in which all
To cascade the risk appetite statement across all busi- employees understand their roles and obligations.
ness levels, the management of the bank defines the
risk tolerances applicable to the risk factors. The toler- The Board of Directors has overall responsibility for
ances are measured via a three-leg limit system which the establishment of the Group’s Risk Management
measures an extreme upper region suggesting high framework and exercises its oversight function over
risk or unacceptable risk level, a middle range region all the Group’s prevalent risks via its various commit-
known as trigger point and a lower region suggesting tees; Board Risk Committee, Board Credit Committee,
a low risk or acceptable risk level. Thie system estab- and Board Audit Committee. These committees are
lishes the acceptable level of variation relative to the responsible for developing and monitoring risk poli-
bank’s desired objective. cies in their specific areas and report regularly to the
Board of Directors. All Board committees have both
In setting the risk tolerances, the bank adopts the executive and non-executive members.
interview session approach wherein Management of
the bank are questioned to ascertain their position on The Board Committees are assisted by the various
the degree of risk the bank is willing to take. The set Management Committees in identifying and assessing
risk acceptance levels are subject to the approval of risks arising from day to day activities of the Group.
the Board of Directors and can be changed at the dis- These committees include:
cretion of the Board and Management, when there
are compelling regulatory and operating factors. ▪▪ The Management Credit Committee
▪▪ Criticized Assets Committee
The risk tolerance limits are monitored periodically us- ▪▪ Asset and Liability Management Committee (AL-
ing a dashboard which establishes the status of each MAC)
risk factor at any given point in time. The result of the ▪▪ Management Risk Committee
dashboard is made available to the Management and ▪▪ IT Steering Committee
Board of Directors to enable them take appropriate ▪▪ Other Ad-hoc Committees
decisions regarding the acceptability of the risk tol-
erance level. These committees meet on a regular basis while oth-
ers are set up on an ad-hoc basis as dictated by cir-
cumstances.

The Risk Governance Structure of the Group
BOARD AUDIT
COMMITTEE
The three lines of defense model differentiated day-to-day basis. They also identify, assess, control
among the three groups involved in effective risk and mitigate risks to ensure the achievement of set
management include: goals and objectives.
▪▪ Functions that own and manage risks. SECOND LINE OF DEFENSE: Established to per-
▪▪ Functions that oversee risks. form a policy-setting and monitoring role. It is a risk
▪▪ Functions that provide independent assurance. management function (and/or committee) that fa-
cilitates and monitors the implementation of effec-
FIRST LINE OF DEFENSE: Owns and manage the tive risk management practices and a compliance
risks. They are responsible for implementing cor- function that monitors various specific risks such
rective actions to address process and control de- as non-compliance with applicable laws and regu-
ficiencies; maintaining effective internal controls lations. Other functions include identifying known
and executing risk and control procedures on a and emerging issues, providing risk management

framework, assisting management in developing insider-related credits in excess of limits assigned to

processes and controls to manage risks, monitoring the Management Credit Committee by the Board.
the adequacy and effectiveness of internal control, The committee also ensures that the Bank’s internal
accuracy and completeness of reporting and timely control procedures in the area of risk assets remain
remediation of deficiencies. fool-proof to safeguard the quality of the Bank’s risk
assets.
THIRD LINE OF DEFENSE: Provides objective assur-
ance on the effectiveness of governance, risk man- Management Risk Committee examines risk in its
agement and internal controls. The scope of the as- entirety by reviewing and analysing environmental is-
surance, which is reported to Senior management sues and policies impacting the Group, either direct-
and Board covers a broad range of objectives, includ- ly or remotely, and makes recommendations to the
ing efficiency and effectiveness of operations, safe- Board Risk Committee.
guarding of assets, reliability and integrity of report-
ing processes, and compliance with laws, regulations, Management Credit Committee formulates credit
policies, procedures and contracts. It also includes all policies in consultation with business units, covering
elements of the risk management and internal con- credit assessment, risk grading and reporting, collat-
trol framework. eral, regulatory and statutory requirements. The com-
mittee also assesses and approves all credit exposures
The Board Risk Committee is responsible for re- in excess of the Managing Director’s limit set by the
viewing and recommending risk management poli- Board.
cies, procedures and profiles including risk philoso-
phy, risk appetite and risk tolerance of the Group. Its The Asset & Liability Management Committee
oversight functions cut across all risk areas including establishes the Group’s standards and policies cover-
credit risk,market and interest rate risk, liquidity risk, ing the various components of Market Risk Manage-
operational risk, reputation risk, technology risk and ment. These include Interest Rate Risk, Liquidity Risk,
other major risks that may arise from time to time. Investment Risk and Trading Risk. It ensures that the
The committee monitors the Group’s plans and pro- authority delegated by the Board and Management
gress towards meeting regulatory Risk-Based Super- Risk Committees with regard to Market Risk is exer-
vision requirements including Basel II compliance as cised, and that Market Risk exposures are monitored
well as the overall Regulatory and Economic Capital and managed. Furthermore, the Committee limits and
Adequacy. It also reviews and approves the contin- monitors the potential impact of specific pre-defined
gency plan for specific risks and ensures that all mem- market movements on the comprehensive income of
bers of the Group are fully aware of the risks involved the Bank through stress tests and simulations.
in their functions.
Criticised Assets Committee is responsible for the
The Group’s Board Audit Committee is responsible assessment of the bank’s credit risk asset portfolio. It
for monitoring compliance with the risk management highlights the status of the risk assets in line with the
policies and procedures, and for reviewing the ade- internal and external regulatory framework and en-
quacy of the risk management framework in relation sures that triggers are sent in respect of delinquent
to risks faced by the Group. The Audit Committee is credit risk assets. It also ensures adequate provisions
assisted by the Internal Audit group, in carrying out are taken in line with the regulatory guidelines.
these functions. Internal Audit undertakes both reg-
ular and ad-hoc reviews of risk management controls The Credit Risk Management Group is responsible
and procedures, the results of which are reported to for identifying, controlling, monitoring and reporting
the Audit Committee. credit risk related issues. The Group also serves as the
secretariat for the Management Credit Committee.
The Group’s Board of Directors has delegated re- Credit risk is the most critical risk for the Group as
sponsibility for the management of credit risk to the credit exposures, arising from lending activities ac-
Board Credit Committee. The Board Credit Com- count for the major portion of the Group’s assets and
mittee considers and approves all lending exposures, source of its revenue. Thus, the Group ensures that
including treasury investment exposures, as well as credit risk related exposures are properly monitored,

managed and controlled.

The Credit Risk Management Group is responsible for In compliance with the Central Bank of Nigeria’s ‘Risk-
managing the credit exposures, which arise as a re- based Supervision’ guidelines, best global practices,
sult of the lending and investment activities as well and to align with Basel II Capital requirements, the
as other unfunded credit exposures that have default Group incorporated a strategic framework for effi-
probabilities; such as contingent liabilities. cient measurement and management of the bank’s
risks and capital. The Group has implemented Basel
(d) Risk Management Methodology II recommended capital measurement approaches for
the estimate of the bank’s economic capital required
The Group recognizes that it is in the business of to cope with unexpected losses using Oracle Financial
managing risks to derive optimal satisfaction for all Services Analytical Applications. The Group has also
stakeholders. It has therefore, over the years detailed put in place other qualitative and quantitative meas-
its approach to risk management through various ures that will assist with enhancing risk management
policies and procedures, which include the following: processes and creating a platform for more risk-ad-
justed decision-making.
▪▪ ERM Policy
▪▪ Credit Policy Guide (f) Credit risk
▪▪ Human Resources Policy Manual
▪▪ Quality Manual Lending and other financial activities form the core
▪▪ Standard Operating Procedures business of the Group. The Group recognises this and
▪▪ IT Policy has laid great emphasis on effective management of
its exposure to credit risk. The Group defines credit
To ensure adherence to the policies and procedures, risk as the risk of counterparty’s failure to meet the
several exception reports on activities of the Group terms of any lending contracts with the Group or oth-
are generated by the various audit/control units for erwise to perform as agreed. Credit risk arises any-
management’s decision making. These include: time the Group’s funds are extended, committed,
invested or otherwise exposed through actual or im-
▪▪ Monthly Management Profitability Reports plied contractual agreements.
(MPR) for the marketing teams
▪▪ Monthly Operations Performance Reports (OPR) The Group’s specific credit risk objectives, as contained
for the support teams in the Credit Risk Management Framework, are:
▪▪ Quarterly Business Profitability Review
▪▪ Annual Bank-wide performance appraisal sys- ▪▪ Maintenance of an efficient loan portfolio
tems ▪▪ Institutionalization of sound credit culture in the
▪▪ Monthly Expense Control Monitoring Report Bank
▪▪ Criticized Asset Committee Report ▪▪ Adoption of international best practices in credit
risk management
(e) Risk Management Overview ▪▪ Development of Credit Risk Management profes-
sionals.
The Enterprise-wide Risk Management (ERM) Division
is responsible for optimising the risks and returns op- Each business unit is required to implement the credit
portunities inherent in the business. The risk manage- policies and procedures in line with the the credit pol-
ment infrastructure encompasses a comprehensive icy guide approved by the Board. Each business unit
and integrated approach to identifying, managing, is responsible for the quality and performance of its
monitoring and reporting risks with focus on the fol- credit portfolio and for monitoring and controlling all
lowing: credit risks in its portfolio, including those subject to
Management Credit Committee’s approval. The Inter-
(i) the 5 main inherent risk groups – Credit, Mar- nal Audit and Credit Administration units respectively
ket, Operational, Liquidity and Technology. undertake regular audits of business units and credit
(ii) additional risk areas such as Reputation and quality reviews.
Strategy risks

(i) Management of Credit Risk

The Group continues to focus attention on intrinsic
and concentration risks inherent in its business in The Board of Directors has delegated responsibility
order to manage its portfolio risk. It sets portfolio for the management of credit risk to its Board Credit
concentration limits that are measured under the fol- Committee. The Management Credit Committee re-
lowing parameters: concentration limits per obligor, porting to the Board Credit Committee is responsible
business lines, industry, sector, rating grade and ge- for oversight of the Group’s credit risk, including:
ographical area.
▪▪ Formulating credit policies in consultation with
The Group drives the credit risk management pro- business units, covering collateral requirements,
cesses using appropriate technology to achieve credit assessment, risk grading and report-
global best practices. To comply with the CBN re- ing, documentation and legal procedures,
quirements on implementation of Basel II, especially and compliance with regulatory and statutory
with the computation of capital adequacy ratio and requirements.
market disclosure, the Group invested in two major
softwares namely: Lead to Loan Credit Solution and ▪▪ Establishing the authorisation structure for the
OFSAA Basel II solution. These softwares are custom- approval and renewal of credit facilities. Author-
ised to suit the internal processes of GTBank and to isation limits are allocated to business unit heads.
interact seamlessly with the bank’s core banking ap- Larger facilities require approval by the Manage-
plication ment Credit Committee, Deputy Managing Di-
rector, Managing Director and the Board Credit
To satisfy the Basel II (pillar 2) requirements, the Committee/Board of Directors as appropriate.
Group came up with a comprehensive ICAAP (Inter-
nal Capital Adequacy Assessment Process) document ▪▪ Reviewing and assessing credit risk. Management
which detailed approaches and procedures on how Credit Committee assesses all credit exposures in
the bank measures its various risks and capital re- excess of designated limits, prior to facilities
quired. The document also spells out the capital plan- being committed to customers by the busi-
ning process of the bank and it is updated annually. ness unit concerned. Renewals and reviews of
facilities are subject to the same review process.
Lead to Loan is an integrated credit solution soft-
ware which handles credit customers’ profiles, rating ▪▪ Developing and maintaining the Group’s risk
scores, documents and collateral management, cred- grading in order to categorise exposures accord-
it workflow processes, disbursement, recoveries and ing to the degree of risk of financial loss faced
collection. and to focus management on the attendant
risks. The current risk grading framework con-
OFSAA Basel II solution is an Oracle Financial Services sists of ten grades reflecting varying degrees of
Analytical Application which is capable of handling risk of default and the acceptable collaterals or
the complete range of calculations covered in the Ba- other credit risk mitigation. The responsibility
sel II Accord. for approving the risk grades lies with the Board
Credit Committee. The risk grades are subject to
For capital adequacy computation under Basel ll Pil- regular reviews by the Risk Management Group.
lar l, the Group has implemented the Standardized
Approach for the three risk areas – Credit, Market ▪▪ Reviewing compliance of business units with
& Operational risk and the Advanced Internal Rating agreed exposure limits, including those for
Based (AIRB) Approah using the OFSAA Basel II solu- select industries, country risk and product types.
tion software. The advanced measurement approach Regular reports are provided to Risk Manage-
for credit risk uses PD, LGD and EAD as the input ment Group on the credit quality of local portfo-
parameters. lios and appropriate corrective actions are taken.
▪▪ Providing advice, guidance and specialist skills to

business units to promote best practice through-
out the Group in the management of credit risk.
There were no changes in the Group’s risk manage- Guaranty Trust Bank Group undertakes lending activ-
ment policies. Each business unit is required to im- ities after careful analysis of the borrowers’ character,
plement Group credit policies and procedures, with capacity to repay, cash flow, credit history, industry
credit approval authorised by the Board Credit Com- and other factors. The Group acknowledges that
mittee. there are diverse intrinsic risks inherent in its different
business segments and, as a result, applies different
(ii) Credit Risk Measurement parameters to adequately dimension the risks in each
business segment.
In line with IAS 39, the bank adopted Incurred Loss
approach and preparing to migrate to the Expected The Bank’s rating grades reflect the range of pa-
Credit Loss approach outlined under the new IFRS rameters internally developed to predict the default
9. The Incurred Loss approach takes into considera- probabilities of each rating class in line with interna-
tion the Emergence Period (EP) to arrive at losses that tional best practices and in compliance with BASEL II
have been incurred at the reporting date. To enable requirements. The grades reflect granularities and are
the bank migrate to the Internal Rating Based (IRB - handled by Account Officers and Relationship Manag-
Foundation approach) as well as the Expected Credit ers with further checks by the Credit Risk Analysis Unit
Loss approach, the bank has developed its internal in Credit Risk Management Group.
rating models.
Rating Grade Description
1 (AAA) Exceptional Credit ▪▪ Exceptional credit quality

▪▪ Obligors with overwhelming capacity to meet obligation
▪▪ Top multinationals / corporations
▪▪ Good track record
▪▪ Strong brand name
▪▪ Strong equity and assets
▪▪ Strong cash flows
▪▪ Full cash coverage
2 (AA) Superior Credit ▪▪ Very high credit quality

▪▪ Exceptionally high cash flow coverage (historical and projected)
▪▪ Very strong balance sheets with high liquid assets
▪▪ Excellent asset quality
▪▪ Access to global capital markets
▪▪ Typically large national corporate in stable
industries and with significant market share
3 (A) Minimal Risk ▪▪ High quality borrowers

▪▪ Good asset quality and liquidity position
▪▪ Strong debt repayment capacity and coverage
▪▪ Very good management
▪▪ Though credit fundamentals are strong, it may suffer some temporary
setback if any of them are adversely affected
▪▪ Typically in stable industries
4 (BBB) Above Average ▪▪ Good asset quality and liquidity

▪▪ Very good debt capacity but smaller margins of debt service coverage
▪▪ Good management in key areas
▪▪ Temporary difficulties can be overcome to meet debt obligations
▪▪ Good management but depth may be an issue
▪▪ Good character of owner
▪▪ Typically good companies in cyclical industries

5 (BB) Average ▪▪ Satisfactory asset quality and liquidity

▪▪ Good debt capacity but smaller margins of debt service coverage
▪▪ Reasonable management in key areas
▪▪ Temporary difficulties can be overcome to meet debt obligations
▪▪ Good management but depth may be an issue
▪▪ Satisfactory character of owner
▪▪ Typically good companies in cyclical industries
6 (B) Acceptable Risk ▪▪ Limited debt capacity and modest debt service coverage
▪▪ Could be currently performing but susceptible to poor industry condi-
tions and operational difficulties
▪▪ Declining collateral quality
▪▪ Management and owners are good or passable
▪▪ Typically borrowers in declining markets or with small market share and
operating in cyclical industries
7 (CCC) Watch-list ▪▪ Eliciting signs of deterioration as a result of well defined weaknesses

that may impair repayment
▪▪ Typically startups / declining markets/deteriorating industries with high
industry risk
▪▪ Financial fundamentals below average
▪▪ Weak management
▪▪ Poor information disclosure
8 (CC) Substandard Risk ▪▪ Well-defined weaknesses though significant loss unlikely; orderly liquida-
tion of debt under threat
▪▪ Continued strength is on collateral or residual repayment capacity of
obligor
▪▪ Partial losses of principal and interest possible if weaknesses are not
promptly rectified
▪▪ Questionable management skills
9 (C) Doubtful Risk ▪▪ High probability of partial loss

▪▪ Very weak credit fundamentals which make full debt repayment in seri-
ous doubt
▪▪ Factors exist that may mitigate the potential loss but awaiting appropri-
ate time to determine final status
▪▪ Demonstrable management weaknesses, poor repayment weaknesses
and poor repayment profile
10 (D) Lost ▪▪ A definite loss of principal and interest

▪▪ Lack of capacity to repay unsecured debt
▪▪ Bleak economic prospects
▪▪ Though it is still possible to recover sometime in the future, it is impru-
dent to defer write - offs

Risk Ratings and Credit scoring models form the ba- (4) Emergence Period (EP)
sis for measuring default risks. In measuring credit
risk of loans and advances at a counterparty level, the Emergence period is the time period it takes from the
Group considers four components: date a loss event occurs to the date the entity identifies
it has occurred. The emergence period is estimated by
(1) The ‘Probability of Default’ (PD), management for each identified portfolio. The factors
(2) Exposures to the counterparty and its likely fu- that may influence this estimation include economic
ture development, from which the Group derive and market conditions, customer behaviour, portfolio
the ‘Exposure at Default’ (EAD), management information, credit management tech-
(3) The likely recovery ratio on the defaulted obliga- niques and collection and recovery experiences in the
tions, the ‘Loss Given Default’ (LGD); and market. A fixed range for the period between a loss
(4) The Emergence Period (EP) which is the time it occurring and its identification is not defined across
takes from the date a loss event occurred to the the Group and as it is assessed empirically on a period-
date the entity identifies it has occurred ic basis it may vary over time as these factors change.
Given that credit management policies require all cus-
The models are reviewed regularly to monitor their tomers to be reviewed at least annually, we expect
predictive capacity relative to actual risk assets perfor- this estimated period would be at most 12 months in
mance and amended as necessary to optimise their duration.
effectiveness.
The measurement of Exposure at Default and Loss
(1) Probability of Default (PD) Given Default is based on the risk parameters stand-
ard under Basel II.
The Group assesses the probability of default of in-
dividual counterparties using internal rating tools tai- (iii) Risk Limit Control and Mitigation Policies
lored to the various categories of counterparty. The
tools have been developed internally using rigorous The Group applies limits to control credit risk concen-
statistical analysis and the professional judgement of tration and diversification of its risk assets portfolio.
credit analysts. The Group maintains limits for individual borrowers
and groups of related borrowers, business lines, rating
The rating tool combines both qualitative and quan- grade and geographical area.
titative factors to arrive at a rating which is compara-
ble to internationally available standards. The rating The Group adopts the obligor limits as set by the reg-
methods are subject to an annual validation and re- ulators and it is currently at 20% of the Bank’s share-
calibration to ensure that they reflect the latest pro- holders’ funds. The obligor limit covers exposures to
jection in the light of all actually observed defaults. counterparties and related parties.
(2) Exposure at Default (EAD) Although the Group is guided by this regulatory lim-
it, it applies additional parameters internally to deter-
EAD is the amount the Group is owed at the time of mine the suitable limits that an individual borrower
default or at a reporting date. For a loan, this is the should have. These include: obligor rating, position in
face value (principal plus interest) as at a particular the industry and perceived requirements of key play-
reporting date. ers (e.g. import finance limit may be determined by
the customer’s import cycle and volume during each
(3) Loss Given Default (LGD) cycle), financial analysis, etc.
Loss Given Default represents the Group’s expecta- The Group imposes industry/economic sector limits to
tion of the extent of loss on a claim should default guide against concentration risk as a result of expo-
occur. It is expressed as percentage loss per unit of sures to set of counterparties operating in a particular
exposure. It typically varies by type of counterparty, industry. The industry limits are arrived at after rig-
type of exposure and seniority of claim and availabili- orous analysis of the risks inherent in the industries/
ty of collateral or other credit support. economic sectors.

These limits are usually recommended by the Portfo- various levels of officers in the credit approval process.
lio Management Unit in the Credit Risk Management Approval decisions are guided by the Group’s strategic
Group and approved by the Board. The limits set for focus as well as the stated risk appetite and other lim-
each industry or economic sector depend on the his- its established by the Board or Regulatory authorities
torical performance of the sector as well as the intel- such as Aggregate Large Exposure Limits, Single Obli-
ligence report on the outlook of the sector. gor Limits, Geographical Limits, Industry/ Economic
During a review period, limits can be realigned (by sector limits etc.
way of outright removal, reduction or increase) to
meet the exigencies of the prevailing macroeconomic The lending authority in the Group flows through the
events. management hierarchy with the final authority resid-
ing with the Board of Directors as indicated below:
The Group also sets internal credit approval limits for
Designation Limit
Board of Directors Up to the single obligor limit as advised by the regulatory authorities
from time to time but currently put at 20% of shareholders’ funds
(total equity)
Management Credit Committee Up to N2 Billion
Managing Director Up to N500 Million
Deputy Managing Director Up to N350 Million
Other Approving Officers as delegated by the Managing Director
The above limits are subject to the following overrid- ments can change substantially within a short period,
ing approvals: as it is affected by each transaction subject to the ar-
rangement.
▪▪ The deposit required for all cash collateralized
facilities (with the exception of bonds, guaran- Off-balance sheet engagements
tees and indemnities) must be 125% of the fa-
cility amount to provide a cushion for interest These instruments are contingent in nature and carry
and other charges. the same credit risk as loans and advances. As a policy,
the Group ensures that all its Off-balance sheet expo-
▪▪ All new facilities, up till the Deputy Managing sures are subjected to the same rigorous credit anal-
Director approval limit, require one-up approval ysis, like that of the On-balance sheet exposures, be-
i.e. approval at a level higher than that of the fore availment. The major Off-balance sheet items in
person that would ordinarily approve it. the Group’s books are Bonds and Guarantees, which
the Group will only issue where it has full cash collat-
Master Netting Arrangements eral or a counter guarantee from a first class bank, or
any other acceptable security.
The Group further manages its exposure to credit
losses by entering into master netting arrangements, Contingencies
where applicable, with counterparties with which it
undertakes a significant volume of transactions. The Contingent assets/liabilities which include transac-
right to set off is triggered at default. By so doing, the tion- related bonds and guarantees, letters of credit
credit risk associated with favourable contracts is re- and short term foreign currency related transactions,
duced by a master netting arrangement to the extent are not recognized in the annual financial statements
that if a default occurs, all amounts with the counter- but are disclosed when, as a result of past events; it
party are terminated and settled on a net basis. is highly likely that economic benefits/settlement will
flow to/from the Group. However this will only be
The Group’s overall exposure to credit risk on deriv- confirmed by the occurrence or non-occurrence of
ative instruments subject to master netting arrange- one or more uncertain future events which are not

wholly within the Group’s control. arrived at after conducting fundamental analysis of
the counterparties, presentation of findings to, and
Placements approval by the Group’s Management Credit Com-
mittee. The lines are monitored by market risk arm of
The Group has placement lines for its counterparties. Enterprise Risk Management Division. As a rule, the
The lines cover the settlement risks inherent in the Group’s placements with local banks are backed with
activities with these counterparties. The limits are treasury bills.

IFRS 7 requires the Group to disclose the amounts that best represents its maximum exposure to credit risk at
the end of the reporting period without taking account of any collateral held or other credit enhancements
(eg netting agreements that do not qualify for offset in accordance with IAS 32). This disclosure is presented
below for the Bank and Group as at 31 December 2016 and 31 December 2015.
Credit risk exposure relating to On-Balance Sheet

Maximum exposure Maximum exposure
In thousands of Nigerian naira Group Parent
Classification Dec-2016 Dec-2015 Dec-2016 Dec-2015
Cash and cash equivalents:

- Unrestricted balances with central banks 53,411,505 40,213,238 18,683,027 25,453,036
- Balances held with other banks 221,157,341 146,072,187 58,380,363 100,404,743
- Money market placements 135,916,085 34,982,217 119,989,594 20,178,228
Loans and advances to banks 653,718 1,051,521 29,943 638,817
Loans and advances to customers1:
- Loans to individuals 154,707,793 105,789,389 111,486,978 77,647,274

- Loans to non-individuals 1,434,722,041 1,266,136,158 1,305,730,974 1,187,560,169
Financial assets held for trading

- Debt securities 12,053,919 34,626,186 6,321,370 25,075,618
- Derivative financial instruments 1,042,470 - 1,042,470 -
- Debt securities 524,295,537 389,366,088 409,556,558 326,579,262
Assets pledged as collateral:

- Debt securities 48,216,412 61,954,777 48,205,702 61,946,270
Restricted deposits and other assets2 344,613,308 283,807,374 342,966,324 281,222,375

Total 2,930,790,129 2,363,999,135 2,422,393,303 2,106,705,792
Loans and advances exposure to total 54% 58% 59% 60%

exposure
Debt securities exposure to total exposure 20% 21% 19% 20%
Other exposures to total exposure 26% 21% 22% 20%
As shown above, 54% (Parent: 59% ) of the total maximum exposures is derived from loans and advances to
banks and customers (2015: 58% ; Parent: 60% ); while 20% (Parent: 19% ) represents exposure to invest-
ments in debt securities (2015: 21% ; Parent: 20%). The Directors are confident in their ability to continue to
control exposure to credit risk within a specified risk appetite which can result from both its Loans and Advanc-
es portfolio and Debt securities.

1
Further classification of Loans and advances to Customers along product lines is provided on the next page.
2
Balances included in Restricted deposits and other assets above are those subject to credit risks. Items not subject to credit risk, which include Recog-
nised assets for defined benefit obligations have been excluded.

Credit risk exposure relating to Off-Balance Sheet
Maximum exposure Maximum exposure

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Financial guarantees 503,027,562 463,573,112 468,303,919 454,123,077

Other contingents 80,470,256 100,847,366 43,091,160 73,260,543
Total 583,497,818 564,420,478 511,395,079 527,383,620
Contingencies are disclosed on Note 44

Classification of Maximum Exposure on Loans to Customers by Product
Loans and advances have been classified into Overdraft, Loans and Others throughout the Financials
Statement.
- Overdraft are lines of credit which allow customers to write cheques for more than the actual balance on
their accounts usually to finance working capital.
- Loans include non-revolving facilities given to finance specific transactions, capital projects or a customer’s
expansion Programme.
- Others include Usances and Usance Settlement.
Maximum exposure on Loans and advances to customers is analysed below:

Group Parent
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Loans to individuals:
Overdraft 6,618,019 10,008,765 5,200,811 4,858,203
Loans 148,087,976 95,714,099 106,286,167 72,789,071
Others 1,798 66,525 - -
154,707,793 105,789,389 111,486,978 77,647,274
Loans to non-individuals:
Overdraft 195,317,100 164,952,987 123,471,769 146,975,737
Loans 1,196,295,648 1,051,504,543 1,147,467,056 990,932,164
Others 43,109,293 49,678,628 34,792,149 49,652,268
1,434,722,041 1,266,136,158 1,305,730,974 1,187,560,169

Credit quality of Financial Assets

IFRS 7 requires information about the credit quality of financial assets. This information is provided below for
balances held with counterparty, money market placements, financial assets held for trading and investment
securities.

Unrestricted balances with central banks, Balances held with other banks, Money Market place-
ments, financial assets held for trading and Investment Securities

Unrestricted balances with central banks
The credit quality of Unrestricted balances with central banks are assessed by reference to external credit
ratings information about counterparty default rates.
Credit Quality Credit Quality

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Sovereign Ratings
Nigeria (BB-) - 25,453,036 - 25,453,036
B- 11,582,487 6,294,405 - -
B+ 7,233,231 3,600,120 - -
Nigeria (B) S&P 18,683,027 - 18,683,027 -
unrated 15,912,760 4,865,677 - -
53,411,505 40,213,238 18,683,027 25,453,036
Restricted and Unrestricted balances with Central Bank of Nigeria have Sovereign rating of B from S&P
A significant portion of the group’s unrated financial assets relates to cash balances held with central banks as
well as sovereign debt securities for which no external ratings are available. For such assets, the group con-
siders the credit quality of the counterparty, taking into account its financial position, past experience and
other factors.
Exposure limits are set and compliance is monitored by management.

Balances held with other banks
The credit quality of Balances held with other banks are assessed by reference to external credit ratings infor-
mation about counterparty default rates.

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Counterparties with external credit rating (S&P)
A - 995,250 - 995,250
A-1 23,344,619 138,887,690 13,896,406 80,766,329
A-1+ 26,563,394 1,765,234 26,563,394 1,765,234
A-2 6,282,280 4,130,687 6,282,280 4,130,687
A-3 443,868 240,781 443,868 240,781
Unrated 164,523,180 52,545 11,194,415 12,506,462
221,157,341 146,072,187 58,380,363 100,404,743

Money Market placements

The credit quality of Money Market placements are assessed by reference to external credit ratings informa-
tion about counterparty default rates.

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Counterparties with external credit rating (S&P)
A-1+ 13,776,050 998,800 13,776,050 998,800
A-1 77,454,775 4,585,715 72,378,877 4,585,715
A-2 312,745 99,527 312,745 99,527
A-3 14,060,882 - 14,060,882 -
C 7,506,148 - 7,506,148 -
113,110,600 5,684,042 108,034,702 5,684,042
Counterparties with external credit rating (Agusto)
A- - 3,400,094 - 3,400,094
- 3,400,094 - 3,400,094
Sovereign Ratings
Nigeria (B+) S&P - 7,500,822 - 7,500,822

B 7,503,689 9,041,653 7,503,689 -
Unrated - 4,494,227 - -
7,503,689 21,036,702 7,503,689 7,500,822
Counterparties without external credit rating

Unrated 15,301,796 - - -
Foreign Subsidiaries - 4,861,379 4,451,203 3,593,270
15,301,796 4,861,379 4,451,203 3,593,270
135,916,085 34,982,217 119,989,594 20,178,228

Financial Assets Held for trading

The credit quality of Financial Assets Held for trading are assessed by reference to external credit ratings informa-
tion about counterparty default rates.
Group Parent
In thousands of Nigerian naira Dec-2016 Dec-2015 Dec-2016 Dec-2015
Soverign Ratings
Nigeria (B+) S&P - 25,063,732 - 25,063,732
Nigeria (B) S&P 6,319,990 - 6,319,990 -
B- (S&P) 5,732,549 - - -
Unrated 1,380 9,562,454 1,380 11,886
12,053,919 34,626,186 6,321,370 25,075,618
Investment Securities
The credit quality of investment securities are assessed by reference to external credit ratings information about
counterparty default rates.


Dec-2016 Dec-2015 Dec-2016 Dec-2015
Counterparties with external credit rating (S&P):
AA 17,330,138 - - -
BB- 4,081,574 - 4,081,574 -
A-1+ - 10,150,342 - -
B+ 32,176,235 327,857,847 - 320,919,037
B- 30,338,621 284,912 - -
B 400,255,721 33,633,646 400,255,721 2,449,650
unrated 30,636,421 14,228,766 - -
Counterparties with external credit rating

(Fitch):
B+ 4,257,564 - - -
Counterparties with external credit rating (Agusto):
A- 3,211,148 - 3,211,148 -
A - 3,210,575 - 3,210,575
Counterparties without external credit rating :

Sub-National Bonds 2,008,115 - 2,008,115 -
524,295,537 389,366,088 409,556,558 326,579,262
Of the Parent’s Investment Securities of N409,556,558,000 (Dec 2015: N326,579,262,000) the sum of
N400,255,721,000 (2015: N317,510,416,000) relates to investment in treasury bills and bond issued by the
Federal Government of Nigeria and bears the sovereign risk of the Federal Government of Nigeria. The federal
republic of Nigeria currently has a foreign long term issuer credit rating of B (S&P).

Assets pledged as collateral

The credit quality of Assets pledged as collateral are assessed by reference to external credit ratings information
about counterparty default rates.
Group Parent
Sovereign Ratings
Nigeria (B+) S&P - 61,946,270 - 61,946,270
Nigeria (B) S&P 48,205,702 - 48,205,702 -
B 10,710 8,507 - -
48,216,412 61,954,777 48,205,702 61,946,270

Restricted deposits and other assets

The credit quality of Restricted deposits and other assets are assessed by reference to external credit ratings
information about counterparty default rates.

Group Parent
Sovereign Ratings
Nigeria (B+) S&P - 273,873,799 - 273,873,799
Nigeria (B) S&P 327,100,025 - 327,100,025 -
B - 115,476 - -
BB- - 1,106,493 - -
Unrated - 1,466,280 - -
Counterparties with external credit
rating (S&P)
A-1 16,180,544 6,325,897 3,346,689 2,104,780
A-1+ 857,957 47,091 857,957 47,091
A-2 9,138 362,163 9,138 362,163
A-3 - 44,531 - 44,531
Unrated 465,644 465,644 11,652,515 4,790,011
344,613,308 283,807,374 342,966,324 281,222,375
Rating Legend:

External credit rating (S&P): External credit rating (Fitch): External credit rating (Agusto):

A-1+ : Prime rating B : Highly speculative credit rating A: Strong capacity to meet its obligations
A-1 : Upper medium credit rating B+: Speculative credit rating B: Weak Financial condition but obligations
A-2 : Upper medium credit rating are still being met as and when they
A-3 : Lower medium credit rating fall due
B : Highly Speculative credit rating
B+ : Highly Speculative credit rating
C : Speculative credit rating

Credit Concentration
IFRS 7 requires disclosures about concentrations of risk. Concentration of risk arise from financial instruments
that have similar characteristics and are affected similarly by changes in economic or other conditions. This
information has been provided along geographical areas and economic sectors.
(i) Geographical Sector

Concentration of risks of financial assets with credit risk exposure
The following table breaks down the Group’s credit exposure (without taking into account any collateral held
or other credit support), as categorised by geographical region as at the reporting date. For this table, the
Group has allocated exposures to regions based on the country of domicile of its counterparties.
Group
Dec-2016
In thousands of Nigerian naira

Classification Nigeria Rest of Africa Outside Africa Total
- Unrestricted balances with central 18,683,027 34,728,478 - 53,411,505
banks
- Balances held with other banks 113,229 20,779,786 200,264,326 221,157,341
Loans and advances to banks 29,943 494,109 129,666 653,718

- Loans to non-individuals 1,303,654,635 131,067,406 - 1,434,722,041

- Debt securities 6,321,370 5,732,549 - 12,053,919
- Derivative financial instruments 1,042,470 - - 1,042,470
- Debt securities 400,363,926 97,408,841 26,522,770 524,295,537

- Debt securities 48,205,702 10,710 - 48,216,412

2,237,708,861 327,619,059 365,462,209 2,930,790,129
Of the Group’s Credit risk exposure outside Africa relating to On-balance sheet, 11% relates to exposures in United
States of America, 87% relates to exposures in United Kingdom and 2% relates to exposures in other countries
1
Further classification of Loans & Advances to Customers along product lines is provided on the next page
2
Balances included in Restricted deposits and other assets above are those subject to credit risks. Items not subject to credit risk, which include Rec-
ognised assets for defined benefit obligations have been excluded.

Credit Risk Exposure relating to off-balance sheet items are as follows:
Group
Dec-2016

Financial guarantees 468,309,919 17,044,885 17,678,758 503,027,562
511,395,079 45,191,390 26,911,349 583,497,818


Classification of Credit Concentration on Loans to Customers by Product

The maximum credit exposure of Loans & advances across geographical region and product lines is shown
below:
Group
Dec-2016

Overdraft 5,200,877 1,375,226 41,916 6,618,019
Loans 106,286,166 13,991,675 27,810,135 148,087,976
Others - 1,798 - 1,798
111,487,043 15,368,699 27,852,051 154,707,793
Overdraft 121,395,432 73,921,668 - 195,317,100
Loans 1,147,467,056 48,828,592 - 1,196,295,648
Others 1
34,792,147 8,317,146 - 43,109,293
1,303,654,635 131,067,406 - 1,434,722,041

#
Others include Usances and Usance Settlement

Group
Dec-2015

- Unrestricted balances with central 25,453,036 14,760,202 - 40,213,238
banks
- Balances held with other banks 55,874 13,008,957 133,007,356 146,072,187
Loans and advances to banks 638,817 331,474 81,230 1,051,521

- Loans to non-individuals 1,184,596,284 81,539,874 - 1,266,136,158

- Debt securities 25,075,618 9,550,568 - 34,626,186
Hedging derivatives
- Debt securities 320,720,991 52,636,483 16,008,614 389,366,088

- Debt securities 61,946,270 8,507 - 61,954,777

1,980,619,163 204,369,199 179,010,773 2,363,999,135
Of the Group’s Credit risk exposure outside Africa relating to On-balance sheet, 58% relates to exposures in United
States of America, 39% relates to exposures in United Kingdom and 3% relates to exposures in other countries

1
Further classification of Loans & Advances to Customers along product lines is provided on the next page
2


Group
Dec-2015

Financial guarantees 454,123,077 9,267,276 182,759 463,573,112
527,383,620 31,323,742 5,713,116 564,420,478



below:
Group
Dec-2015

Overdraft 4,858,203 5,132,833 17,729 10,008,765
Loans 72,789,070 5,925,935 16,999,094 95,714,099
Others - 66,525 - 66,525
77,647,273 11,125,293 17,016,823 105,789,389
Overdraft 144,011,853 20,941,134 - 164,952,987
Loans 990,932,162 60,572,381 - 1,051,504,543
Others 1
49,652,269 26,359 - 49,678,628
1,184,596,284 81,539,874 - 1,266,136,158

#

Parent
Dec-2016

- Unrestricted balances with central banks 18,683,027 - - 18,683,027
- Balances held with other banks - 2,168,475 56,211,888 58,380,363
- Money market placements 15,009,836 - 104,979,758 119,989,594
Loans and advances to banks 29,943 - - 29,943

- Loans to individuals 111,486,978 - - 111,486,978
- Loans to non-individuals 1,305,730,974 - - 1,305,730,974
Financial assets held for trading:

- Debt securities 6,321,370 - - 6,321,370
- Derivative financial instruments 1,042,470 - - 1,042,470
Hedging derivatives
- Debt securities 400,363,926 - 9,192,632 409,556,558

- Debt securities 48,205,702 - - 48,205,702
Restricted deposits and other assets2 332,797,682 3,800 10,164,842 342,966,324

2,239,671,908 2,172,275 180,549,120 2,422,393,303
Of the Parent’s Credit risk exposure outside Africa relating to On-balance sheet, 23% relates to exposures in
United States of America, 74% relates to exposures in United Kingdom and 3% relates to exposures in other countries

1
Further classification of Loans & Advances to Customers along product lines is provided on the next page.
2


Parent
Dec-2016

Financial guarantees 468,303,919 - - 468,303,919
Other contingents 43,091,160 - - 43,091,160
511,395,079 - - 511,395,079



below:
Parent
Dec-2016

Overdraft 5,200,811 - - 5,200,811
Loans 106,286,167 - - 106,286,167
Others - - - -
111,486,978 - - 111,486,978
Overdraft 123,471,769 - - 123,471,769
Loans 1,147,467,056 - - 1,147,467,056
Others1 34,792,149 - - 34,792,149
1,305,730,974 - - 1,305,730,974

#

Dec-2015
Parent

- Unrestricted balances with central banks 25,453,036 - - 25,453,036
- Balances held with other banks - 1,298,769 99,105,974 100,404,743
- Money market placements 10,900,915 - 9,277,313 20,178,228
Loans and advances to banks 638,817 - - 638,817

-
Loans to individuals 77,647,274 - - 77,647,274
- Loans to non-individuals 1,187,560,169 - - 1,187,560,169

- Debt securities 25,075,618 - - 25,075,618
- Debt securities 320,720,991 - 5,858,271 326,579,262

- Debt securities 61,946,270 - - 61,946,270
Restricted deposits and other assets2 273,873,798 425,581 6,922,996 281,222,375

1,983,816,888 1,724,350 121,164,554 2,106,705,792
Of the Parent’s Credit risk exposure outside Africa relating to On-balance sheet, 58% relates to exposures in United States
of America, 39% relates to exposures in United Kingdom and 3% relates to exposures in other countries

1
Further classification of Loans & Advances to Customers along product lines is provided on the next page.
2
Balances included in Restricted deposits and other assets above are those subject to credit risks. Items not subject to credit risk, which include Recog-
nised assets for defined benefit obligations have been excluded.



Dec-2015
Parent
Financial guarantees 454,123,077 - - 454,123,077

Other contingents 73,260,543 - - 73,260,543
527,383,620 - - 527,383,620


The maximum credit exposure of loans and advances across geographical regions and product lines is shown below

Dec-2015
Parent


Overdraft 4,858,203 - - 4,858,203
Loans 72,789,071 - - 72,789,071
77,647,274 - - 77,647,274
Overdraft 146,975,737 - - 146,975,737
Loans 990,932,164 - - 990,932,164
Others 1
49,652,268 - - 49,652,268
1,187,560,169 - - 1,187,560,169
1

(ii) Industry sectors

The following table breaks down the Group’s credit exposure at gross amounts (without taking into account any collateral held or other credit support), as categorised by the indus-
try sectors of the Group’s counterparties.

Credit Risk Exposure to on-balance sheet items

Group
Dec-2016
Capital
Info.Tele-
market& Construction/ General Manufac-
Classification Agriculture Education Government coms Individual Others1 Total
Financial real estate Commerce turing Oil & gas
& Transport2
institution
- Unrestricted balances with central banks - - - - - 53,411,505 - - - - - 53,411,505

- Balances held with other banks - 221,157,341 - - - - - - - - - 221,157,341
- Money market placements - 118,621,773 - - 10,730,794 6,563,518 - - - - - 135,916,085
Loans and advances to banks - 159,610 - - 494,108 - - - - - - 653,718
- Loans to individuals - - - - - - - - - - 154,707,793
154,707,793
- Loans to non-individuals 25,032,726 44,697,669 106,781,477 9,593,043 61,434,017 56,084,289 264,289,203 576,848,646 127,769,350 - 162,191,621
1,434,722,041
- Debt securities - 5,732,549 - - - 6,321,370 - - - - - 12,053,919
- Derivative financial instruments - 649,458 6,065 - 9,278 - 56,569 319 320,781 - 1,042,470
- Debt securities - 39,531,255 - - - 484,764,282 - - - - - 524,295,537

- Debt securities - - - - 10,710 48,205,702 - - - - - 48,216,412
4
Restricted deposits and other assets - - - - - 328,747,009 - - - - 15,866,299 344,613,308
25,032,726 430,549,655 106,787,542 9,593,043 72,678,907 984,097,675 264,345,772 576,848,965 128,090,131 154,707,793 178,057,920 2,930,790,129
1 2 3
Includes Engineering Services, Hospitality, Clubs, Cooperative Societies etc. | Logistics, Maritime and Haulage. | Further classification of Loans to Customers along product lines are provided on the next page.
4
Balances included in Restricted deposits and other assets above are those subject to credit risks. Items not subject to credit risk, which include Recognised assets for defined benefit obligations have been excluded.

Credit Risk Exposure to off-balance sheet items

Group
Dec-2016
Capital
Info.Tele-
market& Construction/ General Manufactur-
Classification Agriculture Education Government Oil & gas coms Individual Others1 Total
Financial real estate Commerce ing
& Transport2
institution
Financial guarantees 61,428 1,804,479 303,403,846 200,000 8,953,057 243,853 8,792,540 98,532,887 3,422,986 - 77,612,486 503,027,562
Other contingents 1,019,823 1,204,692 90,375 - 10,923,747 - 43,016,060 5,698,883 48,110 - 18,468,566 80,470,256
Total 1,081,251 3,009,171 303,494,221 200,000 19,876,804 243,853 51,808,600 104,231,770 3,471,096 - 96,081,052 583,497,818
1
Includes Engineering Services, Hospitality, Clubs, Cooperative Societies etc.
2
Logistics, Maritime and Haulage.

Classification
of Sectorial Credit Concentration on Loans to Customers by Product

Group
Dec-2016
Capital
Info.Tele-
Agricul- market& Construction/ General Manufactur-
Classification Education Government Oil & gas coms Individual Others1 Total
ture Financial real estate Commerce ing
& Transport2
institution
Overdraft - - - - - - - - - 6,618,019 - 6,618,019
Loans - - - - - - - - - 148,087,976 - 148,087,976
Others - - - - - - - - - 1,798 - 1,798
- - - - - - - - - 154,707,799 - 154,707,799
Overdraft 8,239,184 4,166,854 26,902,394 2,621,523 27,864,023 383,118 44,409,773 30,123,160 4,923,134 - 45,683,937 195,317,100
Loans 14,215,495 40,530,815 78,852,160 6,968,582 32,090,022 55,701,171 216,440,500 516,764,460 122,789,432 - 111,943,011 1,196,295,648
Others 2,578,047 - 1,026,923 2,938 1,479,972 - 3,438,930 29,961,026 56,785 - 4,564,672 43,109,293
25,032,726 44,697,669 106,781,477 9,593,043 61,434,017 56,084,289 264,289,203 576,848,646 127,769,351 - 162,191,620 1,434,722,041
1
2

Credit Risk Exposure to on-balance sheet items
Group
Dec-2015
Capital
Info.Tele-
& Transport2
institution
- Unrestricted balances with central - - - - - 40,213,238 - - - - - 40,213,238
banks
- Money market placements - 34,982,217 - - - - - - - - - 34,982,217
Loans and advances to banks - 1,051,521 - - - - - - - - - 1,051,521
- Loans to individuals - - - - - - - - - 105,789,389 - 105,789,389
- Loans to non-individuals 53,000,525 30,857,113 121,249,461 6,299,600 97,978,853 49,879,660 244,604,812 421,352,204 130,726,894 - 110,187,036 1,266,136,158
- Debt securities - - - - - 34,626,186 - - - - - 34,626,186
- Debt securities - 5,858,270 - - 199,050 383,308,768 - - - - - 389,366,088
- Debt securities - - - - - 61,954,777 - - - - - 61,954,777
Restricted deposits and other - 7,348,576 - - - 276,458,798 - - - - - 283,807,374

assets4
53,000,525 226,169,884 121,249,461 6,299,600 98,177,903 846,441,427 244,604,812 421,352,204 130,726,894 105,789,389 110,187,036 2,363,999,135
1
2
3
Further classification of Loans to Customers along product lines are provided on the next page.
4


Credit Risk Exposure relating to off-balance sheet items

Group
Dec-2015
Capital
Info.Tele-
& Transport2
institution
Financial guarantees 1,134,139 2,057,490 292,903,162 272,213 8,580,977 1,743,633 10,144,272 100,361,215 4,025,004 - 42,351,007 463,573,112
Other contingents 3,896,042 15,220,737 1,307,676 41,235 15,317,869 1,349,179 27,411,909 17,421,513 126,289 - 18,754,917 100,847,366
Total 5,030,181 17,278,227 294,210,838 313,448 23,898,846 3,092,812 37,556,181 117,782,728 4,151,293 - 61,105,924 564,420,478
1
2

Classification of Sectorial Credit Concentration on Loans to Customers by Product

Group
Dec-2015
Capital
Info.Tele-
& Transport2
institution
Overdraft - - - - - - - - - 10,008,765 - 10,008,765
Loans - - - - - - - - - 95,714,099 - 95,714,099
Others - - - - - - - - - 66,525 - 66,525
- - - - - - - - - 105,789,389 - 105,789,389
Overdraft 8,707,541 5,733,552 22,106,408 852,377 21,080,021 522,161 30,738,819 50,244,663 8,971,886 - 15,995,559 164,952,987
Loans 41,992,130 25,123,561 98,976,312 5,447,223 66,212,238 49,357,499 205,139,561 343,341,090 121,750,043 - 94,164,886 1,051,504,543
Others 2,300,854 - 166,741 - 10,686,594 - 8,726,432 27,766,451 4,965 - 26,591 49,678,628
53,000,525 30,857,113 121,249,461 6,299,600 97,978,853 49,879,660 244,604,812 421,352,204 130,726,894 - 110,187,036 1,266,136,158
1
2


The following table breaks down the Parent’s credit exposure at gross amounts (without taking into account any collateral held or other credit support), as catego-
rised by the industry sectors of the Parent’s counterparties.

Credit Risk Exposure relating to on-balance sheet items

Parent
Dec-2016
Capital
Info.Tele-
& Transport2
institution
- Unrestricted balances with central banks - - - - - 18,683,027 - - - - - 18,683,027
Loans and advances to banks - 29,943 - - - - - - - - - 29,943

3
Loans and advances to customers :
- Debt securities - - - - - 6,321,370 - - - - - 6,321,370
- Derivative financial instruments - 649,458 6,065 - 9,278 - 56,569 319 320,781 - 1,042,470
- Debt securities - 9,192,632 - - - 400,363,926 - - - - - 409,556,558
- Debt securities - - - - - 48,205,702 - - - - - 48,205,702
Restricted deposits and other assets4 - - - - - 327,100,025 - - - - 15,866,299 342,966,324
16,132,294 233,139,750 92,052,179 7,180,311 49,460,634 856,505,484 247,822,669 558,236,555 128,090,131 111,486,978 122,286,318 2,422,393,303
1
2
3
4
Guaranty Trust Bank plc | 2016 Annual Report | 139
#EnrichingLives


Parent
Dec-2016
Capital
Info.Tele-
market& Construction/ General
Classification Agriculture Education Government Manufacturing Oil & gas coms Individual Others1 Total
Financial real estate Commerce
& Transport2
institution
Financial guarantees - 1,804,479 299,684,364 200,000 9,548,739 170,115 8,789,201 95,618,759 3,422,986 - 49,065,276 468,303,919
Other contingents 380,712 - - - 5,040,314 - 36,905,010 - 48,110 - 717,014 43,091,160
Total 380,712 1,804,479 299,684,364 200,000 14,589,053 170,115 45,694,211 95,618,759 3,471,096 - 49,782,290 511,395,079
1
Includes Engineering Services, Hospitality, Clubs, Cooperative Societies etc. | 2Logistics, Maritime and Haulage.

Parent
Dec-2016
Capital
Info.Tele-
market& Construction/ General
Classification Agriculture Education Government Manufacturing Oil & gas coms Individual Others1 Total
Financial real estate Commerce
& Transport2
institution
Overdraft - - - - - - - - - 5,200,811 - 5,200,811
Loans - - - - - - - - - 106,286,167 - 106,286,167
Others - - - - - - - - - - - -
- - - - - - - - - 111,486,978 - 111,486,978
Overdraft 1,247,559 6,243,194 17,039,825 711,136 17,113,086 130,263 39,735,099 26,422,263 4,923,134 - 9,906,210 123,471,769
Loans 12,926,244 38,654,566 74,974,315 6,469,175 31,306,426 55,701,171 206,251,894 501,880,368 122,789,431 - 96,513,466 1,147,467,056
Others 1,958,491 - 31,974 - 1,031,844 - 1,779,107 29,933,605 56,785 - 343 34,792,149
16,132,294 44,897,760 92,046,114 7,180,311 49,451,356 55,831,434 247,766,100 558,236,236 127,769,350 - 106,420,019 1,305,730,974
1 2
Includes Engineering Services, Hospitality, Clubs, Cooperative Societies etc. | Logistics, Maritime and Haulage.

Credit Risk Exposure relating to on-balance sheet items
Parent
Dec-2015
Capital
Info.Tele-
& Transport2
institution
- Unrestricted balances with central - - - - - 25,453,036 - - - - - 25,453,036
banks
Loans and advances to banks - 638,817 - - - - - - - - - 638,817


- Debt securities - - - - - 25,075,618 - - - - - 25,075,618
- Debt securities - 5,858,270 - - - 320,720,992 - - - - - 326,579,262

- Debt securities - - - - - 61,946,270 - - - - - 61,946,270
Restricted deposits and other - 7,348,576 - - - 273,873,799 - - - - - 281,222,375
assets4
48,048,185 167,414,148 109,586,192 5,618,625 75,081,270 756,434,066 225,656,642 418,664,599 130,726,894 77,647,274 91,827,897 2,106,705,792
1
2
3
4


Parent
Dec-2015
Capital
Info.Tele-
& Transport2
institution
Financial guarantees - 2,056,441 290,949,086 200,000 6,559,810 170,115 9,534,874 100,315,461 4,025,004 - 40,312,286 454,123,077
Other contingents 348,736 15,220,737 742,273 - 13,406,595 - 26,071,155 17,300,557 126,289 - 44,201 73,260,543
Total 348,736 17,277,178 291,691,359 200,000 19,966,405 170,115 35,606,029 117,616,018 4,151,293 - 40,356,487 527,383,620
1

Parent
Dec-2015
Capital
Info.Tele-
& Transport2
institution
Loans and advances to customers:
Overdraft - - - - - - - - - 4,858,203 - 4,858,203

Loans - - - - - - - - - 72,789,071 - 72,789,071
- - - - - - - - - 77,647,274 - 77,647,274
Overdraft 7,127,986 7,861,953 17,589,199 609,750 19,035,977 6,852 24,640,548 47,972,815 8,971,886 - 13,158,771 146,975,737
Loans 38,619,345 25,123,561 91,830,252 5,008,875 45,358,699 49,357,499 192,289,662 342,925,333 121,750,043 - 78,668,895 990,932,164
Others 2,300,854 - 166,741 - 10,686,594 - 8,726,432 27,766,451 4,965 - 231 49,652,268
48,048,185 32,985,514 109,586,192 5,618,625 75,081,270 49,364,351 225,656,642 418,664,599 130,726,894 - 91,827,897 1,187,560,169
1

(vii) Impairment and provisioning policies transverse from ratings 1 to ratings 71.
The following policies guide the Bank’s

provisioning and impairment: (2) Allowances for impairment
(1) Loan Categorization The Group establishes an allowance for impairment loss-
es that represents its estimate of incurred losses in its
All loans and advances are categorized as follows: loan portfolio. The main components of this allowance
are a specific loss component that relates to individually
▪▪ Neither past due nor impaired: significant exposures, and a collective loan loss allow-
These are significant loans and advances where ance, established for groups of homogeneous assets in
contractual interest or principal payments are respect of losses that have been incurred but have not
not past due. The credit quality of the portfolio been identified on loans subject to individual assessment
of loans and advances that were neither past due for impairment.
nor impaired can be assessed by reference to the
internal rating system adopted by the Group (see Specific Impairment – This is derived by identifying
Note 4(f)(ii) Credit Risk Measurement). These are exposure at default and recoverable cash-flows. The
assigned ratings 1-6 1 Cash-flows are then discounted to present value using
the original effective interest rate on the exposures. The
▪▪ Past due but not impaired: shortfall between the discounted cash-flows and the ex-
These are loans and advances where contractual posure at default is recognized as individual impairment.
interest or principal payments are past due but
individually assessed as not being impaired. The Collective Impairment - This is arrived at using the in-
Group believes that impairment is not appropri- curred loss model under IAS 39 by incorporating emer-
ate on the basis of the level of receivable/security/ gence period (EP) into the expected loss model under
collateral available and/or the stage of collection Basel II.
of amounts owed to the Group. This is assigned
rating 71. Realizable collaterals are important component of cash
flows.
▪▪ Individually impaired:
Individually impaired are loans and advances for (3) Loans with renegotiated terms
which the Group determines that it is probable Loans with renegotiated terms are loans that have been
that it will be unable to collect all principal and restructured due to deterioration in the borrower’s fi-
interest due according to the contractual terms of nancial position and where the Group has made con-
the loan/advance agreement(s). These are loans cessions that it would not otherwise consider. Once the
and advances specifically impaired. These are as- loan is restructured, it remains in this category inde-
signed ratings 8-101. pendent of satisfactory performance after restructuring.
▪▪ Collectively impaired: (4) Write-off policy

Collectively impaired are portfolios of homoge- The Group writes off a loan / security balance (and any
nous loans and advances where contractual in- related allowances for impairment losses) when Group
terest or principal payments are not past due, but Management Credit Committee determines that the
have been assessed for impairment by the Group. loans / securities are uncollectible.
Thus, Loans assessed for collective impairment
This determination is reached after considering infor-
1
Ratings 1 Exceptional capacity
mation such as the occurrence of significant changes in
Ratings 2 Very strong capacity
the borrower / issuer’s financial position such that the
Ratings 3-5 Strong repayment capacity
borrower / issuer can no longer pay the obligation, or
Ratings 6 Acceptable Risk
that proceeds from collateral will not be sufficient to pay
Ratings 1-7 Collectively impaired
back the entire exposure. For smaller balance standard-
Ratings 8-10 Individually impaired
ised loans, charge off decisions are generally based on a
This classification is in line with disclosures in note 4 on page 116-117
product specific past due status.

Categorization of Loans and advances
The table below analyses the Group’s Loans and advances based on the categorization by Performance of the Loans and the allowances taken on
them.

Group
In thousands of Nigerian naira Dec-2016 Dec-2015

Loans to Individual Loans to non- Loans to Total Loans to Loans to non- Loans to Total
Individual Banks Individual Individual Banks
Neither past due nor impaired 147,590,217 1,207,493,825 652,994 1,355,737,036 87,785,077 1,079,407,317 1,026,500 1,168,218,894
Past due but not impaired - 798,424 - 798,424 209 3,422,335 - 3,422,544
Individually impaired 1,968,140 58,429,529 - 60,397,669 1,351,200 40,287,500 - 41,638,700
Collectively Impaired 8,369,935 245,427,601 1,845 253,799,381 17,899,061 172,121,866 25,285 190,046,212
Gross Loans and Advances 157,928,292 1,512,149,379 654,839 1,670,732,510 107,035,547 1,295,239,018 1,051,785 1,403,326,350
Less allowances for impairment:
Individually impaired 1,085,240 19,891,322 - 20,976,562 474,946 21,485,367 - 21,960,313

Portfolio allowance 2,135,259 57,536,016 1,121 59,672,396 771,212 7,617,493 264 8,388,969
Total allowance 3,220,499 77,427,338 1,121 80,648,958 1,246,158 29,102,860 264 30,349,282
Net Loans and Advances 154,707,793 1,434,722,041 653,718 1,590,083,552 105,789,389 1,266,136,158 1,051,521 1,372,977,068
The total impairment for loans and advances is N80,648,958,000 (2015: N30,349,282,000) of which N20,976,562,000 (2015: N21,960,313,000) rep-
resents the impairment on individually impaired loans and the remaining amount of N59,672,396,000 (2015: N8,388,969,000) represents the portfo-
lio allowance.
Further information of the impairment allowance for loans and advances to banks and to customers is provided in Notes 28 and 29.


Each category of the gross loans of the Group is further analysed into product lines as follows:
Group
Dec-2016 Dec-2015
Loans to Individual Loans to non- Loans to Total Loans to Loans to non- Loans to Banks Total
Individual Banks Individual Individual
Loans 142,509,830 1,054,282,459 623,775 1,197,416,064 81,442,742 927,962,409 1,013,444 1,010,418,595
Overdrafts 5,078,719 147,004,115 29,219 152,112,053 6,284,496 106,228,952 13,056 112,526,504
Others 1,668 6,207,251 - 6,208,919 57,839 45,215,956 - 45,273,795
Neither past due nor impaired 147,590,217 1,207,493,825 652,994 1,355,737,036 87,785,077 1,079,407,317 1,026,500 1,168,218,894
Loans - 689,427 - 689,427 171 2,645,064 - 2,645,235
Overdrafts - 106,492 - 106,492 38 776,837 - 776,875
Others - 2,505 - 2,505 - 434 - 434
Past due but not impaired - 798,424 - 798,424 209 3,422,335 - 3,422,544
Loans 1,737,685 47,279,632 - 49,017,317 1,272,032 21,441,932 - 22,713,964
Overdrafts 230,415 10,427,676 - 10,658,091 78,245 18,843,299 - 18,921,544
Others 40 722,221 - 722,261 923 2,269 - 3,192
Individually impaired 1,968,140 58,429,529 - 60,397,669 1,351,200 40,287,500 - 41,638,700
Loans 6,163,180 122,338,042 1,845 128,503,067 13,742,054 112,256,821 4 125,998,879
Overdrafts 2,206,624 46,084,478 - 48,291,102 4,148,213 55,163,342 25,281 59,336,836
Others 131 77,005,081 - 77,005,212 8,794 4,701,703 - 4,710,497

The impairment allowance on loans of the Group is further analysed along the product lines as follows:

Dec-2016 Dec-2015
Loans to Loans to Loans to Total Loans to Loans to non- Loans to Total

Individual non- Individual Banks Individual Individual Banks
Specific allowance:
Loans 1,048,642 16,387,454 - 17,436,096 411,556 9,063,530 - 9,475,086
Overdrafts 36,559 3,244,652 - 3,281,211 62,594 12,420,930 - 12,483,524
Others 39 259,216 - 259,255 796 907 - 1,703
1,085,240 19,891,322 - 20,976,562 474,946 21,485,367 - 21,960,313
Portfolio allowance:
Loans 1,274,077 11,906,458 1,108 13,181,643 331,344 3,738,153 4 4,069,501
Overdrafts 861,180 5,061,009 13 5,922,202 439,633 3,638,513 260 4,078,406
Others 2 40,568,549 - 40,568,551 235 240,827 - 241,062
2,135,259 57,536,016 1,121 59,672,396 771,212 7,617,493 264 8,388,969

The table below analyses the Parent’s Loans and advances based on the categorization by Performance of the Loans and the allowances taken on them.

Parent

Dec-2016 Dec-2015

Neither past due nor impaired 107,348,702 1,111,225,215 29,219 1,218,603,136 63,317,528 1,022,941,662 613,796 1,086,872,986
Past due but not impaired - 759,575 - 759,575 - 2,126,983 - 2,126,983
Gross Loans and Advances 113,567,868 1,377,549,848 31,064 1,491,148,780 78,456,917 1,213,059,311 639,081 1,292,155,309
Less allowances for impairment:
Individually impaired 2,500 15,871,130 - 15,873,630 138,049 18,781,373 - 18,919,422

Portfolio allowance 2,078,390 55,947,744 1,121 58,027,255 671,594 6,717,769 264 7,389,627
Total allowance 2,080,890 71,818,874 1,121 73,900,885 809,643 25,499,142 264 26,309,049
Net Loans and Advances 111,486,978 1,305,730,974 29,943 1,417,247,895 77,647,274 1,187,560,169 638,817 1,265,846,260
The total impairment for loans and advances is N73,900,885,000 (2015: N26,309,049,000) of which N15,873,630,000 (2015: N18,919,422,000) represents the
impairment on individually impaired loans and the remaining amount of N58,027,255,000 (2015: N7,389,627,000) represents the portfolio allowance.
Further information of the impairment allowance for loans and advances to banks and to customers is provided in Notes 28 and 29.


Each category of the gross loan of the group is further analysed into product lines as follows
Parent
In thousands of Nigerian Naira

Dec-2016 Dec-2015

Loans 103,589,506 1,017,840,706 - 1,121,430,212 61,511,077 884,434,366 600,740 946,546,183
Overdrafts 3,759,196 93,384,509 29,219 97,172,924 1,806,451 93,310,283 13,056 95,129,790
1
Others - - - - - 45,197,013 - 45,197,013
Neither past due nor impaired 107,348,702 1,111,225,215 29,219 1,218,603,136 63,317,528 1,022,941,662 613,796 1,086,872,986
Loans - 674,721 - 674,721 - 1,646,507 - 1,646,507
Overdrafts - 84,854 - 84,854 - 480,476 - 480,476
Past due but not impaired - 759,575 - 759,575 - 2,126,983 - 2,126,983
Loans 817,226 43,039,594 - 43,856,820 953,929 16,227,522 - 17,181,451
Overdrafts 199,209 4,188,976 - 4,388,185 6,777 17,295,716 - 17,302,493
Loans 3,099,960 112,082,906 1,845 115,184,711 10,711,373 98,647,431 4 109,358,808
Overdrafts 2,102,771 30,995,294 - 33,098,065 3,467,310 51,124,217 25,281 54,616,808
1
Others - 75,258,288 - 75,258,288 - 4,695,780 - 4,695,780
1
Others include Usances and Usance Settlement.

The impairment allowance on loans of the Parent is further analysed along the product lines as follows:

Dec-2016 Dec-2015

Specific allowance:
Loans 1,450 14,865,641 - 14,867,091 137,114 6,979,085 - 7,116,199
Overdrafts 1,050 1,005,489 - 1,006,539 935 11,802,288 - 11,803,223
2,500 15,871,130 - 15,873,630 138,049 18,781,373 - 18,919,422
Portfolio allowance:
Loans 1,219,075 11,305,230 1,108 12,525,413 250,194 3,044,577 4 3,294,775

Overdrafts 859,315 4,176,375 13 5,035,703 421,400 3,432,667 260 3,854,327
Others - 40,466,139 - 40,466,139 - 240,525 - 240,525
2,078,390 55,947,744 1,121 58,027,255 671,594 6,717,769 264 7,389,627
The sensitivity of carrying amount of loans and advances to changes in probability of default, loss given default, and emergence period are disclosed
in note 4(i) under market risk above.

IFRS 7 requires that the group disclose information about (i) Credit quality of Loans and advances Nei
the credit quality of financial assets that are neither past ther Past Due Nor Impaired.
due nor impaired, an analysis of the age of financial
assets that are past due as at the end of the reporting The credit quality of the portfolio of loans and
period but not impaired, and an analysis of financial as- advances that were neither past due nor im-
sets that are individually determined to be impaired as paired can be assessed by reference to the in-
at the end of the reporting period. This information is ternal rating system adopted by the Group.
provided in the tables below.

Group
Dec-2016

Loans and advances Loans and advances Aggregate
to customers to banks Total
Individuals Non-individuals
Rating Overdraft Loans Others Overdraft Loans Others Overdraft Loans
Exceptional capacity 571,886 6,012,114 - 55,611,710 21,437,423 - - - 83,633,133

Very strong capacity 1,527,432 77,910,390 - 12,530,036 320,105,929 - 1,678 - 412,075,465
Strong repayment
capacity 1,158,834 26,089,523 1,668 47,462,974 547,873,531 6,207,251 - 623,775 629,417,556
Acceptable risk 1,820,567 32,497,803 - 31,399,395 164,865,576 - 27,541 - 230,610,882
Total 5,078,719 142,509,830 1,668 147,004,115 1,054,282,459 6,207,251 29,219 623,775 1,355,737,036
Group
Dec-2015

Rating Overdraft Loans Others Overdraft Loans Others Over- Loans
draft
Exceptional capacity 2,677,089 1,429,270 9,689 43,824,197 44,190,580 1,081,633 - - 93,212,458
Very strong capacity 1,567,753 52,782,785 9,689 12,943,496 257,530,802 9,581,818 - - 334,416,343
Strong repayment
capacity 1,777,723 25,802,860 38,461 33,403,577 513,175,380 25,014,756 - 1,013,444 600,226,201
Acceptable risk 261,931 1,427,827 - 16,057,682 113,065,647 9,537,749 13,056 - 140,363,892
Total 6,284,496 81,442,742 57,839 106,228,952 927,962,409 45,215,956 13,056 1,013,444 1,168,218,894
1
Others include Usances and Usance settlement

Parent
Dec-2016

draft
Exceptional capacity - - - 17,943,838 1,055,838 - - - 18,999,676

Very strong capacity 1,505,389 77,286,145 - 8,909,161 319,223,050 - 1,678 - 406,925,423
Strong repayment
capacity 523,198 11,863,538 - 36,888,982 539,444,716 - - - 588,720,434
Acceptable risk 1,730,609 14,439,823 - 29,642,528 158,117,102 - 27,541 - 203,957,603
Total 3,759,196 103,589,506 - 93,384,509 1,017,840,706 - 29,219 - 1,218,603,136
Parent
Dec-2015

draft
Exceptional capacity 199,462 - - 34,719,980 41,670,906 - - - 76,590,348
Very strong capacity 1,052,994 52,294,112 - 8,090,172 256,495,245 9,460,438 - - 327,392,961
Strong repayment
capacity 429,175 8,748,900 - 35,395,436 473,418,338 30,809,573 - 600,740 549,402,162
Acceptable risk 124,820 468,065 - 15,104,695 112,849,877 4,927,002 13,056 - 133,487,515
Total 1,806,451 61,511,077 - 93,310,283 884,434,366 45,197,013 13,056 600,740 1,086,872,986

(ii) Loans and advances past due but not impaired

Clearing cheques, late processing and other administrative delays on the side of the borrower can lead to a fi-
nancial asset being past due but not impaired. Therefore, loans and advances less than 90 days past due are not
usually considered impaired, unless other information is available to indicate the contrary. Gross amount of loans
and advances by class to customers that were past due but not impaired were as follows:
Group
Dec-2016
Age Loans to Individual Loans to Non-individual Total
0 - 90 days - 798,424 798,424

91 - 180 days - - -
181 - 365 days - - -
- 798,424 798,424
FV of collateral - 1,163,624 1,163,624

Amount of undercollateralisation - - -
Maturity of past due but not impaired loans by type of loan is further analysed below:
Group
Dec-2016
Loans
0 - 90 days - 689,427 689,427
91 - 180 days - - -
181 - 365 days - - -
- 689,427 689,427
Overdrafts
0 - 90 days - 106,492 106,492
91 - 180 days - - -
181 - 365 days - - -
- 106,492 106,492
Others
0 - 90 days - 2,505 2,505
91 - 180 days - - -
181 - 365 days - - -
- 2,505 2,505

FV of collateral1
Loans - 1,006,275 1,006,275
Overdrafts - 153,077 153,077
Others - 4,272 4,272
- 1,163,624 1,163,624
Amount of undercollateralisation:
Loans - - -
Overdrafts - - -
Others - - -
- - -
1
The nature of fair value of collateral are set out in the summary of collaterals pledged against loans and advances.

Group
Dec-2015
0 - 90 days 209 2,785,785 2,785,994

91 - 180 days - 27,154 27,154
181 - 365 days - 609,396 609,396
209 3,422,335 3,422,544
FV of collateral 209 69,693,577 69,693,786

Amount of undercollateralisation - - -

Group
Dec-2015
Loans to
Age Loans to Non-individual Total
Individual
Loans
0 - 90 days 171 2,163,907 2,164,078
91 - 180 days - 27,132 27,132
181 - 365 days - 454,025 454,025
171 2,645,064 2,645,235
Overdrafts
0 - 90 days 38 621,470 621,508
91 - 180 days - - -
181 - 365 days - 155,367 155,367
38 776,837 776,875
Others
0 - 90 days - 408 408
91 - 180 days - 22 22
181 - 365 days - 4 4
- 434 434
FV of collateral1
Loans 171 7,979,588 7,979,759
Overdrafts 38 61,512,666 61,512,704
Others - 201,323 201,323
209 69,693,577 69,693,786
Loans - - -
Overdrafts - - -
Others - - -
- - -
1

Parent
Dec-2016
Loans to
Individual
0 - 90 days - 759,575 759,575

91 - 180 days - - -
181 - 365 days - - -
- 759,575 759,575
FV of collateral
Amount of undercollateralisation - 1,075,187 1,075,187
- - -

Parent
Dec-2016
Loans to
Individual
Loans
0 - 90 days - 674,721 674,721
91 - 180 days - - -
181 - 365 days - - -
- 674,721 674,721
Overdrafts
0 - 90 days - 84,854 84,854
91 - 180 days - - -
181 - 365 days - - -
- 84,854 84,854
Others
0 - 90 days - - -
91 - 180 days - - -
181 - 365 days - - -
- - -
FV of collateral 1
Loans - 959,733 959,733

Overdrafts - 115,454 115,454
Others - - -
- 1,075,187 1,075,187
Loans - - -
Overdrafts - - -
Others - - -
- - -
1

Parent
Dec-2015
Loans to
Individual
0 - 90 days - 1,490,433 1,490,433
91 - 180 days - 27,154 27,154
181 - 365 days - 609,396 609,396
- 2,126,983 2,126,983
FV of collateral
Amount of undercollateralisation - 68,173,187 68,173,187
- - -

Parent
Dec-2015
Loans to
Individual
Loans
0 - 90 days - 1,482,353 1,482,353
91 - 180 days - 18,238 18,238
181 - 365 days - 145,916 145,916
- 1,646,507 1,646,507
Overdrafts
0 - 90 days - 8,080 8,080
91 - 180 days - 8,916 8,916
181 - 365 days - 463,480 463,480
- 480,476 480,476
Others
0 - 90 days - - -
91 - 180 days - - -
181 - 365 days - - -
- - -
FV of collateral 1
Loans - 6,790,026 6,790,026

Overdrafts - 61,383,161 61,383,161
Others - - -
- 68,173,187 68,173,187
Loans - - -
Overdrafts - - -
Others - - -
- - -
1
Upon initial recognition of loans and advances, the fair value of collateral is based on valuation techniques commonly used for the
corresponding assets. In subsequent periods, the fair value is assessed by reference to market price or indexes of similar assets.

(iii) Loans and advances individually impaired

The breakdown of the gross amount of individually impaired loans and advances by class, along with the fair
value of related collateral held by the Group as security, are as follows:

Group
Dec-2016

Loans to Loans to Non-indi- Loans to
Total
Individual vidual Banks
Gross loans:
Loans 1,737,685 47,279,632 - 49,017,317
Overdraft 230,415 10,427,676 - 10,658,091
Others 40 722,221 - 722,261
1,968,140 58,429,529 - 60,397,669
Impairment:
Loans 1,048,642 16,387,454 - 17,436,096
Overdraft 36,559 3,244,652 - 3,281,211
Others 39 259,216 - 259,255
1,085,240 19,891,322 - 20,976,562
Net Amount:
Loans 689,043 30,892,178 - 31,581,221
Overdraft 193,856 7,183,024 - 7,376,880
Others 1 463,005 - 463,006
882,900 38,538,207 - 39,421,107
FV of collateral1:
Loans 6,149,816 61,991,466 - 68,141,282
Overdraft 815,458 25,140,994 - 25,956,452
Others 142 1,292,099 - 1,292,241
FV of collateral 6,965,416 88,424,559 - 95,389,975
Loans - - - -
Overdraft - - - -
Others - - - -
- - - -
Net Loans 882,900 38,538,207 - 39,421,107
Amount of undercollateralisation - - - -
on net loans
1

Group
Dec-2015

Loans to Loans to Loans to
Total
Individual Non-individual Banks
Gross loans:
Loans 1,272,032 21,441,932 - 22,713,964
Overdraft 78,245 18,843,299 - 18,921,544
Others 923 2,269 - 3,192
1,351,200 40,287,500 - 41,638,700
Impairment:
Loans 411,556 9,063,530 - 9,475,086
Overdraft 62,594 12,420,930 - 12,483,524
Others 796 907 - 1,703
474,946 21,485,367 - 21,960,313
Net Amount:
Loans 860,476 12,378,402 - 13,238,878
Overdraft 15,651 6,422,369 - 6,438,020
Others 127 1,362 - 1,489
876,254 18,802,133 - 19,678,387
FV of collateral1:
Loans 2,826,562 36,551,026 - 39,377,588
Overdraft 173,867 32,646,319 - 32,820,186
Others 2,051 11,315 - 13,366
FV of collateral 3,002,480 69,208,660 - 72,211,140
Loans - - - -
Overdraft - - - -
Others - - - -
- - - -
Net Loans 876,254 18,802,133 - 19,678,387
Amount of undercollateralisation on net loans - - - -
1

Upon initial recognition of loans and advances, the fair value of collateral is based on valuation techniques commonly
used for the corresponding assets. In subsequent periods, the fair value is assessed by reference to market price or index-
es of similar assets.
Parent
Dec-2016

Loans to Loans to Non-
Loans to Banks Total
Individual individual
Gross loans:
Loans 817,226 43,039,594 - 43,856,820
Overdraft 199,209 4,188,976 - 4,388,185
Others - - - -
1,016,435 47,228,570 - 48,245,005
Impairment:
Loans 1,450 14,865,641 - 14,867,091
Overdraft 1,050 1,005,489 - 1,006,539
Others - - - -
2,500 15,871,130 - 15,873,630
Net Amount:
Loans 815,776 28,173,953 - 28,989,729
Overdraft 198,159 3,183,487 - 3,381,646
Others - - - -
1,013,935 31,357,440 - 32,371,375
FV of collateral1:
Loans 815,777 53,247,226 - 54,063,003
Overdraft 198,160 14,377,888 - 14,576,048
Others - - - -
FV of collateral 1,013,937 67,625,114 - 68,639,051
Loans 1,449 - - -
Overdraft 1,049 - - -
Others - - - -
2,498 - - -
Net Loans 1,013,935 31,357,440 - 32,371,375
Amount of undercollateralisation - - - -
on net loans
1

Parent
Dec-2015

Loans to Loans to Loans to
Total
Individual Non-individual Banks
Gross loans:
Loans 953,929 16,227,522 - 17,181,451
Overdraft 6,777 17,295,716 - 17,302,493
Others - - - -
960,706 33,523,238 - 34,483,944
Impairment:
Loans 137,114 6,979,085 - 7,116,199
Overdraft 935 11,802,288 - 11,803,223
Others - - - -
138,049 18,781,373 - 18,919,422
Net Amount:
Loans 816,815 9,248,437 - 10,065,252
Overdraft 5,842 5,493,428 - 5,499,270
Others - - - -
822,657 14,741,865 - 15,564,522
FV of collateral1:
Loans 947,506 26,415,253 - 27,362,759
Overdraft 6,777 29,485,439 - 29,492,216
Others - - - -
FV of collateral 954,283 55,900,692 - 56,854,975
Loans 6,423 - - -
Overdraft - - - -
Others - - - -
6,423 - - -
Net Loans 822,657 14,741,865 - 15,564,522
Amount of undercollateralisation
- - - -
on net loans
1
(iv) Undercollaterisation of past due and impaired and collectively impaired loans is shown below:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Past due and impaired:

Gross loans 60,397,669 41,638,700 48,245,005 34,483,944
Collateral 95,389,975 72,211,140 68,639,051 56,854,975
Undercollaterisation - - - -
Collectively impaired
Gross loans 253,797,536 190,020,927 223,539,219 168,646,111
Collateral 509,493,167 249,182,122 441,798,806 191,518,786
Undercollaterisation - - - -

(ix) Credit collateral 80% of the deposit or cash collateral may be availed to
an obligor.
The Group ensures that each credit is reviewed and
granted based on the strength of the borrowers’ cash The main collateral types acceptable to the Bank for
flow. However, the Group also ensures its credit facilities loans and advances include:
are well secured as a second way out. The policies that
guide collateral for facilities are embedded within the ▪▪ Mortgages over residential properties
Group’s credit policy guide. These include the following ▪▪ Charges over business premises, fixed and floating
policy statements amongst others: assets as well as inventory.
▪▪ Charges over financial instruments such as equi-
Loans to individuals or sole proprietors must be secured ties, treasury bills etc.
by tangible, marketable collateral that has a market val-
ue that is supported by a valuation report from a regis- The fair values of collaterals are based upon last annual
tered estate valuer who is acceptable to the Group. The valuation undertaken by independent valuers on behalf
collateral must also be easy to check and easy to dis- of the Bank. The valuation techniques adopted for prop-
pose of. This collateral must be in the possession of, or erties are based upon fair values of similar properties in
pledged to, the Group. Client’s account balances must the neighbourhood taking into cognizance the advan-
be within the scope of cover provided by its collateral. tages and disadvantages of the comparatives over the
subject property and any other factor which can have
All collateral offered must have the following attributes: effect on the valuation e.g. subsequent movements in
house prices, after making allowance for dilapidations.
▪▪ There must be good legal title The fair values of non-property collaterals (such as equi-
▪▪ The title must be easy to transfer ties, bond, treasury bills, etc.) are determined with refer-
▪▪ It should be easy and relatively cheap to value ence to market quoted prices or market values of similar
▪▪ The value should be appreciating or at least stable instrument.
▪▪ The security must be easy to sell.
The same Fair value approach is used in determining the
All collateral must be protected by insurance. Exceptions collaterals value in the course of sale or realisation.The
include cash collateral, securities in safe keeping, indem- Bank does not take physical possession of properties or
nity or guarantees, or where our interest is general (for other assets held as collateral and uses external agents
instance in a negative pledge). The insurance policy has to realise the value as soon as practicable, generally at
to be issued by an insurer acceptable to the Bank. All auction, to settle indebtedness. Any surplus funds are
cash collateralized facilities shall have a 20% margin to returned to the borrower.
provide cushion for interest and other charges i.e. only

Summary of collaterals pledged by customers against loans and advances

An estimate of the fair value of any collateral and other security enhancements held against loans and ad-
vances to customers and banks is shown below:
Group Loans and advances to Loans and advances

Dec-2016 customers to Banks
In thousands of Nigerian Naira Gross Loans Collateral Gross Loans Collateral
Against individually impaired 60,397,669 95,389,975 - -

Against collectively impaired 253,797,536 509,493,167 1,845 1,841
Against past due but not impaired 798,424 1,163,624 - -
Against neither past due nor impaired 1,355,084,042 11,241,623,600 652,994 85,678
Total 1,670,077,671 11,847,670,366 654,839 87,519
Group Loans and advances to Loans and advances


Against past due but not impaired 3,422,544 69,693,786 - -
Against neither past due nor impaired 1,167,192,394 1,684,526,794 1,026,500 904,044
Total 1,402,274,565 2,075,613,842 1,051,785 928,070
Parent Loans and advances to Loans and advances


Against past due but not impaired 759,575 1,075,187 - -
Total 1,491,117,716 11,668,676,140 31,064 87,519
Parent Loans and advances to Loans and advances


Against past due but not impaired 2,126,983 68,173,187 - -
Total 1,291,516,228 1,916,766,015 639,081 812,026

Group

The type of Collaterals and Other Security enhancement held against the various loan classifications are dis-
closed in the table below:

Loans and advances to Loans and advances
customers to Banks
Against individually impaired:
Property 76,932,528 58,512,177 - -
Cash - 1,014,925 - -
Guarantees 1,156,779 1,448,190 - -
Negative pledge - - - -
ATC*, stock hypothecation and ISPO* - 1,036,249 - -
Others #
17,300,668 10,199,599 - -
Total 95,389,975 72,211,140 - -
Against collectively impaired:
Property 208,968,715 119,326,691 - -
Debt securities - - - -
Equities 132,139 940,536 - -
Treasury bills 13,316,963 139,577 - -
Cash 8,786,621 5,598,655 - -
Guarantees 66,317,977 13,645,651 - -
Negative pledge 47,651,670 299,774 - -
ATC*, stock hypothecation and ISPO* 2,081,773 5,536,736 - -
Others #
162,237,309 103,694,502 1,841 24,026
Total 509,493,167 249,182,122 1,841 24,026
Against past due but not impaired:
Property 1,163,624 8,693,786 - -
Others# - 61,000,000 - -
Total 1,163,624 69,693,786 - -
Against neither past due nor impaired:
Property 1,694,540,240 710,861,326 84,000 304,044
Equities 26,154,665 54,356,283 - -
Treasury bills 638,388 333,609 - -
Cash 15,261,390 16,158,524 - -
Guarantees 261,967,864 78,477,930 - -
Negative pledge 133,371,048 - - -
Others #
9,106,889,287 811,972,915 1,678 600,000
Total 11,241,623,600 1,684,526,794 85,678 904,044
Grand total 11,847,670,366 2,075,613,842 87,519 928,070
*
ISPO: Irrevocable standing payment order
*
ATC: Authority to collect
#
Others include Domiciliation, Counter Indemnity, Asset Debenture, etc

Parent
Loans and advances to Loans and advances
customers to Banks
Property 50,189,049 44,288,300 - -
Equities - - - -
Treasury bills - - - -
Cash - - - -
Guarantees 1,156,779 1,440,772 - -
Negative pledge - - - -
ATC*, stock hypothecation and ISPO* - 985,000 - -
Others #
17,293,223 10,140,903 - -
Total 68,639,051 56,854,975 - -
Property 144,640,228 72,328,747 - -
Equities 132,139 940,536 - -
Treasury bills 13,316,963 139,577 - -
Cash 6,462,044 4,365,688 - -
Guarantees 66,317,977 13,645,651 - -
Others # 161,196,012 94,561,851 1,841 24,026
Total 441,798,806 191,518,786 1,841 24,026
Property 1,075,187 7,173,187 - -
Equities - - - -
Treasury bills - - - -
ATC*, stock hypothecation and ISPO* - - - -
Cash - - - -
Guarantees - - - -
Others # - 61,000,000 - -
Total 1,075,187 68,173,187 - -
Property 1,632,042,871 640,974,203 84,000 188,000
Equities 26,154,665 54,356,283 - -
Treasury bills 638,388 333,609 - -
Cash 12,059,660 15,182,895 - -
Guarantees 253,398,866 73,077,722 - -
Others #
9,097,512,824 805,393,932 1,678 600,000
Total 11,157,163,096 1,600,219,067 85,678 788,000
Grand total 11,668,676,140 1,916,766,015 87,519 812,026
*ISPO: Irrevocable standing payment order | *ATC: Authority to collect | Others include Domiciliation, Counter Indemnity, Asset Debenture, etc
#

Summary of collaterals pledged by customers against loans and advances

Analysis of credit collateral is further shown below:
Group Loans and advances to customers Loans and advances to banks

Dec-2016
In thousands of Nigerian Naira Term Loans Overdrafts Others Total Term Loans Overdrafts Others Total
Property 57,806,951 17,833,696 1,291,881 76,932,528 - - - -
Guarantees 1,156,779 - - 1,156,779 - - - -
Others # 9,177,552 8,122,756 360 17,300,668 - - - -
Total 68,141,282 25,956,452 1,292,241 95,389,975 - - - -
Property 92,998,930 69,613,555 46,356,230 208,968,715 - - - -
Equities 125,488 6,651 - 132,139 - - - -
Treasury bills 50,000 - 13,266,963 13,316,963 - - - -
Cash 1,541,168 1,606,443 5,639,010 8,786,621 - - - -
Guarantees 56,045,752 9,412,797 859,428 66,317,977 - - - -
Negative pledge 34,797,412 10,754,806 2,099,452 47,651,670 - - - -
ATC*, stock hypothecation and ISPO* 1,533,404 548,369 - 2,081,773 - - - -
Others # 101,876,190 17,406,200 42,954,919 162,237,309 - 1,841 - 1,841
Total 288,968,344 109,348,821 111,176,002 509,493,167 - 1,841 - 1,841
Property 1,006,275 153,077 4,272 1,163,624 - - - -
Total 1,006,275 153,077 4,272 1,163,624 - - - -
Property 1,478,469,060 213,052,157 3,019,023 1,694,540,240 - - 84,000 84,000
Equities 23,596,013 2,558,652 - 26,154,665 - - - -
Treasury bills 124,331 514,057 - 638,388 - - - -
Cash 11,525,584 3,581,142 154,664 15,261,390 - - - -
Guarantees 114,488,893 147,065,034 413,937 261,967,864 - - - -
Negative pledge 32,789,657 100,541,976 39,415 133,371,048 - - - -
Others # 8,899,914,878 206,521,466 452,943 9,106,889,287 - - 1,678 1,678
Total 10,563,076,807 674,466,811 4,079,982 11,241,623,600 - - 85,678 85,678
Grand total 10,921,192,708 809,925,161 116,552,497 11,847,670,366 - 1,841 85,678 87,519
#
*ISPO: Irrevocable standing payment order *ATC: Authority to collect Others include Domiciliation, Counter Indemnity, Asset Debenture, etc

Group Loans and advances to customers Loans and advances to banks

Dec-2015
Property 31,482,313 27,017,484 12,380 58,512,177 - - - -
Cash 794,089 219,953 883 1,014,925 - - - -
Guarantees 5,804 1,442,380 6 1,448,190 - - - -
ATC*, stock hypothecation and ISPO* 599,126 437,078 45 1,036,249 - - - -
#
Others 6,496,257 3,703,291 51 10,199,599 - - - -
Total 39,377,589 32,820,186 13,365 72,211,140 - - - -
Property 75,633,665 41,849,816 1,843,210 119,326,691 - - - -
Equities 660,238 280,298 - 940,536 - - - -
Treasury bills 75,615 63,962 - 139,577 - - - -
Cash 1,139,760 4,457,822 1,073 5,598,655 - - - -
Guarantees 8,134,995 5,379,619 131,037 13,645,651 - - - -
Negative pledge 234,546 64,967 261 299,774 - - - -
ATC*, stock hypothecation and ISPO* 1,098,465 4,438,271 - 5,536,736 - - - -
#
Others 92,069,431 11,447,080 177,991 103,694,502 - - 24,026 24,026
Total 179,046,715 67,981,835 2,153,572 249,182,122 - - 24,026 24,026
Property 7,979,760 512,703 201,323 8,693,786 - - - -
Others# - 61,000,000 - 61,000,000 - - - -
Total 7,979,760 61,512,703 201,323 69,693,786 - - - -
Property 543,284,063 125,333,904 42,243,359 710,861,326 116,044 - 188,000 304,044
Equities 24,704,906 29,651,377 - 54,356,283 - - - -
Treasury bills 28,609 305,000 - 333,609 - - - -
Cash 12,851,230 1,925,989 1,381,305 16,158,524 - - - -
Guarantees 71,003,833 3,065,545 4,408,552 78,477,930 - - - -
ATC*, stock hypothecation and ISPO* 10,897,890 1,467,041 1,276 12,366,207 - - - -
#
Others 692,546,296 71,963,402 47,463,217 811,972,915 - 600,000 - 600,000
Total 1,355,316,827 233,712,258 95,497,709 1,684,526,794 116,044 600,000 188,000 904,044
Grand total 1,581,720,891 396,026,982 97,865,969 2,075,613,842 116,044 600,000 212,026 928,070
#

Parent Loans and advances to customers Loans and advances to banks

Dec-2016
Property 43,732,590 6,456,459 - 50,189,049 - - - -
Guarantees 1,156,779 - - 1,156,779 - - - -
Others# 9,173,634 8,119,589 - 17,293,223 - - - -
Total 54,063,003 14,576,048 - 68,639,051 - - - -
Property 59,144,608 42,246,868 43,248,752 144,640,228 - - - -
Equities 125,488 6,651 - 132,139 - - - -
Treasury bills 50,000 - 13,266,963 13,316,963 - - - -
Cash 317,807 617,519 5,526,718 6,462,044 - - - -
Guarantees 56,045,752 9,412,797 859,428 66,317,977 - - - -
Negative pledge 34,797,412 10,754,806 2,099,452 47,651,670 - - - -
Others# 101,328,184 16,963,210 42,904,618 161,196,012 - 1,841 - 1,841
Total 253,342,655 80,550,220 107,905,931 441,798,806 - 1,841 - 1,841
Property 959,733 115,454 - 1,075,187 - - - -
Total 959,733 115,454 - 1,075,187 - - - -
Property 1,445,578,405 186,464,466 - 1,632,042,871 - - 84,000 84,000
Equities 23,596,013 2,558,652 - 26,154,665 - - - -
Treasury bills 124,331 514,057 - 638,388 - - - -
Cash 9,840,601 2,219,059 - 12,059,660 - - - -
Guarantees 109,979,263 143,419,603 - 253,398,866 - - - -
Negative pledge 32,360,248 100,194,856 - 132,555,104 - - - -
Others# 8,894,980,302 202,532,522 - 9,097,512,824 - - 1,678 1,678
Total 10,518,627,554 638,535,542 - 11,157,163,096 - - 85,678 85,678
Grand total 10,826,992,945 733,777,264 107,905,931 11,668,676,140 - 1,841 85,678 87,519
#

Parent Loans and advances to customers Loans and advances to banks

Dec-2015
Property 20,353,397 23,934,903 - 44,288,300 - - - -
Guarantees - 1,440,772 - 1,440,772 - - - -
ATC*, stock hypothecation and ISPO* 559,029 425,971 - 985,000 - - - -
#
Others 6,450,333 3,690,570 - 10,140,903 - - - -
Total 27,362,759 29,492,216 - 56,854,975 - - - -
Property 38,861,961 31,664,481 1,802,305 72,328,747 - - - -
Equities 660,238 280,298 - 940,536 - - - -
Treasury bills 75,615 63,962 - 139,577 - - - -
Cash 175,073 4,190,615 - 4,365,688 - - - -
Guarantees 8,134,995 5,379,619 131,037 13,645,651 - - - -
Others# 84,923,946 9,467,863 170,042 94,561,851 - - 24,026 24,026
Total 133,930,293 55,485,109 2,103,384 191,518,786 - - 24,026 24,026
Property 6,790,026 383,161 - 7,173,187 - - - -
Others# - 61,000,000 - 61,000,000 - - - -
Total 6,790,026 61,383,161 - 68,173,187 - - - -
Property 488,603,617 110,188,055 42,182,531 640,974,203 - - 188,000 188,000
Equities 24,704,906 29,651,377 - 54,356,283 - - - -
Treasury bills 28,609 305,000 - 333,609 - - - -
Cash 12,087,887 1,714,552 1,380,456 15,182,895 - - - -
Guarantees 66,778,651 1,895,219 4,403,852 73,077,722 - - - -
#
Others 687,398,828 70,537,613 47,457,491 805,393,932 - 600,000 - 600,000
Total 1,289,353,543 215,441,194 95,424,330 1,600,219,067 - 600,000 188,000 788,000
Grand total 1,457,436,621 361,801,680 97,527,714 1,916,766,015 - 600,000 212,026 812,026
#

(b) Credit risk (continued)

Debt securities
The table below shows analysis of debt securities into the different classifications:

Group
Dec-2016
Financial assets Investment Assets pledged as

In thousands of Nigerian Naira Total
held for trading securities collateral
Federal government bonds 391,141 19,117,901 - 19,509,042

State government bonds - 9,361,461 - 9,361,461
Corporate bonds - 9,512,842 - 9,512,842
Treasury bills 11,662,778 486,303,333 48,216,412 546,182,523
12,053,919 524,295,537 48,216,412 584,565,868
The Group’s investment in risk-free Government securities constitutes 99% of debt instruments portfolio
(December 2015: 98%). Investment in corporate bond accounts for the outstanding 2% (December 2015:
1%).
Group
Dec-2015
Financial assets Investment Assets pledged as

held for trading securities collateral
Federal government bonds 16,407,536 5,815,887 - 22,223,423
Corporate bonds - 6,057,321 - 6,057,321
Treasury bills 18,218,650 371,195,614 61,954,777 451,369,041
34,626,186 389,366,088 61,954,777 485,947,051

Parent
Dec-2016
Financial assets Investment Assets pledged

held for trading securities as collateral
Federal government bonds 391,141 9,640,011 - 10,031,152
Corporate bonds - 9,192,632 - 9,192,632
Treasury bills 5,930,229 385,504,653 48,205,702 439,640,584
6,321,370 409,556,558 48,205,702 464,083,630
The Bank’s investment in risk-free Government securities constitutes 98% of debt instruments portfolio
(December 2015: 99%). Investment in corporate bond accounts for the outstanding 2% (December 2015: 1%).

Parent
Dec-2015

Financial assets Investment Assets pledged
held for trading securities as collateral
Federal government bonds 16,407,536 - - 16,407,536

Corporate bonds - 5,858,271 - 5,858,271
Treasury bills 8,668,082 317,510,416 61,946,270 388,124,768
25,075,618 326,579,262 61,946,270 413,601,150

(g) Liquidity risk 2. Maintenance of efficiently diversified sources of funds

along product lines, business segments and also re-
The Bank’s Liquidity Risk management process is primar- gions to avoid concentration risk.
ily the responsibility of the Market & Liquidity Risk Man-
agement Group within the Enterprise-wide Risk Man- The bank was able to meet all its financial commitments
agement (ERM) Division. and obligations without any liquidity risk exposure dur-
ing the year under review.
A brief overview of the bank’s liquidity management pro-
cesses during the period includes the following: The Group’s Asset and Liability Management Committee
(ALMAC) is charged with the responsibility of manag-
1. Maintenance of liquid and marketable assets above ing the Group’s daily liquidity position. A daily liquidity
the regulatory requirement of 30%. The Bank has position is monitored and regular liquidity stress testing
also set for itself more stringent in-house limit above is conducted under a variety of scenarios covering both
this regulatory requirement to which it strictly ad- normal and more severe market conditions. In addition,
heres. gap reports are prepared periodically to measure the
maturity mismatches between assets and liabilities. All
2. In monitoring its cash flow and balance sheet trends, liquidity policies and procedures are subject to review
the Bank makes forecast of anticipated deposits and and approval by ALMAC. The Market & Liquidity Risk
withdrawals to determine their potential effect on Management Group sets internal limits which are in
the Bank. conformity with regulatory limits. The limits are mon-
itored regularly with exceptions reported to the Man-
3. Regular monitoring of non-earning assets. agement Risk Committee (MRC) and Board respectively.
4. Monitoring of deposit concentration. (ii) Exposure to Liquidity Risk

5. Ensuring proper diversification of funding sources The key measure used by the Group for managing li-
quidity risk is the ratio of liquid assets to short term li-
6. Monitoring the level of undrawn commitments. abilities. For this purpose, liquid assets are considered
as including cash and cash equivalents and investment
7. Maintaining a contingency funding plan. grade debt securities for which there is an active and liq-
uid market. Short term liabilities includes local currency
(i) Funding approach deposits from banks and customers. A similar calcula-
tion is used to measure the Group’s compliance with the
The Bank’s overall approach to funding is as follows: liquidity limit established by the Bank’s lead regulator
(The Central Bank of Nigeria).
1. Generation of large pool of low cost deposits.

Dec-2016 Dec-2015
At end of year 42.19% 42.21%
Average for the year 38.56% 41.04%
Maximum for the year 42.19% 44.02%
Minimum for the year 36.13% 38.23%
Regulatory requirement 30.00% 30.00%
Liquidity ratio which is a measure of liquidity risk is calculated as a ratio of naira liquid assets to local
currency deposits and it is expressed in percentage.

Financial risk management (continued)
The following tables show the undiscounted cash flows on the Group’s financial assets and liabilities and
on the basis of their earliest possible contractual maturity.
The Gross nominal inflow / (outflow) disclosed in the table is the contractual, undiscounted cash flow on
the financial assets and liabilities.

(iii) Gross nominal (undiscounted) maturities of financial assets and liabilities
Group
Dec-2016

Gross nominal
Carrying inflow/out- Less than 3 6 to 12 More than 5
In thousands of Nigerian Naira Note amount flow months1 3 to 6 months months 1 to 5 years years
Financial assets
Cash and cash equivalents 23 455,863,305 456,345,091 429,723,448 7,755,804 18,865,839 - -
Financial assets held for trading 24 12,053,919 12,936,924 5,215,088 3,423,900 2,937,038 796,435 564,463
Derivative financial assets 25 1,042,470 1,074,105 1,074,105 - - - -
– Available for sale2 26 448,056,733 544,560,301 105,859,400 116,833,779 265,752,469 13,555,014 42,559,639
– Held to maturity 26 80,155,825 78,975,572 53,792,346 6,873,202 1,275,277 12,630,081 4,404,666
Assets pledged as collateral 27 48,216,412 53,399,280 - 29,788,570 23,600,000 10,710 -
Loans and advances to banks 28 653,718 653,486 653,486 - - - -
Loans and advances to customers 29 1,589,429,834 1,818,949,753 651,718,966 182,901,343 237,162,757 660,540,947 86,625,740
Restricted deposits and other
assets3 34 352,119,610 352,119,610 340,013,917 2,240,706 2,321,797 7,543,190 -
2,987,591,826 3,319,014,122 1,588,050,756 349,817,304 551,915,177 695,076,377 134,154,508
Financial liabilities
Deposits from banks 35 125,067,848 125,067,332 122,827,864 301,575 1,937,893 - -
Deposits from customers 36 1,986,246,232 1,980,709,606 1,898,367,175 41,611,164 34,720,016 6,011,251 -
Financial liabilities held for trading 37 2,065,402 3,614,473 391,069 245,891 973,756 - 2,003,757
Derivative financial liabilities 25 987,502 1,016,999 1,016,999 - - - -
Other liabilities4 39 115,540,806 116,269,473 91,938,998 2,849,529 12,524,399 8,956,547 -
Debt securities issued 38 126,237,863 126,238,016 8 - - 126,238,008 -
Other borrowed funds 41 219,633,604 251,687,471 10,718,490 22,381,881 24,693,895 149,699,286 44,193,919
2,575,779,257 2,604,603,370 2,125,260,603 67,390,040 74,849,959 290,905,092 46,197,676

Gap (asset - liabilities) (537,209,847) 282,427,264 477,065,218 404,171,285 87,956,832
Cumulative liquidity gap (537,209,847) (254,782,583) 222,282,635 626,453,920 714,410,752
1
Includes balances with no specific contractual maturities 2
Included in More than 5 years maturity bucket of Available for Sale are equity securities.
3
Excludes prepayments 4
Excludes Deferred Income
Management of this liquidity gap is as disclosed in Note 4(g)

Restricted deposits have been bucketed within “less than 3 months” to match the underlying deposit liabilities


Gross nominal (undiscounted) maturities of financial assets and liabilities

Group
Dec-2015

Gross nominal
Financial assets
Cash and cash equivalents 23 254,633,215 254,687,528 254,687,528 - - - -
Financial assets held for trading 24 34,626,186 59,096,017 10,949,504 4,857,098 6,514,140 11,415 36,763,860
– Held to maturity 26 29,408,045 30,249,198 16,931,318 4,762,943 2,181,502 6,373,159 276
Assets pledged as collateral 27 61,954,777 62,002,507 61,994,000 - - 8,507 -
Loans and advances to banks 28 1,051,521 1,092,945 473,466 619,479 - - -
assets3 34 288,902,707 288,902,708 282,555,327 584,289 667,759 5,095,333 -
2,406,682,148 2,621,074,697 1,480,204,824 187,673,784 247,159,340 581,773,857 124,262,892
Deposits from banks 35 26,256,839 26,256,790 22,382,476 495,337 3,378,977 - -
Deposits from customers 36 1,610,349,689 1,774,103,810 1,686,431,744 34,570,621 48,928,291 4,173,154 -
Other liabilities4 39 104,496,983 104,651,478 87,503,226 3,990,803 2,054,942 9,848,492 1,254,015
Debt securities issued 38 180,117,424 180,117,530 8 105,645,788 - 74,471,734 -
2,086,343,843 2,280,788,493 1,804,883,571 151,700,291 69,590,159 206,282,649 48,331,823
Cumulative liquidity gap (324,678,747) (288,705,254) (111,136,073) 264,355,135 340,286,204
Includes balances with no specific contractual maturities

1 2
Excludes prepayments
3 4





Parent
Dec-2016

Gross nominal
Financial assets
Cash and cash equivalents 23 233,847,233 233,959,513 210,887,257 5,064,689 18,007,567 - -
Financial assets held for trading 24 6,321,370 7,204,375 2,853,534 817,000 2,725,937 466,573 341,331
Derivative financial assets 25 1,042,470 1,074,105 1,074,105 - - - -
– Held to maturity 26 5,219,262 7,935,492 - - - 3,630,000 4,305,492
Assets pledged as collateral 27 48,205,702 52,994,000 - 29,394,000 23,600,000 - -
Loans and advances to banks 28 29,943 29,711 29,711 - - - -
assets3 34 350,472,626 350,472,626 338,366,933 2,240,706 2,321,797 7,543,190 -
2,470,603,463 2,779,513,344 1,231,213,400 296,778,697 498,670,830 636,051,539 116,798,878
Deposits from banks 35 40,438 40,438 40,438 - - - -
Deposits from customers 36 1,681,184,820 1,682,707,505 1,678,682,175 3,606,055 415,115 4,160 -
Financial liabilities held for trading 37 2,065,402 3,614,473 391,069 245,891 973,756 - 2,003,757
Derivative financial liabilities 25 987,502 1,016,999 1,016,999 - - - -
Other liabilities 4
39 90,013,993 90,088,198 83,989,447 2,365,652 2,696,641 1,036,458 -
2,106,610,036 2,144,905,524 1,770,026,816 25,068,864 28,779,407 274,832,761 46,197,676
1
3




Parent
Dec-2016

Gross nominal
Financial assets
Cash and cash equivalents 23 173,133,109 173,187,394 173,187,394 - - - -
Financial assets held for trading 24 25,075,618 49,545,450 1,398,937 4,857,098 6,514,140 11,415 36,763,860
– Held to maturity 26 3,210,575 4,051,726 - - - 4,051,726 -
Assets pledged as collateral 27 61,946,270 61,994,000 61,994,000 - - - -
Loans and advances to banks 28 638,817 680,241 60,762 619,479 - - -
assets3 34 286,317,708 286,317,708 281,222,375 - - 5,095,333 -
2,143,115,362 2,357,507,819 1,295,540,387 165,783,604 218,037,816 559,659,095 118,486,917
Deposits from banks 35 39,941 39,941 39,941 - - - -
Deposits from customers 36 1,422,550,125 1,586,304,010 1,569,289,509 13,655,750 3,276,647 82,104 -
Other liabilities4 39 85,088,484 85,242,976 78,141,334 3,827,413 1,602,393 1,671,836 -
1,846,258,850 2,040,703,206 1,653,170,620 130,126,693 20,106,989 190,221,096 47,077,808
1
3



Financial risk management (continued)
(i) Residual contractual maturities of financial assets and liabilities

Details of contractual maturities for assets and liabilities form an important source of information for the
management of liquidity risk which is managed through a series of measures, tests and reports that are
largely based on contractual maturity. The following table shows the contractual maturities at year end of
the Group’s financial assets and liabilities and represents actual and in some cases assumed obligation ex-
pected for the assets or liability to be recovered or settled. These figures do not include elements of future
incomes or costs.
Group
Dec-2016

Carrying Less than 3 6 to 12 More than 5
In thousands of Nigerian Naira Note amount months1 3 to 6 months months 1 to 5 years years
Financial Assets
Cash and cash equivalents 23 455,863,305 432,548,424 5,392,912 17,921,969 - -
Financial assets held for trading 24 12,053,919 5,177,779 3,374,715 2,558,670 637,605 305,150
Derivative financial assets 25 1,042,470 1,042,470 - - - -
– Available for sale2 26 448,056,733 105,229,594 94,358,809 221,584,235 11,168,287 15,715,808
– Held to maturity 26 80,155,825 54,186,895 5,900,054 5,237,423 8,650,833 6,180,620
Assets pledged as collateral 27 48,216,412 - 26,922,755 21,282,947 10,710 -
Loans and advances to banks 28 653,718 653,718 - - - -
Loans and advances to customers 29 1,589,429,834 625,567,344 176,261,021 193,656,248 526,515,980 67,429,241
Restricted deposits and other assets3 34 352,119,610 340,013,917 2,240,706 2,321,797 7,543,190 -
2,987,591,826 1,564,420,141 314,450,972 464,563,289 554,526,605 89,630,819
Deposits from banks 35 125,067,848 122,828,380 301,575 1,937,893 - -
Deposits from customers 36 1,986,246,232 1,881,368,658 40,238,264 36,316,423 28,322,887 -
Financial liabilities held for trading 37 2,065,402 383,259 228,332 824,609 - 629,202
Derivative financial liabilities 25 987,502 987,502 - - - -
Other liabilities4 39 115,540,806 90,676,925 2,841,106 12,503,222 9,519,553 -
Debt securities issued 38 126,237,863 - - - 126,237,863 -
Other borrowed funds 41 219,633,604 4,730,497 17,978,530 22,657,143 131,067,345 43,200,089
2,575,779,257 2,100,975,221 61,587,807 74,239,290 295,147,648 43,829,291


1 2
Excludes prepayments
3 4



Residual contractual maturities of contingencies

The table below shows the contractual expiry by maturity of the Group’s contingent liabilities and commit-
ments. The maximum amount of the contingencies is allocated to the earliest period in which the contingencies
could be called.

Group
Dec-2016
Carrying Less than 3-6 6-12 1-5 More than
In thousands of Nigerian Naira Note
amount 3 months1 months months years 5 years
Transaction related bonds and guarantees 44 503,027,562 45,056,512 30,937,756 48,969,031 38,573,087 339,491,176
Short term foreign currency related
44 1,641,614 1,641,614 - - - -
transactions
Clean line facilities and letters of credit 44 70,895,854 22,342,241 4,112,683 31,943,501 12,497,429 -
Other commitments 44 7,932,788 3,144,561 517,130 3,882,851 276,769 111,477
583,497,818 72,184,928 35,567,569 84,795,383 51,347,285 339,602,653
1

Residual contractual maturities of financial assets and liabilities
Group
Dec-2015
Financial assets
Cash and cash equivalents 23 254,633,215 254,633,215 - - - -
Financial assets held for trading 24 34,626,186 1,392,303 6,353,467 14,180,149 9,577 12,690,690
– Held to maturity 26 29,408,045 16,931,316 4,762,943 2,181,502 5,532,008 276
Assets pledged as collateral 27 61,954,777 61,946,270 - - 8,507 -

Loans and advances to banks 28 1,051,521 450,781 600,740 - - -
Restricted deposits and other assets3 34 288,902,707 282,555,326 584,289 667,759 5,095,333 -
2,406,682,148 1,450,879,510 170,984,290 221,376,604 480,957,076 82,484,668
Other liabilities4 39 104,496,983 87,481,277 3,980,430 2,035,411 9,745,850 1,254,015
Debt securities issued 38 180,117,424 - 105,645,788 - 74,471,636 -
Other borrowed funds 41 165,122,908 5,244,401 736,983 13,748,175 99,103,244 46,290,105
2,086,343,843 1,647,646,772 136,793,856 66,942,438 187,416,657 47,544,120
1
3
Excludes Prepayments 4



The table below shows the contractual expiry by maturity of the Group’s contingent liabilities and commit-
could be called.

Group
Dec-2015
Transaction related bonds and
44 463,573,112 31,608,964 9,227,069 39,810,550 21,950,150 360,976,379
guarantees
Short term foreign currency related 44 3,367,750 3,367,750 - - - -
transactions
Clean line facilities and letters of 44 84,713,490 52,211,708 28,305,415 4,196,367 - -
credit
Other commitments 44 12,766,126 7,325,847 1,722,407 1,468,940 1,873,847 375,085
564,420,478 94,514,269 39,254,891 45,475,857 23,823,997 361,351,464
1



Details of contractual maturities for assets and liabilities form an important source of information for the management
of liquidity risk which is managed through a series of measures, tests and reports that are largely based on contractual
maturity. The following table shows the contractual maturities at year end of the Group’s financial assets and liabili-
ties and represents actual and in some cases assumed obligation expected for the assets or liability to be recovered or
settled. These figures do not include elements of future incomes or costs.

Parent
Dec-2016

Note amount 3 months1 months months years 5 years
Financial assets
Financial assets held for trading 24 6,321,370 2,816,225 767,815 2,347,569 307,743 82,018

– Held to maturity 26 5,219,262 - - - 3,211,147 2,008,115
Assets pledged as collateral 27 48,205,702 - 26,922,755 21,282,947 - -
2,470,603,463 1,177,796,051 284,152,528 416,850,669 523,209,853 68,594,362
Deposits from banks 35 40,438 40,438 - - - -
Deposits from customers 36 1,681,184,820 1,677,258,300 3,527,076 395,777 3,667 -
Financial liabilities held for trading 37 2,065,402 383,259 228,332 824,609 - 629,202
2,106,610,036 1,767,370,571 20,560,552 21,741,192 253,108,430 43,829,291
1
2
3
Excludes Prepayments
4

restricted deposits have been bucketed within “less than 3 months” to match the underlying deposit liabilities


The table below shows the contractual expiry by maturity of the Parent’s contingent liabilities and commit-
could be called.

Parent
Dec-2016

Transaction related bonds and guarantees 44 468,303,919 22,596,062 23,590,361 44,862,879 37,763,441 339,491,176
Clean line facilities and letters of credit 44 43,091,160 - - 30,637,467 12,453,693 -
511,395,079 22,596,062 23,590,361 75,500,346 50,217,134 339,491,176
1

Parent
Dec-2015

Note amount 3 months1 months months years 5 years
Financial assets
– Held to maturity 26 3,210,575 - - - 3,210,575 -
Assets pledged as collateral 27 61,946,270 61,946,270 - - - -

Loans and advances to banks 28 638,817 38,077 600,740 - - -
Restricted deposits and other assets3 34 286,317,708 281,222,375 - - 5,095,333 -
2,143,115,362 1,275,493,790 146,683,874 183,555,566 460,673,439 76,708,693
Deposits from customers 36 1,422,550,125 1,415,734,635 4,799,121 2,011,492 4,877 -
Other liabilities4
39 85,088,484 78,119,387 3,817,041 1,582,862 1,569,194 -
1,846,258,850 1,499,108,727 114,998,933 14,505,883 171,355,202 46,290,105
1
3
Excludes Prepayments 4Excludes Deferred Income



The table below shows the contractual expiry by maturity of the Parent’s contingent liabilities and commit-
could be called.

Parent
Dec-2015
amount 3 months months months years 5 years
Transaction related bonds and guar- 44 454,123,077 25,584,729 8,148,959 37,576,123 21,836,887 360,976,379
antees
Clean line facilities and letters of credit 44 73,260,543 41,237,545 27,826,631 4,196,367 - -
527,383,620 66,822,274 35,975,590 41,772,490 21,836,887 360,976,379
1


(ii) Repricing period of financial assets and liabilities

Repricing maturities take into account the fact that the terms of the underlying financial assets or liabilities of
the Group can be varied, which in turn affects its liquidity risk exposure. The table below indicates the earliest
time the Group can vary the terms of the underlying financial asset or liabilities and analyses the Group’s inter-
est rate risk exposure on assets and liabilities at carrying amount and categorised by the earlier of contractual
re–pricing or maturity dates.
Group
Dec-2016
More
Carrying Less than 3-6 6-12 1-5
In thousands of Nigerian Naira Note than
amount 3 months months months years
5 years
Financial assets
Financial assets held for trading 24 12,053,919 5,177,779 3,374,715 2,558,670 637,605 305,150
– Held to maturity 26 80,155,825 54,186,895 5,900,054 5,237,423 8,650,833 6,180,620
Assets pledged as collateral 27 48,216,412 - 26,922,754 21,282,948 10,710 -
Loans and advances to customers 29 1,589,429,834 1,402,549,405 25,368,132 36,747,821 42,498,939 82,265,537
Restricted deposits and other assets 2
34 352,119,610 340,013,916 2,240,707 2,321,797 7,543,190 -
2,987,591,826 2,331,949,821 164,989,743 314,718,454 68,533,909 107,399,899
Financial liabilities held for trading 37 2,065,402 2,065,402 - - - -
Other liabilities3
39 115,540,806 98,742,784 2,841,106 4,437,363 9,519,553 -
Debt securities issued 38 126,237,863 - - - 126,237,863 -
2,575,779,257 2,107,930,446 62,929,585 66,571,489 295,147,648 43,200,089
411,812,569 224,019,375 102,060,158 248,146,965 (226,613,739) 64,199,810
Included in More than 5 years maturity bucket of Available for Sale are equity securities. | 2Excludes Prepayments |
1 3

Repricing period of financial assets and liabilities

time the Group can vary the terms of the underlying financial asset or liabilities and analyses the Group’s inter-
est rate risk exposure on assets and liabilities at carrying amount and categorised by the earlier of contractual
re–pricing or maturity dates.

Group
Dec-2015

Financial assets

– Held to maturity 26 29,408,045 16,931,316 4,762,943 2,181,502 5,532,008 276
Assets pledged as collateral 27 61,954,777 61,946,270 - - 8,507 -
Loans and advances to banks 28 1,051,521 1,051,521 - - - -
Loans and advances to customers 29 1,371,925,547 1,235,700,451 13,097,582 22,860,395 27,254,004 73,013,115
Restricted deposits and other assets2 34 288,902,707 282,555,326 584,289 667,759 5,095,333 -
2,406,682,148 2,094,165,765 53,991,946 121,378,705 40,349,079 96,796,653
Other liabilities3 39 104,496,983 87,481,277 3,980,430 2,035,411 9,745,850 1,254,015
Debt securities issued 38 180,117,424 - 105,645,788 - 74,471,636 -
Other borrowed funds 41 165,122,908 5,244,401 736,983 13,748,175 99,103,244 46,290,105
2,086,343,843 1,647,177,429 136,906,013 67,299,624 187,416,657 47,544,120
320,338,305 446,988,336 (82,914,067) 54,079,081 (147,067,578) 49,252,533
1
2
3


time the Group can vary the terms of the underlying financial asset or liabilities and analyses the Group’s in-
terest rate risk exposure on assets and liabilities included at carrying amount and categorised by the earlier of
contractual re–pricing or maturity dates.

Parent
Dec-2016

Financial assets
Financial assets held for trading 24 6,321,370 2,816,225 767,815 2,347,569 307,743 82,018
– Held to maturity 26 5,219,262 - - - 3,211,147 2,008,115
Assets pledged as collateral 27 48,205,702 - 26,922,754 21,282,948 - -
Loans and advances to customers 29 1,417,217,952 1,323,545,484 - 2,029,226 23,844,572 67,798,670
2,470,603,463 1,955,110,789 127,725,116 260,237,616 44,099,284 83,430,658
Deposits from customers 36 1,681,184,820 1,677,258,300 3,527,076 395,777 3,667 -
Financial liabilities held for trading 37 2,065,402 2,065,402 - - - -
Other liabilities3
39 90,013,993 83,970,576 2,357,229 2,675,465 1,010,723 -
2,106,610,036 1,769,052,714 20,332,220 20,916,583 253,108,430 43,200,089
363,993,427 186,058,075 107,392,896 239,321,033 (209,009,146) 40,230,569
1
2
3


Repricing maturities take into account the fact that the terms of the underlying financial assets or liabili-
ties of the Group can be varied, which in turn affects its liquidity risk exposure. The table below indicates
the earliest time the Group can vary the terms of the underlying financial asset or liabilities and analyses
the Group’s interest rate risk exposure on assets and liabilities included at carrying amount and catego-
rised by the earlier of contractual re–pricing or maturity dates.

Parent
Dec-2015

Financial assets
– Held to maturity 26 3,210,575 - - - 3,210,575 -
Loans and advances to customers 29 1,265,207,443 1,184,982,574 - 2,006,521 7,514,116 70,704,232
Restricted deposits and other assets2 34 286,317,708 281,222,375 - - 5,095,333 -
2,143,115,362 1,909,229,478 30,193,777 94,392,178 18,279,251 91,020,678
Deposits from customers 36 1,422,550,125 1,415,734,635 4,799,121 2,011,492 4,877 -
1,846,258,850 1,499,108,727 114,998,933 14,505,883 171,355,202 46,290,105
296,856,512 410,120,751 (84,805,156) 79,886,295 (153,075,951) 44,730,573
1
2
3

(h) Settlement Risk (ii) Exposure to Market Risks – Trading

Book
The Treasury Group activities with counterparties The principal tools used by Market & Liquid-
may give rise to settlement risk at the time of set- ity Risk Management Group to measure and
tlement of trade transactions. Settlement risk is the control market risk exposure within the Bank’s
risk of loss due to the failure of a counterparty to trading portfolios are the Open Position limits,
honour its obligations i.e. deliver cash, securities or Mark-to-Market Analysis, Value-at-Risk Analy-
other assets, as contractually agreed. sis, Sensitivity Analysis and the Earning-at-Risk
Analysis. Specific limits (regulatory and in-
In order to ensure that these risks are mitigated and house) across the trading portfolios have been
controlled, the Market & Liquidity Risk Management clearly defined, in line with the Bank’s overall
(MLRM) Group has put in place Settlement Limits. risk appetite. These set limits shall prevent un-
These limits are sought periodically using various due exposure in the event of abrupt market
criteria based on the counterparty’s financial state- volatility. The MLRM group ensures that these
ment and some other non-financial parameters. The limits and triggers are adhered to by the Trea-
FX Settlement limits are approved at the Manage- sury & Sales Group.
ment Credit Committee meeting and / or Board lev-
el, depending on the limit of each counterparty. The Bank traded in the following financial
instruments in the course of the period;
(i) Market Risk
Market risk is the risk of loss in On- or Off-balance 1. Treasury Bills
sheet positions, as a result of adverse movement in 2. Bonds (Spot and Repo transactions)
foreign exchange rate, interest rate, equity or com- 3. Foreign Currencies (Spot and Forwards)
modity prices. Whilst the group may be faced with 4. Money Market Instruments
myriads of market risks, the Market & Liquidity Risk
Management Group ensures these risks are man- (iii) Exposure to Interest Rate Risk –
aged and controlled within the bank’s acceptable Banking Book
parameters, while optimising returns on risk.
The principal risk to which non-trading portfo-
lios are exposed to, is the risk of loss from fluc-
(i) Management of Market Risk
tuations in the future cash flows or fair values
The Market & Liquidity Risk Management of financial instruments because of a change in
Group separates its market risk exposures into market interest rates. Interest rate risk is man-
the trading and banking books. Due to the var- aged principally using interest rate gaps. The
ious macro-economic indices and unanticipat- Asset & Liability Management (ALM) Group is
ed market happenings, it has become more im- responsible for managing and monitoring mis-
perative for the group to engage in continuous matches between the bank’s assets and liabil-
but proactive monitoring of market risks inher- ities. The Asset & Liability Management Com-
ent in both trading and non-trading activities. mittee (ALMAC) is responsible for ensuring
compliance with these limits while the limits
The trading portfolio resides with the Treasury are independently verified by Market & Liquidi-
& Sales Group of the Bank, and they maintain ty Risk Management group.
positions arising from market making and pro-
prietary trading activities. With the exception The Bank makes use of limit monitoring, earn-
of translation risk arising from the bank’s net ings-at-risk and gap analyses to measure and
investment in foreign currency, the Market & control the market risk exposures within its
Liquidity Risk Group monitors the foreign ex- banking book.
change position in the trading and banking
books. The bank also performs regular stress tests on
its banking and trading books. In performing
The overall authority of the Market & Liquidity this, the bank ensures there are quantitative
Risk Management Group is vested in the Man- criteria in building the scenarios. The bank de-
agement Risk Committee. termines the effect of changes in interest rates
on interest income; volatility in prices on trad-

ing income; and changes in funding sources native financing and hedging. Based on these
and uses on the bank’s liquidity. scenarios, the group calculates the impact on
profit and loss of a defined interest rate shift.
During the period, the foreign exchange risk, For each simulation, the same interest rate shift
interest rate risk and price risk, were the key is used for all currencies. The scenarios are run
risks the bank was exposed to. However, all po- only for assets and liabilities that represent the
tential risk exposures in the course of the pe- major interest-earning and bearing positions.
riod were successfully mitigated as mentioned Major assumptions underlying the sensitivity
above. are as follows:
(iv) Other market risks: Sensitivity analysis ▪▪ 100 basis point changes in floating interest
of non-trading portfolios to various rate on assets and liabilities held at amortized
scenarios cost; and Assets and liabilities measured at fair
The management of interest rate risk against value through profit or loss (December 2015 –
interest rate gap limits is supplemented with 100 basis points) with all other variables held
monitoring the sensitivity of the Group’s finan- constant, resulted in the impact on profit or
cial assets and liabilities to various scenarios. loss as set out in the table on page 190.
Credit spread risk (not relating to changes in
the obligor / issuer’s credit standing) on debt ▪▪ In arriving at the 100 basis point used for
securities held by the Group and equity price the sensitivity analysis of interest rate, the fluc-
risk is subject to regular monitoring by Group tuation in the interest rate of the Group’s major
Management Risk committee, but is not cur- assets and liabiliti]es were considered as shown
rently significant in relation to the overall re- below:
sults and financial position of the Group.
▪▪ The prime lending rate on loans and ad-
Interest rate movement have both cash flow vances which ranged between 16.54% and
and fair value effect depending on whether 17.09% over the period, a change of about
interest rate is fixed or floating. The impact re- 100 basis points is therefore probable.
sulting from adverse or favourable movement
flows from either retained earnings or OCI and ▪▪ The discount rate on various maturities of
ultimately ends in equity in the following man- treasury bills ranged between 4.12% and
ner: 13.96% over the financial period as published
by Central Bank of Nigeria (CBN)
▪▪ Retained earnings arising from increase or
decrease in net interest income and the fair ▪▪ A 100 basis point proportional change in the
value changes reported in profit or loss. cost of fund was also assumed because costs of
funds seldom vary beyond 100 basis point.
▪▪ Fair value reserves arising from increases or
decreases in fair value of available-for-sale The table below shows the changes that would im-
financial instruments reported directly in pact the income statement after carrying out inter-
other comprehensive income. est rate sensitivity:
At 31 December, 2016, the group’s interest

rate risk arises principally from risk assets and
borrowings i.e. (deposit liabilities and long-
term borrowings). Borrowings issued at variable
rates expose the group to cash flow interest
rate risk which is partially offset by cash held at
variable rates. Borrowings issued at fixed rates
expose the group to fair value interest rate risk.
The group therefore analyses its interest rate

exposure on a dynamic basis. Various scenar-
ios are simulated taking into consideration re-
financing, renewal of existing positions, alter-

Group
Pre-tax Post-tax Pre-tax Post-tax
Decrease 2,769,296 2,250,053 475,658 391,880

Asset (21,664,895) (17,602,727) (19,691,602) (16,223,329)
Liabilities 24,434,191 19,852,780 20,167,260 16,615,209
Increase (2,769,296) (2,250,053) (475,658) (391,880)

Asset 21,664,895 17,602,727 19,691,602 16,223,329
Liabilities (24,434,191) (19,852,780) (20,167,260) (16,615,209)
Parent
Decrease 1,227,951 1,014,533 (723,826) (605,081)

Asset (18,536,870) (15,315,162) (16,867,866) (14,100,654)
Liabilities 19,764,821 16,329,695 16,144,040 13,495,573
Increase (1,227,951) (1,014,533) 723,826 605,081

Asset 18,536,870 15,315,162 16,867,866 14,100,654
Liabilities (19,764,821) (16,329,695) (16,144,040) (13,495,573)
The aggregated figures presented above are further segregated into their various components as shown
in the following tables:

Components of Statement of financial position Interest Rate sensitivity (Fair Value and Cash Flow
Interest Rate Risk)
Group

Decrease
Assets
Cash and cash equivalents (664,057) (539,547) (748,610) (616,758)
Loans and advances to banks (41,901) (34,044) (57,315) (47,221)
Loans and advances to customers (15,620,539) (12,691,688) (14,228,911) (11,722,779)
Financial assets held for trading (188,373) (153,053) (257,244) (211,936)
Investment securities (4,574,484) (3,716,768) (3,827,059) (3,153,001)
Assets pledged as collateral (575,541) (467,627) (572,463) (471,635)
(21,664,895) (17,602,727) (19,691,602) (16,223,329)
Liabilities
Deposits from banks 1,261,724 1,025,150 265,349 218,613
Deposits from customers 19,580,822 15,909,418 16,420,863 13,528,664
Financial liabilities held for trading 6,292 5,112 32,456 26,740
Debt securities issued 1,262,379 1,025,683 1,797,363 1,480,794
Other borrowed funds 2,322,974 1,887,417 1,651,229 1,360,399
24,434,191 19,852,780 20,167,260 16,615,209
Total 2,769,296 2,250,053 475,658 391,880
Increase
Assets
Cash and cash equivalents 664,057 539,547 748,610 616,758
Loans and advances to customers 15,620,539 12,691,688 14,228,911 11,722,779
Financial assets held for trading 188,373 153,053 257,244 211,936
Investment securities 4,574,484 3,716,768 3,827,059 3,153,001
Assets pledged as collateral 575,541 467,627 572,463 471,635
21,664,895 17,602,727 19,691,602 16,223,329
Liabilities
Deposits from banks (1,261,724) (1,025,150) (265,349) (218,613)
Deposits from customers (19,580,822) (15,909,418) (16,420,863) (13,528,664)
Financial liabilities held for trading (6,292) (5,112) (32,456) (26,740)
Debt securities issued (1,262,379) (1,025,683) (1,797,363) (1,480,794)
Other borrowed funds (2,322,974) (1,887,417) (1,651,229) (1,360,399)
(24,434,191) (19,852,780) (20,167,260) (16,615,209)
Total (2,769,296) (2,250,053) (475,658) (391,880)

Parent

Decrease
Assets
Cash and cash equivalents (504,792) (417,059) (600,570) (502,045)
Loans and advances to Banks (156) (129) (6,387) (5,340)
Loans and advances to Customers (13,898,420) (11,482,875) (12,327,566) (10,305,201)
Financial assets held for trading (131,047) (108,271) (161,739) (135,205)
Investment securities (3,427,020) (2,831,404) (3,199,141) (2,674,315)
Assets pledged as collateral (575,435) (475,424) (572,463) (478,549)
(18,536,870) (15,315,162) (16,867,866) (14,100,654)
Liabilities
Deposits from banks 11,450 9,460 3,180 2,658
Deposits from customers 16,530,208 13,657,258 14,714,049 12,300,175
Debt securities issued - - - -
19,764,821 16,329,695 16,144,040 13,495,573
Total 1,227,951 1,014,533 (723,861) (605,081)
Increase
Assets
Cash and cash equivalents 504,792 417,059 600,570 502,045
Loans and advances to Banks 156 129 6,387 5,340
Loans and advances to Customers 13,898,420 11,482,875 12,327,566 10,305,201
Financial assets held for trading 131,047 108,271 161,739 135,205
Investment securities 3,427,020 2,831,404 3,199,141 2,674,315
Assets pledged as collateral 575,435 475,424 572,463 478,549
18,536,870 15,315,162 16,867,866 14,100,654
Liabilities
Deposits from banks (11,450) (9,460) (3,180) (2,658)
Deposits from customers (16,530,208) (13,657,258) (14,714,049) (12,300,175)
Financial liabilities held for trading (31,549) (26,066) (32,456) (27,132)
Debt securities issued - - - -
Other borrowed funds (3,191,614) (2,636,912) (1,394,355) (1,165,608)
(19,764,821) (16,329,695) (16,144,040) (13,495,573)
Total (1,227,951) (1,014,533) 723,861 605,081
As for Cash flow interest rate risk, this risk arises from long-term borrowings. Borrowings issued at variable
rates expose the group to cash flow interest rate risk which is partially offset by cash held at variable rates.

At 31 December 2016, if interest rates on borrowed funds at amortised cost increased or reduced by 50
basis points with all other variables held constant, the effect on cash flow would have been as set out
below:
Group
Decrease 969,542 787,753 356,764 293,555
Increase (969,542) (787,753) (356,764) (293,555)
Parent
Pre-Tax Post-Tax Pre-Tax Post-Tax
Decrease 912,499 753,907 348,589 291,402
Increase (912,499) (753,907) (348,589) (291,402)
(v) Sensitivity Analysis of Trading Portfolio to Price and its Impact on Profit and Loss
1. Held for Trade - Bond price sensitivity
The Group carried out the following in determining sensitivity of the Group’s profit to fluctuations in mar-
ket prices of bond:
▪▪ Daily bond prices were obtained and trended for the different series of Bonds in issue as at the
reporting date.
▪▪ A reasonably possible change of ± 1 naira was determined based on the distribution of one year
daily change in bond prices. The graph below indicates that large proportion of changes in price
falls within the range of ± 1 naira.
▪▪ The chosen reasonable change in market prices was then applied to the bank’s holding of trading
bonds as at end of the period.
2.22 -1.93 -1.35 -1.06 -0.77 -0.48 -0.19 0.1 0.39 0.68 0.97 1.26 1.55 1.84 2.13

The result of the price sensitivity i.e. impact on mark-to-market profit or loss as at 31 December 2016,
when price of bonds designated as financial assets held for trading increased or decreased by one naira
with all other variables held constant, would have been as set out in the tables below:
Group
Decrease (4,019) (3,321) (145,373) (119,617)
Increase 4,019 3,321 145,373 119,617
Parent
Decrease (4,019) (3,266) (145,373) (121,524)
Increase 4,019 3,266 145,373 121,524
2. Held for Trade - Treasury bills discount rate / price sensitivity

The Group carried out the following in determining sensitivity of the Group’s profit to fluctuations in
market prices of treasury bills:

▪▪ Daily market discount rates were obtained, converted to prices and trended for the different
maturities of treasury bills in issue as at the reporting date.
▪▪ A reasonably possible change of 100 basis points was determined based on the distribution of
one year daily change in discount rates on treasury bills. The graph below indicates that large
proportion of changes in discount rates falls within the range of 100 basis points.
▪▪ The chosen reasonable change in market discount rates was then applied to the bank’s holding of
Trading bills
FLUCTUATION IN DISCOUNT RATES FOR TBILLS (%)

90
80
FREQUENCY OF DISCOUNT RATE CHANGE (DAYS)
70
60
50
40
30
20
10
0
-3.34 -2.42 -1.49 -1.18 -0.87 -0.56 -0.25 0.06 0.37 0.68 0.99 1.23
DISCOUNT RATE CHANGE (%)

The result of the price sensitivity i.e. impact on mark-to-market profit or loss as at 31 December , 2016, if
discount rates of treasury bills, increased or reduced by 100 basis points with all other variables held con-
stant, would have been as set out in the tables below:
Group
Decrease 25,874 21,377 39,552 32,544
Increase (25,874) (21,377) (39,552) (32,544)
Parent
Pre-Tax Post-Tax Pre-Tax Post-Tax
Decrease 25,874 21,022 39,552 33,063
Increase (25,874) (21,022) (39,552) (33,063)
(vi) Sensitivity Analysis of Available for Sale Portfolio to Price and its Impact on OCI
3. Financial Instrument fair value through equity - Other Comprehensive Income (OCI)

The Group recognized fair value changes for AFS Bonds, Bills and Equities as at 31 December 2016 and the
comparative period in 2015. The Group carried out the following in determining sensitivity of the Group’s
other comprehensive income to fluctuations in market prices of the financial assets:
Available for Sale Bonds to be fair valued through equity - Other Comprehensive Income (OCI)
▪▪ A reasonably possible change of ± 1 naira was determined based on the distribution of one year
daily change in market prices. The results were that fluctuations were in the range of ± 1 naira.
The result of the price sensitivity i.e. impact on other comprehensive income as at 31 December 2016,
when price of bonds designated as available for sales increased or decreased by one naira with all other
variables held constant, would have been as set out in the tables below:
Group
Decrease (214,940) (177,584) (66,085) (54,376)
Increase 214,940 177,584 66,085 54,376
Parent
Decrease (214,940) (174,639) (66,085) (55,243)
Increase 214,940 174,639 66,085 55,243

Available for Sale Treasury Bills to be fair valued ▪▪ A reasonably possible change of ± 100 basis points
through equity - Other Comprehensive Income (OCI) was determined based on the distribution of one
year daily change in discount rates on treasury bills.
The graph below indicates that large proportion
The Group carried out the following in determining sensi-
of changes in discount rates falls in the range of ±
tivity of the Group’s profit to fluctuations in market prices
100 basis points.
of treasury bills:

▪▪ Daily market discount rates were obtained and ▪▪ The chosen reasonable change in market
trended for the different maturities of treasury discount rates was then applied to the bank’s
bills in issue as at the reporting date. holding of Available for Sale treasury bills as at
end of the period.
The result of the price sensitivity i.e. impact on other comprehensive income as at 31 December 2016, if discount
rates of treasury bills designated as available for sales, converted to prices, increased or reduced by 100 basis points
with all other variables held constant, would have been as set out in the tables below:
Group
Decrease 2,497,907 2,063,770 819,278 674,124
Increase (2,497,907) (2,063,770) (819,278) (674,124)
Parent
Decrease 2,497,907 2,029,549 819,278 684,874
Increase (2,497,907) (2,029,549) (819,278) (684,874)
(vii) Sensitivity analysis of level 3 equity Instruments and its impact on OCI
The estimated fair value per share of each of the unquoted equity instruments has been determined using the relevant
valuation models (where applicable/suitable). IFRS 13 outlines three approaches to fair value measurements. We have
adopted the income approach in determining the fair values of these investments. Among the significant inputs into
the models are the following:
1. Risk free rate (Rf) 2. Beta (B) coefficient 3. Market return (Rm)
4. Free cash flow (FCF) 5. Cost of debt/equity etc.
The inputs were used to determine appropriate weighted cost of capital which subsequently was used to discount
the free cash flow of the company before arriving at the appropriate fair value of the share of the unquoted equity.
In determining the sensitivity of the fair value of the share of the unquoted equity to changes to the various inputs,
we have assumed a 100 basis points increase or decrease to equity price of the company determined using discounted
cash flow, the resultant impact to pre-tax and post-tax results arising from the sensitivity analysis are as shown in the
table below:
Group
Dec-16 Dec-16 Dec-15 Dec-15
In thousands of Nigerian Naira Pre-Tax Post-Tax Pre-Tax Post-Tax
Decrease (42,795) (34,771) (41,170) (33,876)
Increase 42,795 34,771 41,170 33,876
Parent
In thousands of Nigerian Naira Pre-Tax Post-Tax Pre-Tax Post-Tax
Decrease (42,795) (35,357) (41,170) (34,416)
Increase 42,795 35,357 41,170 34,416

(viii) Exposure to foreign currency risk Foreign exchange profit or loss (Dollars)
The group operates internationally and is exposed The Group carried out the following in determining
to foreign exchange risk arising from various cur- sensitivity of the Group’s profit to fluctuations in ex-
rency exposures primarily with respect to the US change rate of dollars:
dollar, UK pound and Euro. Foreign exchange risk
represents exposures to changes in the values of ▪▪ Daily dollar exchange rates were obtained
current holdings and future cash flows denominat- and trended
ed in other currencies. The types of instruments ex- ▪▪ A reasonably possible change of ± 7.27
posed to this risk include investments in foreign sub- (December 2015: ± 2.49) was determined
sidiaries, foreign currency-denominated loans and based on the distribution of two years
securities, future cash flows in foreign currencies daily change in exchange rates. The graph
arising from foreign exchange transactions, foreign below indicates that large proportion of
currency denominated debt amongst others. The changes in price falls in the range of ± 7.27
value of these instruments fluctuate with changes (December 2015: ±2.49)
in the level or volatility of currency exchange rates ▪▪ The chosen reasonable change in exchange
or foreign interest rates. The Group deploys foreign rates was then applied to the bank’s dollar
derivative instruments whose values hedges curren- position as at end of the period.
cy debts to foreign currency loans and advances to
eliminate exchange exposures on such borrowings.
FLUCTUATION IN DOLLARS EXCHANGE RATE (IN NAIRA)

350
FREQUENCY OF E.R CHANGE
300
250
200
150
100
50
CHANGE IN EXCHANGE RATE (NAIRA)
At 31 December 2016, if the Naira had weakened/strengthened by ± 7.27 Naira against the Dollar with
all other variables held constant the pre-tax and post-tax profit for the period would have increased/(de-
creased) as set out in the table below mainly as a result of foreign exchange gains or losses on the trans-
lation

Group

Decrease (6,810,537) (5,533,561) (2,153,416) (1,774,136)
Increase 6,810,537 5,533,561 2,153,416 1,774,136
Parent
Decrease (6,860,097) (5,667,812) (2,135,229) (1,784,939)
Increase 6,860,097 5,667,812 2,135,229 1,784,939
Foreign exchange profit or loss (Pounds)
The Group carried out the following in determining sensitivity of the Group’s profit to fluctuations in
exchange rate of pounds:
▪▪ Daily pound exchange rates were obtained and trended

▪▪ A reasonably possible change of ± 8.54 (December 2015: ± 2.85) was determined based on the
distribution of two years daily change in exchange rates. The graph below indicates that large
proportion of changes in price falls in the range of ± 8.54 (December 2015: 2.85)
▪▪ The chosen reasonable change in exchange rates was then applied to the bank’s position
as at end of the period.
FLUCTUATION IN POUNDS EXCHANGE RATE (IN NAIRA)

FREQUENCY OF E.R CHANGE (DAYS)
300
250
200
150
100
50
At 31 December 2016, if the Naira had weakened/strengthened by ± 8.54 Naira against the Pounds with
all other variables held constant the pre-tax and post-tax profit for the period would have increased/(de-
creased) as set out in the table below mainly as a result of foreign exchange gains or losses on the trans-
lation.

Group

Decrease (117,115) (95,156) (13,967) (11,507)
Increase 117,115 95,156 13,967 11,507
Parent
Decrease (119,782) (98,964) (13,967) (11,675)
Increase 119,782 98,964 13,967 11,675
Foreign exchange profit or loss (Euros)
The Group carried out the following in determining sensitivity of the Group’s profit to fluctuations in ex-
change rate of Euro:
▪▪ Daily Euro exchange rates were obtained and trended

▪▪ A reasonably possible change of ± 9.19 (December 2015: ± 3.35) was determined based on the
distribution of two year daily change in exchange rates. The graph below indicates that large
proportion of changes in price falls in the range of ± 9.19 (December 2015: ± 3.35)
▪▪ The chosen reasonable change in exchange rates was then applied to the bank’s euro position as
at end of the period.
FLUCTUATION IN EURO EXCHANGE RATE (IN NAIRA)

350
FREQUENCY OF E.R CHANGE (DAYS)
300
250
200
150
100
50
0
-97.11-88.25-79.39-70.53-61.68-52.82-43.96-35.10-26.24-17.38 -8.53 0.33 9.19 18.05 26.91 35.77 44.62 53.48 62.34 71.20
At 31 December 2016, if the Naira had weakened/strengthened by ± 9.19 Naira(December 2015: ± 3.35)
against the Euro with all other variables held constant, the pre-tax and post-tax profit for the period would
have increased/(decreased) as set out in the table below mainly as a result of foreign exchange gains or
losses on the translation.

Group

Decrease (168,391) (136,818) (59,581) (49,087)
Increase 168,391 136,818 59,581 49,087
Parent
Decrease (168,103) (138,887) (59,581) (49,807)
Increase 168,103 138,887 59,581 49,807
Foreign Exchange Profit or Loss (Other Currencies)
At 31 December 2016, if Naira had weakened/strengthened by ± 8.33 (December 2015: ± 2) against the
other currencies with all other variables held constant, the impact of possible fluctuations in exchange rates
on the overall foreign exchange revaluation profit of the bank is as shown below:
Group
Decrease (18,081) (14,691) (207,141) (173,159)
Increase 18,081 14,691 207,141 173,159
Parent
Decrease (17,488) (14,488) (207,141) (170,657)
Increase 17,488 14,488 207,141 170,657

(ix) Sensitivity analysis of derivative valuation analyzes the sensitivity of their fair values to an im-
mediate change in foreign currency rates. Fair val-
The fair value of foreign exchange contracts varies ues represent the present value of forecasted future
largely due to changes in foreign currency exchange cash flows at market foreign currency exchange
rates. For the purpose of assessing specific risks, the rates. A favorable change indicates a weakening of
Group carried out a sensitivity analysis to determine the Nigerian Naira against the U.S. Dollar and an
the effects that market risk exposures may have on unfavorable change indicates a strengthening of the
the fair value of the Group’s derivative financial in- Nigerian Naira against the U.S. Dollar. The selection
struments and results of operations. To perform the of ±N7.27(December 2015: ±N2.49) favorable or
sensitivity analysis, daily U.S. Dollar exchange rates unfavorable change in foreign currency exchange
were obtained and trended; with all other variables rates should not be construed as a prediction by
kept constant and a proportional foreign exchange the Group of future market events, but rather, to
rate movement of N7.27 (December 2015: ±N2.49) illustrate the potential impact of such an event. The
(depreciation of the Nigerian Naira) and -N7.27 (De- modeling technique used to calculate the exposure
cember 2015: ±N2.49) (appreciation of the Nigeri- does not take into account correlation among for-
an Naira) against the U.S. Dollar; or ± 7.27 change eign currency exchange rates, or correlation among
(December 2015: ±N2.49) in Nigerian Naira against various markets such as the foreign exchange, equi-
the U.S. Dollar have been considered to be reason- ty and fixed-income markets. Actual experience may
ably possible based on the distribution of two years differ from the results in the table below due to the
daily change in exchange rates of the U.S. Dollar. correlation assumptions utilized, or if events occur
that were not included in the methodology, such as
The following table summarizes our derivatives fi- significant liquidity or market events.
nancial instruments as at 31 December, 2016 and
Group
Dec-16
Total derivatives
Favourable Unfavourable Favourable Unfavourable
changes changes changes changes
Fair Value (Pre-tax) (Pre-tax) (Post-tax) (Post-tax)
Notional
Contract Income Income Income Income
In thousands of Nigerian Naira Amount Asset Liability Statement Statement Statement Statement
Total derivative assets/(liabilities) held
for trading 30,451,250 1,042,470 (987,502) 40,166 (40,166) 33,185 (33,185)
Derivative assets/(liabilities) 30,451,250 1,042,470 (987,502) 40,166 (40,166) 33,185 (33,185)
(Please refer to Note 25 for the components of the Derivative assets/liabilities.
Dec-15
Total derivatives
Less Less
Favourable Favourable Favourable Favourable
Fair Value (Pre-tax) (Pre-tax) (Pre-tax) (Pre-tax)
Notional
for trading - - - - - - -
Derivative assets/(liabilities) - - - - - - -

The impact of the sensitivity analysis of the Group’s derivatives held for trading that are outstanding as at
31 December, 2016, assuming a reasonable amount of ±7.27 ((December 2015: ±N2.49) favorable or less
favorable change in foreign exchange rates would have been to increase the pre-tax fair values by up to
N40,166 (2015: Nil) or a lower increase of -N40,166 (2015 decrease to Nil) respectively; with all the poten-
tial effect impacting profit and loss rather than equity.
Parent
Dec-16
Total derivatives
Less Less
Fair Value (Pre-tax) (Pre-tax) (Post-tax) (Post-tax)
Notional
for trading 30,451,250 1,042,470 (987,502) 40,166 (40,166) 33,165 (33,165)
Derivative assets/(liabilities) 30,451,250 1,042,470 (987,502) 40,166 (40,166) 33,165 (33,165)
Dec-15
Total derivatives
Less Less
Fair Value (Pre-tax) (Pre-tax) (Pre-tax) (Pre-tax)
Notional
for trading - - - - - - -
Derivative assets/(liabilities) - - - - - - -

(x) Sensitivity of Loan Loss Impairment to ▪▪ The probability of default was obtained on
changes in Risk Parameter a monthly basis.
Loan loss impairment as stated on the statement of ▪▪ A possible change of five per cent was
financial position is subject to interplay of three key determined based on the distribution of
variables: probability of default, loss given default, monthly change in the probability of
and emergence period. Therefore changes to these default.
three key variables would directly impact the credit
losses reported for the financial period. ▪▪ The chosen change in the probability of
default was then applied to the bank’s loan
Sensitivity of Loan Loss Impairment - Probabil- portfolio as at end of the period.
ity of Default (PD)
As at 31 December 2016, if probability of default in-
creased or decreased by 5%, with all other variables
The Group carried out the following activities in as-
(exposure at default, emergence period and loss giv-
sessing the sensitivity of the Group’s profit to fluctu-
en default) held constant, the impact on impairment
ations in the probability of default:
charge, which ultimately affects, would have been
as set out in the tables below:
Group
Decrease 2,393,162 1,938,753 73,395 63,146
Increase (2,393,162) (1,938,753) (73,395) (63,146)
Parent
Decrease 2,192,921 1,806,060 67,955 58,466
Increase (2,192,921) (1,806,060) (67,955) (58,466)
Sensitivity of Loan Loss Impairment – Emergence Period (EP) The Group in assessing the sensitivity
of the Group’s profit to fluctuations in the loss emergence period adjusted the timing gap between the
emergence of impairment triggers and the time at which management becomes aware of the loss by 1
month. The chosen change in emergence period was then applied to the bank’s loan portfolio as at year
ended 31 December 2016.

As at 31 December, 2016 if the emergence period increased or decreased by 1 month, with all other
variables (exposure at default, probability of default and loss given default) held constant, the impact on
impairment charge, which ultimately affects profit, would have been as set out in the tables below:
Group

Decrease 2,993,049 2,424,734 1,184,761 1,019,316
Increase (2,993,049) (2,424,734) (1,184,761) (1,019,316)
Parent

Decrease 2,742,614 2,258,779 1,096,949 943,766
Increase (2,742,614) (2,258,779) (1,096,949) (943,766)
Sensitivity of Loan Loss Impairment – As at 31 December, 2016 if the loss given default
Loss Given Default (LGD) increased or decreased by one per cent, with all
other variables (exposure at default, emergence pe-
The Group in assessing the sensitivity of the Group’s
riod and probability of default) held constant, the
profit to fluctuations in the loss given default, as-
impact on impairment charge, which ultimately af-
sumed a 1% change in the loss given default. The
fects profit, would have been as set out in the tables
chosen change in the loss given default was then
below:
applied to the bank’s loan portfolio as at end of the
period.
Group

Decrease 1,180,443 956,303 (155,603) (133,873)
Increase (1,301,819) (1,054,632) 193,295 166,302
Parent

Decrease 1,081,673 890,851 (144,070) (123,952)
Increase (1,192,893) (982,450) 178,968 153,976

The table below summaries the Group’s financial and non-financial instruments at carrying amount,
categorised by currency:
Group
Dec-2016
Financial instruments by currency
In thousands of Nigerian Naira Note Total Naira USD GBP Euro Others
Cash and cash equivalents 23 455,863,305 44,254,895 325,605,863 37,228,555 16,583,677 32,190,315
Financial assets held for trading 24 12,053,919 6,321,354 - - - 5,732,565
Derivative financial assets 25 1,042,470 649,458 393,012 - - -
– Available for sale 26 448,056,733 419,367,419 20,743,060 5,779,713 - 2,166,541
– Held to maturity 26 80,155,825 17,501,262 525,505 - - 62,129,058
Restricted deposits and other assets1 34 352,119,610 338,594,629 11,014,741 438,571 1,373,564 698,105
2,987,591,826 1,544,544,249 1,166,156,095 71,312,903 18,991,662 186,586,917
Deposits from banks 35 125,067,848 648,008 111,092,170 124,313 2,648,263 10,555,094

Deposits from customers 36 1,986,246,232 1,290,461,271 508,535,474 50,850,163 12,968,046 123,431,278
Derivative financial liabilities 25 987,502 314,971 672,531 - - -
Other liabilities
2
39 115,540,806 61,788,399 47,861,037 901,639 1,363,746 3,625,985
Debt securities issued 38 126,237,863 - 125,639,951 - - 597,912
Other borrowed funds 41 219,633,604 84,248,088 135,378,584 - - 6,932
2,573,713,855 1,437,460,737 929,179,747 51,876,115 16,980,055 138,217,201
Financial Instrument Gap 413,877,971 107,083,512 236,976,348 19,436,788 2,011,607 48,369,716
1
Excludes Deferred Income and impact of currency position
The above table does not give representation of the On-Balance sheet gap of the Group in terms of curren-
cy (foreign and local currencies) because non Financial Instruments elements are not taken into consider-
ation as it falls outside the IFRS 7 disclosure requirement. On the Asset side, Property, Plant & Equipment,
Intangible Assets and Prepayment are not included while on the Liability side, Deferred Income, Tax Payable
and Deferred Tax and Positions have also been excluded.

Group
Dec-2015
Financial Instruments by currency
Cash and cash equivalents 23 254,633,215 60,959,697 125,354,871 35,080,506 12,715,058 20,523,083
Financial assets held for trading 24 34,626,186 25,075,618 - - - 9,550,568
– Available for sale 26 364,180,150 321,727,551 12,188,901 3,819,713 - 26,443,985
– Held to maturity 26 29,408,045 3,210,575 199,049 - - 25,998,421
Assets pledged as collateral 27 61,954,777 61,946,270 - - - 8,507
Loans and advances to banks 28 1,051,521 616,350 103,697 - - 331,474
Loans and advances to customers 29 1,371,925,547 682,221,754 597,968,552 17,017,232 657,050 74,060,959
34 288,902,707 278,969,132 7,592,322 230,468 761,070 1,349,715
2,406,682,148 1,434,726,947 743,407,392 56,147,919 14,133,178 158,266,712
Deposits from banks 35 26,256,839 39,941 5,408,550 3,798,643 514,612 16,495,093

Deposits from customers 36 1,610,349,689 1,161,931,095 299,930,726 35,957,952 7,947,188 104,582,728
Other liabilities2 39 104,496,983 83,521,766 10,187,385 590,630 761,977 9,435,225
Debt securities issued 38 180,117,424 - 179,736,280 - - 381,144
Other borrowed funds 41 165,122,908 80,566,981 84,354,242 - - 201,685
2,086,343,843 1,326,059,783 579,617,183 40,347,225 9,223,777 131,095,875
Financial Instrument Gap 320,338,305 108,667,164 163,790,209 15,800,694 4,909,401 27,170,837
1

Parent
Dec-2016
Financial instruments by currency
Cash and cash equivalents 23 233,847,233 31,027,677 172,859,505 20,627,067 8,762,922 570,062
Financial assets held for trading 24 6,321,370 6,321,370 - - - -
Derivative financial assets 25 1,042,470 649,458 393,012 - - -
– Available for sale 26 408,246,905 399,054,273 9,192,632 - - -
– Held to maturity 26 5,219,262 5,219,262 - - - -
Loans and advances to customers 29 1,417,217,952 644,366,023 772,833,257 4 18,668 -
34 350,472,626 338,528,418 10,241,866 361,353 1,311,162 29,827
2,470,603,463 1,473,400,448 965,521,950 20,988,424 10,092,752 599,889

Deposits from customers 36 1,681,184,820 1,249,610,067 406,864,859 16,442,362 8,264,559 2,973
Derivative financial liabilities 25 987,502 314,971 672,531 - - -
Other liabilities
2
39 90,013,993 43,305,740 44,960,787 388,363 1,328,185 30,918
Other borrowed funds 41 332,317,881 84,248,088 248,069,793 - - -
2,104,544,634 1,377,519,304 700,567,970 16,830,725 9,592,744 33,891
Financial Instrument Gap 366,058,829 95,881,144 264,953,980 4,157,699 500,008 565,998
1

Parent
Dec-2015
Cash and cash equivalents 23 173,133,109 60,900,361 86,803,401 16,303,440 8,774,840 351,067
Financial assets held for trading 24 25,075,618 25,075,618 - - - -
– Available for sale 26 327,585,822 321,727,551 5,858,271 - - -
– Held to maturity 26 3,210,575 3,210,575 - - - -
Loans and advances to customers 29 1,265,207,443 682,221,754 582,341,419 312 643,887 71
Restricted deposits and other assets1 34 286,317,708 278,969,132 6,357,038 230,468 761,070 -
2,143,115,362 1,434,667,611 681,382,596 16,534,220 10,179,797 351,138

Deposits from customers 36 1,422,550,125 1,161,931,095 244,302,305 10,700,273 5,615,953 499
Other liabilities2 39 85,088,484 75,558,016 8,546,614 230,463 752,325 1,066
Other borrowed funds 41 338,580,300 80,566,981 258,013,319 - - -
1,846,258,850 1,318,096,033 510,862,238 10,930,736 6,368,278 1,565
Financial Instrument Gap 296,856,512 116,571,578 170,520,358 5,603,484 3,811,519 349,573
1


OTHER NOTES
TO THE FINANCIAL
STATEMENTS

OTHER NOTES TO THE FINANCIAL STATEMENTS
5. Capital management and other risks stipulates a minimum level of capital that banks
must maintain to ensure that they can meet their
obligations, cover unexpected losses; and can,
(a) Regulatory capital
very importantly, promote public confidence.
The Group’s lead regulator, the Central Bank of Basel II is a three-pronged approach relying on
Nigeria (CBN), sets and monitors capital require- three Pillars -Minimum Capital Requirements (Pil-
ments for the Bank. The parent company and lar 1), Supervisory Review Process (Pillar 2) and
individual banking operations are directly super- Market Discipline (Pillar 3).
vised by the Central Bank of Nigeria (CBN) and
the respective regulatory authorities in the coun- Pillar 1 Minimum Capital Requirements: It pre-
tries in which the subsidiary banking operations scribes the capital allocation methodology
are domiciled. against the core traditional credit, market and
operational risks to ensure these are adequately
In the course of year 2015, CBN revised the measured and that banks have adequate capital
Capital Adequacy Ratio (CAR) reporting tem- to mitigate these risks.
plate and existing guidance notes on Regulatory
capital, Credit risk, Market risk, Operational risk Pillar 2 Supervisory Review: It requires banks to
and Pillar 3 disclosure requirement for Basel II establish a risk management framework to iden-
implementation in the Industry. The Apex bank tify, assess and manage major risks inherent in
directed all Nigerian banks and banking groups the institution and allocate adequate capital
to re-compute capital adequacy ratio in line with against those risks. It emphasizes that supervi-
the revised guidance notes. To this end, the sors should be able to evaluate the soundness of
Bank’s Capital Adequacy Ratio (CAR) under Ba- these assessments.
sel II has been re-computed in accordance to the
new guidelines. Pillar 3 Market Discipline: It sets out to encour-
age market discipline by requiring a number of
The revision of the capital adequacy ratio com- disclosure requirements in respect of a bank’s risk
putation by the CBN introduced more stringent exposures, risk assessment process and capital
measures for calculating Risk weighted assets for adequacy.
the Pillar 1 risks such that banks are adequately
capitalised and poised to withstand any threat The CBN specifies approaches for quantifying
to their solvency. In addition to this, the revision the risk weighted assets for credit, market and
also sought to simplify and clarify grey areas in operational risk for the purpose of determining
the previous guidance notes following the review regulatory capital. Although the computations
comments obtained from the industry during the are consistent with the requirements of Pillar 1
parallel run. Other changes include a simplified Basel II Accord, certain sections have been ad-
and uniform reporting template for monthly sub- justed to reflect the peculiarities of the Nigeri-
mission of CAR and the requirement by Domes- an environment. In compliance with CBN, the
tic Systemically Important Banks to publish infor- Bank adopted the Standardized Approach (SA)
mation on risk exposure and management on a in determining capital charge for Credit Risk and
more frequent basis in addition to the bi-annual Market Risk while capital charge for Operation-
disclosure of information under Pillar 3 – Market al Risk was determined using the Basic Indicator
Discipline. Approach (BIA).
(b) Capital Adequacy Position in line with Pillar 1 focuses mainly on CAR, also known as
Basel II Accord Capital to Risk (Weighted) Assets Ratio (CRAR).
This is the ratio of a bank’s capital to its risk. CBN
The International Convergence of Capital Mea- requires the minimum requirement of 10% or
surement and Capital Standards: a Revised 15% of Capital to risk weighted assets be main-
Framework, popularly known as the Basel II tained by Nigerian banks or banking groups with
Framework was introduced in 2004 as a new set regional/national license and international bank-
of international standards and best practices that ing license respectively.
define the minimum capital requirements for in-
ternationally active banks. The Basel II framework

CAR is measured as: (December 31, 2015- 18.17%).
Total Capital The following table shows the composition of regu-

--------------------------------------------------------- latory capital and risk weighted assets for the Bank:
(Credit Risk Weighted Assets + Market Risk
Weighted Assets + Operational Risk Weighted
Assets)
The Bank’s regulatory capital is analysed into two

tiers:
Tier 1 capital includes ordinary share capital,

share premium, retained earnings, statutory re-
serves, and other reserves excluding regulatory
reserves. Intangible assets and investments in
subsidiaries were also deducted from Tier I capi-
tal for capital adequacy purposes.
Tier 2 capital comprises Fair Value Reserves.
The Bank and its individually regulated operations

have complied with all externally imposed capital
requirements throughout the period. There have
been no material changes in the Bank’s manage-
ment of capital during the period.
Period under review

A fundamental part of the Bank’s overall business
strategy is its sound capital management prac-
tices. It adopts a capital planning process that
ensures that regulatory capital remains within
approved ranges or above target levels across
economic and business cycles. The Bank is ap-
propriately capitalized under normal and severe
scenarios as well as a range of stress events.
Stress-testing models are used to gauge vulner-

ability of the bank to exceptional yet possible
events. The result of stress-testing reveals the
minimum capital requirements of the bank in
the event that unforeseen negative events crys-
tallize. The critical objective underpinning the
stress-testing exercise is to identify as early as
possible, any shortfall in capital requirements of
the Bank and take corrective actions which may
be direct or indirect.
The Bank throughout the review period, operated

above its targeted capitalization range and well
over the CBN-mandated regulatory minimum of
15% for international banks even with the in-
troduction of more stringent capital adequacy
measures by CBN. As at 31 December, 2016, the
Bank’s capital adequacy ratio was 19.79%

Capital adequacy ratio
Bank
In thousands of Nigerian Naira Note Dec-2016 Dec-2015
Tier 1 capital
Share capital 42 14,715,590 14,715,590
Share premium 42 123,471,114 123,471,114
Retained profits 83,989,499 46,048,031
Statutory Reserve 199,185,674 161,134,636
SMEEIS Reserve 4,232,478 4,232,478
Other reserves 28,279,386 24,457,544
Tier 1 Sub-Total 453,873,741 374,059,393
Less Regulatory deductions :
Other intangible assets 32 (3,377,961) (2,492,959)
Deferred Tax Assets 33 - -
100% of investments in unconsolidated Banking and 30 (43,968,474) (41,905,781)
Financial subsidiary/associate companies.
Net Total Tier 1 Capital (A) 406,527,306 329,660,653
Tier 2 capital
Fair Value Reserves (1,000,680) 3,765,486
Net Total Tier 2 Capital (B) (1,000,680) 3,765,486
Total Qualifying Capital (C= A+B) 405,526,626 333,426,139
Composition Of Risk-Weighted Assets
Risk-Weighted Amount For Credit Risk 1,700,022,945 1,505,103,910

Risk-Weighted Amount For Operational Risk 347,267,040 325,137,398
Risk-Weighted Amount For Market Risk 1,797,607 4,830,805
Aggregate Risk-Weighted Assets 2,049,087,592 1,835,072,113
Total Risk-Weighted Capital Ratio 19.79% 18.17%

Tier 1 Risk-Based Capital Ratio 19.84% 17.96%

(c) Capital allocation er party’s financial situation and the net realisable
value of any underlying collateral. Each impaired
The allocation of capital between specific opera- asset is assessed on its merits, and the workout
tions and activities is, to a large extent, driven by strategy and estimate of cash flows considered
optimization of the return achieved on the capi- recoverable are independently approved by the
tal allocated. The amount of capital allocated to Credit Risk function.
each operation or activity is based primarily upon
the regulatory capital, but in some cases, the Collectively assessed impairment allowances cov-
regulatory requirements do not reflect fully the er credit losses inherent in portfolios of loans and
varying degree of risk associated with different advances and held to maturity investment secu-
activities. In such cases, the capital requirements rities with similar economic characteristics when
may be flexed to reflect differing risk profiles, there is objective evidence to suggest that they
subject to the overall level of capital to support a contain impaired loans and advances and held
particular operation or activity not falling below to maturity investment securities, but the indi-
the minimum required for regulatory purposes. vidual impaired items cannot yet be identified. A
The process of allocating capital to specific oper- component of collectively assessed allowances is
ations and activities is undertaken independent- for country risks. In assessing the need for collec-
ly of those responsible for the operation, by the tive loan loss allowances, management consid-
Group Enterprise Risk Management Division, and ers factors such as credit quality, portfolio size,
is subject to review by the Group Credit Commit- concentrations, and economic factors. In order
tee or ALMAC as appropriate. to estimate the required allowance, assumptions
are made to define the way inherent losses are
Although maximisation of the return on risk-ad- modelled and to determine the required input
justed capital is the principal basis used in de- parameters, based on historical experience and
termining how capital is allocated within the current economic conditions. The accuracy of
Group to particular operations or activities, it the allowances depends on how well future cash
is not the sole basis used for decision making. flows for specific counterparty allowances and
Consideration is also given to synergies with the model assumptions and parameters used in
other operations and activities, the availability of determining collective allowances are estimated.
management and other resources, and the fit of Please refer to pages 203-204 for sensitivity anal-
the activity with the Group’s longer term strate- ysis of the exposure at default to changes to the
gic objectives. The Group’s policies in respect of EP, LGD and PD.
capital management and allocation are reviewed
regularly by the Board of Directors. Determining fair values
The determination of fair value for financial as-
sets and liabilities for which there is no observ-
6. Use of estimates and judgments able market price requires the use of valuation
techniques as described in accounting policy 3b
These disclosures supplement the commentary on (j)(vii). For financial instruments that trade infre-
financial risk management (see note 4). quently and have little price transparency, fair
value is less objective, and requires varying de-
(a) Key sources of estimation uncertainty grees of judgement depending on liquidity, con-
centration, uncertainty of market factors, pricing
Allowances for credit losses assumptions and other risks affecting the specific
Assets accounted for at amortised cost are eval- instrument.
uated for impairment on a basis described in ac-
counting policy 3b (j)(viii). (b) Critical accounting judgements in
applying the Group’s accounting policies
The specific counterparty component of the to-
tal allowances for impairment applies to claims Critical accounting judgements made in applying
evaluated individually for impairment and is the Group’s accounting policies include:
based upon management’s best estimate of the
present value of the cash flows that are expected Financial asset and liability classification
to be received. In estimating these cash flows, The Group’s accounting policies provide scope
management makes judgements about a count- for assets and liabilities to be designated on in-

ception into different accounting categories in Defined benefits plan

certain circumstances:
The present value of the retirement benefit obliga-
1. In classifying financial assets or liabilities as tions depends on a number of factors that are de-
“trading”, the Group has determined that it termined on an actuarial basis using a number of
meets the description of trading assets and lia- assumptions. Any changes in these assumptions will
bilities set out in accounting policy 3b(j)(ii). impact the carrying amount of pension obligations.
The assumptions used in determining the net cost
2. In designating financial assets or liabilities as (income) for pensions include the discount rate. The
available for sale, the Group has determined Group determines the appropriate discount rate at
that it has met one of the criteria for this desig- the end of each year. This is the interest rate that
nation set out in accounting poli cy 3b (j)(iib). should be used to determine the present value of
estimated future cash outflows expected to be re-
3. In classifying financial assets as held-to-ma quired to settle the pension obligations. In deter-
turity, the Group has determined that it has mining the appropriate discount rate, the Group
both the positive intention and ability to hold considers the market yields on Government Bonds
the assets until their maturity date as required of medium duration as compiled by the Debt Man-
by accounting policy 3b (j)(iic). agement Organisation that are denominated in the
currency in which the benefits will be paid and that
Details of the Group’s classification of financial have terms to maturity approximating the terms of
assets and liabilities are given in note 8 and sensitiv- the related pension liability. Other key assumptions
ity analysis are as stated on page 190. for pension obligations are based in part on current
market conditions.
Depreciation and carrying value of property
and equipment Impairment of available-for-sale equity invest-
ments
The estimation of the useful lives of assets is based
on management’s judgement. Any material adjust- The Group determines that available-for-sale equi-
ment to the estimated useful lives of items of prop- ty investments are impaired when there has been
erty and equipment will have an impact on the car- a significant or prolonged decline in the fair value
rying value of these items. below cost. This determination of what is signifi-
cant or prolonged requires judgement. In making
Determination of impairment of property and this judgement, the Group evaluates among other
equipment, and intangible assets factors, the volatility in share price. In addition, ob-
jective evidence of impairment may be deterioration
Management is required to make judgements con- in the financial health of the investee, industry and
cerning the cause, timing and amount of impair- sector performance, changes in technology, and op-
ment. In the identification of impairment indica- erational and financing cash flows. The sensitivity
tors, management considers the impact of changes analysis of level 3 equity Instruments and its impact
in current competitive conditions, cost of capital, on OCI are shown in note 4(d) under market risk
availability of funding, technological obsolescence, above.
discontinuance of services and other circumstanc-
es that could indicate that impairment exists. The Impairment of Goodwill
Group applies the impairment assessment to its
separate cash generating units. This requires man- The Group tests annually whether goodwill has
agement to make significant judgements and esti- suffered any impairment in accordance with the
mates concerning the existence of impairment in- accounting policy in note 3(p). The recoverable
dicators, separate cash generating units, remaining amounts of cash generating units have been de-
useful lives of assets, projected cash flows and net termined based on value in use calculations. These
realisable values. Management’s judgement is also calculations require the use of estimates. Goodwill
required when assessing whether a previously rec- and Goodwill Impairment testing are shown in note
ognised impairment loss should be reversed. 32(c) below.

Valuation of financial instruments are those not readily available in an active market
due to market illiquidity or complexity of the prod-
The Group’s accounting policy on fair value mea- uct. These inputs are generally determined based
surements is discussed under note 3b (j)(iiib) on inputs of a similar nature, historic observations
on the level of the input or analytical techniques.
The Group measures fair values using the following This category includes loans and advances to banks
hierarchy of methods. and customers, investment securities, deposits from
Level 1: Quoted market price in an active market for banks and customers, debt securities and other bor-
an identical instrument. rowed funds.
Level 2: Valuation techniques based on observable The table below analyses financial instruments mea-
inputs. This category includes instruments valued sured at fair value at the end of the reporting peri-
using: quoted market prices in active markets od, by the level in the fair value hierarchy into which
for similar instruments; quoted prices for similar the fair value measurement is categorised:
instruments in markets that are considered less than
active; or other valuation techniques where all sig- All fair values are on a recurring basis.The sensitivity
nificant inputs are directly or indirectly observable of investments and derivatives to fluctuation in mar-
from market data. ket prices and yields are disclosed in note 4(i) under
market risk above.
Level 3: This includes financial instruments, the valu-
ation of which incorporate significant inputs for the
asset or liability that is not based on observable mar-
ket data (unobservable inputs). Unobservable inputs

Group
Dec-2016
Assets Note Level 1 Level 2 Level 3 Total

-Debt securities 24 12,053,919 - - 12,053,919
Derivative financial assets 25 - - 1,042,470 1,042,470
Available-for-sale financial assets:

-Investment securities-debt 26 397,735,340 46,404,372 - 444,139,712
-Investment securities-equity 26 - - 3,771,445 3,771,445
Assets pledged as collateral 27 48,216,412 - - 48,216,412

Total assets 458,005,671 46,404,372 4,813,915 509,223,958
Liabilities
Derivative financial liabilities 25 - - 987,502 987,502

Total liabilities - - 987,502 987,502
Group
Dec-2015

-Debt securities 24 34,626,186 - - 34,626,186
Derivative financial assets 25 - - - -


Total assets 447,594,044 8,944,962 3,608,972 460,147,978
Liabilities
Derivative financial liabilities 25 - - - -

Total liabilities - - - -

Parent
Dec-2016

-Debt securities 24 6,321,370 - - 6,321,370
Derivative financial assets 25 - 1,042,470 - 1,042,470


Total assets 412,459,996 47,446,842 3,771,445 463,678,283
Liabilities
Derivative financial liabilities 25 - 987,502 - 987,502

Total liabilities - 987,502 - 987,502
Parent
Dec-2015

-Debt securities 24 25,075,618 - - 25,075,618
Derivative financial assets 25 - - - -


Total assets 404,532,304 5,858,271 3,608,972 413,999,547
Liabilities
Derivative financial liabilities 25 - - - -

Total liabilities - - - -

Reconciliation of Level 3 Items

-Derivative Financial Assets

At 1 January - 529,732 - 529,732

Settlements - (529,732) - (529,732)
Gains and losses recognised in profit or loss 1,042,470 - 1,042,470 -
1,042,470 - 1,042,470 -
There was no transfer into and out of Level 3 during the period.

-Derivative Financial Liabilities

At 1 January - 253,374 - 253,374

Settlements - (253,374) - (253,374)
Gains and losses recognised in profit or loss 987,502 - 987,502 -
987,502 - 987,502 -
There was no transfer into and out of Level 3 during the period.
The fair value of derivative financial assets and liabilities is calculated as the present value of the
estimated future cash flows based on a discount rate of 0.2556%

-Available for sale financial assets (unquoted equity securities)

At 1 January 3,608,972 3,101,538 3,608,972 3,101,538

Total unrealised gains or (losses) in OCI 162,473 568,545 162,473 568,545
Reclassification to unquoted equity at cost - (61,111) - (61,111)
3,771,445 3,608,972 3,771,445 3,608,972
Sensitivity of financial instruments to changes in market variables are disclosed in note (4i) under market
risk above


The Group is eligible to present net on the balance sheet, certain financial assets and liabilities according to criteria described in Note 3 on Offsetting Finan-
cial Instruments. For the financial assets and liabilities subject to enforceable master netting arrangements or similar arrangements above, each agreement
between the Group and the counterparty allows for net settlement of the relevant financial assets and liabilities.
The following financial assets and liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements.
Group
Dec-2016
Related amount
Financial
Gross Gross Net Amounts not set off Re-
Cash Collateral Instrument Net Amount
Amounts of Amounts set off presented on lated amount in
Collateral
In thousands of Nigerian Naira Note Financial Assets on the SOFP the SOFP the SOFP
Financial assets
Cash and cash equivalents (a) 3,936,463 42,749,377 (38,812,914) - - - (38,812,914)
Other Assets (b) 11,944,208 - 11,944,208 - 11,944,208 - -
15,880,671 42,749,377 (26,868,706) - 11,944,208 - (38,812,914)
Other Liabilities (b) 11,944,208 - 11,944,208 11,944,208 - - -
11,944,208 - 11,944,208 11,944,208 - - -
Group
Dec-2015
Related amount
Financial
Collateral
Financial assets
Other Assets (b) 7,348,576 - 7,348,576 - 7,348,576 - -
13,059,871 23,877,445 (10,817,574) - 7,348,576 - (18,166,150)
7,348,576 - 7,348,576 7,348,576 - - -

Parent
Dec-2016
Related amount
Financial
Collateral
Financial assets
Other Assets (b) 11,944,208 - 11,944,208 11,944,208 -
15,880,671 42,749,377 (26,868,706) - 11,944,208 - (38,812,914)
11,944,208 - 11,944,208 11,944,208 - - -
Parent
Dec-2015
Related amount
Financial
Collateral
Financial assets
Other Assets (b) 7,348,576 - 7,348,576 - 7,348,576 - -
13,059,871 23,877,445 (10,817,574) - 7,348,576 - (18,166,150)
7,348,576 - 7,348,576 7,348,576 - - -
(a) Standard terms of clearing in Nigeria include provisions allowing net settlements of payments in the normal course of business.
(b) Certain customers provide monies to the Bank to serve as cash collateral for their LC transactions. The Bank simultaneously increases its balances with
the correspondent banks to reflect this. As such, the Bank intends to realise the asset and settle the liability simultaneously.

(e) Disclosure Requirement for Level 2 and Disclosure Requirements for Level 3 Financial
3 Financial Instruments Instruments
Valuation control framework Valuation Technique:

The investment valuation policy (IVP) of the Group
The key elements of the control framework for provides the framework for accounting for the
the valuation of financial instruments include Group’s investment in unquoted equity securities
model validation, product implementation re- while also providing a broad valuation guideline to
view and independent price verification. These be adopted in valuing them. Furthermore, the IVP
functions are carried out by an appropriately details how the group decides its valuation policies
skilled finance team, independent of the busi- and procedures and analyses changes in fair value
ness area responsible for the products. measurements from period to period.
Model validation covers both qualitative and IFRS 13 - Fair Value Measurement outlines three ap-
quantitative elements relating to new models. In proaches for valuing unquoted equity instruments;
respect of new products, model validation exam- market approach, the income approach and the cost
ines the explanatory power of the implement- approach. The Group estimated the fair value of its
ed model, actively monitoring model parame- investment in each of the unquoted equity securities
ters and comparing in-house pricing to external at the end of the financial year using the income ap-
sources. proach.
Independent price verification procedures cover The Discounted Cash flow (DCF) technique of the
financial instruments carried at fair value. The income approach was adopted in valuing each of
frequency of the review is matched to the avail- these equity investments taken into cognizance the
ability of independent data, monthly being the suitability of the model to each equity investment
minimum. Valuation differences in breach of es- and the available financial information.
tablished thresholds are escalated to senior man-
agement. The results from independent pricing Description of Valuation Methodology and
and valuation reserves are reviewed monthly by inputs:
senior management.
Discounted Cash flow Technique (DCF)
Valuation technique and Input used in Level The fair value of the other unquoted equity securities
2 Fair Value Measurement were derived using the Discounted Cash Flow tech-
Where there is limited trading activity in financial nique. The steps involved in estimating the fair value
instruments, the Group uses valuation models, of the Group’s investment in each of the investees
consensus pricing information from third party (i.e. unquoted equity securities) are as follows:
pricing services and quotes to determine an ap-
propriate valuation. Step 1: A five-year forecast of the Free Cash Flow to
the Firm (FCFF) for each of the equity investments
Available for Sale Corporate Bonds: was made (see (a) below for the definition, explana-
As at 31 December 2016, the Group disclosed tion and derivation of FCFF).
its investment in Available for Sale Corporate
bond as N9, 192,632,000 (December 2015: N5, Step 2: The yearly FCFF forecasts were discounted to
858,271,000) under Level 2 of the Fair Value Hi- present value using the company’s WACC. (See (b)
erarchy. In valuing this investment, the price of below for the definition, explanation and derivation
the asset obtained from an Over the Counter Se- of WACC).
curities Exchange was adopted in arriving at the
fair value. It was categorised under level 2 of the Step 3: The terminal value at year five was estimated
fair value hierarchy because the price obtained by dividing the compounded (with ‘g’) year five FCFF
was an indicative price due to the fact that the by the capitalization rate (please see (c) below)
market for the instrument is not very active. It is
important to note that no adjustment was made Step 4: The terminal value was discounted to present
to the input price. value using the company’s WACC
Step 5: The firm value was obtained by adding the

present value of the five-year FCFF obtained in c. Capitalization Rate= WACC – g

step (2) above to the present value of terminal Terminal value = (FCFF5 *(1+g))/ (WACC – g)
value obtained in step (4) above.
Where:
Step 6: The equity value of the firm was ob-
tained by deducting the value of the debt of FCFF = Year5 FCFF
the company from the firm value obtained in g = Growth rate
step (5) above (i.e. Firm value minus market WACC = Weighted average Cost of Capital
value of debt = Equity value)
Valuation Assumptions – Discounted Cash flow
Step 7: The equity value per share was obtained 1. The bank applies Capital Asset Pricing Model in
by dividing the Equity value obtained in step (6) determining the cost of equities for its various
above by the number of shares outstanding in unquoted equities which were fair valued at the
the company. reporting period.
2. The risk free rate was determined using the
Step 8: The fair value of the group’s investment yield on the 10 year Nigerian Government
in each of the relevant unquoted equity securi- bond (for unquoted securities denominated in
ties was derived by multiplying the number of Naira) of 16.08% and the yield on the 10 year
the Groups’ shares in the investee by the value US Government bond (for unquoted securities
per share obtained in step (7) above. denominated in US $) of 2.45%.
3. Market premium of 6% was adopted based on
a. Free Cash flow to the Firm (FCFF): trend analysis and research of market premiums
A measure of financial performance that across the globe by Aswath Damodaran.
expresses the net amount of cash that is gener- 4. Beta = 1 or Less than 1
ated for the firm, consisting of expenses, taxes 5. Growth rate used is growth rate in earnings
and changes in net working capital and invest- between the latest year and prior period.
ments. Free cash flow to the firm is the cash
available to all investors, both equity and debt
holders.
FCFF = NI + NCC + [Int x (1-tax rate)] – Chang-

es in FCInv – Changes in WCInv
Where:
NI = Net Income
NCC = Non- Cash Charges
Int = Interest
T= tax rate
FCI = Fixed Capital Investment
WCI = Working Capital Investment
b. Weighted average Cost of Capital (WACC):

This is the average cost of both equity and debt
capital used in financing a business.
WACC= {(D/D+E) x Kd(1-T)} + {(E/D+E) x Ke }
Where:
D = Value of Debt
E = Equity value
Ke = Cost of equity
Kd = Cost of debt
T = Tax rate

Summary of carrying amounts of equity Securities at fair value through equity
In thousands of Nigerian Naira Dec-16 Dec-15

Historical cost (2,415,699) (2,415,699)
Fair value 4,279,461 4,116,988
Unrealized Fair Value Gain recognized in Equity (OCI) 1,863,762 1,701,289
The movement in equity securities at fair value during the period is as follows:
In thousands of Nigerian Naira Group Group Parent Parent

Balance, beginning of the period (Gross) 4,116,988 3,609,554 4,116,988 3,609,554

Reclassification from unquoted (SMEEIS) equity investments - - - -
Reclassification from/to Other unquoted equity investments - (61,111) - (61,111)

Fair value movement recognised in OCI 162,474 568,545 162,474 568,545
Write off - - - -
Disposals (cost) - - - -
Balance, end of the period (Gross) 4,279,462 4,116,988 4,279,462 4,116,988
Impairment charges on equity (508,016) (508,016) (508,016) (508,016)
Carrying amount 3,771,446 3,608,972 3,771,446 3,608,972
Other disclosure requirements
The unrealized fair value gain recognized on these equity investments as at 31 December 2016 of
N1,863,762 (31 December, 2015: N1,701,289,000) has been recognized in fair value reserves in Other
Comprehensive Income (i.e. Equity).
The movement in unquoted equity securities (i.e. SMEEIS Investments) at cost during the period is as
follows:

Balance, beginning of the period 3,555,125 3,494,014 3,555,125 3,494,014
Reclassification from equity Securities at fair value through equity - 61,111 - 61,111
Reclassification to equity Securities at fair value through equity - - - -
Balance, end of the period 3,555,125 3,555,125 3,555,125 3,555,125

The movement in other unquoted equity securities at cost during the period is as follows:
In thousands of Nigerian Naira GROUP GROUP PARENT PARENT

Balance, beginning of the period 4,972 5,163 - -
Reclassification to equity Securities at fair value through equity - - - -
Disposals - - - -
Exchange difference- gain/(loss)* 2,440 (191) - -
Balance, end of the period 7,412 4,972 - -
Derivatives regulatory risk reserve at the end of the period was

N52,324,178,000. Regulatory risk reserve represents
Where the Group’s derivative assets and liabil- the difference between the Central Bank of Nigeria
ities are not traded on an exchange, they are (CBN) recommended Provision for Loan Losses under
valued using the discounted cash flow model. the Prudential Guideline and the Loan Impairment
The future cash flow to be received is discounted allowance determined in accordance with provi-
using the appropriate Libor rates. sions of IFRS. As at December 31, 2016 CBN recom-
mended provision amounted to N105,514,605,000.
The Group estimated the fair value of its Foreign Of the amount recommended by the Central Bank
exchange derivatives as at 31 December 2016 of Nigeria, N28,092,869,000 relates to 2% General
using the Discounted Cash Flow Model and dis- Loan Loss Provision on performing loans.
closed it under Level 2 Fair Value Hierarchy.
Also, N4,151,061,000 recommended by CBN for
(f) Statement of Prudential Adjustment Other Known Losses was adequately provided for in
the December 2016 IFRS Financial Statement
In 2016, the bank transferred the sum of
N83,165,000 from its retained earnings to a
non-distributable regulatory risk reserve within
the Statement of Changes in Equity. The total
The Reconciliation between the CBN Recommended provisions and that under IFRS as at December
2016 is as shown in the table below:
a. Loans and Advances:
In thousands of Nigerian Naira Reference Specific General Total

Provision per CBN Prudential Guidelines 77,421,736 28,092,869 105,514,605
Impairment Allowance per IAS 39:
(Inclusive of Collective Allowance) (Note 28 & 29) (73,900,886) -
Amount required in Regulatory Risk Reserve1 3,520,850 28,092,869 31,613,719
b. Provision for Other Known Losses:

Provision for Other Known Losses - CBN 4,151,061
Provision for Other Known Losses - IFRS
Specific Impairment for Equities (Note 26) 3,454,978
Impairment on Other Assets (Note 34) 305,556
Others – Regulatory Risk Reserve 390,527
4,151,061
Amount required in Regulatory Risk Reserve 2
0
1
Regulatory Risk Reserve refers to the difference between the Provision assessment under CBN Prudential Guideline and impairment
assessment under IFRS

c. Impairment of loans and advances and Other Known Losses (OKL)

Regulatory reserve required for loans and advances 31,613,719
Regulatory reserve required for Other Known Losses 390,527
Balance required in Regulatory Risk Reserve 32,004,246
Balance per Regulatory Risk Reserve (SOCIE - Page 83) 52,324,178
Excess amount in regulatory risk reserve 20,319,932
d. Movement in Regulatory Reserves
In thousands of Nigerian Naira Specific General Others Total

Movement in Regulatory Reserves
Balance as at 1 January 27,558,393 24,457,544 225,076 52,241,013
Transfer during the period - 3,635,325 165,451 3,800,776
Reversal during the period (3,717,611) - - (3,717,611)
Balance, end of the period 23,840,782 28,092,869 390,527 52,324,178
7. Operating segments other credit facilities, foreign currency and

derivative products for small and medium-size
The Group has five reportable segments, as de- enterprises and ventures.
scribed below, which are the Group’s strategic
business units. The strategic business units offer ▪▪ Public Sector – Incorporates current accounts,
varied products and services, and are managed deposits, overdrafts, loans and other credit
separately based on the Group’s management facilities, foreign currency and derivative products
and internal reporting structure. For each of the for Government Ministries, Departments and
strategic business units, the Executive Manage- Agencies.
ment Committee reviews internal management
reports on at least a quarterly basis. Information regarding the results of each reportable
segment is included below. Performance is measured
The following summary describes the operations based on segment profit before income tax, as in-
in each of the Group’s reportable segments: cluded in the internal management reports that are
reviewed by the Executive Management Committee.
▪▪ Corporate banking – Incorporates current Segment profit is used to measure performance as
accounts, deposits, overdrafts, loans and management believes that such information is the
other credit facilities, foreign currency and most relevant in evaluating the results of certain seg-
derivative products offered to very large ments relative to other entities that operate within
corporate customers and blue chips. these industries. Inter-segment pricing is determined
on an arm’s length basis.
▪▪ Commercial banking – Incorporates current
accounts, deposits, overdrafts, loans and No single external customer accounts for 10% or
other credit facilities, foreign currency and more of the Group’s revenue.
derivative products for mid-size and fledgling
corporate customers. The measurement policies the Group uses for seg-
ment reporting are the same as those used in its
▪▪ Retail banking – Incorporates private financial statements, except that activities of Staff
banking services, private customer current Investment Trust have not been consolidated in ar-
accounts, savings deposits, investment riving at the operating profit, assets and liabilities of
savings products, custody, credit and debit the operating segment (see note 30(b)). There have
cards, consumer loans and mortgages. been no changes from prior periods in the measure-
ment methods used to determine reported segment
▪▪ SME banking – Incorporates current profit or loss.
accounts, deposits, overdrafts, loans and

Operating segments (Continued)

Information about operating segments
Group
Dec-2016
In thousands of Nigerian Naira Corporate Retail Commercial SME Public Sector Total
Banking Banking Banking Banking Banking
Revenue:
Derived from external customers 228,195,391 109,833,936 49,099,820 15,442,320 9,583,238 412,154,705
Derived from other business segments (14,559,633) 10,526,263 971,919 3,010,143 51,308 -
Total revenue 213,635,758 120,360,199 50,071,739 18,452,463 9,634,546 412,154,705
Interest expenses (48,447,403) (8,666,866) (5,911,891) (2,209,545) (1,858,218) (67,093,923)
Fee and commission expenses (1,046,466) (1,798,254) (410,195) (163,366) (37,976) (3,456,257)
Net operating income 164,141,889 109,895,079 43,749,653 16,079,552 7,738,352 341,604,525
Expense:
Operating expenses (26,897,524) (54,008,118) (3,610,074) (9,813,300) (4,060,254) (98,389,270)
Net impairment loss on financial assets (18,408,931) (16,218,421) (27,247,938) (1,731,916) (1,683,104) (65,290,310)
Depreciation and amortization (3,836,222) (5,235,053) (3,471,920) (2,161,213) (544,958) (15,249,366)
Total cost (49,142,677) (75,461,592) (34,329,932) (13,706,429) (6,288,316) (178,928,946)
Profit before income tax from reportable segments 114,999,212 34,433,487 9,419,721 2,373,123 1,450,036 162,675,579
Tax (23,226,545) (6,954,578) (1,902,514) (479,303) (292,866) (32,855,806)
Profit after income tax from reportable segments 91,772,667 27,478,909 7,517,207 1,893,820 1,157,170 129,819,773
Assets and liabilities:
Total assets 2,055,936,178 532,308,775 330,810,288 108,146,592 91,274,910 3,118,476,743
Total liabilities (984,447,374) (1,007,677,907) (357,362,530) (222,512,324) (31,570,380) (2,603,570,515)
Net assets/ (liabilities) 1,071,488,804 (475,369,132) (26,552,242) (114,365,732) 59,704,530 514,906,228
Additions to Non-Current Assets 4,447,339 6,069,007 4,025,004 2,505,498 1,098,930 18,145,778
Assets:
Loans and advances to banks 653,718 - - - - 653,718
Loans and advances to customers 1,150,005,477 164,343,230 191,244,145 21,477,471 62,359,511 1,589,429,834
Others 905,276,983 367,965,545 139,566,143 86,669,121 28,915,399 1,528,393,191
2,055,936,178 532,308,775 330,810,288 108,146,592 91,274,910 3,118,476,743
Liabilities:
Deposits from banks 125,067,848 - - - - 125,067,848
Deposits from customers 481,505,928 946,037,722 317,784,727 211,315,602 29,602,253 1,986,246,232
Others 377,873,598 61,640,185 39,577,803 11,196,722 1,968,127 492,256,435
984,447,374 1,007,677,907 357,362,530 222,512,324 31,570,380 2,603,570,515

Group
Dec-2015
Revenue:
Derived from other business segments (36,964,121) 26,019,815 2,786,018 6,757,848 1,400,440 -
Total revenue 157,857,231 87,193,676 36,884,631 13,576,793 6,105,936 301,618,267
Fee and commission expenses (605,981) (2,131,461) (233,073) (90,484) (18,440) (3,079,439)
Expense:
Net impairment loss on financial assets (1,665,436) (5,438,254) (3,255,944) (2,011,822) (36,738) (12,408,194)
Total cost (28,212,299) (51,360,485) (17,591,088) (9,619,085) (1,526,451) (108,309,408)
Tax (14,756,668) (3,987,707) (1,913,975) (215,726) (383,847) (21,257,923)

Total assets 1,799,884,387 349,783,954 247,858,865 62,691,785 67,338,667 2,527,557,658
Total liabilities (818,977,845) (757,362,369) (315,917,497) (172,163,198) (38,473,920) (2,102,894,829)
Net assets/ (liabilities) 980,906,542 (407,578,415) (68,058,632) (109,471,413) 28,864,747 424,662,829
Additions to Non-Current Assets 4,969,079 8,723,533 6,373,479 3,452,794 834,732 24,353,617
Assets:
Loans and advances to banks 1,051,521 - - - - 1,051,521
Loans and advances to customers 962,382,945 133,745,313 204,882,459 18,725,035 52,189,795 1,371,925,547
Others 836,449,921 216,038,641 42,976,406 43,966,750 15,148,872 1,154,580,590
1,799,884,387 349,783,954 247,858,865 62,691,785 67,338,667 2,527,557,658
Liabilities:
Deposits from banks 26,256,839 - - - - 26,256,839
Others 416,077,108 15,078,687 29,957,631 3,711,032 1,463,843 466,288,301
818,977,845 757,362,369 315,917,497 172,163,198 38,473,920 2,102,894,829


Group Group
Dec. 2016 Dec. 2015
SME Public Sector Public Sector
SME Public Sector SME Public Sector
4.5% 2.3% SME 2.0%
2.3% 2.0%
Revenue
Commercial 4.5%
Commercial SME Public Sector 4.5%
4.5%
Commercial Public Sector
12.1% 2.3% SME
Commercial 2.0%
12.1% 4.5% 12.2%
Commercial Public Sector 4.5%
12.2% Public Sector
SME Commercial
12.1% 4.5% 2.3% SME 2.0%
12.2%
Commercial 4.5%
Commercial Corporate
12.1% Corporate Corporate
Corporate 12.2% 52.3%
51.8% 52.3%
51.8% Corporate
Retail Corporate
Retail 51.8% Retail 52.3%
29.2% Retail Corporate
29.2% Corporate 28.9%
Retail 28.9% 52.3%
51.8% Retail
29.2%
28.9%
Retail
Retail
29.2%
28.9%
Profit before tax Public

SME
SME Public Sector
Commercial SME
SME Public Commercial 1.0%
Public Sector
1.8%
Commercial 1.5% Sector 1.0% 1.8%
5.8% Sector Commercial SME
5.8% 1.5% 0.9%
Public 9.0% Public Sector
Commercial SME 0.9% 9.0%
Sector Commercial 1.0% 1.8%
5.8% 1.5%
0.9%
Public 9.0% SME Public Sector
Commercial SME
Retail Commercial 1.0%
Retail 1.8%
Retail5.8% 1.5% Sector Retail
21.2% 0.9% 18.8%9.0%
21.2% 18.8%
Retail Retail
21.2% 18.8%
Retail Retail
21.2% 18.8% Corporate
Corporate
Corporate 69.4%
Corporate 69.4%
70.7% Corporate
70.7%
Corporate 69.4%
70.7% Corporate
Corporate 69.4%
70.7%
Assets
Public SME Public Sector
SME Sector 2.5% 2.7%
SME Sector 2.5%
Commercial 2.7%
3.5% 2.9% SME
Commercial Public Sector
Commercial 3.5% Public 9.8%
Commercial SME 2.9% 2.5%
10.6% Sector 9.8% 2.7%
10.6% 3.5% Commercial
SME
Commercial 2.9%
Public Public Sector
SME 9.8%
2.5%
10.6% Sector 2.7%
3.5% Commercial
Commercial 2.9%
Retail 9.8% Retail
Retail
10.6% Retail
17.1% 13.8%
17.1% 13.8%
Retail Retail
17.1% 13.8%
Corporate Corporate
Retail Corporate Retail Corporate
65.9% 71.2%
17.1% 65.9% 13.8% 71.2%
Corporate Corporate
65.9% 71.2%
Corporate Corporate
Liabilities 65.9% 71.2%

Sector SME 1.8%
Sector SME 1.8%
1.2%
1.2% 8.2%
SMESector SME 1.8%
SME1.2% Commercial
Commercial 8.5%
Public 8.2% Public Sector Corporate
Commercial 8.5% Commercial Corporate
13.7% Sector
SME Corporate 15.0%
SME 1.8% 38.9%
13.7% Corporate 15.0% 38.9%
Commercial 1.2%
8.5% 37.8% Commercial
8.2% Corporate
37.8%
13.7% SME Corporate 15.0% 38.9%
Commercial 8.5% 37.8% Commercial Corporate
13.7% Corporate 15.0% 38.9%
37.8%
Retail Retail
Retail Retail
38.7% 36.0%
38.7% 36.0%
Retail Retail
38.7% 36.0%
Retail Retail
#EnrichingLives 38.7% Guaranty Trust36.0%
Bank plc | 2016 Annual Report | 228

Parent
Dec-2016
Revenue:
Derived from other business segments (13,236,029) 9,569,330 883,563 2,736,493 46,643 -
Total revenue 186,337,873 102,548,225 49,439,787 16,338,180 8,490,379 363,154,444
Expense:
Net impairment loss on financial assets (17,916,166) (15,784,292) (26,518,574) (1,685,557) (1,638,051) (63,542,640)
Total cost (38,706,186) (61,474,052) (35,572,860) (12,100,777) (5,558,261) (153,412,136)
Profit before income tax from reportable
106,626,367 32,364,633 8,622,239 2,268,645 1,361,188 151,243,072
segments
Tax (19,153,931) (5,813,852) (1,548,864) (407,530) (244,518) (27,168,695)
Profit after income tax from reportable
87,472,436 26,550,781 7,073,375 1,861,115 1,116,670 124,074,377
segments

Total assets 1,722,911,807 446,084,409 277,225,022 90,628,806 76,490,030 2,613,340,074
Additions to Non-Current Assets 3,971,191 5,419,237 3,594,072 2,237,251 981,274 16,203,025
Assets:
Loans and advances to customers 1,025,404,440 146,536,934 170,523,184 19,150,425 55,602,969 1,417,217,952
Others 697,477,424 299,547,475 106,701,838 71,478,381 20,887,061 1,196,092,179
1,722,911,807 446,084,409 277,225,022 90,628,806 76,490,030 2,613,340,074
Liabilities:
Deposits from banks 40,438 - - - - 40,438

Others 400,218,541 26,135,555 24,265,240 3,727,530 850,097 455,196,963
807,811,901 826,874,271 293,242,394 182,587,823 25,905,832 2,136,422,221

Parent
Dec-2015
Revenue:
Derived from other business segments (32,711,612) 23,026,385 2,465,502 5,980,397 1,239,328 -
Total revenue 139,511,351 76,968,848 32,595,519 12,158,394 7,570,469 268,804,581
Expense:
Net impairment loss on financial assets (1,579,693) (5,158,272) (3,088,316) (1,908,246) (34,847) (11,769,374)
Depreciation and amortization (1,502,788) (6,489,322) (1,670,435) (934,804) (190,021) (10,787,370)
Total cost (21,035,476) (44,758,963) (15,144,612) (8,252,192) (2,522,607) (91,713,850)
Tax (12,920,294) (3,410,529) (1,657,337) (246,276) (484,498) (18,718,934)

Total assets 1,599,133,011 315,196,828 246,126,526 56,492,733 60,680,126 2,277,629,224
Additions to Non-Current Assets 139,822 603,776 155,420 86,976 17,680 1,003,674
Assets:
Loans and advances to customers 893,848,007 123,341,653 182,619,211 17,268,469 48,130,103 1,265,207,443
Others 704,646,187 191,855,175 63,507,315 39,224,264 12,550,023 1,011,782,964
1,599,133,011 315,196,828 246,126,526 56,492,733 60,680,126 2,277,629,224
Liabilities:
Deposits from banks 39,941 - - - - 39,941
Others 419,518,811 13,999,591 9,902,015 4,454,421 1,555,972 449,430,810
766,503,803 655,492,380 262,513,137 153,261,635 34,249,921 1,872,020,876


Parent Parent
Dec. 2016 Public Sector
Dec. 2015 Public Sector
SME Public Sector SME Public Sector
SME 2.3% SME 2.4%
4.5% 2.3% 2.3% 2.4%
4.5% Commercial 2.3%
Revenue
Commercial Public Sector Commercial
11.2% Public Sector
CommercialSME 11.2% SME
13.6% 2.3% 2.4%
13.6% 4.5% 2.3%
Public Sector Commercial Public Sector
CommercialSME 11.2% SME
2.3% 2.4%
13.6% 4.5% 2.3%
Corporate Commercial
Commercial Retail
Corporate 11.2%
Retail
13.6% 51.3% 20.1%
51.3% 20.1%
Corporate
Retail Corporate Retail Corporate
64.1%
Retail 51.3% 20.1% 64.1%
28.2%
28.2% Corporate
Corporate Retail
Retail 51.3% 20.1% 64.1%
28.2% Corporate
Retail 64.1%
28.2%
SME
Profit before tax
Commercial SME Public SME
1.3%
Public Sector
Public Sector
SME Public Commercial 1.3% 2.6%
Commercial 1.5% Sector
5.7% Sector Commercial 2.6%
5.7% 1.5% 0.9% 8.9% SME
0.9%
Commercial SME 1.3%
2.6%
1.5% Sector Commercial
Retail 5.7% SME
Retail 0.9%
21.4%Commercial SME 1.3%
21.4% Sector Commercial 2.6%
5.7% 1.5%
Retail 0.9% Retail 8.9%
Retail
21.4% 18.2%
18.2%
Retail
Retail Corporate
21.4%
18.2% Corporate
Corporate 69.0%
Corporate Retail 69.0%
70.5%
70.5% 18.2% Corporate
Corporate 69.0%
70.5% Corporate
Corporate 69.0%
70.5%
Assets
SME Public Sector
SME Public 2.5% 2.7%
SME Sector Commercial 2.5% 2.7%
Commercial 3.5% 2.9% 10.8% SME
Commercial 2.9% 10.8% Public Sector
10.6% Public 2.5%
10.6% SME Commercial 2.7%
Sector
3.5% 10.8% SME Public Sector
Commercial 2.9%
Public
SME 2.5% 2.7%
Retail
3.5% Retail
Commercial 2.9% 13.8%10.8%
Retail
10.6% 13.8%
Retail
17.1% Retail
17.1%
13.8% Corporate
Retail Corporate Corporate
Corporate Retail 70.2%
17.1% 65.9% 70.2%
65.9% 13.8%
Retail Corporate
17.1% Corporate
65.9% 70.2%
Liabilities Corporate Corporate
65.9% 70.2%

Sector SME 1.8%
Sector 8.2% 1.8%
1.2% 8.2%
1.2%
PublicSME Public Sector
Commercial SME
Sector8.5% Commercial SME 1.8%
Commercial 1.2%8.5% Commercial 8.2% Corporate
13.7% Public Corporate 14.0% Corporate
13.7% Corporate 14.0% SME Public Sector
40.9%
SectorSME 37.8% 1.8% 40.9%
Commercial 1.2%8.5% 37.8% Commercial 8.2%
14.0% Corporate
13.7% SME Corporate
40.9%
Commercial 8.5% 37.8% Commercial
14.0% Corporate
13.7% Corporate
40.9%
37.8%
Retail
Retail Retail
Retail 35.0%
38.7% 35.0%
38.7%
Retail
Retail 35.0%
38.7%
Retail
Retail
#EnrichingLives 38.7%
Guaranty
35.0% Trust Bank plc | 2016 Annual Report | 231

The following is an analysis of the Group’s revenue and gains from continuing operations by products and services;
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Bonds 3,388,249 20,275,457 2,990,281 18,060,585

Placements 11,428,492 4,768,697 10,086,157 4,247,769
Treasury Bills 55,054,225 59,709,878 48,587,824 53,187,228
Loans 238,228,733 214,288,651 210,247,546 190,879,961
Contingents 106,515,888 2,807,428 94,005,051 2,500,747
414,615,587 301,850,111 365,916,859 268,876,290
Reconciliation of reportable segment revenues, operating expenses, profit or loss and assets and liabilities
Reconciliation of revenues
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Continuing Operations:
Total revenue from reportable segments 412,154,705 301,618,267 363,154,444 268,804,581

Consolidation and adjustments:
- Interest income - (128,649) - -
- Other operating income 1,691,942 - - -
Revenue from continuing operations 413,846,647 301,489,618 363,154,444 268,804,581
Revenue from continuing operations as shown above is made up of:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Interest income 262,494,101 229,236,715 226,579,479 206,478,499

Fee and commission income 51,273,910 51,865,608 40,397,778 44,034,897
Net gains/(losses) on financial instruments classified as held for trading 5,218,451 12,237,394 2,248,241 9,189,686
Lease Finance Income - - - -
Other operating income 95,629,125 8,510,394 96,691,361 9,173,208
Revenue and gains from continuing operations 414,615,587 301,850,111 365,916,859 268,876,290
Less gains:
- Gain on disposal of fixed assets (74,948) (87,966) (36,266) (71,709)
- Net gains/(losses) on financial instruments classified as held for
- - - -
trading
- Dividends income (93,237) - (2,546,148) -
- Net portfolio gain on SMEEIS investments (600,755) (272,527) (180,001) -
Revenue from continuing operations 413,846,647 301,489,618 363,154,444 268,804,581
Reconciliation of operating expenses

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Total operating expense from reportable segments 98,389,270 83,306,692 77,139,198 69,157,106
Gains:
- Personnel expenses1 - 476,868 - -
Operating expense from continuing operations 98,389,270 83,783,560 77,139,198 69,157,106
1
relates to share based payment during the period

Operating expense from continuing operations as shown above is made up of:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Personnel expenses (See Note17) 29,453,465 27,721,723 20,704,772 20,727,835
Operating lease expenses 1,375,228 1,124,691 670,172 674,958
Other operating expenses (See Note20) 67,560,577 54,937,146 55,764,254 47,754,313
98,389,270 83,783,560 77,139,198 69,157,106
Reconciliation of profit or loss

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Total profit or loss for reportable segments 162,675,579 120,939,828 151,243,072 112,955,348
- Interest income - (128,649) - -
- Personnel expenses - (476,868) - -
- Other operating income 1,691,942 - - -
Gains:
- Gain on disposal of fixed assets 74,948 87,966 36,266 71,709
- Net gains/(losses) on financial instruments classified as held for
- - - -
trading
- Dividends income 93,237 - 2,546,148 -
- Net portfolio (loss)/gain on SMEEIS investments 600,755 272,527 180,001 -
Profit before income tax from continuing operations 165,136,461 120,694,804 154,005,487 113,027,057
Reconciliation of assets

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Total assets for reportable segments 3,118,476,743 2,527,557,658 2,613,340,074 2,277,629,224
Consolidation and adjustments (2,083,304) (2,963,949) - -
Total assets 3,116,393,439 2,524,593,709 2,613,340,074 2,277,629,224
Reconciliation of liabilities

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Total liabilities for reportable segments 2,603,570,515 2,102,894,829 2,136,422,221 1,872,020,876
Consolidation and adjustments 7,920,089 8,136,942 - -
Total liabilities 2,611,490,604 2,111,031,771 2,136,422,221 1,872,020,876

Geographical segments

The Group operates in four geographic regions, being:
▪▪ Nigeria
▪▪ Rest of West Africa (comprising Ghana, Gambia, Sierra Leone, Liberia)
▪▪ East Africa (comprising Kenya, Uganda and Rwanda)
▪▪ Europe (UK and the Netherlands)
Dec-2016
In thousands of Nigerian Naira Nigeria Rest of West East Africa Europe Total
Africa
Derived from external customers 353,990,797 32,013,830 14,174,650 13,667,370 413,846,647
Derived from other segments - - - - -
Total Revenue 353,990,797 32,013,830 14,174,650 13,667,370 413,846,647
Interest expense (46,631,441) (6,876,310) (4,234,923) (9,351,249) (67,093,923)
Fee and commission expenses (2,947,710) (210,738) (297,809) - (3,456,257)
Net interest margin 304,411,646 24,926,782 9,641,918 4,316,121 343,296,467
Profit before income tax 150,377,773 11,564,401 1,667,659 1,526,628 165,136,461

Total assets 2,417,496,427 304,556,278 122,680,359 271,660,375 3,116,393,439
Total liabilities (2,018,287,800) (250,041,949) (98,185,279) (244,975,576) (2,611,490,604)
Net assets/(liabilities) 399,208,627 54,514,329 24,495,080 26,684,799 504,902,835
Dec-2015
In thousands of Nigerian Naira Nigeria Rest of West East Africa Europe Total
Africa
Derived from external customers 253,516,511 20,675,163 10,577,630 16,720,314 301,489,618
Derived from other segments - - - - -
Total Revenue 253,516,511 20,675,163 10,577,630 16,720,314 301,489,618
Interest expense (61,445,634) (4,072,858) (3,512,470) (258,630) (69,289,592)
Fee and commission expenses (2,689,747) (277,916) (111,776) - (3,079,592)
Net interest margin 189,381,130 16,324,389 6,953,384 16,461,684 229,120,587
Profit before income tax 98,075,827 7,507,668 885,256 14,226,053 120,694,804

Total assets 2,034,929,271 148,754,815 79,324,385 261,585,238 2,524,593,709
Total liabilities (1,698,545,724) (119,003,187) (64,031,478) (229,451,382) (2,111,031,771)
Net assets/(liabilities) 336,383,547 29,751,628 15,292,907 32,133,856 413,561,938

8 Financial assets and liabilities
Accounting classification measurement basis and fair values

The table below sets out the Group’s classification of each class of financial assets and liabilities, and their fair values.
Group
Dec-2016
Carrying Fair Value
amount
In thousands of Nigerian Naira Note Held for Designat- Held-to- Loans and Available- Other finan- Total carrying Level 1 Level 2 Level 3 Fair value
trading ed at fair maturity receivables for-sale cial assets / amount
value liabilities at
amortized
cost
Loans and advances to banks 28 - - - 653,718 - - 653,718 - 653,902 - 653,902
Loans and advances to customers 29 - - - 1,589,429,834 - - 1,589,429,834 - 1,439,913,995 152,375,070 1,592,289,065
Financial assets held for trading 24 12,053,919 - - - - - 12,053,919 12,053,919 - - 12,053,919
Derivative financial assets 25 - 1,042,470 - - - - 1,042,470 - 1,042,470 - 1,042,470
Assets pledged as collateral 27 - - - - 48,216,412 - 48,216,412 48,216,412 - - 48,216,412
– Available for sale - - - - 448,056,733 - 448,056,733 397,735,340 46,404,372 3,917,021 448,056,733
– Held to maturity 26 - - 80,155,825 - - - 80,155,825 79,209,621 - - 79,209,621
Restricted deposits and other assets 34 - - - 351,814,054 - - 351,814,054 - 351,814,054 - 351,814,054
12,053,919 1,042,470 80,155,825 1,941,897,606 496,273,145 - 2,531,422,965 537,215,292 1,839,828,793 156,292,091 2,533,336,176
Deposits from banks 35 - - - - - 125,067,848 125,067,848 - 93,921,196 - 93,921,196

Deposits from customers 36 - - - - - 1,986,246,232 1,986,246,232 - 1,626,889,651 - 1,626,889,651
Financial liabilities held for trading 37 2,065,402 - - - - - 2,065,402 2,065,402 - - 2,065,402
Derivative financial liabilities 25 - 987,502 - - - - 987,502 - 987,502 - 987,502
Debt securities issued 38 - - - - - 126,237,863 126,237,863 - 126,238,007 - 126,238,007
Other borrowed funds 41 - - - - - 219,633,604 219,633,604 - 219,633,606 - 219,633,606
Other liabilities 39 - - - - - 115,682,490 115,682,490 - 115,682,490 - 115,682,490
2,065,402 987,502 - - - 2,572,868,037 2,575,920,941 2,065,402 2,183,352,452 - 2,185,417,854

Group
Dec-2015
Carrying Fair Value

amount
amortized
cost
Loans and advances to banks 28 - - - 1,051,521 - - 1,051,521 - 720,161 - 720,161
Derivative financial assets 25 - - - - - - - - - - -
– Available for sale 26 - - - - 364,180,150 - 364,180,150 354,099,772 5,858,271 4,222,107 364,180,150
– Held to maturity 26 - - 29,408,045 - - - 29,408,045 30,470,528 - - 30,470,528
34,626,186 - 29,408,045 1,661,574,219 426,134,927 - 2,151,743,377 481,151,263 1,558,927,609 113,127,697 2,153,206,569
Deposits from banks 35 - - - - - 26,256,839 26,256,839 - 26,256,839 - 26,256,839

Financial liabilities held for trading 37 - - - - - - - - - - -
Derivative financial liabilities 25 - - - - - - - - - - -
Debt securities issued 38 - - - - - 180,117,424 180,117,424 - 180,117,424 - 180,117,424
- - - - - 2,086,452,573 2,086,452,573 - 2,078,789,208 - 2,078,789,208

Parent
Dec-2016
Carrying Fair Value

amount
amortized
cost
Derivative financial assets 25 - 1,042,470 - - - - 1,042,470 - 1,042,470 - 1,042,470
– Held to maturity 26 - - 5,219,262 - - - 5,219,262 4,273,058 - - 4,273,058
6,321,370 1,042,470 5,219,262 1,767,414,964 456,452,607 - 2,236,450,673 416,733,054 1,709,477,680 111,924,255 2,238,134,989
Deposits from banks 35 - - - - - 40,438 40,438 - 40,438 - 40,438

Financial liabilities held for trading 37 2,065,402 - - - - - 2,065,402 2,065,402 - - 2,065,402
Derivative financial liabilities 25 - 987,502 - - - - 987,502 - 987,502 - 987,502
2,065,402 987,502 - - - 2,103,603,579 2,106,656,483 2,065,402 1,760,398,661 - 1,762,464,063

Parent
Dec-2015
Carrying Fair Value

amount
amortized cost
Derivative financial assets 25 - - - - - - - - - - -
– Held to maturity 26 - - 3,210,575 - - - 3,210,575 4,273,058 - - 4,273,058
25,075,618 - 3,210,575 1,551,858,412 389,532,092 - 1,969,676,697 408,805,362 1,484,999,310 77,666,826 1,971,471,498
Deposits from banks 35 - - - - - 39,941 39,941 - 39,941 - 39,941

Derivative financial liabilities 25 - - - - - - - - - - -
Other liabilities 39 - - - 85,126,211 85,126,211 - 85,126,211 - 85,126,211
- - - 1,846,296,578 1,846,296,578 - 1,838,633,213 - 1,838,633,213
Fair value of loans and advances

The fair values of non retail loans have been determined based on observable market data (transactions) (level 2) whilst those of retail loans have been ‘estimated using
Discounted Cash Flow (DCF) valuation models (level 3). Inputs into this valuation technique include: expected cash flows, expected losses, tenor and interest rates, risk
premium between interest rate on the loan and risk free rate in the economy.
The expected cash flows (estimated recoverable amount from receivables, collateral and otherwise) are thus discounted to obtain the fair value of the retail loans. To
improve the accuracy of fair value of retail loans, these loans are grouped into homogenous portfolio along product and customer type.

Fair value of customers’ deposits
Fair values of customers’ deposits have been determined using discounted cash flow techniques applying the rates on deposits of similar maturities and terms to dis-
count the contractual cash flows.

Accounting classification measurement basis and fair values (continued)
Financial instruments at fair value (including those held for trading, designated at fair value, derivatives and
available-for-sale) are either priced with reference to a quoted market price for that instrument or by using a
valuation model. Where the fair value is calculated using a valuation model, the methodology is to calculate
the expected cash flows under the terms of each specific contract and then discount these values back to
present value. The expected cash flows for each contract are determined either directly by reference to actual
cash flows implicit in observable market prices or through modelling cash flows using appropriate financial
markets pricing models. Wherever possible these models use as their basis observable market prices and rates
including, for example, interest rate yield curves and prices.
9 Interest income
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Loans and advances to customers 195,434,614 164,406,131 173,340,268 149,476,834
196,152,958 165,241,862 173,341,671 149,478,237
Cash and cash equivalents 6,091,764 4,271,771 2,735,024 2,501,261
Financial assets held for trading 1,215,246 1,469,914 1,139,045 1,469,914
– Available for sale 46,197,640 45,915,768 43,639,814 44,348,112
– Held to maturity 7,540,698 4,199,959 428,130 543,534
Assets pledged as collateral 5,295,795 8,137,441 5,295,795 8,137,441
262,494,101 229,236,715 226,579,479 206,478,499
Geographical location
Interest income earned in Nigeria 226,209,508 206,002,424 226,209,509 206,131,073

Interest income earned outside Nigeria 36,284,593 23,234,291 369,970 347,426
262,494,101 229,236,715 226,579,479 206,478,499
Interest income for the year ended 31 December 2016 includes N10,295,000 (December 2015:N128,181,000)
accrued on impaired financial assets.
10 Interest expense
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Deposit from banks 1,470,101 1,076,852 64,236 20,712
Deposit from customers 48,920,848 50,038,265 39,824,956 43,709,104
50,390,949 51,115,117 39,889,192 43,729,816
Debt securities 8,920,083 12,707,850 - -
Total interest expense 67,093,923 69,289,592 55,551,522 61,445,632
Geographical location
Interest expense paid in Nigeria 41,294,160 57,385,475 41,477,841 44,726,705
Interest expense paid outside Nigeria 25,799,763 11,904,117 14,073,681 16,718,927
67,093,923 69,289,592 55,551,522 61,445,632


11 Loan impairment charges

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Loans and advances to banks (Note 28) 857 243 857 243
Increase in collective impairment 857 243 857 243
Loans and advances to customers (Note 29) 65,289,453 12,407,951 63,541,783 11,769,131
Increase in collective impairment1 50,795,566 101,989 50,636,771 (119,128)
Increase in specific impairment 15,330,625 12,602,274 13,389,143 11,993,084
Amounts written off during the year as uncollectible 70 144,335 - -
Recovery of loan amounts previously written off (836,808) (440,647) (484,131) (104,825)
65,290,310 12,408,194 63,542,640 11,769,374
1
The significant growth in Collective Impairment resulted from increase in Probability of Default on FX denominated Usance facilities due to marked depreciation of
the Naira against Dollars. Of the total collective impairment charge of N50.64Bn, the sum of N40.46Bn resulted from such facilities.
12 Fee and commission income

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Credit related fees and commissions 9,287,158 9,579,364 6,753,429 7,986,585
Account Maintenance Charges 1 8,447,586 10,631,612 7,376,169 9,809,236
Corporate finance fees 1,823,928 1,028,477 1,823,928 1,028,477
Commission on foreign exchange deals 4,052,289 2,690,299 4,052,289 2,690,299
Income from financial guarantee contracts issued 3,486,337 4,394,246 2,684,478 3,433,489
Account services, maintenance and anciliary banking charges 5,357,954 3,826,478 1,438,042 1,535,137
Transfers related charges 6,611,191 3,127,937 5,032,996 1,988,037
E-busines Income 12,207,467 16,587,195 11,236,447 15,563,637
51,273,910 51,865,608 40,397,778 44,034,897
1
The balance for 2015 relates to COT which is no longer in existence
13 Fee and commission expense

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Bank charges 2,191,731 1,650,294 1,947,916 1,556,281
Loan recovery and brokerage expenses 1,264,526 1,429,145 999,798 1,133,470
3,456,257 3,079,439 2,947,714 2,689,751
14 Net gains/(losses) on financial instruments classified as held for trading

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Bonds trading 49,114 (317,356) 49,114 (317,356)
Treasury bills trading 1,320,515 1,064,702 826,090 869,989
Foreign exchange 3,848,822 11,490,048 1,373,037 8,637,053
Net trading income 5,218,451 12,237,394 2,248,241 9,189,686
15 Other income
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Mark to market gains/(loss) on trading investments (7,754) 2,854,509 (7,754) 2,854,509
Foreign exchange revaluation gain 87,289,532 5,195,652 86,358,293 4,632,908
Gain on disposal of fixed assets 74,948 87,966 36,266 71,709
Net portfolio (loss)/gain on SMEEIS and long term investments 600,755 272,527 180,001 -
Dividends income 93,237 99,740 2,546,148 1,614,082
Valuation income - Repossessed collateral 3,922,090 - 3,922,090 -
Valuation income - Others 3,656,317 - 3,656,317 -
95,629,125 8,510,394 96,691,361 9,173,208

16 Net impairment reversal on other financial assets
There was no impairment reversal/additional impairment on other financial assets (i.e. financial assets other
than loans and advances) during the year
17 Personnel expenses
(a)
In thousands of Nigerian Naira Note Group Group Parent Parent
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Wages and salaries 27,374,803 26,089,613 20,491,636 20,526,468
Contributions to defined contribution plans 1,007,785 957,252 691,713 683,009
Defined benefit costs 40 (395,489) (748,187) (454,606) (754,440)
Cash-settled share-based payments (see 17(b) below) (280,628) 476,868 (280,628) -
Staff welfare expenses 1,746,994 946,177 256,657 272,798
29,453,465 27,721,723 20,704,772 20,727,835
Staff loans
Staff received loans at below the market interest rate. These loans are measured at fair value at initial recog-
nition. The difference between the PV of cash flows discounted at the contractual rate and PV of cash flows
discounted at market rate has been recognised as prepaid employee benefit which is amortised to personnel
expense (other staff cost) over the life of the loan.

Cash- settled share-based payments
The Group operates a cash-settled share based compensation plan (share appreciation rights (SARs)) for
its management personnel. The management personnel are entitled to the share appreciation rights after
spending ten years in the Bank.
Qualified employees must have been in the scheme for five years and must have held the shares for at least
three years. The amount of cash payment is determined based on the fair value of the shares of the Bank. The
details of SARs granted at the reporting date are provided below:
In thousands Number of shares

SARs granted to senior management employees at 31 December 2016 403,531
SARs granted to senior management employees at 31 December 2015 394,199
(b) Employee expenses for share-based payments
Group Group
Effect of changes in the fair value of SARs (497,208) (144,738)
Expense from rights exercised during the year 216,580 621,606
Total expense recognized as personnel expenses (280,628) 476,868

Note Group Group

Total carrying amount of liabilities for
cash-settled arrangements 39 7,920,089 8,136,942
The carrying amount of liabilities for cash-settled share based payments includes:
In thousands of Nigerian Naira Note Group Group

Dec-2016 Dec-2015
Balance, beginning of year 8,136,942 8,082,186
Effect of changes in fair value of SAR at year end (280,627) 476,868
Options exercised during the year (295,693) (707,927)
Share rights granted during the year 359,467 285,815
Balance, end of year 39 7,920,089 8,136,942
(i) The average number of persons employed during the year was as follows:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Number Number Number Number
Executive directors 6 6 6 6
Management 239 232 57 57
Non-management 4,961 4,906 3,286 3,280
5,206 5,144 3,349 3,343

(ii) The average number of persons in employment during the year is shown below:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Commercial Banking Abuja 38 35 38 35
Commercial Banking Lagos 178 204 178 204
Commercial Banking North East 50 47 50 47
Commercial Banking North West 55 56 55 56
Commercial Banking South East 42 36 42 36
Commercial Banking South South 62 61 62 61
Communication and External Affairs 159 164 28 25
Compliance Group 30 27 30 27
Corporate Services 183 169 135 126
E-Business 154 147 124 118
Enterprise Risk Management 159 158 85 88
Chief Executive Officer 1 1 1 1
Financial Control, Group Reporting ; Strategy 30 30 30 30
Human Resources 26 26 26 26
Institutional Banking 379 387 168 177
International Banking 82 82 39 39
Operations 177 201 177 201
Public Sector Abuja 34 38 34 38
Public Sector Lagos 18 - 18 -
Retail Lagos 184 181 184 181
Retail Abuja 52 54 52 54
Retail South East 22 28 22 28
South West Division 98 100 98 100
Retail South-South 38 34 38 34
SME Abuja 42 43 42 43
SME Division - Lagos 97 98 97 98
SME Division - South East 39 40 39 40
Systems and Control 130 130 90 92
Technology 228 229 157 160
Transaction Services 1,644 1,586 1,178 1,142
Wholesale Banking 43 47 32 36
Commercial Banking Subsidiaries 101 99 - -
Retail Subsidiaries 127 116 - -
Public Sector Subsidiaries 10 10 - -
Other Support Services 494 480 - -
5,206 5,144 3,349 3,343

(iii) Average number of employees other than directors, earning more than N720,000 per annum, received
emoluments (excluding pension contributions and certain benefits) in the following ranges:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
N720,001 - N1,400,000 1,538 1,534 - -

N1,400,001 - N2,050,000 732 616 613 555
N2,190,001 - N2,330,000 51 51 - -
N2,330,001 - N2,840,000 16 16 - -
N2,840,001 - N3,000,000 18 18 - -
N3,001,001 - N3,830,000 843 920 834 905
N3,830,001 - N4,530,000 5 5 - -
N4,530,001 - N5,930,000 659 631 650 606
N6,000,001 - N6,800,000 419 431 406 426
N6,800,001 - N7,300,000 10 9 - -
N7,300,001 - N7,800,000 326 320 318 313
N7,800,001 - N8,600,000 8 5 - -
N8,600,001 - N11,800,000 367 373 351 472
Above N11,800,000 208 209 171 60
5,200 5,138 3,343 3,337
18 Operating lease expense

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Operating lease expense 1,375,228 1,124,691 670,172 674,958
1,375,228 1,124,691 670,172 674,958
This relates to lease rentals on branches leased by the Bank. Lease rentals are fully paid in advance and there
are no future minimum lease payments to be made in respect of the leases
19 Depreciation and amortisation

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Amortisation of intangible assets (see note 32) 1,712,220 1,176,878 1,268,979 928,413
Depreciation of property, plant and equipment (see note 31) 13,537,146 11,417,644 11,461,319 9,858,957
15,249,366 12,594,522 12,730,298 10,787,370


20 Other operating expenses

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Finance costs 141,075 165,633 138,514 163,748

Deposit insurance premium 6,028,346 6,075,130 5,897,997 5,987,480
Other insurance premium 1,314,467 586,801 1,164,267 471,451
Auditors' remuneration1 596,234 502,552 400,000 330,000
Professional fees and other consulting costs 1,137,316 1,194,992 894,752 649,072
AMCON expenses 11,388,146 10,633,042 11,388,146 10,633,042
Stationery and postage 2,193,166 1,986,824 1,858,138 1,724,604
Business travel expenses 705,635 664,323 421,464 445,350
Advert, promotion and corporate gifts 7,454,120 6,073,823 6,430,187 5,480,809
Repairs and maintenance 7,173,638 4,188,902 5,985,134 3,418,994
Occupancy costs 2
6,516,937 4,663,809 4,734,646 3,447,237
Directors' emoluments 669,761 542,039 247,127 263,796
Outsourcing services 8,312,649 7,861,875 7,068,944 6,943,973
Administrative expense 3,971,197 3,695,073 2,900,727 2,619,039
Communications and sponsorship related expense 5,806,941 2,865,458 2,947,449 2,490,735
Human capital related expenses 2,384,548 1,910,406 2,304,112 1,841,960
Customer service related expenses 1,766,401 1,326,464 982,650 843,023
67,560,577 54,937,146 55,764,254 47,754,313
1
Auditor’s remuneration represents fees for half year and full year audit of the Group and Bank for the year ended 31 December 2016. The bank also paid the auditors
professional fees in the sum of N6,300,000 for non-audit service (certification of financial covenant with the Bank’s foreign lenders) rendered during the financial year. This
service, in the bank’s opinion, did not impair the independence and objectivity of the external auditor
2
This relates to diesel, fuel and electricity cost as well as ground rates and water cost
21 Income tax expense

(a)

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Current tax expense:
Company income tax 19,877,967 14,006,668 14,236,106 11,145,668
Education Tax 1,353,365 1,154,672 1,353,365 1,154,672
NITDA Levy 1,540,055 1,130,271 1,540,055 1,130,271
22,771,387 16,291,611 17,129,526 13,430,611
Dividend tax 2,896,852 3,894,426 2,896,852 3,894,426
Deferred tax expense:

Origination of temporary differences 7,187,567 1,071,886 7,142,317 1,393,897
32,855,806 21,257,923 27,168,695 18,718,934

Reconciliation of effective tax rate

Group
Profit before income tax 165,136,461 120,694,804

Income tax using the domestic corporation tax rate 49,540,938 30.0% 36,208,441 30.0%
Effect of tax rates in foreign jurisdictions 2,347,820 1.4% 238,666 0.2%
Tax reliefs/WHT Credits (525,677) -0.3% (587,861) -0.5%
Net capital allowance (5,538,687) -3.4% (5,586,557) -4.6%
Non-deductible expenses 19,055,532 11.5% 3,357,482 2.8%
Education tax levy 1,353,365 0.8% 1,154,672 1.0%
NITDEF tax levy 1,540,055 0.9% 1,130,271 0.9%
Tax exempt income (37,352,376) -22.6% (18,212,536) -15.1%
Deductible expenses (462,016) -0.3% (339,081) -0.3%
Dividend tax 2,896,852 1.8% 3,894,426 3.2%
Total income tax expense 32,855,806 19.9% 21,257,923 17.6%
Reconciliation of effective tax rate

Parent
Profit before income tax 154,005,487 113,027,057

Income tax using the domestic corporation tax rate 46,201,647 30.0% 33,908,118 30.0%
Tax reliefs/WHT Credits (525,677) -0.3% (587,861) -0.5%
Net capital allowance (5,538,687) -3.6% (5,586,557) -4.9%
Non-deductible expenses 1
19,055,532 12.4% 3,357,482 3.0%
Education tax levy 1,353,365 0.9% 1,154,672 1.0%
NITDEF tax levy 1,540,055 1.0% 1,130,271 1.0%
Tax exempt income2 (37,352,376) -24.3% (18,212,536) -16.1%
Deductible expenses (462,016) -0.3% (339,081) -0.3%
Dividend Tax 2,896,852 1.9% 3,894,426 3.4%
Total income tax expense 27,168,695 17.6% 18,718,934 16.6%
1
Non-deductible expense include depreciation, collective impairment, non-allowable donations ,etc
2
Tax exempt income include Deferred Tax Expense, and a percentage of other deductible lines; FX translation gains, Dividends, interest earned on
treasury bills and bonds etc
Income tax recognised in other comprehensive income

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Income tax relating to actuarial gains and losses 570,882 (402,820) 570,882 (402,820)
Income tax relating to foreign currency translation differences for 6,640,493 (496,058) - -
foreign operations
Income tax relating to net change in fair value of available for sale (1,982,410) 1,420,464 (2,112,274) 1,398,892
financial assets
5,228,965 521,586 (1,541,392) 996,072


(b) Current income tax payable

The movement on the current income tax payable account during the year was as follows:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Balance, beginning of the year 17,739,676 20,827,157 19,378,526 22,275,884

Exchange difference on translation 590,906 33,645 - -
Charge for the year 22,771,387 16,291,611 17,129,526 13,430,611
Payments during the year (26,070,542) (23,307,163) (21,585,865) (20,222,395)
Dividend tax 2,896,852 3,894,426 2,896,852 3,894,426
Balance, end of the year 17,928,279 17,739,676 17,819,039 19,378,526
22 Basic and Diluted earnings per share

Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the company
by the weighted average number of ordinary shares in issue during the year, excluding the average number
of ordinary shares purchased by the company and held as treasury shares.
The calculation of basic earnings per share for the reporting period was based on the profit atttributable to
ordinary shareholders of N131,341,742,000 and a weighted average number of ordinary shares outstanding
of 28,112,933,000 and it is calculated as follows:
Profit attributable to ordinary shareholders

In thousands of Nigerian Naira Group Group
Dec-2016 Dec-2015
Net profit attributable to equity holders of the Company 131,341,742 98,678,427
Net profit used to determine diluted earnings per share 131,341,742 98,678,427
Number of ordinary shares

In thousands of ordinary shares Group Group
Dec-2016 Dec-2015
Weighted average number of ordinary shares in issue 28,112,933 28,152,505
Basic earnings per share (expressed in naira per share) 4.67 3.51

The Group does not have any dilutive potential ordinary shares. Therefore, Basic EPS and Diluted EPS for
continuing operations are the same for the Group.
23 Cash and cash equivalents

(a)

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Cash in hand 45,378,374 33,365,573 36,794,249 27,097,102
Balances held with other banks 221,157,341 146,072,187 58,380,363 100,404,743
Unrestricted balances with central banks 53,411,505 40,213,238 18,683,027 25,453,036
Money market placements 135,916,085 34,982,217 119,989,594 20,178,228

455,863,305 254,633,215 233,847,233 173,133,109


(b) Cash and cash equivalents in statement of cash flows includes:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Cash and cash equivalents 455,863,305 254,633,215 233,847,233 173,133,109
Cash and cash equivalents above three months (23,314,881) - (22,984,571) -
432,548,424 254,633,215 210,862,662 173,133,109
24 Financial assets held for trading
(a)

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Trading bonds (see note 24(b) below) 391,141 16,407,536 391,141 16,407,536
Trading treasury bills (see note 24(c) below) 11,662,778 18,218,650 5,930,229 8,668,082
12,053,919 34,626,186 6,321,370 25,075,618
Current 11,111,164 21,925,919 5,931,609 12,375,351
Non-current 942,755 12,700,267 389,761 12,700,267

b. Trading bonds are analysed below:
Dec-2016 Dec-2015 Dec-2016 Dec-2015
6th FGN Bond Series 3 (12.49%) - 50,746 - 50,746
4th FGN Bond Series 9 (9.35%) - 8,346 - 8,346
10th FGN Bond Series 1 (13.05%) - 3,696,614 - 3,696,614
11th FGN Bond Series 2 (12.15%) - 12,639,944 - 12,639,944
Local Contractor Bond 1,380 11,886 1,380 11,886
9th FGN Bond Series 3 (16.00%) 100,462 - 100,462 -
391,141 16,407,536 391,141 16,407,536


c. Trading treasury bills is analysed below:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Nigerian treasury bills' maturities:
28-January-2016 - 162,726 - 162,726
07-January-2016 - 3,194 - 3,194
14-January-2016 - 4,971 - 4,971
21-January-2016 - 227,052 - 227,052
04-February-2016 - 26,270 - 26,270
11-February-2016 - 119,803 - 119,803
18-February-2016 - 2,623 - 2,623
25-February-2016 - 799 - 799
03-March-2016 - 50,344 - 50,344
17-March-2016 - 744,821 - 744,821
24-March-2016 - 49,709 - 49,709
31-March-2016 - 101 - 101
07-April-2016 - 13,615 - 13,615
14-April-2016 - 496,390 - 496,390
21-April-2016 - 1,837 - 1,837
28-April-2016 - 16 - 16
05-May-2016 - 3,222,744 - 3,222,744
12-May-2016 - 3,712 - 3,712
19-May-2016 - 413 - 413
26-May-2016 - 16 - 16
02-June-2016 - 697,626 - 697,626
16-June-2016 - 301,342 - 301,342
23-June-2016 - 24,786 - 24,786
30-June-2016 - 241,783 - 241,783
14-July-2016 - 259 - 259
21-July-2016 - 575 - 575
04-August-2016 - 242,060 - 242,060
01-September-2016 - 238 - 238
22-September-2016 - 237,420 - 237,420
06-October-2016 - 2,958 - 2,958
13-October-2016 - 1,053,971 - 1,053,971
20-October-2016 - 236,915 - 236,915
03-November-2016 - 29,583 - 29,583
17-November-2016 - 235,744 - 235,744
15-December-2016 - 231,666 - 231,666
05-January-2017 727,461 - 727,461 -
19-January-2017 772,557 - 772,557 -
02-February-2017 441 - 441 -
16-February-2017 624,201 - 624,201 -
23-February-2017 245,763 - 245,763 -
02-March-2017 274,950 - 274,950 -
09-March-2017 16,044 - 16,044 -
16-March-2017 152,949 - 152,949 -

30-March-2017 1,859 - 1,859 -

06-April-2017 44,406 - 44,406 -
13-April-2017 46,871 - 46,871 -
20-April-2017 1,880 - 1,880 -
27-April-2017 237,041 - 237,041 -
04-May-2017 236,184 - 236,184 -
11-May-2017 6,174 - 6,174 -
18-May-2017 38,232 - 38,232 -
25-May-2017 9,576 - 9,576 -
15-June-2017 45,288 - 45,288 -
22-June-2017 78,732 - 78,732 -
29-June-2017 23,429 - 23,429 -
06-July-2017 138,765 - 138,765 -
13-July-2017 59,987 - 59,987 -
20-July-2017 391,436 - 391,436 -
27-July-2017 28,660 - 28,660 -
03-August-2017 53,461 - 53,461 -
10-August-2017 1,402 - 1,402 -
17-August-2017 694 - 694 -
24-August-2017 9,178 - 9,178 -
31-August-2017 138,456 - 138,456 -
07-September-2017 80,316 - 80,316 -
14-September-2017 163,199 - 163,199 -
21-September-2017 22,380 - 22,380 -
28-September-2017 393,336 - 393,336 -
05-October-2017 12,610 - 12,610 -
19-October-2017 28,894 - 28,894 -
09-November-2017 62,457 - 62,457 -
16-November-2017 13,693 - 13,693 -
30-November-2017 13,881 - 13,881 -
14-December-2017 10,044 - 10,044 -
21-December-2017 723,342 - 723,342 -
Non-Nigerian treasury bills 5,732,549 9,550,568 - -
11,662,778 18,218,650 5,930,229 8,668,082

25. Derivative financial instruments

(a) Group
Dec-2016
In thousands of Nigerian Naira Notional Contract Fair Value Fair Value
Amount Assets Liability
Foreign Exchange Derivatives:
Foreign exchange forward 30,451,250 1,042,470 (987,502)

Currency swaps - - -
Derivative assets/(liabilities) 30,451,250 1,042,470 (987,502)


Group
Dec-2015

Foreign exchange forward - - -

Derivative assets/(liabilities) - - -
Parent
Dec-2016

Foreign exchange forward 30,451,250 1,042,470 (987,502)

Derivative assets/(liabilities) 30,451,250 1,042,470 (987,502)
Parent
Dec-2015

Foreign exchange forward - - -

Derivative assets/(liabilities) - - -
(b) All derivatives are settled in less than one year. exchange, of equivalent amounts of two currencies
and a commitment to exchange interest periodi-
(c) Foreign exchange derivatives cally until the principal amounts are re-exchanged
on a future date.
The Group enters into forward foreign exchange
contracts and currency swaps designated as held The Group’s foreign exchange derivatives do not
for trading. A forward foreign exchange contract is qualify for hedge accounting; therefore all gains
an agreement by two counterparties to exchange and losses from changes in their fair values are rec-
currencies at a pre-determined rate on some future ognised immediately in the income statement and
date. No funds change hands when a typical for- are reported in ‘Net gains/(losses) on financial instru-
ward foreign exchange contract originates; a funds ments classified as held for trading’.
flow occurs only at the contract’s stated future deliv-
ery time. A currency swap is the simultaneous spot
sale (or purchase) of currency against a forward pur-
chase (or sale) of approximately an equal amount. In
a swap contract, there is an exchange, or notional

26 Investment securities
(a) (i)
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Available for sale investment securities
Treasury bills 421,164,870 351,013,081 385,504,653 317,510,416

Bonds 13,782,210 3,086,691 9,640,011 -
Corporate bond 9,192,632 5,858,271 9,192,632 5,858,271
Equity securities at fair value (See note 26(a)(ii) below 4,279,461 4,116,988 4,279,461 4,116,988
Unquoted equity securities at cost (see note 26(b) below) 3,092,538 3,560,097 3,085,126 3,555,125
451,511,711 367,635,128 411,701,883 331,040,800
Specific impairment for equities (see note 26(c) below) (3,454,978) (3,454,978) (3,454,978) (3,454,978)
Total available for sale investment securities 448,056,733 364,180,150 408,246,905 327,585,822
Held to maturity investment securities

Bonds 14,697,152 9,026,462 5,219,262 3,210,575
Treasury bills 65,138,463 20,182,533 - -
Corporate bond 320,210 199,050 - -
Total held to maturity investment securities 80,155,825 29,408,045 5,219,262 3,210,575
Total investment securities 528,212,558 393,588,195 413,466,167 330,796,397
Current 486,497,010 374,513,689 385,512,418 317,510,416

Non-current 41,715,548 19,074,506 27,953,749 13,285,981
(a) (ii) Unquoted equity securities at fair value is analysed below:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
SMEEIS investment:
- Sokoa Chair Centre 107,244 107,214 107,244 107,214

- Iscare Nigeria Ltd 74,765 74,744 74,765 74,744
- Central Securities Clearing System 92,102 129,547 92,102 129,547
- 3 Peat Investment Ltd 1,016,032 1,016,032 1,016,032 1,016,032
1,290,143 1,327,537 1,290,143 1,327,537
Other unquoted equity investment:
- Unified Payment Services Limited1 188,883 168,898 188,883 168,898
- Nigeria Automated Clearing Systems 557,759 379,590 557,759 379,590
- Afrexim 98,455 296,458 98,455 296,458
- Africa Finance Corporation 2,144,221 1,944,505 2,144,221 1,944,505
2,989,318 2,789,451 2,989,318 2,789,451
Total fair value of equity securities 4,279,461 4,116,988 4,279,461 4,116,988
Specific impairment for equities (508,016) (508,016) (508,016) (508,016)
3,771,445 3,608,972 3,771,445 3,608,972
1
Unified Payment Services Limited was formerly known as Valucard Nigeria Plc.

(b) Unquoted equity securities at cost relates to the banks investment in SMEEIS and equity
investments:
Unquoted equity securities is analysed below:
Dec-2016 Dec-2015 Dec-2016 Dec-2015
SMEEIS investment:
- Forrilon Translantic Ltd 1,080,851 1,080,851 1,080,851 1,080,851
- TerraKulture ltd - 469,999 - 469,999
- Ruqayya Integrated Farms 40,500 40,500 40,500 40,500
- National E-Government Strategy 25,000 25,000 25,000 25,000
- Bookcraft Ltd 20,000 20,000 20,000 20,000
- Shonga F.H. Nigeria Ltd 200,000 200,000 200,000 200,000
- Safe Nigeria Ltd 350,000 350,000 350,000 350,000
- CRC Credit Bureau 61,111 61,111 61,111 61,111
- Cards Technology Limited 265,000 265,000 265,000 265,000
- Thisday Events Center 500,000 500,000 500,000 500,000
- HITV Limited 500,000 500,000 500,000 500,000
- SCC Algon Ltd 42,664 42,664 42,664 42,664
Cost of SMIEES investment 3,085,126 3,555,125 3,085,126 3,555,125
Less specific impairment for equities (2,946,962) (2,946,962) (2,946,962) (2,946,962)
Carrying value of SMIEES investment 138,164 608,163 138,164 608,163
Other unquoted equity investment:
- GIM UEMOA 7,412 4,972 - -
Cost of other unquoted equity investment 7,412 4,972 - -
Carrying value of other unquoted equity investment 7,412 4,972 - -
Total cost of unquoted equity investment 3,092,538 3,560,097 3,085,126 3,555,125
Total impairment of unquoted equity investment (2,946,962) (2,946,962) (2,946,962) (2,946,962)
Total carrying value of unquoted equity investment 145,576 613,135 138,164 608,163
Movement in unquoted equities at cost:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Balance at 1 January 613,135 549,215 608,163 544,052
- Exchange difference 2,440 (191) - -
- Disposal (469,999) - (469,999) -
- Reversal of impairment - 3,000 - 3,000
- Transfer from equity investments at fair value - 61,111 - 61,111
Balance, end of the year 145,576 613,135 138,164 608,163
Fair values of certain SMEEIS and Other long term Their impairment was based on the observable data
investments which are borne out of regulatory re- from the environment which suggests that the re-
quirement in force as at the time of investment can- coverable amount will be much lower than the car-
not be measured reliably because there are no active rying value of these investments; hence, they are car-
market for these financial instruments; they have ried at cost less impairment and included in Level 3
therefore been disclosed at cost less impairment. of the Fair Value hierarchy table.


The Group is willing to divest from these entities if ▪▪ The Group does not provide essential technical
willing buyers come across and upon obtaining ap- information to the entities.
propriate regulatory approvals since the regulation
that led to their creation has been abolished. ▪▪ There is no inter-change of personnel between
the Group and the entities.
The Group does not have power to influence the re-
turns from the investees. Consequently, the Group ▪▪ Although the Group is represented in some
is of the opinion that it does not have power over of the boards, these representations do not
the investees investments because of the following: connote any form of control or significant
influence because most of the entities do not
▪▪ There are no material transactions between hold regular board meetings and are run like
the Group and the entities and it does not sole proprietorship businesses.
participate in the policy making processes
owing to the nature of these entities.
(c) Specific impairment for equities
Movement in specific impairment for equities during the year is as shown below:
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Balance at 1 January 3,454,978 3,457,978 3,454,978 3,457,978
- Charge for the year - (3,000) - (3,000)
Balance, end of the year 3,454,978 3,454,978 3,454,978 3,454,978
The Bank would only lose cost of investment if decline in value is considered significant or prolonged.
Specific impairment for equities is further analysed by classification below:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Specific impairment on equity securities at fair value 508,016 508,016 508,016 508,016
Specific impairment on equity securities at cost 2,946,962 2,946,962 2,946,962 2,946,962
3,454,978 3,454,978 3,454,978 3,454,978
27 Assets pledged as collateral

(a)
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Financial assets held for trading 10,710 8,507 - -

- Treasury bills 10,710 8,507 - -
Investment Securities - available for sale (See note (c) below): 48,205,702 61,946,270 48,205,702 61,946,270
- Treasury bills 48,205,702 61,946,270 48,205,702 61,946,270
48,216,412 61,954,777 48,205,702 61,946,270
Current 48,205,702 61,946,270 48,205,702 61,946,270

Non-current 10,710 8,507 - -


(b) Assets pledged as collateral for both periods relate to assets pledged to Federal Inland Revenue Service
(FIRS), Nigerian Interbank Settlement System (NIBSS), Interswitch Nigeria Limited, Unified payment
Services Ltd and Bank Of Industries Limited for collections and other transactions.

(c) Treasury Bills pledged as collateral of N48,205,702,000 (December 2015: N61,946,270,000) have been
reclassified from available for sale and trading investment securities at fair value.

(d) Assets pledged as collateral are based on prices in an active market.
28 Loans and advances to banks

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Loans and advances to banks 654,839 1,051,785 31,064 639,081
Less specific allowances for impairment - - - -
Less collective allowances for impairment (1,121) (264) (1,121) (264)
653,718 1,051,521 29,943 638,817
Current 653,718 1,051,521 29,943 638,817

Non-current - - - -

Reconciliation of allowance accounts for losses on loans and advances to banks

Group
Dec-2016 Dec-2015
Specific Collective Total Specific Collective Total allowance
In thousands of Nigerian Naira allowance for allowance for allowance for allowance for allowance for for impairment
impairment impairment impairment impairment impairment
Balance at 1 January - 264 264 - 21 21
Increase in impairment allowances - 857 857 - 243 243
- 1,121 1,121 - 264 264
Parent
Dec-2016 Dec-2015
Specific Collective Total Specific Collective Total allowance
In thousands of Nigerian Naira allowance for allowance for allowance for allowance for allowance for for impairment
Balance at 1 January - 264 264 - 21 21
Increase in impairment allowances - 857 857 - 243 243
- 1,121 1,121 - 264 264

29 Loans and advances to customers

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Loans 150,410,695 96,456,999 107,506,692 73,176,379
Overdrafts 7,515,758 10,510,992 6,061,176 5,280,538
Others1 1,839 67,556 - -
Gross loans 157,928,292 107,035,547 113,567,868 78,456,917
Loans (1,048,642) (411,556) (1,450) (137,114)
Overdrafts (36,559) (62,594) (1,050) (935)
Others1 (39) (796) - -
Specific impairment (1,085,240) (474,946) (2,500) (138,049)
Loans (1,274,077) (331,344) (1,219,075) (250,194)
Overdrafts (861,180) (439,633) (859,315) (421,400)
Others1 (2) (235) - -
Collective impairment (2,135,259) (771,212) (2,078,390) (671,594)
Loans (2,322,719) (742,900) (1,220,525) (387,308)
Overdrafts (897,739) (502,227) (860,365) (422,335)
Others1 (41) (1,031) - -
Total impairment (3,220,499) (1,246,158) (2,080,890) (809,643)
Loans 148,087,976 95,714,099 106,286,167 72,789,071
Overdrafts 6,618,019 10,008,765 5,200,811 4,858,203
Others1 1,798 66,525 - -
Carrying amount 154,707,793 105,789,389 111,486,978 77,647,274
Loans to Non-individuals:
Loans 1,224,589,560 1,064,306,226 1,173,637,927 1,000,955,826
Overdrafts 203,622,761 181,012,430 128,653,633 162,210,692
Others 1
83,937,058 49,920,362 75,258,288 49,892,793
Gross loans 1,512,149,379 1,295,239,018 1,377,549,848 1,213,059,311
Loans (16,387,454) (9,063,530) (14,865,641) (6,979,085)
Overdrafts (3,244,652) (12,420,930) (1,005,489) (11,802,288)
Others 1
(259,216) (907) - -
Specific impairment (19,891,322) (21,485,367) (15,871,130) (18,781,373)
Loans (11,906,458) (3,738,153) (11,305,230) (3,044,577)
Overdrafts (5,061,009) (3,638,513) (4,176,375) (3,432,667)
Others1 (40,568,549) (240,827) (40,466,139) (240,525)
Collective impairment (57,536,016) (7,617,493) (55,947,744) (6,717,769)
Loans (28,293,912) (12,801,683) (26,170,871) (10,023,662)
Overdrafts (8,305,661) (16,059,443) (5,181,864) (15,234,955)
Others1 (40,827,765) (241,734) (40,466,139) (240,525)
Total impairment (77,427,338) (29,102,860) (71,818,874) (25,499,142)
Loans 1,196,295,648 1,051,504,543 1,147,467,056 990,932,164
Overdrafts 195,317,100 164,952,987 123,471,769 146,975,737
Others1 43,109,293 49,678,628 34,792,149 49,652,268
Carrying amount 1,434,722,041 1,266,136,158 1,305,730,974 1,187,560,169
Total carrying amount (individual and non individual) 1,589,429,834 1,371,925,547 1,417,217,952 1,265,207,443
1
Others include Usances and Usances Settlement


Dec-2016 Dec-2015 Dec-2016 Dec-2015
Current 995,484,613 845,362,416 861,300,437 758,906,892

Non-current 593,945,221 526,563,131 555,917,515 506,300,551

Reconciliation of allowance accounts for losses on loans and advances to INDIVIDUALS

Group
Dec-2016 Dec-2015
In thousands of Nigerian Naira Specific Collective Total al- Specific Collective Total
allowance for allowance for lowance for allowance for allowance for allowance for
impairment impairment impairment impairment impairment impairment
Balance at 1 January 474,946 771,212 1,246,158 350,648 684,693 1,035,341

Foreign currency translation and other 262,311 (115,185) 147,126 (8,710) 24,160 15,450
adjustments
Increase in impairment allowances 570,343 1,479,232 2,049,575 816,579 62,359 878,938
Write offs (222,360) - (222,360) (683,571) - (683,571)
Balance, end of year 1,085,240 2,135,259 3,220,499 474,946 771,212 1,246,158
Parent
Dec-2016 Dec-2015
In thousands of Nigerian Naira Specific Collective Total al- Specific Collective Total al-
allowance for allowance for lowance for allowance for allowance for lowance for
Balance at 1 January 138,049 671,594 809,643 69,838 611,585 681,423

Increase/(reversal) in impairment allow- (3,089) 1,406,796 1,403,707 707,625 60,009 767,634
ances
Write offs (132,460) - (132,460) (639,414) - (639,414)
Balance, end of year 2,500 2,078,390 2,080,890 138,049 671,594 809,643

Reconciliation of allowance accounts for losses on Loans to NON - INDIVIDUALS

Group
Dec-2016 Dec-2015
Specific Collective Total al- Specific Collective Total allowance
In thousands of Nigerian Naira allowance for allowance for lowance for allowance for allowance for for impairment
Balance at 1 January 21,485,367 7,617,493 29,102,860 22,122,052 7,462,858 29,584,910
Foreign currency translation and other 1,570,827 602,189 2,173,016 (150,351) 115,005 (35,346)
adjustments
Increase in impairment allowances 14,760,282 49,316,334 64,076,616 11,785,695 39,630 11,825,325
Write offs (17,925,154) - (17,925,154) (12,272,029) - (12,272,029)
Balance, end of year 19,891,322 57,536,016 77,427,338 21,485,367 7,617,493 29,102,860
Parent
Dec-2016 Dec-2015
Specific Collective Total al- Specific Collective Total al-
In thousands of Nigerian Naira allowance for allowance for lowance for allowance for allowance for lowance for
Balance at 1 January 18,781,373 6,717,769 25,499,142 18,479,842 6,896,906 25,376,748

Foreign currency translation and other 427 - 427 49 - 49
adjustments
Increase/(reversal) in impairment allowances 13,392,232 49,229,975 62,622,207 11,285,459 (179,137) 11,106,322
Write offs (16,302,902) - (16,302,902) (10,983,977) - (10,983,977)
Balance, end of year 15,871,130 55,947,744 71,818,874 18,781,373 6,717,769 25,499,142

Reconciliation of allowance accounts for losses on loans and advances to banks
Group
Dec-2016
Loans Overdrafts Others Total

Specific Collective Total al- Specific Collective Total al- Specific al- Collective Total al- Specific al- Collective Total allowance
allowance lowance for allowance for allowance for lowance for lowance for allowance for lowance for lowance for allowance for impairment
In thousands of Nigerian Naira allowance for
for impair- impairment impairment impairment impairment impairment impairment impairment impairment for impair-
impairment ment ment
Balance at 1 January - 4 4 - 260 260 - - - - 264 264

Increase/(reversal) in impairment allowances - 1,104 1,104 - (247) (247) - - - - 857 857
- 1,108 1,108 - 13 13 - - - - 1,121 1,121
Group
Dec-2015

Increase in impairment allowances - - - - 243 243 - - - - 243 243
- 4 4 - 260 260 - - - - 264 264

Reconciliation of allowance accounts for losses on loans and advances to Banks
Parent
Dec-2016


Increase/(reversal) in impairment allowances - 1,104 1,104 - (247) (247) - - - - 857 857
- 1,108 1,108 - 13 13 - - - - 1,121 1,121
Parent
Dec-2015

Increase in impairment allowances - - - - 243 243 - - - - 243 243
- 4 4 - 260 260 - - - - 264 264

Group
Dec-2016
Specific al- Collective Total Specific Collective Total al- Specific al- Collective Total al- Specific Collective Total al-
lowance for allowance allowance allowance allowance for lowance for lowance for allowance lowance for allowance allowance lowance for
impairment for impair- for impair- for impair- impairment impairment impairment for impair- impairment for impair- for impair- impairment
ment ment ment ment ment ment
Balance at 1 January 411,556 331,344 742,900 62,594 439,633 502,227 796 235 1,031 474,946 771,212 1,246,158
Foreign currency translation and 270,080 (68,729) 201,351 (7,778) (46,456) (54,234) 9 - 9 262,311 (115,185) 147,126
other adjustments
Increase/(reversal) in impairment 401,688 1,011,462 1,413,150 168,363 468,003 636,366 292 (233) 59 570,343 1,479,232 2,049,575
allowances
Write offs (34,682) - (34,682) (186,620) - (186,620) (1,058) - (1,058) (222,360) - (222,360)
Balance, end of year 1,048,642 1,274,077 2,322,719 36,559 861,180 897,739 39 2 41 1,085,240 2,135,259 3,220,499
Group
Dec-2015
Specific al- Collective Total Specific Collective Total al- Specific al- Collective Total al- Specific Collective Total al-
lowance for allowance allowance allowance allowance for lowance for lowance for allowance lowance for allowance allowance lowance for
impairment for impair- for impair- for impair- impairment impairment impairment for impair- impairment for impair- for impair- impairment
Balance at 1 January 32,741 351,910 384,651 317,057 332,562 649,619 850 221 1,071 350,648 684,693 1,035,341
Foreign currency translation and (7,547) 10,380 2,833 (1,148) 13,773 12,625 (15) 7 (8) (8,710) 24,160 15,450
other adjustments
Increase/(reversal) in impairment 424,625 (30,946) 393,679 391,919 93,298 485,217 35 7 42 816,579 62,359 878,938
allowances
Write offs (38,263) - (38,263) (645,234) - (645,234) (74) - (74) (683,571) - (683,571)
Balance, end of year 411,556 331,344 742,900 62,594 439,633 502,227 796 235 1,031 474,946 771,212 1,246,158

Parent
Dec-2016

Specific Collective Total Specific al- Collective Total Specific Collective Total Specific Collective Total
allowance allowance allowance lowance for allowance for allowance allowance allowance allowance allowance allowance allowance
for impair- for impair- for impair- impairment impairment for impair- for impair- for impair- for impair- for impair- for impair- for impair-
ment ment ment ment ment ment ment ment ment ment
Balance at 1 January 137,114 250,194 387,308 935 421,400 422,335 - - - 138,049 671,594 809,643
Increase/(reversal) in impairment (135,664) 968,881 833,217 132,575 437,915 570,490 - - - (3,089) 1,406,796 1,403,707
allowances
Write offs - - - (132,460) - (132,460) - - - (132,460) - (132,460)
Balance, end of year 1,450 1,219,075 1,220,525 1,050 859,315 860,365 - - - 2,500 2,078,390 2,080,890
Parent
Dec-2015
Specific Collective Total Specific al- Collective Total Specific Collective Total Specific Collective Total
allowance allowance allowance lowance for allowance for allowance allowance allowance allowance allowance allowance allowance
for impair- for impair- for impair- impairment impairment for impair- for impair- for impair- for impair- for impair- for impair- for impair-
ment ment ment ment ment ment ment ment ment ment
Balance at 1 January - 343,386 343,386 69,838 268,199 338,037 - - - 69,838 611,585 681,423
Increase/(reversal) in impairment 137,114 (93,192) 43,922 570,511 153,201 723,712 - - - 707,625 60,009 767,634
allowances
Write offs - - - (639,414) - (639,414) - - - (639,414) - (639,414)
Balance, end of year 137,114 250,194 387,308 935 421,400 422,335 - - - 138,049 671,594 809,643

Group
Dec-2016
Specific al- Collective Total al- Specific al- Collective Total Specific Collective Total Specific al- Collective Total al-
lowance for allowance lowance for lowance for allowance for allowance allowance allowance allowance lowance for allowance lowance for
impairment for impair- impairment impairment impairment for impair- for impair- for impair- for impair- impairment for impair- impairment
Balance at 1 January 9,063,530 3,738,153 12,801,683 12,420,930 3,638,513 16,059,443 907 240,827 241,734 21,485,367 7,617,493 29,102,860
Foreign currency translation 1,517,868 359,317 1,877,185 52,903 242,871 295,774 56 1 57 1,570,827 602,189 2,173,016
and other adjustments
Increase/(reversal) in 23,676,502 7,808,988 31,485,490 (9,174,524) 1,179,625 (7,994,899) 258,304 40,327,721 40,586,025 14,760,282 49,316,334 64,076,616
impairment allowances
Write offs (17,870,446) - (17,870,446) (54,657) - (54,657) (51) - (51) (17,925,154) - (17,925,154)
Balance, end of year 16,387,454 11,906,458 28,293,912 3,244,652 5,061,009 8,305,661 259,216 40,568,549 40,827,765 19,891,322 57,536,016 77,427,338
Group
Dec-2015
Specific al- Collective Total al- Specific al- Collective Total Specific Collective Total Specific al- Collective Total al-
lowance for allowance lowance for lowance for allowance for allowance allowance allowance allowance lowance for allowance lowance for
impairment for impair- impairment impairment impairment for impair- for impair- for impair- for impair- impairment for impair- impairment
Balance at 1 January 14,066,172 4,689,538 18,755,710 7,013,627 2,420,835 9,434,462 1,042,253 352,485 1,394,738 22,122,052 7,462,858 29,584,910
Foreign currency translation (130,277) 49,411 (80,866) (19,821) 65,559 45,738 (253) 35 (218) (150,351) 115,005 (35,346)
Increase/(reversal) in 6,112,493 (1,000,796) 5,111,697 5,672,551 1,152,119 6,824,670 651 (111,693) (111,042) 11,785,695 39,630 11,825,325
Write offs (10,984,858) - (10,984,858) (245,427) - (245,427) (1,041,744) - (1,041,744) (12,272,029) - (12,272,029)
Balance, end of year 9,063,530 3,738,153 12,801,683 12,420,930 3,638,513 16,059,443 907 240,827 241,734 21,485,367 7,617,493 29,102,860

Parent
Dec-2016
Specific al- Collective Total al- Specific al- Collective Total al- Specific Collective Total Specific al- Collective Total al-
lowance for allowance lowance for lowance for allowance for lowance for allowance allowance allowance lowance for allowance lowance for
impairment for impair- impairment impairment impairment impairment for impair- for impair- for impair- impairment for impair- impairment
ment ment ment ment ment
Balance at 1 January 6,979,085 3,044,577 10,023,662 11,802,288 3,432,667 15,234,955 - 240,525 240,525 18,781,373 6,717,769 25,499,142
Foreign currency translation 427 - 427 - - - - - - 427 - 427
Increase/(reversal) in 24,189,031 8,260,653 32,449,684 (10,796,799) 743,708 (10,053,091) - 40,225,614 40,225,614 13,392,232 49,229,975 62,622,207
Write offs (16,302,902) - (16,302,902) - - - - - - (16,302,902) - (16,302,902)
Balance, end of year 14,865,641 11,305,230 26,170,871 1,005,489 4,176,375 5,181,864 - 40,466,139 40,466,139 15,871,130 55,947,744 71,818,874
Parent
Dec-2015
Specific al- Collective Total al- Specific al- Collective Total al- Specific Collective Total Specific al- Collective Total al-
lowance for allowance lowance for lowance for allowance for lowance for allowance allowance allowance lowance for allowance lowance for
impairment for impair- impairment impairment impairment impairment for impair- for impair- for impair- impairment for impair- impairment
ment ment ment ment ment
Balance at 1 January 12,283,990 4,412,610 16,696,600 6,195,852 2,293,763 8,489,615 - 190,533 190,533 18,479,842 6,896,906 25,376,748
Foreign currency translation 49 - 49 - - - - - - 49 - 49
Increase/(reversal) in 5,679,023 (1,368,033) 4,310,990 5,606,436 1,138,904 6,745,340 - 49,992 49,992 11,285,459 (179,137) 11,106,322
Write offs (10,983,977) - (10,983,977) - - - - - - (10,983,977) - (10,983,977)
Balance, end of year 6,979,085 3,044,577 10,023,662 11,802,288 3,432,667 15,234,955 - 240,525 240,525 18,781,373 6,717,769 25,499,142

30 Investment in subsidiaries
(a) Investment in subsidiaries comprises:
In thousands of Nigerian Naira Parent Parent Parent Parent

Dec-2016 Dec-2015 Dec-2016 Dec-2015
% ownership % ownership N'000 N'000
GTB Gambia 77.81 77.81 574,278 574,278

GTB Sierra Leone 84.24 84.24 594,109 594,109
GTB Ghana 97.97 95.37 9,042,739 8,572,446
GTB Finance B.V. 100.00 100.00 3,220 3,220
GTB UK Limited 100.00 100.00 9,597,924 9,597,924
GTB Liberia Limited 99.43 99.43 1,947,264 1,947,264
GTB Cote D'Ivoire Limited 100.00 100.00 5,077,458 3,485,058
GTB Kenya Limited 70.00 70.00 17,131,482 17,131,482
43,968,474 41,905,781
Current - -
Non-current 43,968,474 41,905,781

(a) (i) The movement in investment in subsidiaries during the year is as follows:
In thousands of Nigerian Naira Parent Parent

Dec-2016 Dec-2015
Balance, beginning of the year 41,905,781 40,130,284
Disposal during the year - -
Additions during the year 2,062,693 1,775,497
Balance, end of the year 43,968,474 41,905,781
(a) (ii) Additions during the period relate to additional investments of N470,293,000 in GTB Ghana and
N1,592,400,000 in GTB Cote D’Ivoire

Please refer to Note 45 for more information on the Group structure

Condensed results of consolidated entities

(b) Condensed results of the consolidated entities as at 31 December 2016, are as follows:
Full year profit and loss

Dec-2016
Staff Invest- GTB Finance GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank Cote GT Bank
ment Trust B.V. Ghana Sierra Leone Liberia UK Gambia D'Ivoire Kenya
Operating income 1,691,942 991,120 13,840,329 4,851,097 2,833,481 3,141,319 3,661,362 1,131,185 9,641,918
Operating expenses - (991,120) (6,101,585) (2,174,467) (1,953,949) (2,789,493) (2,116,611) (1,377,621) (7,255,414)
Loan impairment charges - - (593,793) (244,647) (59,317) - 36,121 (167,186) (718,845)
Profit before tax 1,691,942 - 7,144,951 2,431,983 820,215 351,826 1,580,872 (413,622) 1,667,659
Taxation - - (2,218,295) (652,424) (205,054) - (468,025) - (643,311)
Profit after tax 1,691,942 - 4,926,656 1,779,559 615,161 351,826 1,112,847 (413,622) 1,024,348
Other comprehensive income net of tax - - - (843) - - 198,417 - 42,325
Total comprehensive income for the year 1,691,942 - 4,926,656 1,778,716 615,161 351,826 1,311,264 (413,622) 1,066,673

Condensed financial position

Dec-2016
In thousands of Nigerian Naira Staff Invest- GTB Finance GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank Cote GT Bank
Assets
Cash and cash equivalents 113,229 - 28,349,278 13,270,847 11,182,901 101,736,739 12,289,074 1,458,398 22,370,681
Loans and advances to banks - - - - - 129,666 - 494,108 -
Loans and advances to customers - 127,903,847 46,602,126 14,280,796 14,570,559 27,852,101 6,103,846 5,623,853 59,254,839
Financial assets held for trading - - 5,732,549 - - - - - -
– Available for sale 32,560,683 - - - - 17,330,138 20,305,737 7,412 2,166,541
– Held to maturity - - 30,338,621 8,024,436 2,306,248 - - 4,257,564 30,009,694
Assets pledged as collateral - - - - - - - 10,710 -
Property and equipment - - 1,803,575 1,274,750 1,628,793 625,750 2,379,586 1,023,122 3,042,459
Intangible assets - - 212,469 - 26,619 - 41,159 54,220 1,540,492
Deferred tax assets - - 162,366 48,797 - 381,461 - - 985,804
Restricted deposits and other assets - - 1,737,159 498,712 1,178,423 348,989 527,380 241,877 3,309,849
Total assets 32,673,912 127,903,847 114,938,143 37,398,338 30,893,543 148,404,844 41,646,782 13,171,264 122,680,359
Financed by:
Deposits from banks - - 4,276,137 247,937 - 79,114,770 359,634 - 9,717,458
Deposits from customers - - 82,641,543 30,112,825 22,334,685 56,501,480 23,791,695 6,869,499 82,876,236
Debt securities issued - 125,639,949 - - - - - - 597,914
Current income tax liabilities - - 40,314 177,813 149,265 - 47,359 - 42,499
Deferred tax liabilities - - 90,220 - - - 169,862 - 270,462
Other liabilities 7,920,089 - 3,301,791 842,452 1,642,974 580,074 8,065,864 1,653,598 1,614,549
Other borrowed funds 2,083,304 - 3,530,615 - 1,547,092 - 4,811,803 - 3,066,162
Total liabilities 10,003,393 125,639,949 93,880,620 31,381,027 25,674,016 136,196,324 37,246,217 8,523,097 98,185,280
Equity and reserve 22,670,519 2,263,898 21,057,523 6,017,311 5,219,527 12,208,520 4,400,565 4,648,167 24,495,079
32,673,912 127,903,847 114,938,143 37,398,338 30,893,543 148,404,844 41,646,782 13,171,264 122,680,359

Condensed cash flow

Dec-2016
Net cash flow:
- from operating activities (216,853) 156,440,616 11,328,810 332,834 548,716 37,562,688 18,952,598 1,765,584 (4,032,950)
- from investing activities 1,154,853 - (10,995,490) 2,585,602 715,873 (4,075,411) (17,183,790) (1,213,309) 8,967,240
- from financing activities (880,645) (156,448,038) (3,082,258) (752,063) 1,547,092 - 131,390 - 2,796,708
Increase in cash and cash equivalents 57,355 (7,422) (2,748,938) 2,166,373 2,811,681 33,487,277 1,900,198 552,275 7,730,998
Cash balance, beginning of year 55,874 4,729 22,364,533 9,449,243 5,653,178 52,137,389 7,632,855 853,821 10,519,188
Effect of exchange difference - 2,693 8,733,683 1,655,231 2,718,042 16,112,073 2,756,021 52,302 4,120,495
Cash balance, end of year 113,229 - 28,349,278 13,270,847 11,182,901 101,736,739 12,289,074 1,458,398 22,370,681

Condensed results of the consolidated entities of the GT Bank Kenya Group as at 31 December 2016,
are as follows:
Profit and loss

Dec-2016
In thousands of Nigerian Naira GT Bank Kenya GT Bank Uganda GT Bank Rwanda
Operating income 5,568,997 1,322,930 2,749,991

Operating expenses (3,784,987) (1,394,307) (2,076,121)
Loan impairment charges (66,736) (57,426) (594,683)
Profit before tax from continuing operations 1,717,274 (128,803) 79,187
Taxation (600,035) (43,276) -
Profit after tax from continuing operations 1,117,239 (172,079) 79,187

Dec-2016
Assets
Cash and cash equivalents 13,365,466 2,824,698 6,180,517
Loans and advances to customers 39,335,585 6,177,951 13,741,303
– Available for sale 2,166,541 - -
– Held to maturity 23,731,672 1,749,359 4,528,663
Investment in subsidiaries 8,709,682 - -
Property and equipment 1,210,223 370,717 1,461,519
Intangible assets 617,001 353,199 437,334
Deferred tax assets 255,012 730,792 -
Restricted deposits and other assets 956,672 234,632 2,118,545
Total assets 90,347,854 12,441,348 28,467,881
Financed by:
Deposits from banks 9,599,910 117,034 514
Deposits from customers 50,476,758 8,764,401 23,635,077
Debt securities issued 3,664,076 - -
Current income tax liabilities 42,499 - -
Deferred tax liabilities 68,616 - 201,846
Other liabilities 1,052,032 130,905 431,612
Total liabilities 64,903,891 9,012,340 24,269,049
Equity and reserve 25,443,963 3,429,008 4,198,832
90,347,854 12,441,348 28,467,881


Condensed results of the consolidated entities as at 31 December 2015, are as follows:

Dec-2015
Condensed profit and loss
Operating income (126,540) 1,407,260 8,912,093 3,855,811 1,757,409 2,253,862 2,313,484 335,006 6,953,385
Operating expenses 897,473 (1,407,260) (4,303,685) (1,801,982) (1,265,150) (2,235,631) (1,292,887) (777,077) (5,654,667)
Loan impairment charges - - 105,563 (132,320) (100,351) - 17,313 (115,562) (413,461)
Profit before tax 770,933 - 4,713,971 1,921,509 391,908 18,231 1,037,910 (557,633) 885,257
Taxation - - (1,436,860) (576,419) (97,977) 10,591 (358,903) - (79,420)
Profit after tax 770,933 - 3,277,111 1,345,090 293,931 28,822 679,007 (557,633) 805,837
Other comprehensive income net of tax - - - 90,045 - 2,850 27,340 - 65,688
Total comprehensive income for the year 770,933 - 3,277,111 1,435,135 293,931 31,672 706,347 (557,633) 871,525

Condensed results of the consolidated entities as at 31 December 2015, are as follows:

Dec-2015
Assets
Cash and cash equivalents 55,874 4,729 22,364,533 9,449,243 5,653,178 52,137,389 7,632,855 853,821 10,519,188
Loans and advances to banks - - - - - 81,230 - 331,474 -
Loans and advances to customers - 181,174,252 33,457,184 7,761,951 6,456,677 17,016,920 4,895,479 1,981,757 38,112,086
Financial assets held for trading - - - - - - 9,550,568 - -
– Available for sale 29,497,697 - - 8,853,424 - 10,150,343 1,678,884 4,972 15,906,704
– Held to maturity - - 13,344,690 - 1,856,778 - - 1,839,679 9,156,323
Assets pledged as collateral - - - - - - - 8,507 -
Property and equipment - - 1,478,175 1,112,066 934,356 424,870 1,668,143 725,527 2,452,899
Intangible assets - - 105,894 - 22,165 4,701 33,142 63,303 1,142,462
Deferred tax assets - - 110,933 33,169 - 301,170 - - 752,447
Restricted deposits and other assets - - 1,363,768 269,079 2,309,994 289,633 380,875 148,173 1,282,276
Total assets 30,053,571 181,178,981 72,225,177 27,478,932 17,233,148 80,406,256 25,839,946 5,957,213 79,324,385
Financed by:
Deposits from banks - - 5,207,081 - - 36,795,900 204,253 99,628 11,052,939
Deposits from customers - - 50,028,317 21,964,190 12,240,086 34,206,328 14,278,044 3,848,227 51,262,176
Debt securities issued - 179,736,280 - - - - - - 381,144
Current income tax liabilities - - (153,679) 409,330 45,058 - 68,478 - (160,027)
Deferred tax liabilities - - 151,698 - - - 160,909 - 181,142
Other liabilities 8,136,942 - 1,317,874 967,480 1,689,853 387,275 5,796,775 214,401 1,142,053
Other borrowed funds 2,963,949 - 3,270,193 - - - 2,836,644 - 172,051
Total liabilities 11,100,891 179,736,280 59,821,484 23,341,000 13,974,997 71,389,503 23,345,103 4,162,256 64,031,478
Equity and reserve 18,952,680 1,442,701 12,403,693 4,137,932 3,258,151 9,016,753 2,494,843 1,794,957 15,292,907
30,053,571 181,178,981 72,225,177 27,478,932 17,233,148 80,406,256 25,839,946 5,957,213 79,324,385

Dec-2015
Staff Invest- GTB Finance GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank Cote GT Bank
Condensed cash flow
Net cash flow:
- from operating activities 825,688 (1,052,923) 5,581,346 1,908,541 85,809 7,338,926 5,076,386 (388,262) (7,754,570)
- from investing activities (766,581) - (3,549,260) (2,598,277) (243,386) (3,362,069) (2,029,487) 153,671 2,209,828
- from financing activities (33,213) 1,057,652 (2,945,433) (213,923) - (1,762,944) 2,737,364 - 24,423
Increase in cash and cash equivalents 25,894 4,729 (913,347) (903,659) (157,577) 2,213,913 5,784,263 (234,591) (5,520,319)
Cash balance, beginning of year 29,980 - 25,623,215 9,424,019 5,483,177 48,999,881 1,766,819 1,096,172 16,728,210
Effect of exchange difference - - (2,345,335) 928,883 327,578 923,595 81,773 (7,760) (688,703)
Cash balance, end of year 55,874 4,729 22,364,533 9,449,243 5,653,178 52,137,389 7,632,855 853,821 10,519,188

Condensed results of the consolidated entities of the GT Bank Kenya Group as at 31 December 2015,
are as follows:
Profit and loss

Dec-2015
Operating income 4,014,649 683,802 1,910,382

Operating expenses (2,912,169) (893,547) (1,848,949)
Loan impairment charges (1,352) (23,228) (44,330)
Profit before tax from continuing operations 1,101,128 (232,973) 17,103
Taxation (139,163) 85,829 (26,086)
Profit after tax from continuing operations 961,965 (147,144) (8,983)


Dec-2015
Assets
Cash and cash equivalents 5,014,497 1,666,330 3,838,362
Loans and advances to customers 24,147,110 2,860,336 11,104,641
Investment Securities:
– Available for sale 15,906,704 - -
– Held to maturity 4,409,682 1,360,241 3,386,401
Investment in subsidiaries 5,554,914 - -
Property and equipment 936,342 304,407 1,212,151
Intangible assets 462,167 259,846 378,050
Deferred tax assets 254,905 497,543 -
Restricted deposits and other assets 304,770 93,069 884,437
Total assets 56,991,091 7,041,772 20,804,042
Financed by:
Deposits from banks 10,477,923 574,692 325
Deposits from customers 30,109,410 3,807,769 17,344,999
Debt securities issued 381,144 - -
Current income tax liabilities (7,071) - (152,957)
Deferred tax liabilities 43,764 - 137,377
Other liabilities 603,440 193,409 345,205
Other borrowed funds - - 172,051
Total liabilities 41,608,610 4,575,870 17,847,000
Equity and reserve 15,382,481 2,465,902 2,957,042
56,991,091 7,041,772 20,804,042


31 Property and equipment
(a) Group
Leasehold
Capital
improvement Leasehold Furniture & Motor Aircraft Total
In thousands of Nigerian Naira work-in
and buildings1 Land equipment vehicle
- progress2
Cost
Exchange difference 2,114,456 266,667 3,482,693 674,904 - 481,901 7,020,621
Additions 1,474,835 10,081 7,173,198 1,224,554 32,588 5,838,096 15,753,352
Disposals (186,921) - (2,023,811) (1,317,335) - (257,596) (3,785,663)
Transfers 6,092,182 4,219,310 3,603,245 429,712 - (14,344,449) -
Exchange difference 67,021 26,727 (20,171) 35,819 - 11,485 120,881
Additions 1,361,172 38,236 5,354,491 1,295,008 8,341,756 6,764,582 23,155,245
Disposals / reclass (17,930) - (2,595,850) (1,317,821) - 9,406 (3,922,195)
Transfers 1,396,593 364,750 869,800 218,373 - (2,849,516) -
1
Of this amount as at December 2016, Leasehold improvement accounts for N10,498,282,000 (20.1%) while Buildings acounts for N41,860,464,000 (79.9%)
2
Capital work in progess refers to capital expenditure incurred on items of Property, Plant and Equipment which are however not ready for use and as such are not being depreciated.


Property and equipment (continued)
Group
Depreciation
Leasehold
Capital
- progress2
Balance at 1 January 2016 9,161,702 735,342 39,885,651 5,462,806 3,338,433 - 58,583,934

Exchange difference 578,294 31,608 2,366,748 415,218 - - 3,391,868
Charge for the year 1,682,901 143,567 8,517,757 1,608,261 1,584,660 - 13,537,146
Disposal (170,060) - (2,002,049) (1,267,872) - - (3,439,981)
Assets of subsidiaries acquired - - - - - - -
Balance at 31 December 2016 11,252,837 910,517 48,768,107 6,218,413 4,923,093 - 72,072,967

Exchange difference 22,357 7,045 (4,707) 25,494 - - 50,189
Charge for the year 1,755,517 112,509 7,361,650 1,482,717 705,251 - 11,417,644
Disposal (9,433) - (2,595,983) (1,260,817) - - (3,866,233)
Carrying amounts:

(b) Parent
Leasehold
Capital
- progress2
Cost
Additions 1,086,365 - 6,355,042 1,066,480 32,588 5,508,569 14,049,044
Disposals (62,595) - (2,096,714) (1,201,546) - - (3,360,855)
Transfers 5,515,952 4,219,310 3,559,734 429,712 - (13,724,708) -
Additions 1,260,112 35,250 4,395,832 930,695 8,341,756 6,114,949 21,078,594
Disposals / reclass - - (2,673,655) (1,240,511) - - (3,914,166)
Transfers 1,273,560 364,750 712,101 190,155 - (2,540,566) -
1
Of this amount as at December 2016, Leasehold improvement accounts for N10,498,282,000 (23.7%) while Buildings acounts for N33,807,310,000 (76.3%)
2
Capital work in progess refers to capital expenditure incurred on items of Property, Plant and Equipment which are however not ready for use and as such are not being depreciated.


Parent
Depreciation
Leasehold
Capital
- progress2

Charge for the year 1,266,591 140,820 7,197,509 1,271,739 1,584,660 - 11,461,319
Disposal (62,595) - (2,073,821) (1,153,991) - - (3,290,407)

Charge for the year 1,427,660 112,292 6,442,557 1,171,197 705,251 - 9,858,957
Disposal - - (2,666,412) (1,178,767) - - (3,845,179)
Carrying amounts:
(c)The Bank had capital commitments of N863,599,000 (31 December 2015: N1,025,496,000) as at the reporting date in respect of
authorized and contractual capital projects.

(d) There were no capitalised borrowing costs related to the acquisition of plant and equipment during the year (2015: nil)


32 Intangible assets
(a) Group
In thousands of Nigerian Naira Goodwill Purchased Total

Software
Cost
Balance at 1 January 2016 8,648,385 9,067,360 17,715,745

Exchange translation differences 24,080 1,263,502 1,287,582
Additions - 2,392,426 2,392,426
Disposals - (49,208) (49,208)
Balance at 31 December 2016 8,672,465 12,674,080 21,346,545
Balance at 1 January 2015 8,650,704 10,035,233 18,685,937

Exchange translation differences (2,319) (81,432) (83,751)
Additions - 1,198,372 1,198,372
Disposals - (2,084,813) (2,084,813)
Amortization and impairment losses
Balance at 1 January 2016 - 5,245,133 5,245,133
Exchange translation differences - 579,494 579,494

Amortization for the year - 1,712,220 1,712,220
Disposals - (49,208) (49,208)
Balance at 31 December 2016 - 7,487,639 7,487,639
Balance at 1 January 2015 - 6,169,718 6,169,718

Exchange translation differences - (16,651) (16,651)
Amortization for the year - 1,176,878 1,176,878
Disposals - (2,084,812) (2,084,812)
Balance at 31 December 2015 - 5,245,133 5,245,133
Carrying amounts

Goodwill is reviewed annually for impairment, or more frequently when there are indications that impairment may have occurred.
There was no impairment identified in the year ended December 2016 (2015: nil).

(b) Parent
In thousands of Nigerian Naira Purchased

Software
Cost
Balance at 1 January 2016 6,726,359

Additions 2,153,981
Disposals (12,895)
Balance at 31 December 2016 8,867,445

Additions 1,003,673
Disposals (1,894,180)
Amortization and impairment losses

Amortization for the year 1,268,979
Disposals (12,895)

Amortization for the year 928,413
Disposals (1,894,179)
Carrying amounts


(c) Impairment testing for cash-generating units containing Goodwill
For the purpose of impairment testing, goodwill acquired through business combinations is allocated to
each of the cash-generating units or groups of cash-generating units that is expected to benefit from
the synergies of the combination.
Goodwill is allocated the Cash Generating Units (CGUs) as shown below:
Cash Generating Units Dec -16 Dec -15
Rest of West Africa:

- Corporate Banking 82,428 38,144
- Commercial Banking 13,346 5,564
- Retail Banking 21,627 7,214
East Africa:
- Corporate Banking 6,006,586 6,440,068
- Commercial Banking 972,531 939,431
- Retail Banking 1,575,947 1,217,962
8,672,465 8,648,384

No impairment loss on goodwill was recognised during the year ended 31 December 2016 (31 December
2015: nil).
The recoverable amounts for the CGUs have been determined based on value-in-use calculations; using
cash flow projections based on financial budgets approved by senior management covering a five-year
period.
Cash Flow Forecasts
The cash flows projections used for the 2 periods were based on actual operating results and the 5-year
business plan appropriately approved by senior management. Cash flows to perpetuity were estimated
using a constant average growth rate of 4.5 per cent and 5.5per cent for CGUs in Rest of Africa and East
Africa regions respectively. These constant growth rates are based on the long term forecast of GTBank’s
growth rate in the countries in which the CGU’s operate centred on past performance, current industry
trend and management’s expectations of market development. This growth rate used does not exceed the
long-term average growth rate for the countries/regions in which the goodwill was allocated. The forecast
period is based on the Group’s medium to long term perspective with respect to the operations of these
units.

Valuation Assumptions and Other Disclosures
For each of the CGUs for which the goodwill was allocated, the key assumptions used in Value-in-use calcu-
lations are as follows:
The recoverable amounts of the East Africa region for which goodwill were allocated have been based on their
value in use which were determined by discounting the projected cash flows generated by the segments in
the region with the weighted discount rate of 15.22% derived using CAPM approach (2015 – Gordon’s Div-
idend Approach). It would require over N2.8billion change in the recoverable amount of the most vulnerable
CGU (East Africa – Commercial) before goodwill allocated to the identified CGU can be assumed impaired.
Had the Group applied Gordon’s Dividend Approach in the current year, recoverable amount would have in-
creased by over N50bn across all the CGUs and the most vulnerable CGU would have increased by N1.3Billion.
The Group considers the use of CAPM more appropriate due to availability of information on inputs into the
CAPM valuation method.
Rest of West East Africa

2016-Key Assumptions
Africa
Corporate Commercial Retail Corporate Commercial Retail
Revenue Growth Rate (%) 12.0% 11.5% 12.5% 15.2% 15.7% 16.2%
Operating Income Growth Rate (%) 13.0% 12.5% 13.5% 15.8% 16.3% 16.8%
Other Operating Costs (N'Million) 1,507 348 2,903 251 58 483
Annual Capital Expenditure (N'Million) 236 206 308 53 46 70
Recoverable Amount (N'Million) 83,759 16,786 28,596 30,213 5,628 7,502
Long Term Growth Rate (%) 6%- 8% 6%- 8% 6%- 8% 6%- 8% 6%- 8% 6%- 8%
Discount Rate (%) 11.32% 11.32% 11.32% 15.22% 15.22% 15.22%
Rest of West East Africa

2015-Key Assumptions
Africa
Corporate Commercial Retail Corporate Commercial Retail
Revenue Growth Rate (%) 7.0% 6.5% 7.5% 5.7% 6.2% 6.7%
Operating Income Growth Rate (%) 7.4% 6.9% 7.9% 6.2% 6.7% 7.2%
Other Operating Costs (N'Million) 969 569 1,513 351 206 549
Annual Capital Expenditure (N'Million) 222 221 822 55 56 215
Recoverable Amount (N'Million) 66,909 10,922 26,239 12,949 4,061 6,691
Long Term Growth Rate (%) 6%-8% 6%-8% 6%-8% 6%-8% 6%-8% 6%-8%
Discount Rate (%) 13.0% 13.0% 13.0% 13.04% 13.0% 13.0%
The key assumptions described above may change as economic and market conditions change. The Group
estimates that reasonably possible changes in these assumptions are not expected to cause the recoverable
amount of the subsidiaries (from which the goodwill arose) to decline below their carrying amount.

33. Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are attributable to the following:
Group
Deferred Tax Assets
Assets Liabilities Net Assets Liabilities Net
Property and equipment, and software 592,623 - 592,623 639,651 - 639,651
Fair value reserves 255,012 - 255,012 74,564 - 74,564
Allowances for loan losses / Fraud loss
provision 730,792 - 730,792 483,504 - 483,504
Foreign currency translation difference - - - 2,046,422 - 2,046,422
Net deferred tax assets/(liabilities) 1,578,427 - 1,578,427 3,244,141 - 3,244,141

Deferred tax assets
-Deferred tax assets to be recovered within 12 months 985,804 2,604,490
-Deferred tax assets to be recovered after more than 12 months 592,623 639,651
Group
Deferred Tax Liabilities
Property and equipment and software - 11,020,971 11,020,971 - 9,596,590 9,596,590
Fair value reserves 1,159,001 - (1,159,001) - 907,831 907,831
Allowances for loan losses/Fraudloss
provision 17,408,177 - (17,408,177) 2,216,888 - (2,216,888)
Mark to market loss on valuation of securi-
ties - - - - - -
Defined benefit obligation/Actuarial Loss 125,966 - (125,966) 1,356,344 - (1,356,344)
Restricted deposits and other assets - 20,149,417 20,149,417 91,667 - (91,667)
Foreign currency translation difference - 5,164,140 5,164,140 - - -
Net deferred tax (assets)/liabilities 18,693,144 36,334,528 17,641,384 3,664,899 10,504,421 6,839,522

Deferred tax assets
-Deferred tax assets to be recovered within 12 months 18,693,144 3,664,899
Deferred tax liabilities
-Deferred tax liabilities to be recovered within 12 months 25,313,557 907,831
-Deferred tax liabilities to be recovered after more than 12 months 11,020,971 9,596,590

Parent
Deferred Tax Liabilities
Property and Equipment and Software - 10,559,043 10,559,043 - 9,126,016 9,126,016
Fair Value Reserves 1,227,618 - (1,227,618) - 884,656 884,656
Allowances for loan losses/Fraudloss
provision 17,408,177 - (17,408,177) 2,216,888 - (2,216,888)
Mark to market loss on valuation of securi-
ties - - - - - -
Defined benefit obligation/Actuarial Loss 125,966 - (125,966) 1,356,344 - (1,356,344)
Restricted deposits and other assets - 20,149,417 20,149,417 91,667 - (91,667)
Net deferred tax (assets)/liabilities 18,761,761 30,708,460 11,946,699 3,664,899 10,010,672 6,345,773

Deferred tax assets
-Deferred tax assets to be recovered within 12 months 18,761,761 3,664,899
Deferred tax liabilities
-Deferred tax liabilities to be recovered within 12 months 20,149,417 884,656
-Deferred tax liabilities to be recovered after more than 12 months 10,559,043 9,126,016
Movements in temporary differences during the year
Group
Dec-2016
In thousands of Nigerian Naira Property Fair Value Allowances Mark to Defined Restricted Foreign Total
and Equip- Reserves for loan market benefit deposits currency
ment, and losses loss on val- obligation and other translation
Software uation of assets difference
securities
Balance at Jan 1, 2016 8,956,938 833,267 (2,700,392) - (1,356,344) (67,338) (2,070,751) 3,595,380
Exchange Difference (86,208) (26,202) 92,279 - - (523,222) 594,399 51,046
Recognised in Profit or loss 1,557,618 (238,668) (15,530,856) - 659,496 20,739,976 - 7,187,566

Other comprehensive Income - (1,982,410) - - 570,882 - 6,640,493 5,228,965
Balance at 31 December 2016 10,428,348 (1,414,013) (18,138,969) - (125,966) 20,149,416 5,164,141 16,062,957
Group
Dec-2015
In thousands of Nigerian Naira Property Fair Value Allowances Mark to Defined Restricted Foreign Total
ment, and losses loss on val- obligation and other translation
securities
Balance at Jan 1, 2015 7,299,692 (539,262) (2,750,653) 1,882 (238,800) (154,888) (1,584,583) 2,033,388
Exchange Difference (85,118) - (19,565) (4,988) - 68,301 9,890 (31,480)
Recognised in Profit or loss 1,742,364 (47,935) 69,826 3,106 (714,724) 19,249 - 1,071,886
Other comprehensive Income - 1,420,464 - - (402,820) - (496,058) 521,586
Balance at 31, Dec 2015 8,956,938 833,267 (2,700,392) - (1,356,344) (67,338) (2,070,751) 3,595,380

Parent
Dec-2016
Fair Value Allowances Mark to Defined Restricted Foreign Total
Property
Reserves for loan market benefit deposits currency
and Equip-
In thousands of Nigerian Naira losses loss on val- obligation and other translation
ment, and
uation of assets difference
Software
securities
Balance at Jan 1, 2016 9,126,017 884,656 (2,216,888) - (1,356,344) (91,667) - 6,345,774
Recognised in Profit or loss 1,433,026 - (15,191,289) - 659,496 20,241,084 - 7,142,317

Other comprehensive Income - (2,112,274) - - 570,882 - - (1,541,392)
Balance at 31 December 2016 10,559,043 (1,227,618) (17,408,177) - (125,966) 20,149,417 - 11,946,699
Parent
Dec-2015
Property Fair Value Allowances Mark to Defined Restricted Foreign Total
In thousands of Nigerian Naira ment, and losses loss on val- obligation and other translation
securities
Balance at Jan 1, 2015 7,147,894 (514,236) (2,318,803) 1,882 (238,800) (122,132) - 3,955,805
Recognised in Profit or loss 1,978,123 - 101,915 (1,882) (714,724) 30,465 - 1,393,897
Deferred Tax Reclassifications - - - - - - - -
Other comprehensive Income - 1,398,892 - - (402,820) - - 996,072
Balance at 31, Dec 2015 9,126,017 884,656 (2,216,888) - (1,356,344) (91,667) - 6,345,774
34. Restricted Deposits and Other Assets

Repossessed collaterals 3,922,091 - 3,922,091 -
Prepayments (See note 34(b) below) 20,181,781 14,513,586 13,985,707 11,227,930
Foreign Banks - Cash Collateral 11,944,208 7,348,576 11,944,208 7,348,576
Restricted deposits with central banks (See note 34(a) below) 328,747,009 276,458,798 327,100,025 273,873,799
Recognised assets for defined benefit obligations (See note 40) 7,506,302 5,095,333 7,506,302 5,095,333
372,301,391 303,416,293 364,458,333 297,545,638
Impairment on other assets (See note 34(c) below) (305,556) (305,556) (305,556) (305,556)
371,995,835 303,110,737 364,152,777 297,240,082
Current 35,705,636 21,556,606 29,509,562 18,270,950

Non-current 336,290,199 281,554,131 334,643,215 278,969,132
(a) Restricted deposits with central banks are not As at 31 December 2016, GTB Liberia and Cote
available for use in the Group’s day-to-day op- D’Ivoire had restricted balances of N452,700,000
erations. The Bank had restricted balances of and N66,211,000 with the Central Bank of Libe-
N327,100,025,000 with the Central Bank of Nige- ria and the BCEAO respectively (December 2015:
ria (CBN) as at 31 December 2016 (December 2015: N1,669,398,000 and N106,072,000). The Cash Re-
N273,873,799,000). This balance is CBN cash reserve Ratio in Liberia and Cote D’Ivoire represents
serve requirement. The cash reserve ratio represents a mandatory 15% and 5% respectively of local cur-
a mandatory 27.5% (December 2015: 25%) of total rency deposit which should be held with their re-
Naira deposits made up of 22.5% regular CRR and spective Central Banks as a regulatory requirement.
5% Sprecial Intervention Reserve which should be In the same period, GTBank Kenya had restricted
held with the Central Bank of Nigeria as a regulato- deposits of N1,128,074,000 (December 2015:
ry requirement. N809,530,000).

(b) Included in Prepayments is an amount of N5,364,548,000 as at 31 December 2016 (December 2015:

N5,551,748,000) which relates to prepaid operating lease rentals on branches leased by the Bank.
(c) Movement in impairment of other assets:

Opening Balance 305,556 305,556 305,556 305,556
Closing Balance 305,556 305,556 305,556 305,556
35. Deposits from banks

Money market deposits 12,485,830 15,314,439 - -
Other deposits from banks 112,582,018 10,942,400 40,438 39,941
125,067,848 26,256,839 40,438 39,941
Current 125,067,848 26,256,839 40,438 39,941

Non-current - - - -
36. Deposits from customers

Retail Customers:
Term deposits 167,670,395 188,045,270 123,744,581 130,141,927
Current deposits 356,575,696 267,977,382 273,472,107 244,594,404
Savings 454,436,327 332,781,296 390,615,952 295,165,512
Corporate Customers:
Term deposits 241,549,629 258,426,826 208,000,749 236,185,583
Current deposits 766,014,185 563,118,915 685,351,431 516,462,699
1,986,246,232 1,610,349,689 1,681,184,820 1,422,550,125
Current 1,957,923,345 1,606,253,762 1,681,181,153 1,422,545,248

Non-current 28,322,887 4,095,927 3,667 4,877
37. Financial liabilities held for trading

Bond short positions 629,202 - 629,202 -
Treasury bills short positions 1,436,200 - 1,436,200 -
2,065,402 - 2,065,402 -
Current 2,065,402 - 2,065,402 -
Non-current - - - -

38. Debt securities issued

Debt securities at amortized cost:
Eurobond debt security 125,639,949 179,736,280 - -
Corporate bonds 597,914 381,144 - -
126,237,863 180,117,424 - -
Current - 105,645,788 - -
Non-current 126,237,863 74,471,636 - -
Debt securities of N125,306,578,000 (USD 401,109,000) (December 2015: N179,736,280,000 (USD

902,971,000) represents amortised cost of Dollar guaranteed note issued by GTB B.V. Netherlands. The
outstanding note of USD 400,000,000 (principal) was issued in November 2013 for a period of 5 years
at 6% per annum payable semi-annually. Please note that the note issued in May 2011 matured in May
2016 and the bank was able to fund the repayment without issuing additional notes.
39. Other Liabilities

Cash settled share based payment liability (Note 39(d)) 7,920,089 8,136,942 - -
Liability for defined contribution obligations (Note 39(a)) 51,512 28,218 - -
Deferred income on financial guarantee contracts 141,684 108,730 46,447 37,727
Certified cheques 11,060,137 9,575,247 7,321,435 7,042,979
Lease obligation (Note 39(b)) 1,675,041 1,915,400 1,675,041 1,915,400
Customers' deposit for foreign trade (Note 39(c)) 12,220,426 7,343,801 11,972,086 7,343,801
Customers' escrow balances 30,786,203 16,750,005 30,786,203 16,750,005
Account Payables 7,455,494 6,417,011 7,200,437 6,266,513
Creditors and agency services 19,047,197 10,493,669 5,734,116 1,941,077
Customers deposit for shares of other Corporates 25,324,707 43,836,690 25,324,675 43,828,709
115,682,490 104,605,713 90,060,440 85,126,211
Current 106,021,253 93,497,118 89,003,270 83,519,290

Non-current 9,661,237 11,108,595 1,057,170 1,606,921
(a) The Bank and its employees each contribute The lease agreement includes fixed lease payments
a minimum of 10% and 8% respectively and a purchase option at the end of the 10 year
of basic salary, housing and transport lease term. The agreement is non-cancellable but
allowance to each employee’s retirement does not contain any further restrictions. No con-
savings account maintained with their tingent rents were recognised as an expense in the
nominal pension fund administrators. period (December 2015:Nil)

(b) The lease obligation relates to an Aircraft The future minimum lease payments extend over a
held under a finance lease arrangement. number of years. This is analysed as follows:
The net carrying amount of the assets,
included within property, plant and
equipment is N7,679,381,000 (December
2015: N9,231,455,000)



Not more than one year 1,499,354 955,335 1,499,354 955,335
Over one year but less than five years 249,893 1,114,557 249,893 1,114,557
Over five years - - - -
1,749,247 2,069,892 1,749,247 2,069,892
Less future finance charges (74,206) (154,492) (74,206) (154,492)
1,675,041 1,915,400 1,675,041 1,915,400
The present value of finance lease liabilities is as follows:

Not more than one year 1,427,318 848,125 1,427,318 848,125
Over one year but less than five years 247,723 1,067,275 247,723 1,067,275
Over five years - - - -
1,675,041 1,915,400 1,675,041 1,915,400
(c) This represents the Naira value of foreign currencies held on behalf of customers in various foreign
accounts to cover letters of credit transactions. The corresponding balance is included in Foreign Banks
- Cash Collateral in other assets.

(d) Movements in the number of share options outstanding and their related weighted average exercise
prices are as follows:
Dec-2016 Dec-2015
Average Share Rights Average Share Rights
Exercise Price (thousands) Exercise Price (thousands)
Per Share Per Share
At 1 January 20.64 394,199 20.13 401,415
Granted 13.25 27,139 11.21 25,486
Forfeited 0.00 - 0.00 -
Exercised 16.60 (17,808) 21.65 (32,702)
Expired 0.00 - - -
As at end of the year 19.63 403,531 20.64 394,199
Out of the 403,531,000 outstanding Share Appreciation Right (SARs) as at December 2016 (Dec 2015:
394,199,000 SARs ), 308,615,835 SARs (Dec 2015: 287,440,956) were exercisable. SARs exercised in 2016 re-
sulted in 17,807,653 shares (Dec 2015:32,701,735) being issued at a weighted average price of N16.60 each
(Dec 2015: N21.65 each).

The fair value of SAR was determined using a multi-factor model which entails using average share price for
vested shares and multiple combination of 11.16% probability of exits, number of employees years in the
scheme and in the organization for non-vested shares.

Share options outstanding at the end of the year have the following expiry date and exercise prices:

Naira Exercise Price Share Options (thousands)
Dec-2016 Dec-2015 Dec-2016 Dec-2015
2004-2009 22.56 23.36 3,895,257 4,212,913
2004-2017 20.09 17.85 77,400 66,105
2005-2010 20.14 21.08 426,202 496,840
2005-2011 20.94 23.46 64,289 64,565
2005-2013 22.41 23.09 477,592 492,179
2006-2011 20.01 20.85 175,375 177,526
2006-2014 21.78 22.74 209,010 214,490
2007-2012 19.44 19.99 542,924 605,604
2007-2013 16.90 16.84 43,356 43,219
2007-2014 19.54 20.87 173,395 172,058
2007-2015 20.34 21.40 120,511 122,538
2007-2016 20.91 20.14 353,132 336,038
2008-2013 17.11 18.87 249,753 241,845
2008-2014 17.54 18.49 86,273 84,493
2008-2015 17.12 17.99 40,363 38,819
2008-2017 20.35 18.64 42,983 39,383
2009-2014 20.66 21.15 101,959 99,483
2009-2015 22.62 23.39 10,973 11,346
2009-2016 22.69 21.38 3,545 3,341
2010-2015 14.87 15.11 98,998 105,234
2010-2016 20.54 18.70 50,406 41,780
2010-2017 19.96 18.72 33,811 30,681
2010-2018 15.95 15.18 32,377 28,698
2010-2019 16.54 12.35 37,074 27,676
2011-2016 15.22 14.79 212,152 170,940
2011-2017 12.05 10.97 16,725 13,042
2011-2018 13.54 10.33 23,014 16,019
2011-2019 17.34 14.62 42,930 33,257
2011-2020 17.27 16.11 18,996 14,500
2012-2017 11.80 9.32 65,101 43,487
2012-2018 10.41 9.65 6,391 4,478
2012-2021 11.17 9.03 3,352 2,710
2012-2022 11.65 10.72 5,139 2,584
2013-2018 10.04 6.29 83,733 42,568
2014-2019 5.94 4.70 27,983 15,242
2014-2022 4.83 3.89 635 2,244
2015-2020 4.76 3.60 27,347 15,329
2015-2022 4.23 3.43 8,033 3,090
2015-2023 4.34 3.46 717 570
2015-2024 3.92 3.31 91 28
2016-2021 3.93 0.00 30,028 -
2016-2025 3.81 0.00 764 -
7,920,089 8,136,942

40. Defined benefit obligations

The Bank operates a non-contributory, funded lump sum defined benefit gratuity scheme. Employees are
automatically admitted into the scheme after completing 10 consecutive years of service with the Bank.
Employees’ terminal benefits are calculated based on number of years of continuous service, limited to
a maximum of 10 years. The defined benefit obligation valuation was carried out by Alexander Forbes
Consulting Actuaries.
(a) The amounts recognised in the statement of financial position are as follows:

Unfunded obligations - - - -
Present value of funded obligations (2,322,827) (3,178,414) (2,322,827) (3,178,414)
Total present value of defined benefit obligations (2,322,827) (3,178,414) (2,322,827) (3,178,414)
Fair value of plan assets 9,829,129 8,273,747 9,829,129 8,273,747
Present value of net asset/(obligations) 7,506,302 5,095,333 7,506,302 5,095,333
Unrecognized actuarial gains and losses - - - -
Recognized asset/(liability) for defined benefit obligations 7,506,302 5,095,333 7,506,302 5,095,333
The bank has a right to the surplus on its plan assets. There are no unrecognised actuarial gains and
losses. Recognised asset for defined benefit obligations is included within Restricted deposits and other
assets in note 34.

(b) Movement in the present value of defined benefit obligations:

(Deficit)/surplus on defined benefit obligations, beginning of year 5,095,333 5,647,099 5,095,333 5,647,099
Net (Expense) / Income recognised in Profit and Loss1 454,606 754,440 454,606 754,440
Re-measurements recognised in Other Comprehensive Income 2
1,902,941 (1,342,734) 1,902,941 (1,342,734)
Contributions paid 53,422 36,528 53,422 36,528
(Deficit)/surplus for defined benefit obligations, end of year 7,506,302 5,095,333 7,506,302 5,095,333
Net (Expense) / Income recognised in Profit and Loss is analysed below:

1

Interest cost on Net defined benefit obligation1 570,680 832,507 570,680 832,507
Current service costs (116,074) (78,067) (116,074) (78,067)
454,606 754,440 454,606 754,440
1
Interest cost on Net Defined benefit Obligation is analysed below:

Interest income on assets 943,207 1,184,156 943,207 1,184,156
Interest cost on defined benefit obligation (372,527) (351,649) (372,527) (351,649)
570,680 832,507 570,680 832,507
2
Remeasurements recognised in Other Comprehensive income is analysed below:


Return on plan assets, excluding amounts included in interest expense /
income 612,175 (857,767) 612,175 (857,767)
Gain/(loss) from change in financial assumptions - 742,172 - 742,172
Gain/(loss) from change in demographic assumptions 1,290,766 (1,227,139) 1,290,766 (1,227,139)
1,902,941 (1,342,734) 1,902,941 (1,342,734)
(c) Plan assets consist of the following:

Equity securities:
- Quoted 2,205,902 1,978,787 2,205,902 1,978,787
Government securities
- Quoted 1,033,440 473,990 1,033,440 473,990
Offshore investments
- Quoted 2,591,416 1,612,172 2,591,416 1,612,172
Cash and bank balances
- Unquoted 3,998,371 4,208,798 3,998,371 4,208,798
9,829,129 8,273,747 9,829,129 8,273,747
Group
Equity Securities 2,205,902 22% 1,978,787 24%
Government Securities 1,033,440 11% 473,990 6%
Offshore Investments 2,591,416 26% 1,612,172 19%
Cash and Bank balances 3,998,371 41% 4,208,798 51%
9,829,129 100% 8,273,747 100%
Parent
Equity Securities 2,205,902 21% 1,978,787 23%
Government Securities 1,033,440 11% 473,990 6%
Offshore Investments 2,591,416 26% 1,612,172 19%
Cash and Bank balances 3,998,371 41% 4,208,798 51%
9,829,129 100% 8,273,747 100%
The defined benefit plan assets are under the management of custodians - Crusader Sterling Pension Limited
Plan assets include the Group’s ordinary shares with a fair value of N2,058,015,000 (Dec 2015: N1,839,796,000) and
money market placements with a market value of N3,762,410,000 (Dec 2015:N3,610,631,000).

Expected contributions to post-employment benefit plans for the year ending 31 December 2017 are N143,504,000
(December 2016: N53,422,000) while gratuity payments are estimated to be N143,504,000 (December 2016:
N53,422,000).

(d) Defined benefit cost for year ending December 2017 is expected to be as follows:
Parent Parent
Current service cost 56,252 116,074
Net Interest on Net benefit liability (1,233,575) (575,738)
Expense/(Income) recognised in profit or loss (1,177,323) (459,664)
Components of net interest on defined benefit liability for the year ending December 2017 is estimated to
be as follows:
Parent Parent
Interest cost on defined benefit obligation 378,402 367,469
Interest income on assets (1,611,977) (943,207)
Total net interest cost (1,233,575) (575,738)
Plan assets are valued at current market value. The expected return on plan assets is determined by con-
sidering the expected returns available on the assets underlying the current investment policy. Expected
yields on fixed interest investments are based on gross redemption yields as at the date of the consolidated
statement of financial position.

Expected returns on equity reflect long-term real rates of return experienced in the respective markets.
(e) Movement in plan assets:

Fair value of plan assets, beginning of the year 8,273,747 7,947,358 8,273,747 7,947,358
Contributions paid into/(withdrawn from) the plan 53,422 36,528 53,422 36,528
Benefits paid by the plan (53,422) (36,528) (53,422) (36,528)
Actuarial gain/(loss) 612,175 (857,767) 612,175 (857,767)
Expected return on plan assets 943,207 1,184,156 943,207 1,184,156
Fair value of plan assets, end of the year 9,829,129 8,273,747 9,829,129 8,273,747
Actual return on plan asset is made up of expected return on plan assets and actuarial gains / losses

(f) Movement in present value of obligations:

Present value of obligation, beginning of the year 3,178,414 2,300,259 3,178,414 2,300,259
Interest cost 372,527 351,649 372,527 351,649
Current service cost 116,074 78,067 116,074 78,067
Benefits paid (53,422) (36,528) (53,422) (36,528)
Actuarial (gain)/loss on obligation (1,290,766) 484,967 (1,290,766) 484,967
Present value of obligation at end of the year 2,322,827 3,178,414 2,322,827 3,178,414

(g) Actuarial assumptions

Principal actuarial assumptions at the reporting date (expressed as weighted averages):
2016 2015
Discount rate 16.40% 14.90%
Salary increase rate 10% 10%
Inflation 12.5% 8%
Retirement age for both male and female 60 years 60 years
Withdrawal Rate: 18 – 29 4.5% 4.5%
Withdrawal Rate: 51 4.5% 4.5%

Assumptions regarding future mortality before retire- Nigerian Government Bonds. The component of the
ment are based on A1949/52 ultimate table published rate of remuneration increase based on seniority and
by the Institute of Actuaries of United Kingdom. promotion is an average of 10% per annum. The in-
flation component has been worked out at 12.5% per
The overall expected long-term rate of return on as- annum.
sets is 16.4%. The expected long-term rate of return
is based on the portfolio as a whole and not on the For members in active service as at the valuation date,
sum of the returns on individual asset categories. The the projected unit credit method of valuation as re-
return is based entirely on current market yields on quired under the IFRS has been adopted.
(h) Reasonably possible changes at the reporting date of discount rate, salary increase rate and
mortality rate would have affected the defined benefit obligation by the amounts shown below:
Group
Dec-2016
Impact on defined benefit obligation

In thousands of Nigerian Naira except percentages Change in Define benefit obligation
Assumption Increase Decrease
Discount rate 1.00% (2,183,090) 2,477,712
Salary increase rate 1.00% 2,489,777 (2,170,493)
Mortality rate 1 year 2,326,775 (2,319,236)
Group
Dec-2015
Discount rate 1.00% (2,932,763) 3,457,932

Parent
Dec-2016

Discount rate 1.00% (2,183,090) 2,477,712
Parent
Dec-2015

Discount rate 1.00% (2,932,763) 3,457,932
In practice, changing an actuarial assumption while holding other assumptions constant is unlikely to occur
as changes in some of the assumptions may be correlated.
(i) Expected maturity analysis of undiscounted pension and post-employment benefits:
Less than 1 Between 1-2 Between 2-5 Over 5 years Total

In thousands of Nigerian Naira year years years
Present value of the defined benefit obligation 1,146 573 4,427 37,451,943 37,458,089
1,146 573 4,427 37,451,943 37,458,089
(j) Historical information
In thousands of Nigerian Naira Dec-2016 Dec-2015 Dec-2014 Dec-2013 Dec-2012

Present value of the defined benefit obligation (3,613,593) (2,693,447) (2,099,823) (2,303,929) 422,669
Fair value of plan assets 9,216,954 9,131,514 8,542,922 7,427,603 6,403,690
Experience adjustments on plan liabilities 1,290,766 (484,967) (200,436) 523,263 362,207
Experience adjustments on plan assets 612,175 (857,767) (595,564) 132,505 (314,927)
Surplus/(deficit) 7,506,302 5,095,333 5,647,099 5,779,442 6,873,639

(k) Defined Benefit Risk Management Changes in bond yields

The Group’s exposure to risks through its defined The rate used to discount post-employment benefit
benefit plan is mitigated through a number of strat- obligations is determined with reference to market
egies. Most important of them is the asset-liability yields at the balance sheet date on high quality cor-
matching strategy. Thus, fluctuations in macro-eco- porate bonds. In countries where there is no deep
nomic variables have minimal impact on its expo- market in such bonds, the market yields on govern-
sure to the plan. ment bonds are used. The Group is of the opinion
that there is no deep market in Corporate Bonds
Over the years, the Group not only ensures that it in Nigeria and as such assumptions underlying the
has sufficient plan assets to fund its defined bene- determination of discount rate are referenced to
fit obligation but also adopts a robust strategy that the yield on Nigerian Government bonds of medi-
ensures that the macro-economic variables affect- um duration, as compiled by the Debt Management
ing the obligations are similar to those of the plan Organisation. A decrease in Nigerian Government
assets. The significant risks inherent in the Group’s Bond yields will increase the plan’s liabilities. How-
defined benefit plan are detailed below: ever, this growth is offset by an increase in the value
of the plan assets.
Asset volatility
Inflation risk
Post employment benefit obligations are calculat-
ed using a discount rate determined with reference We believe this is less a material risk given the ac-
to market yields on high quality bonds. The Group cretion to the Group’s plan assets arising from con-
ensures that the plan assets do not underperform tinuous contribution to the plan and improved yield.
this yield. This is achieved through maintaining an Growth in inflation, all other things being equal,
efficient portfolio of investments in plan assets sig- should lead to increased basic salaries (which is an
nificantly made up of high quality equities and gov- important determinant of the Group’s defined ben-
ernment securities. efit liability) and consequently higher plan liabilities.
Consequently, the yield on the Group’s plan assets This growth in liabilities should be offset with in-
has consistently outperformed interest cost on plan creased plan assets.
obligations. The Group also ensures that as tenured
investments in plan assets mature, they are replaced
with top quality investments which better match the
liabilities.
Overall, the Group’s defined benefit investment

strategy aims at reducing investment risks while
maintaining the right mix of investments in high
quality equities, debt and near cash instruments
void of impairment threats. The choice of invest-
ment in equities stems from the long term nature
of the Group’s defined benefit plan and expected
maturity of the plan’s liabilities.

41. Other borrowed funds

Due to IFC (see note (i) below) 89,172,633 61,254,296 81,294,668 58,245,601
Due to ADB (see note (ii) below) 8,437,674 8,921,850 8,437,674 8,921,850
Due to FMO 3,530,615 3,270,193 - -
Due to BOI (see note (iii) below) 47,804,677 47,568,133 47,804,677 47,568,133
Due to GTBV (see note (iv) below) - - 125,639,949 179,736,280
Due to CACS (see note (v) below) 21,104,769 14,140,270 21,104,769 14,140,270
Due to Proparco (see note (vi) below) 17,298,941 11,109,588 15,751,849 11,109,588
MSME Development Fund (see note (vii) below) 432,279 398,000 432,279 398,000
State Government Bail Out Fund (see note (viii) below) - 13,460,578 - 13,460,578
Excess Crude Account -Secured Loans (see note (ix) below) 14,906,364 5,000,000 14,906,364 5,000,000
Due to DEG (see note (x) below) 16,945,652 - 16,945,652 -
219,633,604 165,122,908 332,317,881 338,580,300
Current 45,366,170 19,729,559 37,023,752 122,509,064

Non-current 174,267,434 145,393,349 295,294,129 216,071,236
i). The amount of N81,294,668,000 the Parent for the refinancing/restructuring of

(USD 260,226,000) (December 2015: SME/Manufacturing loan portfolio under the
N58,245,601,000; USD 292,618,000) represents Small and Medium Enterprise Refinancing and
the outstanding balance on the Tranche 4 and Restructuring Fund (SMERRF) and to fastrack
Tranche 5 dollar term loan granted to the Parent the development of power projects and aviation
by the International Finance Corporation (IFC). sector so as to improve power supply, under the
The Tranche 4 facility was disbursed in December Power and Airline Intervention Fund ( PAIF). The
2011(USD 170,000,000) for a period of 8 years SMERRF and PAIF are administered at an all-in
and the Tranche 5 was availed in December interest rate /charge of 7% per annum payable
2014( USD 175,000,000) equally for a period of on a quarterly basis. The BOI is entitled to 1%
8 years. The principal amount is repayable semi management fee payable quarterly by the Parent.
annually from December 2013 for Tranche 4 and The Loans have a maximum life of 15 years and/
December 2016 for Tranche 5. The pricing of the or working capital facility of one year with the
Tranche 4 facility is 5.5% and Libor plus 4% for provision for roll over subject to a maximum
the Tranche 5. Interest is paid semi annually on tenor of 5 years. The tenor of the facilities as at
the two tranches. the end of the period range between 5 years to
13 years.
ii). The amount of N8,437,674,000 (USD
27,009,000) (December 2015: N8,921,850,000 iv). The amount of N125,639,949,000
; USD 44,822,000) represents the outstanding (USD 402,177,000) (December 2015:
balance on the second tranche of the facility N179,736,280,000 ; USD 902,971,000)
granted to the Parent by the African Development represents amortised cost of dollar guaranteed
Bank(AfDB). The first tranche was disbursed in notes issued by GTB Finance B.V., Netherlands
August 2007(USD 40,000,000) for a period of subsequently granted as a loan to the Parent. It
5.5 years and was fully re-paid in February 2013. represents the balances on the third tranche of
The second tranche was disbursed in February USD 400,000,000 (principal) issued in November
2012 (USD 90,000,000) for a period of 7 years. 2013 for a period of 5 years at 6% per annum.
The principal amount on this is payable semi The principal amount is repayable at the end of
annually from August 2013. Interest is payable the tenor while interest on the note is payable
semi annually on the second tranche at 5.157%. semi-annually. The second tranche of USD
500,000,000 issued in May 2011 for a period of
5 years at 7.5% per annum matured in May 2016
iii). The amount of N47,804,677,000 (December 2015: and the Bank was able to repay the obligation
N47,568,133,000) represents the outstanding without issuing another bond.
balance on the wholesale funding granted to

v). The amount of N21,104,769,000 (December viii). The Bank had a Nil balance on this facility
2015: N14,140,270,000) represents the as at December 2016 (December 2015:
outstanding balance on the on lending facilities N13,460,578,000). The facility is the
granted to the Parent by the Central Bank concessionary loans granted by the Central Bank
of Nigeria in collaboration with the Federal of Nigeria to State governments for the liquidation
Government of Nigeria represented by the of their workers’ salary arrears. The facility
Federal Ministry of Agriculture and Rural attracts an interest rate of 2% and the Parent
Development(FMARD) with the aim of providing is under obligation to lend to participating states
concessionary funding for agriculture so as to at a maximum rate of 9% p.a ( inclusive of all
promote commercial agricultural enterprises in charges). The principal is repayable monthly from
Nigeria. The Facility is for a period of 7 years at the Federal Account Allocation Committee(FAAC)
2% p.a cost to the Parent. The maximum interest allocation of those States as a first line charge
rate to the borrowers under the Scheme is 9% upon the issuance of an Irrevocable Standing
p.a inclusive of all charges. Payment Order(ISPO) by those States.
vi). The amount of N15,751,849,000 (USD ix). The amount of N14,906,364,000 (December
50,422,000) (December 2015: N11,109,588,000; 2015: N5,000,000,000) represents the
USD55,813,000) represents the outstanding outstanding balance on the concessionary loans
balance on the facility granted to the Parent granted by the Central Bank of Nigeria to State
by PROPARCO, the private sector financing Governments for the execution of developmental
arm of Agence Francais de Development(AfD). and infrastructure projects. The facility is secured
The facilities were disbursed in two tranches by the balance due to State Governments from
with the first tranche in December 2011 ( USD the Excess Crude Account. The facility is priced
50,000,000) and the second tranche in January at 2% p.a payable on a monthly basis. The loan
2015( USD 50,000,000). The principal amount is is granted to the States at 9% p.a inclusive of all
repayable semi annually from January 2012 for charges. The principal is repayable monthly from
the first tranche and April 2017 for the second the Federal Account Allocation Committee(FAAC)
tranche. Interest is paid on a semi-annual basis allocation of those States as a first line charge
with the first tranche priced at 4.46% and Libor upon the issuance of an Irrevocable Standing
plus 4.26% for the second tranche. Payment Order(ISPO) by those States. The tenor
of the facility is 20 years.
vii). The amount of N432,279,000 (December 2015:
N398,000,000) represents the outstanding x). The amount of N16,945,652,000 (USD
balance on the on lending facility granted by 54,243,000) represents the amortised cost of
the Central Bank of Nigeria targeted at the the 7 year facility granted to the Parent by DEG,
growth and development of the Micro, Small a wholly-owned subsidiary of KfW Group. The
and Medium Scale subsector of the economy facility was disbursed in December 2016 and is
by providing single digit low interest rate funds. repayable semi annually from July 2019. Interest
The facility is granted at an interest rate of 2% is priced at 5.4% p.a. plus 6-months USD LIBOR
to the Parent . The maximum rate, inclusive of and paid on a semi-annual basis.
all charges, to the eligible MSMEs is 9% p.a. and
the tenor of the facility ranges from 1 to 3 years
depending on the type of enterprise.
42. Capital and reserves
Share capital
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are en-
titled to vote at meetings of the Group. All ordinary shares and GDR shares rank pari-passu with the same
rights and benefits at meetings of the Group.


(a) Authorised - 50,000,000,000 ordinary shares of 50k each
(31 December 2015: 50,000,000,000 of 50k each) 25,000,000 25,000,000 25,000,000 25,000,000

(b) Issued and fully paid: 29,431,179,224 ordinary shares of 50
kobo each (31 December 2015: 29,431,179,224 ordinary shares of
50k each) 14,715,590 14,715,590 14,715,590 14,715,590

26,393,537,587 ordinary shares (Non-GDR) of 50k each
(31 December 2015: 26,330,575,837) 13,196,769 13,165,288 13,196,769 13,165,288
3,037,641,637 ordinary shares (GDR) of 50k each
(31 December 2015: 3,100,603,387) 1,518,821 1,550,302 1,518,821 1,550,302
14,715,590 14,715,590 14,715,590 14,715,590
The movement on the value of issued and fully paid-up share capital (Non GDR and GDR) account during
the year was as follows:

Balance, beginning of year 14,715,590 14,715,590 14,715,590 14,715,590
Increase in the year - - - -
Balance, end of year 14,715,590 14,715,590 14,715,590 14,715,590
Share capital
Movement in the components of share capital is as shown below:
Number of
Shares Ordinary Share Treasury
In thousands of Nigerian Naira (thousand) shares premium shares
At January 2015 29,431,180 14,715,590 123,471,114 (3,987,575)
Proceeds from shares issued - - - -
Bonus capitalised - - - -
(Purchases)/sales of treasury shares - - - (766,581)
At 31 December 2015/1 January 2016 29,431,180 14,715,590 123,471,114 (4,754,156)
(Purchases)/sales of treasury shares - - - (537,089)
At 31 December 2016 29,431,180 14,715,590 123,471,114 (5,291,245)

Share premium
(v) Regulatory risk reserve: The regulatory risk
Share premium is the excess paid by shareholders reserves warehouses the difference between the
over the nominal value for their shares. impairment balance on loans and advances as de-
termined in accordance with the provisions of
Other regulatory reserves Prudential guidelines of Central Bank of Nigeria
when compared with the assessment in line with
The other regulatory reserve includes movements the requirement of IAS 39 Incurred loss model.
in the statutory reserves and the small and medi- The key component of CBN Prudential Guidelines
um enterprises equity investment reserve. (PG) is the setting aside of additional 2% provi-
sion on all performing loans assessed under the
(i) Statutory Reserves: Nigerian banking regula- PG. This 2% provision is not required by IAS 39.
tions require the Bank to make an annual appro- Therefore it has been recognised in Regulatory
priation to a statutory reserve. As stipulated by Risk Reserve. The Parent’s total balance in Regu-
S.16(1) of the Banks and Other Financial Institu- latory Risk Reserve is N52,324,178,000.
tion Act of 1991 (amended), an appropriation of
30% of profit after tax is made if the statutory (vi) Retained earnings: Retained earnings are the
reserve is less than paid-up share capital and 15% carried forward recognised income net of ex-
of profit after tax if the statutory reserve is great- penses plus current period profit attributable to
er than the paid up share capital. In the current shareholders.
period, the bank appropriated N38,051,038,000
representing 30% of its Profit after tax to stat-
utory reserve. Total statutory reserves was (vii) Non-controlling interest: The analysis of
N199,185,674,000 at the end of the year. non-controlling interest per subsidiary is as
shown below:
(ii) Small and medium enterprises equity in-
vestment reserve (SMEEIS): The SMEEIS reserve
is maintained to comply with the Central Bank of
Nigeria (CBN) requirement that all licensed banks
set aside a portion of the profit after tax in a fund
to be used to finance equity investment in qual-
ifying small and medium scale enterprises. Under
the terms of the guideline (amended by CBN let-
ter dated 11 July 2006), the contributions will be
10% of profit after tax and shall continue the first
5 years but banks’ contributions shall thereafter
reduce to 5% of profit after tax. However, this
requirement is no longer mandatory. The small
and medium scale industries equity investment
scheme reserves are non-distributable. Total
SMEEIS reserves was N4,232,478,000 at the end
of the year.
(iii) Treasury shares: Treasury shares in the

sum of N5,291,245,000 (31 December
2015:N4,754,156,000) represents the Bank’s
shares held by the Staff Investment Trust as at 31
December 2016.
(iv) Fair value reserve: The fair value reserve in-

cludes the net cumulative change in the fair value
of available-for-sale investments until the invest-
ment is derecognised or impaired.

Group Group Group Group

Dec-2016 Dec-2015 Dec-2016 Dec-2015
% % N’000 N’000
GTB (Gambia) Limited 22.19 22.19 897,736 537,421
GTB (Sierra Leone) Limited 15.76 15.76 919,463 645,034
GTB (Ghana) Limited 2.03 2.03 399,661 597,485
GTB Liberia 0.57 0.57 27,288 18,476
GTB Kenya Limited 30.00 30.00 6,598,547 4,590,134
8,842,695 6,388,550
Please refer to Note 45 for more information on the Group structure
(viii) Other Regulatory Reserves Breakdown

2016 2015
Statutory SMEEIS Statutory SMEEIS
In thousands of Nigerian Naira Reserves Reserves Reserves Reserves
Opening Balance 161,134,636 4,232,478 140,386,849 4,232,478
Transfers for the year 38,051,038 - 20,747,787

Total transactions with equity holders 38,051,038 - 20,747,787 -
Balance at 31 December 2016 199,185,674 4,232,478 161,134,636 4,232,478
43. Dividends
The following dividends were declared and paid by the Group during the year ended:

Balance, beginning of year - - - -
Final dividend declared1 44,735,384 44,146,768 44,735,384 44,146,768
Interim dividend declared 7,357,795 7,357,795 7,357,795 7,357,795
Payment during the year (52,093,179) (51,504,563) (52,093,179) (51,504,563)
Balance, end of year - - - -
1
This relates to the final dividend declared for the 2015 financial year
Subsequent to the balance sheet date, the board of directors proposed a final dividend of 175k per share
(31 December 2015: 152k per share) on the issued ordinary shares of 29,431,179,224 of 50k each.

44. Contingencies Nature of instruments
Claims and litigation An acceptance is an undertaking by a bank to pay

a bill of exchange drawn on a customer. The Group
The Bank, in its ordinary course of business, is pres- expects most acceptances to be presented, but reim-
ently involved in 452 cases as a defendant (31 De- bursement by the customer is normally immediate.
cember 2015: 428) and 263 cases as a plaintiff (31 Endorsements are residual liabilities of the Group in
December 2015: 180). The total amount claimed respect of bills of exchange, which have been paid
in the 452 cases against the Bank is estimated at and subsequently rediscounted. Guarantees and let-
N464.9 Billion and $132.5 Million (31 December ters of credit are given as security to support the
2015: N511.17 Billion and $132.02 Million) while performance of a customer to third parties. As the
the total amount claimed in the 263 cases instituted Group will only be required to meet these obliga-
by the Bank is N72.9 Billion (31 December 2015: tions in the event of the customer’s default, the cash
N49.6 Billion). However, the solicitors of the Bank requirements of these instruments are expected to
are of the view that the probable liability which may be considerably below their nominal amounts.
arise from the cases pending against the Bank is not
likely to exceed N139, 472,454.00 (31 December Other contingent liabilities include transaction re-
2015: N109, 781,042). lated customs and performances bond and are,
generally, commitments to third parties which are
Contingent liabilities and commitments not directly dependent on the customer’s creditwor-
thiness. Documentary credits commit the Group to
In common with other banks, the Group conducts make payments to third parties, are on production
business involving acceptances, performance bonds of documents, which usually reimbursed immedi-
and indemnities. The majority of these facilities are ately by customers. The following tables summarise
offset by corresponding obligations of third parties. the nominal principal amount of contingent liabil-
Contingent liabilities and commitments comprise ities and commitments with off-financial position
acceptances, endorsements, guarantees and letters risk.
of credit.
Acceptances, bonds, guarantees and other obligations for the account of customers:
a. These comprise:
Dec-2016 Dec-2015 Dec-2016 Dec-2015
Contingent liabilities:
Acceptances and guaranteed commercial papers - - - -
Transaction related bonds and guarantees 503,027,562 463,573,112 468,303,919 454,123,077
503,027,562 463,573,112 468,303,919 454,123,077
Commitments:
Short term foreign currency related transactions 1,641,614 3,367,750 - -
Clean line facilities and letters of credit 70,895,854 84,713,490 43,091,160 73,260,543
Other commitments 7,932,788 12,766,126 - -
80,470,256 100,847,366 43,091,160 73,260,543

b. 62% (N289,210,631,000) of all the transaction related bonds and guarantees are collaterised
(December 2015: 51%: N230,827,224,000). The cash component of the collaterised bond and
guarantee is N108,360,331,000 (31 December 2015: N39,747,312,000) while the balance of
N180,850,299,000 (December 2015: N191,079,912,000) is non-cash

45. Group entities
The Group is controlled by Guaranty Trust Bank Plc “the ultimate Parent” (incorporated in Nigeria). The
controlling interest of Guaranty Trust Bank Plc in the Group entities is disclosed in the table below:
i. Significant subsidiaries
Ownership Ownership
Country of interest NCI interest NCI
incorporation Dec-16 Dec-16 Dec-15 Dec-15
1. Guaranty Trust Bank Gambia Limited Gambia 77.81% 22.19% 77.81% 22.19%
2. Guaranty Trust Bank Sierra Leone Limited Sierra Leone 84.24% 15.76% 84.24% 15.76%
3. Guaranty Trust Bank Ghana Limited Ghana 97.97% 2.03% 95.37% 4.63%
4. Guaranty Trust Bank UK Limited United Kingdom 100.00% 0.00% 100.00% 0.00%
5. Guaranty Trust Bank Liberia Limited Liberia 99.43% 0.57% 99.43% 0.57%
6. Guaranty Trust Bank Cote D’Ivoire S.A Cote D’Ivoire 100.00% 0.00% 100.00% 0.00%
7. Guaranty Trust Bank Kenya Limited Kenya 70.00% 30.00% 70.00% 30.00%
Special purpose entities:

Staff Investment Trust Nigeria 100.00% 0.00% 100.00% 0.00%
Guaranty Trust Bank Finance BV Netherlands 100.00% 0.00% 100.00% 0.00%
ii. Indirect investment in Subsubsidiaries

Ownership Ownership
Country of interest NCI interest NCI
incorporation Dec-16 Dec-16 Dec-15 Dec-15
1 Guaranty Trust Bank Rwanda Limited Rwanda 67.20% 32.80% 67.20% 32.80%
2 Guaranty Trust Bank Uganda Limited Uganda 70.00% 30.00% 70.00% 30.00%
The subsidiaries and sub-subsidiaries of the Group (f) Guaranty Trust Bank (Cote D’Ivoire) is Guaranty
are all involved in the Banking business only. Trust Bank Plc’s first subsidiary in Francophone
West Africa. The Bank was licensed by the
Central Bank of Cote D’Ivoire to offer banking
(a) GTB Gambia was incorporated in April 2001 services to the Ivorian public and commenced
and commenced operations in March 2002. operations on April 16, 2012.
(b) GTB Sierra Leone was incorporated in (g) The Group extended its regional presence
September 2001 and commenced operations in Africa December 2013 by acquiring 70%
in January 2002. stake in Fina Bank Limited, a commercial bank
incorporated in Kenya with subsidiaries in
(c) Guaranty Trust Bank (Ghana) was incorporated Uganda and Rwanda. The bank has been re-
in October 2004 and commenced operations branded as Guaranty Trust Bank Kenya Limited.
in March 2006.
(h) GTB Finance B.V was incorporated in December
(d) Guaranty Trust Bank (UK) Limited was 2006 as a special purpose entity with the
incorporated in February 2007 and principal purpose of providing funding,
commenced operations in January 2008. through the international capital markets to
the ultimate parent. The Bond issued by GTB
(e) Guaranty Trust Bank (Liberia) Limited was Finance B.V are guaranteed by Guaranty Trust
incorporated in September 2008 and Bank Plc.
commenced operations in March 2009.

Significant restrictions Non-controlling interest of significant

subsidiaries
There are no significant restrictions (contractu-
al or otherwise) on the Group’s ability to access The following relates to accumulated non-controlling
or use the assets and settle the liabilities of any interest and profit or loss allocated to non-controlling
member of the Group to the extent that regu- interest for significant subsidiaries for period ended
lation does not inhibit/prohibit the group from 31 December, 2016:
having access, and in liquidation scenario, the
group’s liability will be limited to its level of in-
vestment in the entity .
Significant subsidiaries Principal Accumulated Profit or loss

place of Non-controlling Interest Allocated to Non-controlling
business Interest

1 Guaranty Trust Bank Gambia Limited Gambia 864,990 537,421 245,170 150,686
2 Guaranty Trust Bank Sierra Leone Ltd Sierra Leone 911,502 645,034 268,484 211,922
3 Guaranty Trust Bank Ghana Limited Ghana 400,231 597,485 102,243 152,939
4 Guaranty Trust Bank Liberia Limited Liberia 27,288 18,476 3,486 1,666
5 Guaranty Trust Bank Kenya Limited Kenya 6,658,565 4,590,133 360,754 241,240

Guaranty Trust Bank (Ghana) Limited, Guaranty Trust Bank (Sierra Leone) Limited and Guaranty Trust
Bank (Gambia) Limited paid dividend during the year in the sum of N36,224,000, N79,542,000 and
N86,821,000 respectively (December 2015: N66,498,000, N13,989,000 and N23,197,000 respectively)
to non-controlling interest.
46. Unconsolidated interests in structured entities
The table below describes the types of structured entities that the Group does not consolidate but in
which it holds an interest.
Name of the entity 3 Peat Investment Ltd Ruqayya Integrated Farms Ltd
Percentage holding 70% 51%
Nature of entity Hotel & Leisure Poultry Farming
Purpose of investment Government-induced investment Government-induced investment
Activities of entity Provision of hospitality services Rearing of birds and production of table eggs
*Carrying amount N508,016,000 (Dec-2015: N508,016,000) N40,500,000 (Dec-2015: N40,500,000)
Line item in SOFP Investment securities-AFS*** Investment securities- AFS***
Loans granted N4,341,488,290 (Dec-2015: N2,581,437,971 ) -
**Maximum exposure to loss N4,849,504,290 (Dec-2015: N3,089,453,971) N40,500,000 (Dec-2015: N40,500,000)
Source of Financing Equity financing and loans from financial institutions Equity financing and loans from financial insti-
tutions

* Carrying amount is investment amount net of impairment or where information is available, represents fair value
** Maximum exposure comprises the cost of investment and total facilities granted at arm’s length to the entity.
***Available For Sale (AFS)

The Bank does not provide financial support to (c) Transactions with key management personnel
these unconsolidated structured entities and has no
plans to provide financial support to these entities The Group’s key management personnel, and
in the future. However, the bank extended loans to persons connected with them, are also consid-
the entities in the normal course of business at arm’s ered to be related parties. The definition of key
length. management include the close family members
of key personnel and any entity over which
47. Related parties they exercise control. The key management
personnel have been identified as the Assistant
(a) Related party transactions General Managers, Deputy General Managers, Gen-
eral Managers, Executive and Non-Executive di-
Parties are considered to be related if one party rectors of the Group. Close family members are
has the ability to control the other party or exercise those family members who may be expected to
influence over the other party in making financial influence, or be influenced by that individual in
and operational decisions, or another party controls their dealings with Guaranty Trust Bank Plc and its
both. The definition includes subsidiaries, associates, subsidiaries.
joint ventures and the Group’s pension schemes, as
well as key management personnel.
(b) Subsidiaries
Transactions between Guaranty Trust Bank Plc

and its subsidiaries also meet the definition
of related party transactions. These transactions
are eliminated on consolidation, hence, they are not
disclosed in the consolidated financial statements
but are disclosed in the books of the Bank.
During the year, the Bank received Dividend of N

1,723,186,000, N 425,316,000 and N 304,409,000
from GTBank Ghana, GTBank Sierra Leone and GT-
Bank Gambia respectively.
The Bank also has receivables from GTBank Gha-

na and GTBank UK in the sum of N18,206,569 and
N15,851,520 as at 31 December, 2016 respectively
(December 2015: GTBank Liberia, and GTBank Gha-
na in the sum of N31,751,974 and N141,212,679
respectively).

(d) Risk assets outstanding 31 December 2016

During the period the Bank granted various credit facilities to companies whose directors are also directors
of Guaranty Trust Bank Plc (Director Related) or related to a Key Management Personnel (Insider Related)
at rates and terms comparable to other facilities in the Bank’s portfolio. An aggregate of N438,857,000
(31 December 2015:N1,585,455,000 ) was outstanding on these facilities at the end of the period. The
bank earned a sum of N78,171,000 on insider related facilities during the year. The outstanding balance
and status of performance of each facility is as shown below:
Name of company /individual Parent Parent

In thousands of Nigerian Naira Relationship Facility type Status Nature of Security Dec-2016 Dec-2015
Ithena Logic Ltd Director Related Overdraft Performing Lien On Shares 7,086 7,093
Director Related Overdraft Performing Tripartite Legal - 89,087
International Travel Express Ltd Mortgage, Personal
Guarantee
Jaykay Pharmacy Ltd Director Related Overdraft Performing Mortgage Debenture 12,497 12,076
Director Related Overdraft/Term Performing Mortgage Deben- 4,621 46,911
Polystyrene Industries Ltd
Loan ture,Personal Guarantee
Insider Related Overdraft/Term Performing Domiciliation; Personal 13,657 14,586
Mediabloc Consulting Nigeria Ltd.
Loan Guarantee
Director Related GT Mortgage / Performing Legal Mortgage & Dom- 20,451 18,040
Enwereji Nneka Stella
Term Loan iciliation
Director Related Overdraft Performing Mortgage Deben- 21,456 991,137
Cubic Contractors Limited
ture,Personal Guarantee
Insider Related Overdraft Performing All Asset Debenture, 18,584 16,920
Contemporary Gifts Limited
Personal Guarantee
Insider Related Term Loan Performing Tripartite Legal Mort- 74,815 50,000
Discovery House Mont.Sch. Ltd gage, Domiciliation,
Personal Guarantee
Agbaje, Olufemi Augustus Director Related Maxplus Loan Performing Domiciliation 4,099 9,922
Director Related Overdraft Performing Tripartite Equitable - 199,458
Fola Adeola
Mortgage
IBFC Alliance Limited Director related Overdraft Performing Treasury Bills - 294
Insider Related GT Mortgage/Max Performing Legal Mortgage, Domi- 115,155 129,932
Olanrewaju Kalejaiye Advance/Maxplus ciliation
Loan
Hassan Ibrahim Director Related GT Mortgage Performing Legal Mortgage 144,000 -
Touchdown Travels Director Related Performance Bond Performing Cash In Pledged Funds 1,250 -
Director Related Overdraft/Max Performing Domiciliation 1,186 -
Uzoewulu Lisa Obiageli
Advance
438,857 1,585,455

(e) Director/insiders related deposit liabiilties
Name of company/Individual Parent Parent

Relationship Type of Deposit
Agusto & Co. Limited Director related Demand Deposit 54,151 29,655
Alliance Consulting Director related Demand Deposit 3,993 2,008
Comprehensive Project Mgt. Services Director related Demand Deposit 18,066 17,129
Cubic Contractors Limited Director related Demand Deposit 2,103 4,393
Eterna Plc Director related Demand Deposit 7,000 1,915
F & C Securities Limited Director related Demand Deposit - 792
IBFC Limited Director related Demand Deposit 50 49
Jaykay Pharmacy Limited Director related Demand Deposit 71 600
Kresta Laurel Limited Director related Demand Deposit and Time Deposit 79,424 185,391
Main One Cable Company Ltd Director related Demand Deposit 4,450 12,218
Payless Butchers & Supermart Ltd Director related Demand Deposit 374 1,471
Sikilu Petroleum & Gas Co Ltd Director related Demand Deposit 3 3
WSTC Financial Services Ltd Director related Demand Deposit and Time Deposit 439,695 467,417
WSTC Nominee Limited Director related Demand Deposit 431 431
Zito Phranzlo Int'L Limited Director related Demand Deposit 4,203 76
Intl Travel Express Ltd Director related Demand Deposit 13 10
Afren Onshore Ltd Director related Demand Deposit 1 1
Afren Resources Limited Director related Demand Deposit and Time Deposit - 109
Mediabloc Consulting Nigeria Ltd. Insider Related Demand Deposits 7 6
Adam And Eve Nigeria Ltd Insider Related Demand Deposit 136 98
Augusto Enterprises Nig. Ltd Director related Demand Deposit 2,289 2,701
Polystyrene Industries Ltd Director related Demand Deposit 197 4,504
Touchdown Travels Limited Insider Related Demand Deposit and Time Deposit 9,437 4,354
Discovery House Mont.Sch. Ltd Insider Related Demand Deposit 8,521 30,867
Agbaje, Olufemi Augustus Director related Demand Deposit 20,144 12,879
Adeola Razack Adeyemi Director related Demand Deposit 68,556 21,318
Enwereji Nnneka Stella Director related Demand Deposit 71 51
IBFC Alliance Director related Demand Deposit 887 721
Olanrewaju Kalejaiye Insider Related Demand Deposit 6,981 311
Contemporary Gifts Limited Insider Related Demand Deposit 31 -
Fcsl Asset Mgt Company Ltd Director Related Demand Deposit 3,263 -
Ithena Logic Limited Director Related Demand Deposit 1 -
Uzoewulu, Lisa Obiageli Insider Related Demand Deposit 30 -
734,579 801,478
Interest expense on insider related deposits was N16,376,000 during the year.

(f) Subsidiaries’ deposit account balances
Name of company/Individual Relationship Type of Deposit Dec-2016 Dec-2015
N N
GTB Sierra Leone Subsidiaries Domicilliary 1,156,205 736,692
GTB Ghana Subsidiaries Demand Deposit 3,461,851 3,461,851
GTB Ghana Subsidiaries Domicilliary 61,933,772 23,604,882
66,551,828 27,803,425
(g) Key management personnel and their immediate relatives engaged in the following
transactions with the Group during the year:
Loans and advances:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Secured loans 438,857 1,585,455 438,857 1,585,455


Dec-2016 Dec-2015 Dec-2016 Dec-2015
Total deposits 734,579 801,478 734,579 801,478

Interest rates charged on balances outstanding are at rates that would be charged in the normal course of
business. The secured loans granted are secured over real estate, equity and other assets of the respective
borrowers. No impairment losses have been recorded against balances outstanding during the period with
key management personnel, and no specific allowance has been made for impairment losses on balances
with key management personnel and their immediate relatives at the year end.
(h) Key management personnel compensation for the year comprises:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Wages and salaries 1,877,254 1,850,486 1,628,256 1,586,128
Post-employment benefits 9,887 7,411 3,350 7,411
Share-based payments 201,811 358,614 - -
Increase /(decrease) in share appreciation rights 541,963 765,862 - -
2,630,915 2,982,373 1,631,606 1,593,539

(i) (i) Directors’ remuneration

Directors’ remuneration excluding pension contributions and certain benefits was provided as follows:

Dec-2016 Dec-2015 Dec-2016 Dec-2015
Fees as directors 322,960 302,927 24,500 27,500
Other allowances 346,801 239,112 222,627 236,296
669,761 542,039 247,127 263,796
Executive compensation 712,787 717,838 712,787 710,838

1,382,548 1,259,877 959,914 974,634
(ii) The directors’ remuneration shown above includes:

Dec-2016 Dec-2015
Chairman 35,698 33,607
Highest paid director 204,242 204,993
(iii) The emoluments of all other directors fell within the following ranges:

Dec-2016 Dec-2015
N 6,500,001 - N11,000,000 - 1
N11,000,001 - N11,500,000 - -
N11,500,001 - N12,000,000 1 -
N12,000,001 - N12,500,000 - -
N12,500,001 - N13,000,000 - -
N13,000,001 - N13,500,000 - -
N13,500,001 - N22,500,000 1 1
Above N22,500,001 12 13
14 15
48 Contraventions
INFRACTION AMOUNT
Penalty in respect of services rendered by unapproved International Money

Transfer Service Operators N50,000,000
Penalty in respect of unrefunded Negotiable Current Account Maintenance Fees N6,000,000
Penalty in respect of AML/CFT Examination as at April, 2016 N6,000,000
Delay in rendition of Returns N50,000
49 Subsequent events

There were no events subsequent to the financial position date which require adjustment to, or disclo-
sure in, these financial statements

REGULATORY
REQUIREMENTS
UNDER IFRS REGIME

REGULATORY REQUIREMENTS UNDER IFRS REGIME
Regulatory Requirements under the IFRS Provisioning as recommended by Prudential

Regime Guideline
Loan provisioning is segregated along two (2) cate-
In addressing the challenges faced by the Nige- gories as detailed below:
rian Banking industry which was at the brink of
a crisis as a result of spiral effects of the global 1. Loans other than Specialized Loans
financial meltdown, the CBN undertook a re- The provisioning policy for ‘loans other than special-
view of the prudential guidelines. In the revised ized loans’ covers the following:
guidelines, which became effective 1st of July,
2010, the CBN provided for the adaptation of i. Commercial Loans
the prudential guidelines to IFRS after it has ii. Commodities Financing
been adopted in Nigeria. Paragraph 12.4 of the iii. Corporate Loans
revised Prudential Guidelines for Deposit Mon- iv. Retail & Consumer Credits
ey Banks in Nigeria stipulates that Banks would v. Neither past due nor impaired
be required to make provisions for loans as pre- vi. Facilities granted to Federal, State and Local
scribed in the relevant IFRS Standards when IFRS governments and their parastatals.
is adopted. However, Banks would be required vii. Facilities not specifically classified as
to comply with the following: specialized loans by the CBN.
(a) Provisions for loans recognized in the prof- The bank’s provisioning benchmark for ‘loans oth-
it and loss account should be determined er than specialized loans’ is highlighted in the table
based on the requirements of IFRS. Howev- below:
er, the IFRS provisions should be compared % Provision
No of Days Overdrawn Classification
with provisions determined under pruden- taken
tial guidelines and the expected impact/ 90 – 180 Substandard 10
changes in general reserve should be treat- 180 – 360 Doubtful 50
ed as follows: Over 360 Lost 100
As soon as an account is classified as non-perform-

i. Prudential Provisions is greater than
ing, the interest is accounted for on non-accrual ba-
IFRS provisions; transfer the difference
sis i.e. interest is not recognized as income but sus-
from the general reserve to a non-dis-
pended.
tributable regulatory reserve.
Furthermore, if the occurrence of a loss event is cer-
ii. Prudential Provisions is less than IFRS
tain, appropriate provisions will be made regardless
provisions; the excess charges result-
of the fact that such loans does not fall in any of the
ing should be transferred from the
above categories.
regulatory reserve account to the
general reserve to the extent of the
2. Specialized Loans
non-distributable reserve previously
The provisioning policy for specialized loans covers
recognized.
the following:
i. Agriculture Finance
(b) The non-distributable reserve should be
ii. Mortgage Loan
classified under Tier 1 as part of core capi-
iii. Margin Loan
tal.
iv. Project Finance
v. Object Finance
The group has fully complied with the require-
vi. SME Loan
ments of the guidelines.
vii. Real Estate Loan
(Commercial and Residential)

The bank’s provisioning benchmarks are spelt out below under each of the specialized loan types:
i. Agriculture Finance
a. Agriculture Finance - short term facilities (purchase of seeds, fertilizers, WC, and other Inputs)
Category Classification Days past due % provision
1 Watchlist Markup / interest or principal past due by 90days 0% of total outstanding balance
1A Substandard Markup / interest or principal past due by 90days 25% of total outstanding balance
to 1year
2 Doubtful Markup / interest or principal past due by 1 to 1.5 50% of total outstanding balance
years
3 Very Doubtful Markup / interest or principal past due by 1.5 to 2 75% of total outstanding balance
years
4 Lost Markup / interest or principal past due by more 100% of total outstanding balance
than 2 years
b. Agriculture Finance – long term facilities (Farm development finance, purchase of machinery,
livestock financing )
to 1year
2 Doubtful Markup / interest or principal past due by 1 to 50% of total outstanding balance
2years
3 Very Doubtful Markup / interest or principal past due by 2 to 3 75% of total outstanding balance
years
than 3 years
ii. Mortgage Loans
Treatment of
Income
1 Watchlist Markup / Interest or principal Days Suspended 0% on balance
past due by more than 90 days
2 Substandard Markup / Interest or principal Days Suspended 10%
past due by more than 180 days
3 Doubtful Markup / Interest or principal Days Suspended Un-provided balance should not ex-
past due by more than 1 year ceed 50% of NRV of security
4 Lost Markup / Interest or principal Days Suspended 100% of total outstanding balance
past due by more than 2 years

iii. Margin Loans
The shares backing margin facilities shall be marked to market on a daily basis in order to determine the po-
tential loss in the portfolio. Provisions shall be made periodically for the excess of loan balance over the market
value of the underlining shares. Any increase in the mark to market value from the previous valuation shall be
recognized to the extent of the previous charge-off made.
iv. Project Finance
Treatment of Un-
Category Classification Days past due realised Markup / % provision
Interest income
1 Watchlist Repayment on obligation between 60% and 75% Suspended interest and 0% of total outstanding
of amount due or instalment 180 days past due realize on cash basis balance
1A Substandard Repayment below 60% of amount due or instal- As above 25% of total outstanding
ment between 180 days to 2 years past due balance
2 Doubtful Repayment below 60% of amount or instalment As above 50% of total outstanding
overdue by 2 to 3 years balance
3 Very Doubtful Repayment below 60% of amount due or instal- As above 75% of total outstanding
ment overdue by 3 to 4 years balance
4 Lost Repayment below 60% of amount due or instal- As above 100% of total outstand-
ment overdue by more than 4 years ing balance
v. Object Finance
Treatment of
Income
1 Watchlist Repayment on obligation between 60% and Suspend interest and 0% of total outstand-
75% of amount due or installment 180days realize on cash basis ing balance
past due
1A Substandard Repayment below 60% of amount due or As above 25% of total out-
installment btw 180 to 1year past due standing balance
2 Doubtful Repayment below 60% of amount or install- As above 50% of total out-
ment overdue by 1 to 2 years standing balance
3 Very Doubtful Repayment below 60% of amount due or As above 75% of total out-
installment over due by 2 to 3 years standing balance
4 Lost Repayment below 60% of amount due or As above 100% of total out-
installment overdue by more than 3 years standing balance
vi. SME
a. SME Loans - SME short term facilities (Maturities of 1 year)
1A Substandard Markup / interest or principal past due by 90days to 1year 25% of total outstanding
balance
2 Doubtful Markup / interest or principal past due by 1 to 1.5 years 50% of total outstanding
balance
3 Very Doubtful Markup / interest or principal past due by 1.5 to 2 years 75% of total outstanding
balance
4 Lost Markup / interest or principal past due by more than 2 years 100% of total outstanding
balance

b. SME Loans - SME Long term facilities (Maturities of more than 1 year)
to 1year
2 Doubtful Markup / interest or principal past due by 1 to 50% of total outstanding balance
2years
3 Very Doubtful Markup / interest or principal past due by 2 to 3 75% of total outstanding balance
years
than 3 years
vii. Real Estate Loans (Commercial and Residential)
Category Classification Days past due Treatment of Income % provision
1 Watchlist Repayment on obligation between Suspend interest and 0% of total outstanding

60% and 75% of amount due or realize on cash basis balance
installment 180days past due
1A Substandard Repayment below 60% of amount As above 25% of total outstand-

due or installment btw 180 to 1year ing balance
past due
2 Doubtful Repayment below 60% of amount As above 50% of total outstand-

or installment overdue by 1 to 2 years ing balance
3 Very Doubtful Repayment below 60% of amount As above 75% of total outstand-
due or installment over due by 2 to ing balance
3 years
4 Lost Repayment below 60% of amount As above 100% of total outstand-
due or installment overdue by more ing balance
than 3 years

OPERATIONAL RISK
MANAGEMENT

OPERATIONAL RISK MANAGEMENT
Guaranty Trust Bank defines Operational Risk propriate qualitative & quantitative methods in day to
(OpRisk) as “the direct or indirect risk of loss result- day management processes and adopts various risk
ing from inadequate and/or failed internal process- mitigating strategies. The following practices, tools
es, people, and systems or from external events”. and methodologies have been deployed in the Bank
for the purpose of Operational Risk Management im-
In GTBank, Operational Risk Management involves plementation:
the review and monitoring of all strategies and in-
itiatives deployed in its people management, pro- • Loss Incident Reporting – Loss incidents are
cess engineering and re-engineering, technology reported to the Operational Risk Management
investment and deployment, management of all Group by all business areas in the Bank to ena-
regulatory responsibilities, engagement of third ble collection of internal OpRisk losses and near
party services, and response to major disruptions misses. All staff are encouraged to report opera-
and external threats. tional risk events as they occur in their respective
business spaces whether these risks crystallize
To ensure a holistic framework is implemented, Op- into actual losses or not. As a result, the Bank
erational Risk Management also monitors Strategic has built up a robust OpRisk loss database de-
and Reputational Risks from a broad perspective. tailing relevant OpRisk loss data for six years. In-
formation collated is analyzed for identification
GTBank regards strategic risk as the risk that not of risk concentrations, appropriate OpRisk risk
only affects but are created by the Bank’s strategic profiling and capital estimation.
decision. It is the possibility that the Bank’s strategy
may be inappropriate to support its long-term cor- • Risk and Control Self Assessments (RCSAs)
porate goals due to the inadequacy of its strategic – This is a qualitative risk identification tool de-
planning and/or decision-making process, inade- ployed bank-wide. A risk-based approach has
quate implementation of such strategies and strat- been adopted for the frequency of RCSAs to be
egy failure due to unexpected circumstances. conducted by branches, departments, groups
and divisions of the Bank. All branches and
The Bank aligns strategy and risk by identifying, Head-Office departments are required to com-
assessing and managing risks and uncertainties, plete the Risk Self-Assessment process at least
affected by internal and external events or factors, once a year. These assessments enable risk pro-
which could inhibit the Bank’s ability to achieve its filing and risk mapping of prevalent operational
strategic objectives. This is done with the ultimate risks across the Bank. A detailed risk register cat-
goal of creating and protecting stakeholder value. aloguing key risks identified and controls for im-
plementation is also developed and maintained
A specialized template is deployed for tracking from this process.
key business activities designed or defined by the
Bank to measure and monitor performance in the Risk Assessments of the Bank’s key processes,
achievement of its strategic intent in the short, me- new and existing products, services, branches
dium and long term. and vendors/contractors are also carried out.
This process identifies inherent operational risks
The Bank considers Reputational Risk to be the cur- and tests the quality of controls the Bank has in
rent and prospective adverse impact on earnings place to mitigate likely risks.
and capital arising from negative public opinion.
It measures the change in perception of the Bank • Key Risk Indicators (KRI) – These are quantita-
by its stakeholders. It is linked with customers’ ex- tive parameters defined for the purpose of mon-
pectations regarding the Bank’s ability to conduct itoring operational risk trends across the Bank.
business securely and responsibly. A detailed tem- A comprehensive KRI Dashboard is in place and
plate with internal and external factors that might it is supported by specific KRIs for key depart-
impact the Bank adversely is used to monitor the ments in the Bank. Medium to High risk trends
Bank’s exposure to reputational risk. All adverse are reported in the Monthly and Quarterly Oper-
trends identified are reported to relevant stake- ational Risk Status reports circulated to Manage-
holders for timely redress. ment and key stakeholders.
The Bank manages Operational risk by using ap-

• Fraud Risk Management Initiatives – Caus- tors to any of its premises. In addition, awareness on
al analysis of key fraud and forgeries incidents health and safety issues are presented periodically on
identified in the Bank or prevalent in local and the intranet.
global business environments are carried out
and reported. Likely and unlikely loss estima- Operational Risk Management Philosophy and
tions are also determined in the process as in- Principles
put in the OpRisk capital calculation process.
The focus in Fraud Risk Management is to en- Approach to Managing OpRisk – Guaranty Trust
sure that processes for preventing, deterring, Bank adopts operational risk procedures and prac-
detecting fraud and forgeries incidents, and tices that are “fit for purpose” and will increase the
sanctioning offenders are effective. efficiency and effectiveness of the Bank’s resources,
minimize losses and utilize opportunities.
• Business Continuity Management (BCM)
in line with ISO 22301 Standards – To This outlook embeds OpRisk practices in the bank’s
ensure the resilience of our business to any day-to-day business activities.
disruptive eventuality, the Bank has in place
a robust Business Continuity Management It also aligns the Bank’s Operational Risk Management
System (BCMS). This system assures timely framework with sound practices recommended by
resumption of critical business activities with various local and globally-accepted regulatory agen-
minimal financial losses or reputational dam- cies such as Basel II Accord’s “Sound Practices for the
age and continuity of service to the Bank’s Management and Supervision of Operational Risk”,
customers, vendors and regulators. GTBank Committee of Sponsoring Organizations (COSO) and
has been certified ISO 22301 BC compliant International Organization for Standardization (ISO).
by the globally recognized British Standards
Institution (BSI) signifying that the Bank has Operational Risk Capital Calculation – The Bank
instituted internationally accepted processes, has adopted the Basic Indicator Approach (BIA) under
structures and systems that demonstrate its Basel II Pillar 1 for the calculation of its Operational
capacity to resume business within a short Risk Economic Capital for internal risk monitoring and
timeframe in the event of any business dis- decision-making. Whilst the Bank has the required
ruption. OpRisk loss data to migrate to other capital calcu-
lation methods i.e. the Standardized Approach and
Part of the BCMS is a Business Continuity Plan Advanced Measurement Approach, the application
(BCP), which is reviewed and updated peri- of the BIA is in line with the Central Bank of Nigeria’s
odically to ensure reliability and relevance of (CBN) recommendation for all banks in Nigeria.
information contained. Various testing and
exercising programs are conducted bank- The estimated OpRisk Capital Charge is reported to
wide to ensure that recovery coordinators are the Board and Management for guidance in Capital
aware of their roles and responsibilities. Planning and decision making.
• Occupational Health and Safety proce- Governance Structure – The Board through its
dures and initiatives – Global best practices Board Risk Committee (BRC) oversees the operational
for ensuring the health, safety and welfare of risk function in the Bank and reviews OpRisk reports
all staff, customers and visitors to the Bank’s on a quarterly basis. It ensures that the OpRisk poli-
premises are advised, reported to relevant cy is robust and provides a framework for the Bank’s
stakeholders and monitored for implemen- OpRisk profile and limits. It also determines the ade-
tation. Related incidents are recorded bank- quacy and completeness of the Bank’s risk detection,
wide for identification of causal factors and measurement systems and mitigants whilst ensuring
implementation of appropriate mitigants to review and approval of the bank’s contingency plans
forestall reoccurrence for Specific risks. The Board lays down the principles
on how operational risk incidents are to be identified,
As a result, the Bank conducts Branch Risk Assess- assessed, controlled, monitored and measured.
ments, Fire Risk Assessments and Quarterly Fire
Drills to guarantee the safety of its staff and visi-

The Management Risk Committee monitors and

ensures the implementation of the guiding OpRisk
framework bank-wide. It ensures that all depart-
ments in the Bank are fully aware of the risks em-
bedded in respective process flows and business
activities. The Committee considers and approves
key decisions relating to Operational Risk before
presentation to the Board.
All process owners are responsible for the day-

to-day management of OpRisk prevalent in their
respective Departments, Groups, Divisions and Re-
gions.
The Internal Audit function conducts independent

reviews on the implementation of OpRisk Policies
and Procedures bank-wide.

Treatment of Operational Risks – GTBank
adopts several risk treatment strategies to mitigate
identified operational risks. These mitigants are ap-
plied to achieve a residual risk level aligned with
the Bank’s risk tolerances. In line with best prac-
tices, the cost of risk treatments introduced must
not exceed the reward. OpRisk treatment options
adopted by the Bank include Risk Acceptance / Re-
duction, Risk Transfer, Risk Sharing and Risk Avoid-
ance.
Operational Risk Reporting – Monthly, quarter-

ly, and annual reports highlighting key operational
risks identified are circulated to relevant stakehold-
ers for awareness and timely implementation of
mitigation strategies. Reports are also generated
and circulated on a need-basis.
To aid timely and comprehensive reporting of prev-

alent OpRisk exposures in the Bank, an OpRisk
Management software/application has been ac-
quired by the Bank. This has been successfully im-
plemented to aid data collation and information
gathering, analysis, escalation and reporting of key
OpRisk incidents or emerging trends observed.

ACTIVITIES OF CARD
OPERATIONS

ACTIVITIES OF CARD OPERATIONS
5. Activities of Cards Operations
The Group continues to abide by the minimum We continually encourage the usage of our cards
standards and requirement for the issuance and both locally and internationally by providing the
usage of payment cards in Nigeria and in all the enabling environment for smooth operations in
other nations where we have presence. We carry terms of provision of modern technology.
out continuous upgrade of our card systems to
ensure optimum security, absolute efficiency, cost Presented below are the highlights of our card
effectiveness and customer satisfaction. We also transaction volumes for period ended 31 December
implemented stringent fraud control measures 2016.
to reduce financial loss to the bank and our
customers.
5.1. Table below shows a summary of transactions done on GTBank Cards
Value Of International
Category No. of Transactions Value Of Local Transactions
Transaction
Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15

‘000 ‘000 N'million N’million N’million N’million
Naira denominated debit cards 188,389 164,664 99,703 226,599 1,853,839 1,649,059
Foreign currency credit cards 161 114 11,766 8,934 - -
Foreign currency debit cards 338 278 15,475 10,696 771 539
Breakdown of transactions done using GTBank Cards (Number of transactions)
International Transactions Local Transactions
ATM POS/Web ATM POS/Web
In thousands Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15

Naira MasterCard debit 975 2,426 3,604 5,633 157,094 144,932 26,716 11,670
Foreign Currency
Denominated Cards:
MasterCard debit 14 6 100 57 3 3 5 1
MasterCard credit 6 2 43 24 -
Visa classic debit 25 23 181 164 5 12 4 5
Visa classic credit 11 8 93 70 - -
World credit 1 0.5 8 6 - -
Total 1,032 2,466 4,030 5,954 157,101 144,947 26,725 11,676

ACTIVITIES OF CARD OPERATIONS
Breakdown of transactions done using GTBank Cards (Value of Transactions)
International Transactions Local Transactions
In millions of Naira ATM POS/Web ATM POS/Web

Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15
Naira MasterCard debit 42,768 103,196 56,935 123,402 1,570,059 1,515,274 283,780 133,783
MasterCard debit 990 309 4,279 1,814 27 50 530 17

MasterCard credit 463 241 2,599 1,401 - -
Visa classic debit 1,969 1,572 8,237 5,751 62 195 153 274
Visa classic credit 1,065 837 7,640 4,910 - -
World credit 96 48 1,614 1,492 - -
Total 47,350 106,203 81,305 138,770 1,570,148 1,515,519 284,463 134,074
5.2 Type of customers’ complaints and remedial measures taken
COMPLAINTS CATEGORY OF REASONS REMEDIAL MEASURES

COMPLAINT
Declined Transactions Declined Transactions Restriction of cash withdraw- Awareness

on International ATMs als on
International ATM
Usage on non-EMV terminals
Insufficient funds
Complaints on International limits Spend Limits Reduction in International Awareness and proffering
POS and WEB limit due to alternative payment solutions.
scarcity of FX.
Dispense Error Cash/ Value not re- This occurs when an ATM at- Continuous review of En-
ceived for a transaction tempts to dispense cash after hanced Auto-reversal process
an account has been debited
but fails due to network Continuous follow up with
failure. Technology to proactively
identify and reverse failed
This also occur when a transactions that are not auto
customer’s account has been reversed.
debited for a certain amount
for goods/services, but value Constant follow up with
is not received relevant stakeholders (e.g.
switches and TPPs) to address
any identified cause(s) of
delayed refund.

VALUE ADDED
STATEMENTS

VALUE ADDED STATEMENTS
Value Added Statements

Group
% %
Gross earnings 414,615,587 301,850,111
Interest expense:
- Local (41,294,160) (57,385,475)
- Foreign (25,799,763) (11,904,117)
347,521,664 232,560,519
Loan impairment charges / Net
impairment loss on financial assets (65,290,310) (12,408,194)
282,231,354 220,152,325
Bought in materials and services
- Local (71,076,669) (58,627,038)
- Foreign (1,315,393) (514,238)
Value added 209,839,292 100 161,011,049 100
Distribution:
Employees
- Wages, salaries, pensions, gratuity and other employee 29,453,465 14 27,721,723 17
benefits
Government
- Taxation 32,855,806 16 21,257,923 13
Retained in the Group

- For replacement of Property and equipment / intangible 15,249,366 7 12,594,522 8
assets (depreciation and amortisation)
- Profit for the year (including non - controlling interest, 132,280,655 63 99,436,881 62
statutory and regulatory risk reserves)
209,839,292 100 161,011,049 100

VALUE ADDED STATEMENTS
Value Added Statements

For the period ended 31 December 2016
Parent
% %
Gross earnings 365,916,859 268,876,290
Interest expense:
-Local (41,477,841) (44,726,705)
- Foreign (14,073,681) (16,718,927)
310,365,337 207,430,658
Loan impairment charges / Net
impairment loss on financial assets (63,542,640) (11,769,374)
246,822,697 195,661,284
Bought in materials and services
- Local (58,066,747) (50,604,784)
- Foreign (1,315,393) (514,238)
Value added 187,440,557 100 144,542,262 100
Distribution
Employees
- Wages, salaries, pensions, gratuity and other employee benefits 20,704,772 11 20,727,835 14
Government
- Taxation 27,168,695 14 18,718,934 13
Retained in the Bank

- For replacement of Property and equipment / intangible assets 12,730,298 7 10,787,370 7
(depreciation and amortisation)
- Profit for the year (including statutory and regulatory risk reserves) 126,836,792 68 94,308,123 66
187,440,557 100 144,542,262 100

FIVE YEAR FINANCIAL
SUMMARY

FIVE YEAR FINANCIAL SUMMARY
Statement of financial Position
Group
Assets
Cash and cash equivalents 455,863,305 254,633,215 246,939,868 307,395,676 276,856,206
Financial assets held for trading 12,053,919 34,626,186 9,415,919 17,223,667 271,073,896
Derivative financial assets 1,042,470 - 529,732 170,101 -
– Available for sale 448,056,733 364,180,150 344,701,935 374,673,147 15,765,789
– Held to maturity 80,155,825 29,408,045 35,160,640 84,741,890 129,490,810
Assets pledged as collateral 48,216,412 61,954,777 39,179,198 28,442,629 31,203,230
Loans and advances to banks 653,718 1,051,521 5,695,592 5,596,476 4,864,824
Loans and advances to customers 1,589,429,834 1,371,925,547 1,275,681,135 1,002,370,638 779,050,018
Restricted deposits and other assets 371,995,835 303,110,737 307,461,561 200,766,091 162,922,392
Property and equipment 93,488,055 87,988,778 76,236,447 68,306,197 60,886,728
Intangible assets 13,858,906 12,470,612 12,516,219 11,214,274 1,772,176
Deferred tax assets 1,578,427 3,244,141 2,358,280 1,945,629 991,791
Total Assets 3,116,393,439 2,524,593,709 2,355,876,526 2,102,846,415 1,734,877,860
Liabilities
Deposits from banks 125,067,848 26,256,839 31,661,622 15,208,300 23,860,259
Deposits from customers 1,986,246,232 1,610,349,689 1,618,208,194 1,427,493,697 1,148,197,165
Financial liabilities held for trading 2,065,402 - - - -
Derivative financial liabilities 987,502 - 253,374 3,883 -
Other liabilities 115,682,490 104,605,713 57,200,461 61,014,954 83,278,066
Current income tax liabilities 16,428,279 17,739,676 20,827,157 18,431,270 15,630,973
Deferred tax liabilities 17,641,384 6,839,522 4,391,668 5,065,625 2,596,405
Debt securities issued 126,237,863 180,117,424 167,321,207 156,498,167 86,926,227
Other borrowed funds 219,633,604 165,122,908 91,298,545 92,134,872 92,561,824
Total Liabilities 2,609,990,604 2,111,031,771 1,991,162,228 1,775,850,768 1,453,050,919
Equity
Capital and reserves attributable to equity
holders of the parent entity
Share capital 14,715,590 14,715,590 14,715,590 14,715,590 14,715,590
Share premium 123,471,114 123,471,114 123,471,114 123,471,114 123,471,114
Treasury shares (5,291,245) (4,754,156) (3,987,575) (2,046,714) (2,046,714)
Retained earnings 91,773,587 51,089,585 51,425,181 49,847,719 39,766,597
Other components of equity 272,891,094 222,651,255 173,410,666 135,924,361 104,651,663
Total equity attributable to owners of the 497,560,140 407,173,388 359,034,976 321,912,070 280,558,250
Bank
Non-controlling interests in equity 8,842,695 6,388,550 5,679,322 5,083,577 1,268,691
Total equity 506,402,835 413,561,938 364,714,298 326,995,647 281,826,941
Total equity and liabilities 3,116,393,439 2,524,593,709 2,355,876,526 2,102,846,415 1,734,877,860

Statement of comprehensive income
Group
Interest income 262,494,101 229,236,715 200,602,653 185,383,473 170,295,193
Net interest income 195,400,178 159,947,123 142,392,098 136,939,005 130,685,731
Loan impairment charges (65,290,310) (12,408,194) (7,098,448) (2,886,005) (738,786)
Net interest income after loan impairment
charges 130,109,868 147,538,929 135,293,650 134,053,000 129,946,945
Fee and commission income 51,273,910 51,865,608 47,969,982 46,631,901 45,445,557
Fee and commission expense (3,456,257) (3,079,439) (2,114,365) (1,824,212) (1,591,016)
Net fee and commission income 47,817,653 48,786,169 45,855,617 44,807,689 43,854,541
Net gains/(losses) on financial instruments classi-

fied as held for trading 5,218,451 12,237,394 12,084,108 10,538,095 3,940,524
Other income 95,629,125 8,510,394 17,864,071 111,542 3,383,611
Total other income 100,847,576 20,747,788 29,948,179 10,649,637 7,324,135
Operating income 278,775,097 217,072,886 211,097,446 189,510,326 181,125,621
Net impairment reversal on financial assets - - (273,815) 118,836 (96,869)
Net operating income after net impairment
loss on financial assets 278,775,097 217,072,886 210,823,631 189,629,162 181,028,752
Personnel expenses (29,453,465) (27,721,723) (27,442,101) (23,761,448) (23,660,091)
General and administrative expenses - - - (22,550,173) (22,405,475)
Operating lease expenses (1,375,228) (1,124,691) (913,085) (837,218) (791,433)
Depreciation and amortization (15,249,366) (12,594,522) (12,151,655) (10,115,860) (8,891,796)
Other operating expenses (67,560,577) (54,937,146) (53,930,947) (25,273,207) (22,252,034)
Operating expenses (113,638,636) (96,378,082) (94,437,788) (82,537,906) (78,000,829)
Income tax expense (32,855,806) (21,257,923) (21,951,751) (17,067,279) (16,341,043)
Profit for the year from continuing opera-
tions 132,280,655 99,436,881 94,434,092 90,023,977 86,686,880
Profit for the year from discontinued operations - - - - 609,077
Profit for the period 132,280,655 99,436,881 94,434,092 90,023,977 87,295,957
Earnings per share for the profit from continuing operations attributable to the equity holders of the
parent entity during the year (expressed in naira per share):
– Basic 4.67 3.51 3.32 3.17 3.06

– Diluted 4.67 3.51 3.32 3.17 3.06
Earnings per share for the profit from discontinued operations attributable to the equity holders of
the parent entity during the year (expressed in naira per share):
– Basic - - - - 0.02
– Diluted - - - - 0.02

Statement of financial Position
Bank

Assets
Cash and cash equivalents 233,847,233 173,133,109 161,778,647 228,609,551 210,300,286
Financial assets held for trading 6,321,370 25,075,618 5,675,545 13,746,682 267,417,182
Derivative financial assets 1,042,470 - 529,732 170,101 -
– Available for sale 408,246,905 327,585,822 317,749,878 364,056,362 10,138,761
– Held to maturity 5,219,262 3,210,575 4,511,342 46,682,498 118,897,917
Assets pledged as collateral 48,205,702 61,946,270 39,173,640 28,440,947 31,203,230
Loans and advances to banks 29,943 638,817 30,815 16,976 177,985
Loans and advances to customers 1,417,217,952 1,265,207,443 1,182,393,874 926,967,093 742,436,944
Restricted deposits and other assets 364,152,777 297,240,082 304,174,757 191,868,850 159,783,305
Investment in subsidiaries 43,968,474 41,905,781 40,130,284 40,130,284 22,925,088
Property and equipment 81,710,025 79,192,748 68,042,098 61,419,683 55,496,808
Intangible assets 3,377,961 2,492,959 2,417,700 2,256,768 1,539,717
Total assets 2,613,340,074 2,277,629,224 2,126,608,312 1,904,365,795 1,620,317,223
Liabilities
Deposits from banks 40,438 39,941 143,713 88,729 7,170,321
Deposits from customers 1,681,184,820 1,422,550,125 1,439,522,070 1,261,927,035 1,054,122,573
Financial liabilities held for trading 2,065,402 - - - -
Derivative financial liabilities 987,502 - 253,374 3,883 -
Other liabilities 90,060,440 85,126,211 47,714,495 49,008,466 72,178,426
Current income tax liabilities 17,819,039 19,378,526 22,275,884 17,990,398 15,340,116
Deferred tax liabilities 11,946,699 6,345,773 3,955,805 4,784,323 2,533,627
Debt securities issued - - - 13,233,595 13,238,291
Other borrowed funds 332,317,881 338,580,300 252,830,895 233,040,108 169,194,418
Total liabilities 2,136,422,221 1,872,020,876 1,766,696,236 1,580,076,537 1,333,777,772
Equity
Capital and reserves attributable to equity
holders of the parent entity
Share capital 14,715,590 14,715,590 14,715,590 14,715,590 14,715,590
Share premium 123,471,114 123,471,114 123,471,114 123,471,114 123,471,114
Retained earnings 83,989,499 46,048,031 48,824,128 49,721,694 45,944,146
Other components of equity 254,741,650 221,373,613 172,901,244 136,380,860 102,408,601
Total equity 476,917,853 405,608,348 359,912,076 324,289,258 286,539,451
Total equity and liabilities 2,613,340,074 2,277,629,224 2,126,608,312 1,904,365,795 1,620,317,223

Statement of comprehensive income
Bank

Interest income 226,579,479 206,478,499 179,984,274 172,433,167 160,124,580
Net interest income 171,027,957 145,032,867 128,698,830 127,857,215 123,098,741
Loan impairment charges (63,542,640) (11,769,374) (6,184,289) (2,913,318) 667,667
Net interest income after loan impairment
charges 107,485,317 133,263,493 122,514,541 124,943,897 123,766,408
Fee and commission income 40,397,778 44,034,897 40,944,512 40,189,316 40,339,298
Fee and commission expense (2,947,714) (2,689,751) (1,747,518) (1,718,975) (1,508,915)
Net fee and commission income 37,450,064 41,345,146 39,196,994 38,470,341 38,830,383
Net gains/(losses) on financial instruments
classified as held for trading 2,248,241 9,189,686 8,344,350 7,923,744 2,339,332
Other income 96,691,361 9,173,208 19,733,915 1,054,057 2,646,041
Total other income 98,939,602 18,362,894 28,078,265 8,977,801 4,985,373
Total Operating income 243,874,983 192,971,533 189,789,800 172,392,039 167,582,164
Net impairment reversal on financial assets - - (273,815) 118,836 (96,869)
Net operating income after net impairment 243,874,983 192,971,533 189,515,985 172,510,875 167,485,295
loss on financial assets
Personnel expenses (20,704,772) (20,727,835) (21,036,543) (19,625,269) (18,468,570)
General and administrative expenses - - - (20,077,522) (20,285,783)
Operating lease expenses (670,172) (674,958) (560,710) (623,379) (622,158)
Depreciation and amortization (12,730,298) (10,787,370) (10,590,175) (9,273,196) (8,052,743)
Other operating expenses (55,764,254) (47,754,313) (46,960,706) (22,449,780) (19,914,374)
Total expenses (89,869,496) (79,944,476) (79,148,134) (72,049,146) (67,343,628)
Income tax expense (27,168,695) (18,718,934) (21,197,074) (14,916,219) (14,877,841)
Profit for the year 126,836,792 94,308,123 89,170,777 85,545,510 85,263,826
Earnings per share for the profit from continuing operations attributable to the equity holders of the
parent entity during the year (expressed in naira per share):
– Basic 4.31 3.20 3.03 2.91 2.90

– Diluted 4.31 3.20 3.03 2.91 2.90
Earnings per share for the profit from discontinued operations attributable to the equity holders of
the parent entity during the year (expressed in naira per share):
– Basic - - - - -
– Diluted - - - - -

SHARE CAPITALISATION
HISTORY

SHARE CAPITALISATION HISTORY
Share Capitalisation History
YEAR AUTHORISED ISSUED

INCREASE CUMULATIVE INCREASE CUMMULATIVE NO. OF SHARES CONSIDERATION
1991 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 CASH
1992 35,000,000 60,000,000 NIL 25,000,000 25,000,000 NIL
1993 NIL 60,000,000 25,000,000 50,000,000 50,000,000 SCRIP
1994 40,000,000 100,000,000 NIL 50,000,000 50,000,000 NIL
1995 NIL 100,000,000 50,000,000 100,000,000 100,000,000 SCRIP
1996 100,000,000 200,000,000 300,000,000 400,000,000 400,000,000 CASH
1997 300,000,000 500,000,000 600,000,000 1,000,000,000 1,000,000,000 SCRIP
1998 250,000,000 750,000,000 500,000,000 1,500,000,000 1,500,000,000 SCRIP
1999 NIL 750,000,000 NIL 1,500,000,000 1,500,000,000 NIL
2000 NIL 750,000,000 NIL 1,500,000,000 1,500,000,000 NIL
2001 250,000,000 1,000,000,000 500,000,000 2,000,000,000 2,000,000,000 Initial Public Offer
2002 1,000,000,000 2,000,000,000 500,000,000 2,500,000,000 2,500,000,000 SCRIP
2003 NIL 2,000,000,000 500,000,000 3,000,000,000 3,000,000,000 SCRIP
2004 1,000,000,000 3,000,000,000 1,000,000,000 4,000,000,000 4,000,000,000 SCRIP
2004 NIL 3,000,000,000 2,000,000,000 6,000,000,000 6,000,000,000 PUBLIC OFFER
2005 2,000,000,000 5,000,000,000 NIL 6,000,000,000 6,000,000,000 NIL
2006 NIL 5,000,000,000 2,000,000,000 8,000,000,000 8,000,000,000 SCRIP
2007 2,500,000,000 7,500,000,000 2,000,000,000 10,000,000,000 10,000,000,000 SCRIP
2007 NIL 7,500,000,000 3,679,415,650 13,679,415,650 13,679,415,650 GDR Underlying Shares
2008 7,500,000,000 15,000,000,000 1,243,583,241 14,922,998,890 14,922,998,890 SCRIP
2008 NIL 15,000,000,000 3,730,749,723 18,653,748,613 18,653,748,613 SCRIP
2009 NIL 15,000,000,000 4,663,437,153 23,317,185,766 23,317,185,766 SCRIP
2010 15,000,000,000 30,000,000,000 NIL 23,317,185,766 23,317,185,766 NIL
2010 20,000,000,000 50,000,000,000 5,829,296,442 29,146,482,207 29,146,482,207 SCRIP
2011 NIL 50,000,000,000 284,697,017 29,431,179,224 29,431,179,224 IFC Special Placement
2012 NIL 50,000,000,000 NIL 29,431,179,224 29,431,179,224 NIL
2013 NIL 50,000,000,000 NIL 29,431,179,224 29,431,179,224 NIL
2014 NIL 50,000,000,000 NIL 29,431,179,224 29,431,179,224 NIL
2015 NIL 50,000,000,000 NIL 29,431,179,224 29,431,179,224 NIL
2016 NIL 50,000,000,000 NIL 29,431,179,224 29,431,179,224 NIL

SHARE CAPITALISATION HISTORY
Dividend History
Ten-year dividend and unclaimed dividend history as at 31 December 2016
Dividend No. Dividend Type Financial Year Total Dividend Dividend Per Net Dividend Percentage Div-
Ended Amount Declared Share Amount Unclaimed idend Amount
as at Unclaimed
31-Dec-16
Payment 28 Interim 28-Feb-06 1,500,000,000.00 25 kobo 63,256,830.86 4.22%
Payment 29 Final 28-Feb-06 4,200,000,000.00 70 kobo 157,514,555.63 3.75%
Payment 34 Final 31-Dec-08 14,922,998,891.00 100 kobo 764,475,982.18 5.12%
Payment 36 Interim 31-Dec-10 5,829,296,441.75 25 kobo 287,091,732.53 4.92%
Payment 38 Interim 31-Dec-11 7,286,620,552.30 25 Kobo 352,532,060.18 4.84%
Payment 39 Final 31-Dec-11 25,016,502,340.40 85 Kobo 1,136,734,895.08 4.54%
Payment 41 Final 31-Dec-12 38,260,532,991.20 130 kobo 1,716,807,800.15 4.49%
Payment 47 Final 31-Dec-15 44,735,392,420.48 152 Kobo 2,082,501,571.81 4.66%

CORPORATE
INFORMATION

CORPORATE INFORMATION
MANAGEMENT TEAM Adetunji Oduntan

Deputy General Manager - Head, Energy Group (Mid
Stream)
Segun Agbaje
Managing Director / CEO Jubril Adeniji
Deputy General Manager - International Banking
Cathy Echeozo
Deputy Managing Director Mary Ahukanna
Deputy General Manager - Head, Retail Division
Adebowale Oyedeji (South-South)
Executive Director - Head, Corporate Bank, Lagos
Island Olufemi Akerewusi
Deputy General Manager - Head, Corporate Bank
Ademola Odeyemi Group, Lagos Mainland
Executive Director - Head, International Banking,
Group Co-ordination & Planning Olumide Oguntuase
Deputy General Manager - Head, Credit Risk
Haruna Musa Administration
Executive Director - Head, North-East Division & Abuja
Public Sector Omolara Ogunlaja
Deputy General Manager - Head, Syndicated
Olutola Omotola Corporate Finance Group
Executive Director - Head, Corporate Services Division
Osamudiame Ayanru
Bolaji Lawal Deputy General Manager - Head, Energy Group
Executive Director - Head, Digital Banking Division (Downstream)
George Uwakwe Paul Abiagam
General Manager - Head, Enterprise Risk Management Deputy General Manager - Head, Lagos Island
Division Commercial Banking Division
Isa Omagu Sean Ogunseinde
General Manager - Head, Lagos Mainland Commercial Deputy General Manager - Corporate Bank
Banking Division
Simi Osinuga
Miriam Olusanya Deputy General Manager - Head, Customer Experience
General Manager - Head, Wholesale Banking Division Management Division
Olusegun Fadahunsi Sylvia Nwakwue
General Manager - Head, Systems and Control Deputy General Manager - Head, Transaction Services
Division Division (Lagos & South-West)
Omotayo Asupoto Yewande Ige
General Manager - Head, Operations Division Deputy General Manager - Head, South West Division
Oulimata Ndiaye Abdullah Oyedeji
General Manager - International Banking Assistant General Manager - Head, Corporate Bank,
Beverage and Tobacco
Subuola Abraham
General Manager - Chief Compliance Officer Ahmed Liman
Assistant General Manager - Head, North West
Adebanji Adeniyi Division
General Manager - Head, Financial Control, Group
Reporting & Strategy Division Bharat Soni
Assistant General Manager - Head, Information
Olusina Ayegbusi Security Group
General Manager - Head, Technology Division
Chima Azubuike
Adedeji Oguntonade Assistant General Manager - Head, South East Division
Deputy General Manager - Head, FinTech &
Innovation Division Chinedu Okoli
Assistant General Manager - Head, Commercial
Adeola Ogunyemi Banking Group (Lagos Mainland 4)
Deputy General Manager - Head, Retail Division
(Lagos Island)

CORPORATE INFORMATION
Chioma Mogbo Umma Aboki

Assistant General Manager - Head, Transaction Assistant General Manager - Head, Commerical
Services Division (South-South & South-East) Banking Group (North West)
Chizoba Okafor Usman Aliyu

Assistant General Manager - Head, Commercial Assistant General Manager - Head, Transaction
Banking Division (South South 2) Services Division (North)
Dele Kola-Daisi
Assistant General Manager - Head, Total Quality MANAGEMENT TEAM – SUBSIDIAIRIES
Management Group
Dan Shuaib
Emeka Eze Managing Director, Guaranty Trust Bank Cote D’ivoire
Banking Division (South-South) Isiaka Ajani-Lawal
Executive Director, Guaranty Trust Bank Cote D’ivoire
Enoo Ebruke
Assistant General Manager - Head, Abuja Commercial Mobolaji Ayodele
Banking Division Managing Director, Guaranty Trust Bank Gambia
Femi Nedd Abolaji Yusuff

Assistant General Manager - Head, Small & Medium Executive Director, Guaranty Trust Bank Gambia
Enterprises Division (Lagos Island 2)
Olalekan Sanusi
Ikenna Anekwe Managing Director, Guaranty Trust Bank Ghana
Banking Group (Lagos Island 2) Daniel Attah
General Manager, Guaranty Trust Bank Ghana
Ndidiamaka Ukaonu
Assistant General Manager - Head, Retail Division Ibukunoluwa Odegbaike
(Abuja) Managing Director, Guaranty Trust Bank Kenya
Olawale Williams Victor Ezaga

Assistant General Manager - Head, Service Executive Director, Guaranty Trust Bank Kenya
Management Group, Technology
Ayodeji Bejide
Oluyemisi Harrison-Bayagbon Managing Director, Guaranty Trust Bank Liberia
Assistant General Manager - Head, Business Process
Re-Engineering Group Amazu Nwachukwu
General Manager, Guaranty Trust Bank Liberia
Osa Aiwerioghene
Assistant General Manager - Head, Compliance Bayo Veracruz
Group Managing Director, Guaranty Trust Bank Rwanda
Oyinade Adegite Emmanuel Ejizu

Assistant General Manager - Head, Communication & Executive Director, Guaranty Trust Bank Rwanda
External Affairs Group
Gbenga Alade
Oyiza Salu Managing Director, Guaranty Trust Bank Sierra Leone
Assistant General Manager - Head, Human Resources
Group Olusegun Obasun
Executive Director, Guaranty Trust Bank Sierra Leone
Paul Ogwemoh
Assistant General Manager - Head, Service Delivery Olufemi Omotoso
Group, Technology Managing Director, Guaranty Trust Bank Uganda
Sherifat Dawodu Irenosen Ohiwerei

Assistant General Manager - Head, Public Sector Executive Director, Guaranty Trust Bank Uganda
Division (Lagos)
Ade Adebiyi
Tokunbo Akinsowon Managing Director, Guaranty Trust Bank UK
Assistant General Manager - Head, GT Projects

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Nigeria’s first interactive contact centre
GTConnect is our total banking solution that provides you with instant service via
telephone. It is accessible from anywhere in the world and open for business 24
hours a day, seven days a week; even on public holidays.
The interactive contact centre allows you perform 90% of your transactions via
the telephone. Customers can check account(s) balances, request electronic cards,
request cheque books, stop cheques, reactivate dormant accounts, effect own and
3rd party transfers within GTBank and get up to date information on every aspect
of the Bank’s operations using this medium.
It’s simple, just dial 0700GTCONNECT (0700 482 666 328), 01 4480000, 080 2900
2900 or 080 3900 3900 to obtain your user I.D and log on details.
*For all international calls, please use the prefix +234
GTBank Internet Banking
The Guaranty Trust Bank Internet Banking Service is a free, reliable and flexible way
of managing your bank account(s) conveniently 24/7 from anywhere in the world.
Our internet Banking Service is equipped to enable you make 3rd party transfers to
all bank accounts in Nigeria and foreign exchange transfers to any account in the
world. You can also perform own account transfers, check account balances, print
account statements, apply for loans and stop/confirm cheques. If you do not have
your log in details, simply call GTConnect on 0700GTCONNECT (0700 482 666
328), 01 4480000, 080 2900 2900 or 080 3900 3900.
Please visit www.gtbank.com to experience our internet banking service.
Guaranty Trust Bank Foreign Currency Transfers (GTFX)
GTFX is a service that allows you safely transfer foreign currencies (FX) from your
domiciliary account to beneficiary accounts in other banks abroad, either using
the GTBank Internet Banking platform or by submitting your request at any of our
branches. The service offers an efficient platform for paying school fees, medical
bills, mortgages and other foreign payments. GTFX transactions can be initiated
whenever you want from the comfort of your home, office or even while on the go.
To ensure the safety of your funds, all online transfer requests are acknowledged
via e-mail and secured by multiple passwords in addition to the use of a token
hardware.
Please visit www.gtbank.com to experience GTFX on our internet banking platform

or Mobile App
GTBank Automated Payment System (GAPS)
GAPS is a web-based service that facilitates the processing of vendor (and other)
payments in batches, using either a dial-up connection to the Bank or a secured
(https) connection over the Internet. It also gives you 24/7 online real-time access
to your account.
The GAPS application form can be downloaded at www.gtbank.com, completed

and submitted at any of our branches nationwide.

PRODUCTS & SERVICES
GTPAY
A convenient and highly secure online payment gateway
GTPAY is an Internet-based payment gateway solution which facilitates online pay-

ments using both local and International cards. This product enables corporate
customers accept payments through their websites from their customers wherever
they are worldwide, thereby taking their businesses global.
The benefits of GTPAY include: convenience, international acceptance, global

reach, reduced costs, increased sales and promotion of cashless transactions. GT-
PAY is an essential solution for every customer with an online presence.
The GTPAY application form can be downloaded at www.gtbank.com, completed

and submitted at any of our branches nationwide.
GeNS
Giving you realtime information on your transactions
The Guaranty Trust Bank electronic Notification Service (GeNS) provides instant
details of transactions on your account(s).
This service is designed to generate and send out notification prompts to customers
via electronic mail* and SMS**. Whenever any transaction is carried on custom-
ers’ account(s), GeNS ensures these customers have real time knowledge of their
transactions.
Customers are automatically registered for Electronic mail notifications which is

free for all Guaranty Trust Bank customers
You can subscribe for GeNs (SMS notifications) via any of the following options
listed below:
1. Self Profiling via SMS: Simply send “Gens < NUBAN>” to 08076665555
from your mobile phone number registered with the bank. For example;
“Gens 0103050709” to 08076665555
2. Self Profiling via ATMs: On the ATM home-page, click on “more services”
and select “Register for SMS alert”, then follow the steps as shown.
3. Self Profiling via Internet Banking: On Internet Banking home-page, click

on the “Self Service” tab and select “Transaction Alert Activation”, then
fill the form provided and click “Submit” to be registered for SMS notifica-
tions
**SMS notification costs N4.00
GTBank Point of Sale (POS) Terminal
The GTBank Point of Sale (PoS) terminal is a portable device that allows bank cus-
tomers (irrespective of the financial institution they bank with) make payments for
goods and services with their debit cards. The device provides a convenient, mod-
ern and efficient way of processing real time payments and supports a variety of
other financial transactions that include; printing mini statements, cash advances,
balance enquires, loading funds from a current/savings account unto a cash card
and vending airtime (recharge).
The benefits of a GTBank POS terminal to Merchants include:

PRODUCTS & SERVICES
§§ Improved efficiency (minimizes cash handling costs and aids account rec-
onciliation),
§§ Reduction inoperational costs associated with equipment for handlingcash
receipts,
§§ Minimized exposure to theft.
Merchants can request for GTBank POS terminals by downloading a POS Merchant
Registration form at www.gtbank.com, completing it and submitting at any of our
branches nationwide.
GTBank Naira MasterCard

It’s more than an ATM Card
The GTBank Naira MasterCard is a multi-purpose debit card issued in partnership

with MasterCard to provide unlimited access to customers’ accounts.
The card is linked to your current and/or savings account and can be used for online
transactions, to pay for goods and services at Point of Sale (POS) terminals and also
to withdraw cash from ATMs (Local ATMs only), wherever the MasterCard logo is
displayed.
Please visit any GTBank branch to request for the GTBank Naira MasterCard
GTBank Platinum Debit MasterCard

It’s more than an ATM Card
The GTBank Platinum Debit MasterCard is a Naira denominated premium card is-
sued in partnership with MasterCard.
It is linked online real-time to your Naira denominated GTBank Current and/or Sav-
ings account and avails the cardholder with premium benefits beyond those en-
joyed by Standard Naira MasterCard holders. These include travel benefits, prefer-
ential treatment/rewards, higher transaction limits and access to exclusive products/
services offered by partner organizations.
The GTBank Platinum Debit MasterCard offers higher daily local transaction limits:
ATM transactions - N200,000
POS/Online Transactions – N3,000,000
The GTBank Platinum Debit MasterCard is issued by invitation only
GTBank Dollar MasterCard

Experience a World without Limits
The GTBank Dollar MasterCard is an international payment card issued in partner-

ship with MasterCard Worldwide. It is denominated in US Dollars and can be used
to settle payments in other major currencies. All transactions with the GTBank Dol-
lar Debit MasterCard are charged to your account real time.
There is no transaction spending limit on the card for POS terminals and Online
transactions. You can also withdraw up to $1,000 daily on the ATM terminal.
Log on to internet banking today to request for a dollar card by clicking on “Cards”
tab.
Please visit any GTBank branch for more enquiries.

PRODUCTS & SERVICES
GTBank World MasterCard

Life. Style. Luxury
The GTBank World MasterCard is a prestigious card designed to deliver unique and
exclusive benefits to our premium cardholders. It features extensive purchasing and
travel benefits that are carefully designed to provide privileged access, memorable
experiences and peace of mind.
Special benefits include: Global Concierge services, Priority Pass - Access to 600 VIP
airport lounges worldwide and 24 hour MasterCard Global Service for emergencies.
The GTBank World MasterCard is issued strictly by invitation.
GTBank Dollar Credit MasterCard

The GTBank Dollar Credit MasterCard is an international payment card issued in

partnership with MasterCard Worldwide that is denominated in US Dollars and can
be used to settle payments in other currencies.
tab.
GTBank Dollar Visa Card
The GTBank Dollar Visa Card is an international payment card denominated in US

Dollars issued in partnership with Visa Incorporated and accepted as a means of
payment in over 200 countries and territories worldwide. It is available in three
variants: Visa Classic, Visa Debit and Visa Prepaid.
Please visit any GTBank branch to request for our Dollar Visa Card
The GTBank Prepaid Utility Card

A Card for your Errands
Now, you have a card that you can use for designated purchases, leave at home for
general errands and also control and monitor your spend.
The GTBank Prepaid Utility Card is an all-purpose card that can be used to make
a wide variety of payments. The card is designed to provide ultimate convenience,
flexibility and security, making casual purchases at supermarkets and shops, pur-
chasing fuel at filling stations and so much more!
Unlike other GTBank Naira Cards, the GTBank Prepaid Utility Card is prepaid which
means you will have to load cash on the card prior to use.
Please visit any GTBank branch to request for the GTBank Prepaid Utility Card.

PRODUCTS & SERVICES
GTBank Visa Dollar Credit Card

The GTBank Visa Dollar Credit card is an international payment card issued in part-
nership with Visa International that is denominated in US Dollars and can also be
used to settle payments in other currencies.
tab.
GTBank Dollar Debit Visa Card

The GTBank Dollar Debit Visa Card is an international payment card issued in part-
nership with Visa Incorporated and accepted as a means of payment in over 200
countries and territories worldwide. All transactions with the GTBank Dollar Debit
Visa Card are charged to your account real time.
Log on to internet banking today to request for a dollar card by clicking on

“Cards” tab.
Individual Current Account
The Guaranty Trust Bank Current Account is a checking account which allows you
to conduct own and 3rd party transactions from over 200 business locations na-
tionwide using our real-time online IT platform.
The account is unique because it has no minimum account balance requirements

and further enables you to safely and securely conduct online transactions whilst
on the move.
The account accepts all clearing house instruments including cheques, dividend
warrants and allows you access your funds from all ATMs with the MasterCard sign
world wide.
Having a Guaranty Trust Bank current account also gives you free access to our in-
ternet banking service 24/7, GTConnect and GeNs; thereby providing a convenient
way of managing your day-to-day finances.
The current account opening form can be downloaded from our website, www.
gtbank.com, completed and submitted along with all required documents at any
of our branches nationwide.
Domiciliary Account
The Guaranty Trust Bank Domiciliary account is a foreign currency based current
account.

PRODUCTS & SERVICES
These accounts are available in US Dollar, British Pounds and Euro.

We provide dollar cheque books to aid third party withdrawals and have a very efficient
means of transferring funds abroad.
GTSAVE (savings account)
GTSave is a flexible instant access interest bearing savings account that also avails ac-
count holders free access to our internet banking service, GTConnect, GeNS and other
e-channels.
The account comes with a Guaranty Trust Bank Naira MasterCard which is accepted at
33 million merchant locations worldwide and all ATMs that have the MasterCard sign
worldwide.
The savings account opening form can be downloaded from our website, www.gtbank.
com, completed and submitted along with required documents at any of our branches.
SMART KIDS SAVE (SKS) ACCOUNT

A Savings Account for children & teenagers
A Savings Account for children & teenagers

The Guaranty Trust Bank Smart Kids Save (SKS) and SKS Teen Accounts are unique
products designed to introduce “smart” kids (children under the age of 18) to the
world of money and finance.
With N1,000 (one thousand Naira), an SKS Account can be opened at any of our
branches nationwide. Account holders have free access to all Guaranty Trust Bank
e-banking channels and the SKS website where they can easily enjoy exciting games,
partake in competitions and other fun-related activities. The Account has a tiered in-
terest rate and is designed to accept cheques and other clearing instruments such as
dividend warrants, not exceeding N100,000 in value.
The SKS Teen account is an account for teenagers between 13 and 18 years of age. The
account comes with a free Trendy Teen MasterCard (issued at Parent’s request) that is
accepted at 33 million merchant locations and 2 million ATMs worldwide.
Parents can make regular lodgements into these accounts using the Bank’s Standing
Order service and monitor their child’s/ward’s expenses and savings using the Guaranty
Trust electronic Notification Service (GeNS) or GTBank internet banking platform.
A Smart Kids Save Account opening form can be downloaded at www.gtbank.com,

completed and submitted along with required documents at any of our branches na-
tionwide (*TERMS AND CONDITIONS APPLY)
GTCrea8 e-Savers Account
This is an interest bearing card account designed to enable undergraduates aged be-
tween 16 - 25years conveniently perform their banking transactions 24/7, via different
e-channels, anytime, anyplace.
The account comes with a trendy Naira MasterCard, which can be used to pay for
goods/services at point of sale terminals (POS) and withdraw cash from local ATMs as
well as those that display the MasterCard logo worldwide.
Account holders can easily purchase textbooks and supplies, pay for meals at res-
taurants, buy tickets at cinemas and even shop online. Account holders can also win
N150,000 worth of scholarships monthly*

PRODUCTS & SERVICES
A GTCrea8 e-Savers Account easily caters for the banking needs of students school-
ing in Nigeria with Zero opening balance and Zero minimum balance.
The GTCrea8 e-Savers Account opening form can be downloaded at www.gt-

bank.com, completed and submitted along with required documents at any of our
branches nationwide. (*TERMS AND CONDITIONS APPLY)
GTBank e-Account
Meeting the unique financial needs of today’s salary earners.
This is a unique product that allows account holders have access to various personal
loan products and perform their banking transactions quickly, safely and conven-
iently via several electronic and alternative channels.
The account is managed with an e-Account Naira MasterCard which can be used at
point of sale terminals (POS) and ATMs in over 210 countries worldwide. e-Account
holders also enjoy interest payments on their account balances.
An e-Account opening form can be downloaded at www.gtbank.com, completed

and submitted along with required documents at any of our branches nationwide.
(*TERMS AND CONDITIONS APPLY)
GTMax
Something for everyone
GTMax is a high yield current account enabling customers to minimize bank charg-
es* whilst earning interest on their balances.
The account is available in three variants; Platinum, Gold and Silver with each vari-
ant uniquely designed to ensure there is something for everyone.
A GTMax Account opening form can be downloaded at www.gtbank.com, com-

pleted and submitted along with required documents at any of our branches na-
tionwide (*TERMS AND CONDITIONS APPLY)
Seniors Account
The Seniors Account is a current account which offers free banking services to sen-
ior Nigerian citizens who are aged 65 years and above.
Seniors Account holders enjoy free ATM Cards, cheque books, SMS notifications
and access to Priority service in our branches.
A Seniors Account opening form can be downloaded, www.gtbank.com, complet-

ed and submitted along with required documents at any of our branches nation-
wide.
GT-TARGET
The GT-Target Account is a savings account with very competitive interest rates
designed to help customers save towards their specific goals.
It is a non-transactional account funded via monthly/quaterly or semi-annually
standing order Instructions of N5, 000 and above for a minimum duration of
6 months.
Interest is 3.6%, with a bonus 1% for maintaining a Standing Order for 12 months.
Interest is however forfeited where funds are liquidated before 6 months.

PRODUCTS & SERVICES
A GT-Target Account opening form can be downloaded at www.gtbank.com,

completed and submitted along with required documents at any of our branches
nationwide. The account can also be opened from the request menu on our inter-
net banking platform or through our social banking offering service on facebook at
www.facebook.com/gtbank.
GTBank’s Non Resident Nigerian (NRN) Service
The Non Resident Nigerian service is a platform that provides Nigerians who reside
abroad access to the wide range of products and services GTBank offers. These
include accounts, investment products, cards, transfers and remittances, electronic
banking and notification services. It is an effective channel for NIgerians to open
and operate a GTBank account from anywhere in the world.
To take advantage of this service, please visit www.gtbank.com, download the

NRN account opening form, complete it and e-mail the form along with copies of
all required documents to [email protected].
GTBusiness Account
The GTBusiness Account is a turnover specific, fixed charge account (N5,000) spe-
cifically targeted at small and medium scale businesses with a monthly turnover of
N50 million and below. This account is designed to help and encourage the Small
and Medium Scale Enterprises (SME) segment of the economy to minimize their
costs and grow profit.
A GTBusiness Account opening form can be downloaded at www.gtbank.com,

completed and submitted along with the required documents at any of our branch-
es nationwide.
MAXADVANCE
MaxAdvance is an all-purpose loan designed meet the financial needs of staff of

corporate and government organizations* whose salary accounts reside with us.
Qualifying customers can apply for this product on the GTBank internet banking
platform or download an application form at www.gtbank.com. An application
form can also be picked up at any of our branches nationwide.
MAXPLUS
MaxPlus is a personal loan product with a borrowing limit of N50 million. It is de-
signed to address the unique financial needs of staff of select corporate and public
organizations that have their salary accounts domiciled with the Bank and earn a
minimum net annual income of N10 million.
Qualifying customers can apply for this product by downloading a Maxplus appli-
cation form at www.gtbank.com. An application form can also be picked up at any

PRODUCTS & SERVICES
GTSALARY ADVANCE
Cash Guaranteed… anytime of the month
GTSalary Advance is a short term overdraft product which allows you withdraw
cash against your monthly salary. The product is designed for convenience and en-
ables customers draw up to 50% of their monthly salary in advance without having
to provide any form of security.
Guaranty Trust Bank Salary Advance allows salary earners address cash challenges
within the month easily and conveniently.
Qualifying customers can apply for this product on our Internet Banking platform
or by downloading a Salary Advance application form at www.gtbank.com. An
Application form can also be picked up from any of our branches nationwide.
GTMORTGAGE
GTMortgage is a product that provides customers with mortgage facilities to part-fi-

nance the acquisition of residential properties at very attractive rates.
Customers can take advantage of this facility by providing a minimum equity contri-
bution of 20% of the property cost and enjoy a repayment plan spanning 20 years.
Customers can apply for this product on the GTBank internet banking platform or
by downloading a GTMortgage application form at www.gtbank.com. An applica-
tion form can also be picked up at any of our branches nationwide.
SCHOOL FEES ADVANCE
The GTBank School Fees Advance product is a loan facility which parents/guardians
can access to pay their children’s/wards’ school fees.
The product has a minimum facility amount of N50,000 and a maximum tenor of 4
months per cycle. Monthly principal and interest repayments are set to ensure they
do not exceed 50% of the customer’s monthly salary, which should be domiciled
with the Bank.
The required documents to access this facility include a letter of undertaking from
the customer’s employer acceding to domicile his/her salary with the Bank.
Customers can apply for this facility by downloading a School Fees Advance appli-
cation form at www.gtbank.com. An application form can also be picked up at any
Invoice Discounting Facility For Small And Medium Scale Enterprises (SMEs)
The Invoice Discounting Facility is a short term borrowing facility designed to

promptly address the cash flow challenges and other business needs of SMEs by
providing funds against receivables for jobs executed or services rendered. The fa-
cility enables receipts of up to 70% of the confirmed invoice value to be advanced
for a pre-defined period prior to receipt of payments from Principals.
Customers can apply for this product by downloading an SME Invoice Discounting
application form at www.gtbank.com or at any of our branches nationwide.

PRODUCTS & SERVICES
i-Refer
i-Refer is a customer loyalty initiative designed to reward loyal GTBank custom-

ers who recommend their friends/family/relatives/business associates to GTBank.
Customers can refer as many prospects as possible, using all available channels in-
cluding in branch, internet banking, GTBank website and USSD. For every prospect
who successfully opens an account, the referrer receives a cash reward into their
account.
SME Markethub
The SME MarketHub is an online e-commerce platform that allows business owners
create online stores to sell and promote their offerings to millions of buyers online.
On the SME MarketHub, customers have access to numerous benefits including: a
unique MarketHub website address, a personalized online storefront, a shopping
cart, an online payment gateway, inventory management tools, order/enquiry noti-
fications and financial tools to improve efficiency and enhance profitability.
Simply visit www.smemarkethub.com and sign up your business today.
GTInstant
GTInstant is a simplified account designed to enable individuals enjoy a banking

relationship by providing a passport photograph, signature and other personal in-
formation.
The product was introduced to enable the bank cater for the financial needs of a
large segment of the nation’s population that are presently financially excluded.
To open a GTINstant account simply visit www.facebook.com/gtbank or any GT-

Bank branch nationwide.
SME Term Loan for school: ‘Build or Buy’

GTBank
SME
Term Loan
SME Term loan is a facility designed to part-finance the construction and purchase
of school buildings. This product is targeted at registered and approved schools
only.
GTBusiness Evolve
GTBusinessEvolve is a finance facility for small businesses to purchase assets and fi-
nance business expansion needs without the burden of providing additional collat-
eral. It is flexible, allowing businesses spread loan repayments adequately. The se-
curity for this facility is the asset financed or legal mortgage of financed properties

PRODUCTS & SERVICES
GTBank Mobile App
This is a two in one App which provides customers access to the Bank’s Mobile
Banking and Mobile Money offerings, thereby creating a convenient and secure
way for you to perform your banking transactions with your mobile phone.
Services available on GTBank Mobile App include: Airtime Purchase, Cardless cash
withdrawals from GTBank ATMs, Money Transfers to any recipient in Nigeria that
has a mobile phone, Balance Enquiries, Bills Payment and payment for purchases at
select merchant locations.
The GTBank Mobile App can be downloaded at the following app stores: Google
play store, iPhone App store, Blackberry App World.
BANK 737
737 Banking is a Guaranty Trust Bank mobile Banking platform that can be used to
conveniently execute various banking services from your mobile phone.
Open Account: The service can be used to open a savings account with any regis-
tered sim card. Simply dial *737*0# and follow the prompts.
*737* Funds Transfer: This service enables GTBank customers conveniently trans-
fer funds to both GTBank and other bank account holders in Nigeria.
For transfers to GTBank accounts, Simply dial *737*1*Amount*NUBAN#

e.g. *737*1*1000*1234567890# from the mobile number registered with the
Bank.
For transfers to other Banks, Simply dial *737*2*Amount*NUBAN# e.g.

*737*2*1000*1234567890# from the mobile number registered with the Bank.
Please note that the last four digits of your GTBank Naira MasterCard is needed to
authenticate each transaction.
*737* Airtime Purchase: This service enables GTBank customers conveniently buy
airtime for self or 3rd party on their mobile phones directly from their GTBank Ac-
count. For self-purchase Simply dial *737*Amount# e.g. *737*1000# from
the mobile number registered with the Bank. For 3rd party-purchase Simply dial
*737*Amount*recipient’s mobile no# e.g. *737*1000*08012345678# Please
note that the last four digits of your GTBank Naira MasterCard is needed to authen-
ticate 3rd party airtime purchase.
737* Balance enquiry: This service enables GTBank customers conveniently view
their balances on their mobile phones. Simply dial *737*6*1# from the mobile
number registered with the Bank.
Please note that the last four digits of your GTBank Naira MasterCard is needed to
authenticate this transaction.
Subscription for the service is via Internet banking and In-branch.

CORPORATE SOCIAL
RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY REPORT
“Creating a strong business and building a better world are

essential ingredients for long-term success”
At Guaranty Trust Bank, we are in a unique believe are essential building blocks for the society
position to help our customers thrive and spur the and prerequisites for economic growth.
growth that fuels their progress. We understand
the challenges customers face, and we have the This commitment to a well-defined CSR strategy
expertise, resources and networks to help solve illustrates our social pact with all our stakeholders
them. Our corporate responsibility initiatives have and can be seen in the inclusive and supportive
the same objective: to leverage the expertise, workplace we create for our employees, the
resources and networks of our organisation to responsible products and services we offer our
support the economic growth and progress of our customers and clients, and the impact we make
communities. around the world in helping local economies thrive.
Our footprints in Corporate Social Responsibility In 2016, we invested the sum of N449,616,533.33
are guided strategically by our decision to operate on CSR initiatives across our focus areas to help
on four major pillars: Education, Community develop the communities in which we operate.
Development, Arts and the Environment, which we
Pillar Amount (N) Percentage (%)

Education 258,913,912.61 57.6%
Community Development 138,336,711.90 30.8%
Arts 42,454,540.70 9.4%
Environment 1,320,000.00 0.3%
Total 449,616,533.33 100%
SUPPORTING EDUCATION The Adopt-a-School Programme

In 2004, we started the GTBank Adopt-a-School
“Quality education is crucial for nation programme to improve the quality of education
building and a fundamental right of every available to children across the country. Since the
child irrespective of background, race, or inception of the programme, we have adopted
economic status.” a total of 8 schools and supported several other
schools across the country.
Our involvement in Education is guided by the
conviction that quality education is important for Once a school is adopted, we focus on 3 core
both individual and societal advancement. To this elements to ensure consistency in set standards:
end, we have designed a unique and effective
policy of adopting and supporting public schools §§ Provision and/or upgrade of infrastructure
across Nigeria in order to create conducive such as buildings, basic amenities, furniture,
learning environments for children. We have also and beautification of the environment. This
incorporated sports into our education intervention ensures that there is a conducive learning
programmes to ensure that children maximize their environment.
potentials through participation in extra -curricular
activities. §§ Capacity building for teachers through
trainings to improve capacity and guarantee
that our children have access to quality
education.

§§ Provision of increased learning opportunities Scholarship and Entrepreneurship Programme

for students through scholarship programmes, for Students and Graduates
coaching classes, provision of basic school Aware of the immense potential of Nigeria’s youth
materials and extra-curricular/physical to transform the country and the world at large,
education to promote healthy competition and the Bank continues to make significant investments
physical development amongst students. in their education and empowerment. In 2016,
the Bank provided scholarships to 26 primary and
In 2016, we secondary school students and 72 undergraduates
§§ Re-constructed and fully furnished 25 across Nigeria. The Bank also partnered the Lagos
classroom blocks (2 schools: 1 primary & 1 State Ministry of Education to execute the Ready
secondary) in Kano State. Set Work Initiative during which eighty (80) budding
entrepreneurs were trained in business management
§§ Provided scholarships to 16 primary school and financial responsibility, and helped to build a
students in Lagos State, 10 secondary school network of vendors, industry peers, and mentors.
students in Ogun State and 72 tertiary students
across Nigeria. Sports Education
We are a major sponsor of sports education in Nigeria
§§ Trained 873 students across the 6 geopolitical and our interest in supporting sports is inspired by
zones on financial literacy. our understanding that sports plays a major role in
the development of life skills. Our football program
§§ Provided sports education through football is aimed at actively engaging the youths through
tournaments for 763 secondary schools in sports whilst promoting the values of excellence and
Lagos and Ogun States. fair play. Our initiatives in sports also foster social
cohesion and provide a platform for identifying,
Schools Infrastructure Upgrade nurturing and grooming young talents in both male
Prior to the Bank’s intervention in 2016, students and female categories.
of Girls Secondary School and Kofar-Kudu Special
Primary School in Kano had to take their lessons in Our sports education/football programs include
poorly equipped and largely dilapidated structures. the Principals Cup tournament in Lagos and Ogun
Driven by its belief that all children deserve the best States, the Masters Cup tournament, the Super Cup
possible start in life, the Bank embarked on a full tournament, the Players Development Program and
reconstruction of the schools which it completed the Tournament Ambassadors Program.
with the provision of 25 new and fully furnished
classrooms. Commissioned by the Managing §§ The Principals Cup Football Tournament: The
Director of GTBank, Mr Segun Agbaje, in company GTBank-Lagos State Principals Cup competition
of the Executive Governor of Kano Abdullahi Umar completed its 7th season with 360 participating
Ganduje and the Emir of Kano, Muhammadu Sanusi schools, while 380 schools took part in the 4th
II, the infrastructure upgrade carried out by the Bank season of the GTBank-Ogun State Principals
has helped raise the standard of education in the Cup.
community and the state at large.
The GTBank-Lagos State Principals Cup
Financial Literacy Programmes competition started in 2009/10 with 296
Given the critical role of financial literacy to Nigeria’s participating schools and has grown over
economic growth, the Bank, as a major stakeholder the last seven years to 360 schools in 2016.
in the Nigerian economy, has been at the forefront Winners of the 2015/16 season are Ikotun
of initiatives to enhance the financial knowledge of Senior High School and Dairy Farm Senior
young people through special classroom sessions Secondary School, Agege in the female and
and workshops. During the year, members of male categories respectively.
staff of the Bank trained 873 students across the
6 geopolitical zones on financial literacy, by taking The GTBank-Ogun state Principals Cup has also
them on lectures on investment, entrepreneurship grown from 237 schools with 337 teams in
and money-management skills amongst others. 2012 to 380 schools with 344 teams in 2016.
The winners of the 2015/16 season are Muslim

High School, Isolu Abeokuta, and Alamuwa

Grammar School, Ado Odo in the female and Some of the highlights of the year’s programmes
male categories respectively. include:
§§ 2 day conference attended daily by over 1,500
Since the Bank commenced its sponsorship participants (i.e. health practitioners, care
of both competitions, we have awarded a givers, teachers and parents)to train them on
total of N55,000,000.00 as cash prizes, built the management and care for children and
two sports facilities, provided sporting kits to adults living with autism.
5,280 players and trained 91 students in the §§ Free consultation/assessment services were
Player Development Programme. provided for 375 children in Ogun State, and
276 children in Lagos State.
§§ The Masters Cup football tournament: This §§ Free training for over 150 teachers in special
tournament was introduced in 2012 for non- schools.
Government managed schools. A total of §§ Enlightenment talks on management and
23 schools and 29 teams participated in the care for children living with autism were held
5th season of the Masters Cup Competition and promoted through various radio and TV
with Greensprings School, Lekki and Queens stations to further enlighten the the general
College, Yaba winning in the male and female public.
categories respectively. §§ Commemoration of the World Autism Day
with a Walk & Cycling event in Lagos to create
OUR PEOPLE, OUR COMMUNITY awareness for autism.
“Of far greater importance to us, beyond Interventions in Key Economic Sectors
providing first class banking services, is the
role we play in our host communities.” “We understand that in the toughest of times,
it is not only about making a profit alone; it is
Beyond the benefits our core business bring to also about helping our customers survive.”
our host communities, we work in partnership
with Non-Governmental Organizations that share As a foremost financial institution, we are
our vision and values to create societal awareness constantly innovating how we give back to our
and build support for people with developmental host communities and are going beyond traditional
disabilities, stimulate community investment corporate philanthropy to intervene in key economic
activities in child healthcare, and support victims of sectors. We do this to strengthen small businesses
natural disasters and other humanitarian issues. through non-profit consumer-focused fairs and
capacity building initiatives that serve to boost their
During the year, we invested in the following expertise, exposure, and business growth.
community development projects:
In May 2016, we organized the first edition of the
GTBank Orange Ribbon Initiative – The Autism GTBank Food and Drink Fair to boost the enterprise
Programme of indigenous SMEs in the food sector through
The Guaranty Trust Bank Orange Ribbon Initiative the facilitation of Cooking Master Classes and
commenced in 2009 as an advocacy program provision of exhibition opportunities for the sale of
designed to support children with developmental their products. These were provided free of charge.
disabilities and special needs – especially Autisim The 2-day event was a remarkable success with
Spectrum Disorders (ASD) – in Nigeria. over 25,000 guests attending the fair, and the 90
SMEs in participation achieving record sales.
Our 2016 program themed “Managing Autism,
the Next Generation, Consideration and resources” The GTBank Food and Drink Fair was followed by
assumed a broader spectrum in expanding research the GTBank Fashion Weekend which was geared
and partnerships through series of initiatives held in towards unlocking growth opportunities for
Lagos and Ogun States. small businesses in the fashion industry. Themed
“Promoting Enterprise,” the event brought together
the most promising, talented and recognized
fashion designers, brands and retail enterprises

from across Nigeria and around the world to Centre, and a Comprehensive Antiretroviral
showcase the latest fashion trends and products to Treatment (ART) Centre. In 2016 we sponsored the
a large and diverse audience that included budding provision of
entrepreneurs in the fashion industry. The event §§ Free laboratory examinations for over 25
also featured retail exhibitions by over 100 small patients.
business owners within the Nigerian fashion space §§ Free monthly opportunistic infections drugs
as well as Art and Crafts exhibitions of local artisans for over 25 patients.
curated by Nike Art Gallery. §§ Social support for over 70 patients on a
monthly basis.
Orange Heart Initiative §§ Over 73 home visits to verify patients’
Every year, during the Valentine season, our healthcare and family status.
members of staff make voluntary contributions §§ Free of charge delivery for 4 patients
to support vulnerable people and communities. §§ Ambulance services, hospital bills, and blood
This initiative began on February 14, 2012 and transfusion for over 12 patients.
has grown to become a tradition in the Bank. In
2016, donations received from staff helped provide Supporting the Visually Impaired
comprehensive health care to 35 persons with We provided uninterrupted power supply for Niger-
Sickle Cell Anaemia to enable them have access to wives Braille Book Production Centre to support the
free and quality healthcare. production of brailed books for visually impaired
children of primary and secondary schools. The
Promotion of Sports Participation for Children Niger-wives Braille Book Production Centre was set
with Special Needs up in 1995 with two main aims: to produce braille
Since 2001, the Bank has been in partnership books for visually impaired students and to provide
with Special Olympics Nigeria (SONig) to foster computer training to prepare visually impaired
the inclusion of special needs athletes in sports. applicants for gainful employment.
Through our partnership with this organisation, the
Bank has provided a platform to sponsor athletes Supporting Female Entrepreneurs
with special needs to several sporting events Small and Medium Scale Enterprises are the
including regional and state competitions and drivers of any economy, serving as the highest
World Summer Games. This year we supported 26 employer of labour. The Bank partnered Work in
athletes to participate at the indoor games in Graz, Progress! Alliance, to sponsor the She Leads Africa
Austria. Accelerator programme which helps young female
entrepreneurs acquire basic business skills and grow
Maternal and Child Health Initiative their businesses through our SME Entrepreneur
Over the years we have worked with the Swiss Red program. Spread over three months, She Leads
Cross (SRC) to raise funds for projects ranging from Africa Accelerator programme features a one week
providing relief aid for emergency disasters, to residency program for budding entrepreneurs
funding the reconstruction and the establishment to acquire basic business skills with a key focus
of sustainable, efficient healthcare and social on growth, marketing and distribution. Upon
services in areas with socio-economic hardship. completing the residency program, the participants
undergo a 3-week practical session to enable
According to the World Health Organization (WHO), them implement their skills, after which they pitch
every day, about 830 women die from preventable their business plans to domestic and international
causes related to pregnancy and childbirth. In light investors for a N2 million cash prize.
of these challenges, we contributed 100,000.00
CHF to the Swiss Red Cross Ball in support of health THE ARTS
related projects for mothers and children in Africa
and the Middle East. “We strongly believe in the potential of Arts
to unlock personal creativity and professional
Support for Pregnant women who are HIV innovation, as well as in its critical role in
carriers societal development.”
Working with St. Kizito Clinic, we provided
extensive assistance to pregnant women living with To increase understanding and interaction among
HIV. We chose the Clinic because it is an accredited cultures around the world, we have built strategic
Prevention of Mother to Child Transmission (PMTCT)

global and cultural partnerships with Tate and other Bottle’ –one of his most famous works – in 2010,
Art institutions for the exploration of Art in all its unveiled on the Fourth Plinth in Trafalgar Square,
forms including painting, film, poetry, play, drama, London, and the 2013 Wind Sculpture “FABRIC–
music and fashion amongst others. As a Proudly ATION” in Yorkshire.
African Institution, we ensure all our Art projects
and investments provide tangible benefits for ENVIRONMENT
African Art in local and global markets. This year, in
furtherance of our commitment to the promotion “We have a fundamental responsibility to
of indigenous art, we launched the ART635 virtual leave this planet in better shape than we
art gallery, a free online platform for local artists to found it for the future generations.”
exhibit their artworks and achieve greater market
exposure. The Bank consciously takes steps to safeguard
its environment by ensuring the sustainable use
The GTBank Virtual Art Gallery of its resources. We invest in renewable energy
The GTBank virtual art Gallery serves as an online and implement energy-efficient ways of doing
repository for African artworks and is a leading business. The Bank is also a signatory to the United
platform for the promotion of the works of Nations Environmental Program Finance Initiative,
indigenous artists across the continent. It also a global partnership between the United Nations
serves as an online community for indigenous Environment Program and the Global Financial
artists to interact with one another, exchange ideas Sector.
and display their works beyond their local borders
to a wide, cosmopolitan audience. The platform We have adopted public areas in Lagos, Kano and
which is free and open to all artists in Africa, offers Sokoto States for beautification and preservation
them a virtual, online mall for a wide range of their of the ecosystems. By planting trees and urging the
artistic endeavours, and a medium for interactions general public to do the same, we demonstrate our
and cultural exchange. commitment to national and global partnerships
for the preservation of the environment.
GTBank and Tate partnership
The GTBank and Tate partnership started in 2011.
It is focused on promoting the value of African
Art by bringing African works and the creativity
they inspire to a wider audience both in Africa
and the international market through project led
initiatives. Our partnership with Tate is yielding an
unprecedented opportunity to examine Africa’s
role in promoting art across the globe. In 2016,
we sponsored a research curator to expand
conversations and initiate continuous exchange
platforms for emerging African artist, curators,
collectors and cultural institutions in Africa,
especially in Nigeria, Uganda, Ethiopia, Kenya and
South Africa.
Outdoor Art Exhibitions

The Bank promotes community engagement with
arts and culture, boosting awareness around arts
and culture in public spaces. In 2016, we sponsored
the first solo presentation of the Yinka Shonibare’s
Wind Sculpture IV in Lagos, thereby setting a new
paradigm for the role of public art in Nigeria. Our
support for the installation of the Wind Sculpture
VI is in continuation of the Bank’s involvement
in Yinka’s exhibitions, such as ‘Nelson’s Ship in a

CORPORATE
DIRECTORY

CORPORATE DIRECTORY
Guaranty Trust Bank plc Guaranty Trust Bank (Liberia) Limited

635, Akin Adesola Street, 13th Street, Tubman Boulevard,
P. O. Box 75455, Victoria Island, Bushrod Island, Monrovia, Liberia.
Lagos, Nigeria. Email: [email protected]
Tel: +234 1 271 4580 - 9 Tel: +231 776 498652
+234 1 448 0740 - 9 Web: www.gtbanklr.com
Fax: +234 1 2622698, 2622670
E-mail: [email protected] Guaranty Trust Bank (Rwanda) Limited
Web: www.gtbank.com Nyarugenge District – Kigali City
KN 3, Ave 20
GTConnect (Contact Centre) P.O. Box 331
+234 1 448 0000 Kigali - Rwanda
+234 80 2900 2900 Tel: +250 2525 98600
+234 80 3900 3900 Email: [email protected]
+234 700 482 666 328 Web: www.gtbank.co.rw
BANK SUBSIDIARIES Guaranty Trust Bank (Sierra Leone) Limited

Sparta Building, 12 Wilberforce Street,
Guaranty Trust Bank (Côte d’Ivoire) Limited Freetown, Sierra Leone.
11, Avenue du Senateur Lagarosse, Tel: +232 2222 8493
Abidjan-Plateau, Fax: +232 228318
01 BP 13141 Abidjan 01, Email: [email protected]
Cote d’Ivoire. Web: www.gtbank.sl
Tel: +225 20 31 15 00
Fax: +225 20 31 15 15 Guaranty Trust Bank (Uganda) Limited
Email: [email protected] Plot 56 Kiira Road.
Web: www.gtbankci.com P O Box 7323 Kampala, Uganda.
Tel: +256 414 233833
Guaranty Trust Bank (Gambia) Limited Fax: +256 414 237305
56 Kairaba Avenue, Fajara KSMD, Email: [email protected]
P.O. Box 1958 Banjul, Gambia. Web: www.gtbank.co.ug
Tel: +220 437 6371 - 5
Fax:+220 4376 380 / 398 Guaranty Trust Bank (U.K) Limited
Email: [email protected] 60-62 Margaret Street, Central London
Web: www.gtbankgambia.com W1W 8TF, United Kingdom.
Tel: +44 207 947 9700
Guaranty Trust Bank (Ghana) Limited Fax: +44 20947 9720
25A, Castle Road, Ambassadorial Area, Web: www.gtbankuk.com
P.M.B CT 416, Cantonments,
Ambassadorial Area, Ridge.
Tel: +233 776153, +233 775112
Fax: +233 302 662727
Web: www.gtbghana.com
Guaranty Trust Bank (Kenya) Limited

Plot 1870 Woodvale Close Westlands
P.O.Box 20613 - 00200
Nairobi, Kenya
Tel: +254 203 284000
Fax: +254 20 342024
Web: www.gtbank.co.ke

CORRESPONDENT BANKING RELATIONSHIPS
S/No BANK LOCATION

1 ABSA BANK LIMITED SOUTH AFRICA
2 BANK OF BEIRUT UK LTD LONDON
3 BANK OF CHINA CHINA
4 BANQUE CANTONALE DE GENEVE SWITZERLAND
5 BNP PARIBAS BANK PARIS
6 BYBLOS BANK LONDON LONDON
7 CITIBANK, N.A. LONDON, NEW YORK
8 CREDIT SUISSE SWITZERLAND
9 DEUTSCHE BANK HONK KONG, NEW YORK, GERMANY
10 GTBANK (UK) LTD LONDON
11 HSBC HONG KONG, NEW YORK, SOUTH AFRICA
12 ING BANK BELGIUM
13 JP MORGAN CHASE LONDON, NEW YORK
14 MASHREQ BANK UNITED ARAB EMIRATES
15 NORDEA BANK SWEDEN
16 RAND MERCHANT BANK SOUTH AFRICA
17 STANDARD BANK OF SOUTH AFRICA SOUTH AFRICA
18 STANDARD CHARTERED BANK LONDON, GERMANY, CHINA, HONG KONG, NEW YORK
19 SUMITOMO MITSUI BANKING CORPORATION LONDON
20 SVENSKA HANDELSBANKEN SWEDEN
21 UBS SWITZERLAND
BRANCH NETWORK

BRANCH
NETWORK

BRANCH NETWORK
S/
State Branch Address
No
1 ABIA Aba 28, Aba - Owerri Road, Aba, Abia State, Nigeria
2 Port Harcourt Road, Aba 4/6, Port-Harcourt Road, Aba, Abia State, Nigeria
3 Umuahia 34, Aba Road, (Opposite Federal Medical Centre) Umuahia, Abia State, Nigeria
4 ABUJA Aminu Kano Plot 527, Aminu Kano Crescent, Wuse 2, Abuja FCT, Nigeria
5 APO Samuel Jereton Mariere Road, Gud District, Abuja
6 Area 11 Plot 1473, Ahmadu Bello Way, Area 11, Garki, Abuja FCT, Nigeria.
7 Asokoro No.69, Yakubu Gowon Cresent, Asokoro District, Abuja FCT, Nigeria.
8 Adetokunbo Ademola Plot 211, Adetokunbo Ademola Crescent, Cadastral Zone, Wuse 2, Abuja FCT, Nigeria
9 Bloomsbury Plaza Plot 1245, Bloomsbury Plaza, Adetokunbo Ademola Cresent, Wuse 2, Abuja FCT, Nigeria
10 CBD Plot 171 Central Business District, next to Tofa house, Abuja FCT, Nigeria
11 Garki Plot 1072, J.S Tarka/Faskari Street, Area 3, Abuja, FCT, Nigeria
12 Gwagwalada Plot 598, Gwagwalada Expansion Layout, University Teaching Hospital Road, Gwagwalada, Abuja, FCT
13 Jabi Plot 818, Jabi District, Jabi
14 Kaura Namoda Plot 1088, Cadastral Zone A1, Garki, Kaura Namoda Close, Abuja FCT, Nigeria
15 Kubwa Plot 47, Cadastral Zone, 07-06 Kubwa Commercial District, Gado Nasko Road, Kubwa FCT, Nigeria
16 Maitama, Abuja Plot 433, ETF Building, Zambezi Crescent, Off Aguiyi Ironsi Road, Maitama, Abuja FCT, Nigeria
17 National Assembly National Assembly Complex, Three Arms Zone, Abuja FCT, Nigeria
18 Wuse, Market Plot 2388, Cadestral Zone AO2, Herbert Macauly way, Wuse Market, Abuja
19 ADAMAWA AUN American University of Nigeria, Yola, Adamawa State, Nigeria
20 Yola No 43, Galadima Aminu Way, Jimeta-Yola, Adamawa State, Nigeria
21 AKWA IBOM Uyo 26, Aka Road, Uyo, Akwa Ibom State, Nigeria
22 ANAMBRA Awka 96, Nnamdi Azikiwe Avenue, Awka, Anambra State, Nigeria
23 New Market Road, Onitsha 15, New Market Road, Onitsha, Anambra State, Nigeria
24 Nnewi No 7, Edo-Ezemewi Street, Nnewi, Anambra State, Nigeria
25 Onitsha Bridge Head No 4, Port Harcourt Road, Niger bridge Onitsha
26 Nssuka No 16, University road, Nsukka Enugu State.
27 BAUCHI Bauchi No 6, Murtala Muhammed Way, Bauchi, Bauchi State, Nigeria
28 BAYELSA Yenogoa Sani Abacha Expressway, Yenogoa, Bayelsa State, Nigeria
29 BENUE BCC GBOKO Benue Central Company, Gboko, Benue State, Nigeria
30 Makurdi 41 A/B, New Bridge Road, Makurdi, Benue State, Nigeria
31 NAF BASE Nigerian Air force Base, Makurdi, Benue State
32 BORNO Maiduguri 59, Kashim Ibrahim Way, Maiduguri, Borno State, Nigeria
33 CROSS RIVER Calabar 11, Calabar Road, Calabar, Cross River State, Nigeria
34 Obudu Obudu Cattle Ranch, Obudu, Cross River State, Nigeria
35 Ikom 18, Ogoja Road, Ikom, Cross River State, Nigeria
36 DELTA Asaba 457, Nnebisi Road Asaba, Delta State, Nigeria
37 Sapele-Warri Road, Sapele 80, Ajogodo, Sapele - Warri Road, Sapele, Delta State, Nigeria
38 Effurun Road 85, Effurun-Warri, Effurun, Delta State, Nigeria
39 Airport Road Warri 7B Airport Road, Warri, Delta State, Nigeria

BRANCH NETWORK
40 EBONYI Abakaliki 35A, Ogoja Road, Abakaliki, Ebonyi State, Nigeria
41 EDO Akpakpava 43, Akpakpava Street, Benin City, Edo State, Nigeria
42 Auchi 31, Polytechnic Road, Auchi, Edo State, Nigeria
43 Ekenwan Road, Benin No 90, Ekenwan Road, Oredo LGA, Benin City, Edo State, Nigeria
44 Ekpoma No 2 Ihumudumu Road, Ekpoma Edo State.
45 Gaius Obaseki, GRA Benin Didio Plaza, 66 Gaius Obaseki Shopping Complex, Oko Central, GRA Benin, Edo State, Nigeria
46 Ikpoba Hills 62, Agbor Road, Ikpoba Hills, Benin City, Edo State, Nigeria
47 NDPC High Court Road, Benin City, Edo State, Nigeria
48 Sapele Road, Benin 35B, Benin-Sapele Road, Benin City, Edo State, Nigeria
49 UNIBEN University of Benin, Benin City
50 Uselu 158, New Lagos Road, Benin City, Edo State, Nigeria
51 EKITI Ado Ekiti 21/22, New Iyin/Secretariat Road, Ado Ekiti, Ekiti State, Nigeria
52 EKSU Faculty of Education, Ekiti State University, Ado Ekiti
53 ENUGU Ogui Road, Enugu 1, Ogui Road, Enugu, Enugu State, Nigeria
54 Rangers Avenue, Enugu Plot 381 Igboeze Street, Rangers Avenue, Independence Layout, Enugu, Enugu State, Nigeria
55 UNTH, Ituku Ozalla University Road, University of Nigeria Teaching Hospital, Enugu State, Nigeria
56 GOMBE Gombe Plot 45, New Commercial Layout, Gombe, Gombe State, Nigeria
57 IMO Port Harcourt Road Plot 17, Port Harcourt Road, Opp. Owerri Girls High School, Owerri, Imo State, Nigeria
58 Owerri Plot 265, Ikenegbu Layout, Aladinma Ikenga Road, Owerri, Imo State, Nigeria
59 JIGAWA Dutse Plot 727, Kiyawa Road, Dutse, Jigawa State, Nigeria
60 KADUNA Barnawa Plot 1A, Zaire Road, Barnawa Phase 1, Barnawa, Kaduna, Kaduna State, Nigeria
61 Kano Road,Kaduna PPMC, Kaduna, Kaduna State, Nigeria
62 KRPC, Kaduna Kaduna Refinery Complex, Kaduna, Kaduna State, Nigeria
63 Muritala Mohammed Square 7/10 Muritala Mohammed Square, Kaduna, Kaduna State, Nigeria
64 Nnamdi Azikiwe, Kaduna Plot 9-11, Nnamdi Azikiwe Expressway, Kaduna Bye pass, Kaduna, Kaduna State, Nigeria
65 Zaria 13/15, Manchester Road, GRA, Zaria, Kaduna State, Nigeria
66 NDA N.D.A New site, Afarka, Mando, Kaduna State.
67 KANO AKTH, Kano Aminu Kano Teaching Hospital, Zaria Road, Kano State, Nigeria
68 Bachirawa 24, Bachirawa road, Along Katsina Road, Kano, Kano State, Nigeria
69 Bayero University Bayero University, New site Campus, Gwarzo Rd, Kano
70 Bello Road, Kano Plot12E, Bello Road, Kano, Kano State, Nigeria
71 Muritala Mohammed Way 145 Muritala Mohammed Way, Kano, Kano State, Nigeria
72 Wapa 59, Murtala Muhammed Way, Wapa, Kano, Kano State, Nigeria
73 Zaria Road, Kano Plot 22, Zaria Road, Gyadi-Gyadi, Kano Municipal District, Kano State, Nigeria
74 KATSINA Katsina No. 120, IBB Way, Katsina, Katsina State, Nigeria
75 KEBBI Birnin Kebbi No 9, Sultan Abubakar Way, Birnin Kebbi, Kebbi State, Nigeria
76 KOGI Lokoja Plot 27, IBB Way, Lokoja, Kogi State, Nigeria
77 Obajana Obajana Cement Factory Complex, Obajana, Kogi State, Nigeria
78 Okene Auchi-Abuja Expressway, Okene, Kogi State, Nigeria

BRANCH NETWORK
79 KWARA GRA, Ilorin 10, Umar Audi Road, GRA, Ilorin, Kwara State, Nigeria
80 Offa No 53, Olofa Way, Offa, Kwara State, Nigeria
81 Taiwo Road, Ilorin 147 Upper Taiwo Rd Ilorin Kwara State
82 Unity Ilorin 1, Wahab Folawiyo Road, Ilorin, Kwara State, Nigeria
83 UNILORIN University of Ilorin, Campus, Kwara State, Nigeria
84 LAGOS Abule Egba 2 641 Lamgan Plaza Abule Tailor Lagos-Abeokuta Expressway, Abule-Egba, Lagos State, Nigeria
85 Adeola Odeku 56A, Adeola Odeku Street, Victoria Island, Lagos State, Nigeria
86 Adetokunbo Ademola 714, Adetokunbo Ademola Street, Victoria Island, Lagos State, Nigeria
87 Ajose Adeogun 279, Ajose Adeogun Street, Victoria Island, Lagos State, Nigeria
88 Adeniyi Jones 31, Adeniyi Jones Avenue, Ikeja, Lagos State, Nigeria
89 Airport Road 15, International Airport Road, Isolo, Lagos State, Nigeria
90 Ajah Km 22, Lekki-Epe Expressway, Ajah, Lagos State, Nigeria
91 Akowonjo 35, Shasha Road, Akowonjo, Lagos State, Nigeria
92 Alaba 13, Obosi Plaza, Alaba International Market, Lagos State, Nigeria
93 Alausa Technical Reference Centre, Lagos State Secretariat, Alausa, Ikeja, Lagos State, Nigeria
94 Amuwo Odofin Plot B16, Block 41B, Akin Mateola Close, Amuwo Odofin Residential Scheme, Amuwo Odofiin LGA.
95 Anthony Village 7, Anthony Village Road, Anthony Village, Lagos State, Nigeria
96 Aspamda Zone A, R1 Aspamda Plaza, International Trade Fair Complex, Ojo, Lagos State, Nigeria
97 635 (Head Office) 635 Akin Adesola, Victoria Island, Lagos State, Nigeria
98 Allen Avenue 80/82, Allen Avenue, Ikeja, Lagos State, Nigeria
99 Apapa Doyin House, 4 Commercial Avenue Apapa, Lagos State, Nigeria
100 Apapa, Dualla Road 12, Dualla Road, Apapa, Lagos State.
101 Ayangbure 68, Ayangbure Road, Ikorodu
102 Oba Akran II Plot 10, Oba Akran Avenue, Ikeja, Lagos State, Nigeria
103 Bayo Kuku 19, Bayo Kuku Road, off Osborne Road, Ikoyi, Lagos State, Nigeria
104 Bode Thomas 94, Bode Thomas Street, Surulere, Lagos State, Nigeria
105 Broad Street 82/86, Broad Street, Lagos State, Nigeria
106 Burma Road Plot 17, Burma Road, Apapa, Lagos State, Nigeria
107 Catholic Mission 22/24, Catholic Mission Street, Lagos Island, Lagos State, Nigeria
108 Cele Ijesha 44,Ajijedudun Street, Off Agulejika Bus -Stop Ijesha
109 CBD Alausa Plot 11, Block A, IPM Road, Central Business District, Alausa, Lagos State, Nigeria
110 Chevron drive Block LXXIV A, Ojomu land, Beside Chevron Roundabout, Lekki/Epe Expressway, Lagos State, Nigeria
111 Computer Village 5, Osintelu Street, off Oremeji Street, Computer Village, Ikeja, Lagos State, Nigeria
112 Creek Road 28, Creek Road, Apapa, Lagos State, Nigeria
113 Egbeda 26 - 28 Akowonjo Road, Egbeda, Lagos State, Nigeria
114 Festac House 11, 301 Road, 2nd Avenue, Festac Town, Lagos State, Nigeria
115 Festac 2 Plot 22o, 23 Road, Opposite J Close, Festc Town
116 Gbagada 14, Diya Street, Ifako, Gbagada, Lagos State, Nigeria
117 Guiness (Implant) 24 Oba Akran Avenue, Ikeja, Lagos State, NIgeria
118 Ibafon 1,Bakare Street, Ibafon, Apapa Expressway, Lagos State, Nigeria
119 Idi Oro 110, Agege Motor Road, Idi-Oro, Mushin, Lagos State, Nigeria
120 Idumota 134, Nnamdi Azikwe Street, Lagos Island, Lagos State, Nigeria
121 Iju 90, Iju Fagba Road, Iju

BRANCH NETWORK
122 Ikorodu 47, Lagos Road, Ikorodu Town, Lagos State, Nigeria
123 Ikosi Plot A3C, Ikosi Road, Oregun, Ikeja, Lagos State, Nigeria
124 Ikota Block K7 - 11 & K18 - 22, Ikota Shopping Complex, Lekki-Epe Expressway, Lagos State, Nigeria
125 Ikotun No. 49, Idimu-Ikotun Road, Ikotun, Lagos State, Nigeria
126 Ikoyi 1 178, Awolowo Road, Ikoyi, Lagos State, Nigeria
127 Ilupeju 48, Town Planning Way, Ilupeju, Lagos State, Nigeria
128 INTL Aiport Road 10, International Airport Road,Mafoluku Oshodi, Lagos State, Nigeria.
129 Isheri/Omole 792,Shomide Odujirin Avenue,Omole Phase 2,Lagos.
130 Isolo 1, Abimbola Way, Isolo, Lagos State, Nigeria
131 Itire 41/43 Itire road, Surulere, Lagos
132 Ketu 570, Ikorodu Road, Ketu, Kosofe L.G.A, Lagos State, Nigeria
133 Laspotech Lagos State Polytechnic, KM 7, Sagamu Road, Odogunyan, Ikorodu
134 Lawanson Muniru Baruwa Shopping Complex By Olatilewa Junction Itire Road, Lawanson, Lagos State, Nigeria
135 Lekki Block 5, Plot 5, Victoria Island Annex, Lekki, Lagos State, Nigeria
136 LUTH Route 1, Lagos University Teaching Hospital (LUTH) premises, Idi-Araba, Lagos State, Nigeria
137 Magodo 16 CMD Road, Magodo, Lagos
138 Marina 49A, Marina Street, Lagos State, Nigeria
139 Masha 145, Ogunlana Drive by Masha Roundabout, Surulere
140 Matori 135, Ladipo Street, Matori, Lagos State, Nigeria
141 MMA 2 New Local Wing, Murtala Mohammed Airport 2, Ikeja, Lagos State, Nigeria
142 Mobolaji Bank Anthony 31, Mobolaji Bank-Anthony Way, Ikeja, Lagos State, Nigeria
143 Moloney 30, Moloney Street, Lagos Island, Lagos State, Nigeria
144 Mushin 311, Agege Motor Road, Olorunsogo, Mushin, Lagos State, Nigeria
145 Oba Akran 33, Oba Akran Avenue, Ikeja, Lagos State, Nigeria
146 Ogba 4, Ogunnusi Road, Ogba, Lagos State, Nigeria
147 Ogba 2 19, Isheri Road, Opposite WAEC building, Ijaiye-Ogba, Ikeja
148 Ojodu 50, Isheri Road, Ojodu, Lagos State, Nigeria
149 Ojuelegba 74/76, Ojuelegba Road, Lagos State, Nigeria
150 Oke Arin 40, John Street, Oke-Arin, Lagos Island, Lagos State, Nigeria
151 Okota 115A, Okota Road, Okota, Lagos State, Nigeria
152 Onipanu 196, Ikorodu Road, Onipanu, Lagos State, Nigeria
153 Opebi 14, Opebi Road, Ikeja, Lagos State, Nigeria
154 Oregun 100, Kudirat Abiola Way, Oregun, Ikeja, Lagos State, Nigeria
155 Orile Coker Plot 3, Block C, Amuwo Odofin Industrial Scheme, Orile Coker, Lagos State, Nigeria
156 Oyin Jolayemi (Plural House) Plot 1669, Oyin Jolayemi Street, Victoria Island, Lagos State, Nigeria
157 St. Gregory No. 1 Obadeyi Close, off St. Gregory Road, Ikoyi, Lagos State, Nigeria
158 Surulere 124, Bode Thomas Street, Surulere, Lagos State, Nigeria
159 Tiamiyu Savage Plot 1400, Tiamiyu Savage Road, Victoria Island, Lagos State, Nigeria
160 Unilag University of Lagos, Akoka, Lagos State, Nigeria
161 Wamco (Implant) Plot 7B, Achme Road , Ogba, Lagos State Nigeria
162 Western Avenue 89, Western Avenue, Surulere, Lagos State, Nigeria
163 Yaba 216/218, Herbert Macaulay Way, Yaba, Lagos State, Nigeria
164 Yaba MM Way 352 Murtala Mohammed Way, Yaba Lagos

BRANCH NETWORK
166 Wamco (Implant) Plot 7B, Achme Road , Ogba, Lagos State Nigeria
167 Western Avenue 89, Western Avenue, Surulere, Lagos State, Nigeria
168 Yaba 216/218, Herbert Macaulay Way, Yaba, Lagos State, Nigeria
169 Yaba MM Way 352 Murtala Mohammed Way, Yaba Lagos
170 NASARAWA Lafia Jos Road, Lafia, Nasarawa State, Nigeria
171 Karu Plot 13754, Abuja – Keffi, Expressway, Mararaba, Karu, LGA., Nasarawa State, Nigeria
172 Karu New Market GTBank, Along Keffi Express Way, Before Orange Market, Mararaba, Nassarawa State.
173 NIGER Kontangora Plot 6C, KTF 139, Lagos - Kaduna Road, Kontagora, Niger State, Nigeria
174 Minna Plot 4936, Paiko Road, Minna, Niger State, Nigeria
175 OGUN Abeokuta IBB Boulevard Road, Abeokuta, Ogun State, Nigeria
176 Agbara Plot C 2/4, Ilaro Road, Agbara Industrial Estate, Agbara, Ogun State, Nigeria
177 Ago-Iwoye P.S. Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria
178 Asero Block 7, Plot 17/20, Abeokuta/Ibadan Road, Asero, Abeokuta, Ogun State, Nigeria
179 Ewekoro Lagos - Abeokuta Expressway, opposite Larfage Cement, Ogun State, Nigeria
180 Governor’s Office Governor’s Office Complex, Oke-Mosan, Abeokuta South LGA, Ogun State, Nigeria
181 Ijebu-Ode 183, Folagbade Street, Ijebu Ode L.G.A., Ijebu Ode, Ogun State, Nigeria
182 Sagamu 143, Akarigbo Street, Sabo, Sagamu, Ogun State, Nigeria
183 Sango Idiroko IdiIroko Road, opposite Fowobi filling station, Oju Ore, Sango Otta
184 Sango Otta 63, Abeokuta Expressway, Joju Junction, Sango Otta, Ogun State, Nigeria
185 RCCG Redeem Christain Church Camp Ground, KM 46 Lagos Ibadan Expressway, No 1 Salvation Way
186 UNAAB University of Agriculture, off Alabata Road, Alabata, Abeokuta, Ogun State, Nigeria
187 ONDO Akure Plot 3, Alagbaka Quarters, Alagbaka, Akure, Ondo State, Nigeria
188 Akure Cash Center No 16, Oba Ile,Owo Road, Akure, Ondo State Nigeria.
189 FUTA Federeal University of Technology, Akure, Ondo State, Nigeria
190 Ondo 48, Yaba, Ondo Town , Ondo State Nigeria
191 OSUN JABU Joseph Abu Babalola University, Ikeji-Arakeji, Osun State, Nigeria
192 Ile-Ife 3, Lagere Road, Ile-Ife, Osun State, Nigeria
193 Ilesha 196, Isokun Street, Along Ilesha-Osogbo Road, Ilesa, Osun State, Nigeria
194 OAU Campus Road 1, Obafemi Awolowo University Campus, Ile- Ife, Osun State, Nigeria
195 Osogbo No 67, Gbongan / Ibadan Road, Ogo Oluwa, Osogbo, Osun State, Nigeria
196 OYO Apata, Ibadan SW9/21A, Ibadan - Abeokuta Road, Apata, Ibadan, Oyo State, Ngeria
197 Bodija, Ibadan Plot 6A, U.I-Secretriat Road, Bodija, Ibadan, Oyo State, Nigeria
198 Challenge Plot 14, JFK Osibodu Layout, Ijebu Road, Challenge, Ibadan, Oyo State, Nigeria
199 Dugbe, Ibadan 11B, Jimoh Odutola Road, Dugbe, Ibadan, Oyo State, Nigeria
200 LAUTECH Ladoke Akintola University of Technology LAUTECH
201 Ogbomosho Ibapon Area, Ilorin-Ogbomoso Express Road, Ogbomoso, Oyo State, Nigeria
202 Owode, Oyo Ibadan – Ogbomoso Express Road, Owode, Oyo Town, Oyo State, Nigeria
203 Ring Road, Ibadan 106, Ring Road, Lister Bus Stop, Ibadan, Oyo State, Nigeria
204 Mokola 27, Majaro Street, Old Oyo Road, Cocacola Area, Mokola, Ibadan, Oyo State, Nigeria
205 PLATEAU Ahmadu Bello Way, Jos Plot 1902, Ahmadu Bello Way, Jos, Plateau State, Nigeria
206 Commercial Layout, Jos 13B, Commercial Layout, Jengre Road, Jos, Plateau State, Nigeria
207 RIVERS Aba Road, PH Plot 279A, Tombia Street, off Aba Road, Port Harcourt, Rivers State, Nigeria
208 Bonny Island 34, King Perekule Road, Bonny Island, Rivers State, Nigeria

BRANCH NETWORK
209 East West Road 11, East West Road, Port Harcourt, Rivers State, Nigeria
210 Happy Bite Aba Road PH Happy Bite Plaza, Opposite Air force base, Aba Road, Port Harcourt
211 Ikwerre Road 225, Ikwerre Road Mile 4, Port Harcourt, Rivers State, Nigeria
212 Mgbuoba 110 NTA Road, Location junction, Mgbuoba, Port Harcourt Rivers State, Nigeria
213 Nnamdi Azikiwe Road, PH 5, Nnamdi Azikiwe Road, Port Harcourt, Rivers State, Nigeria
214 NLNG GTB Cash Centre Shopping Complex NLNG Residential Area
215 ONNE Dangote Depot Intel Onne
216 Shell Camp, Port Harcourt Plot 215, Aba – Port Harcourt Road, Shell Residential Area, Port Harcort, Rivers State, Nigeria
217 Trans Amadi, PH 44,Trans Amadi Industrial Layout, Port Harcourt, Rivers State, Nigeria
218 Industrial Layout Plot 23, Trans-Amadi Layout, Port Harcourt, Rivers State, Nigeria
219 RVSG Ground Floor, Block A, RVSG Secretariat, Port Harcourt
220 SOKOTO Ahmadu Bello way No.101, Ahmadu Bello Way, Sokoto, Sokoto State, Nigeria
221 UDUS Sokoto Usmanu Danfodiyo University, Sokoto, Nigeria
222 Maiduguri road No.41, Maiduguri Road, Sokoto, Sokoto State, Nigeria
223 TARABA Jalingo Plot 106B, Hamman Ruwa Way, Jalingo, Taraba State, Nigeria
224 YOBE Damaturu Potiskum Road, Damaturu, Yobe State, Nigeria
225 ZAMFARA Gusau 5, Sani Abacha Way, Gusau, Zamfara State, Nigeria
eBranches
S/No State eBranch Address
1 ABUJA EAGLE SQUARE eBRANCH Eagle Square Car Park, Opposite Federal Secretariat Complex, Cbd, Abuja
2 LAGOS 1004 ESTATE eBRANCH Block A, Administrative Building, 1st Gate Entrance, 1004 Estate, Victoria Island
3 ADENIRAN OGUNSANYA eBRANCH No 31 Adeniran Ogunsanya Street, Surulere , Lagos , Nigeria
4 COSTAIN eBRANCH Costain Roundabout Lagos
5 DIYA GBAGADA eBRANCH No 59, Diya Gbagada Street, Ifako, Gbagada, Lagos, Nigeria.
6 EGBEDA eBRANCH 26/28 Egbeda Akowonjo Road ,Egbeda,Lagos
7 IKEJA CANTONMENT eBRANCH Headquarters 9 Brigade, Nigerian Army Cantonment,Ikeja Lagos
8 IKOTA eBRANCH KM 21, Lekki Epe Expressway, Ikota Shopping Complex, Vgc Ajah (Road 5)
9 ILUPEJU eBRANCH No 3 Ilupeju Bye Pass, Ilupeju, Lagos Nigeria.
10 OGUDU eBRANCH 126 Ogudu Road, Ojota, Lagos
11 ONIPANU eBRANCH 177, Ikorodu Road Lagos, Nigeria
12 PEN CINEMA, AGEGE eBRANCH 1, Pen Cinema, Agege, Lagos
13 SHOGUNLE eBRANCH 360, Agege Motor Road,Pwd,Shogunle Oshodi, Lagos
14 TOYIN STREET eBRANCH 47,Toyin Street, Ikeja Lagos
15 OYO RING ROAD eBRANCH 1 Akinyemi street, off Ring road, Ibadan, Oyo state.
16 RIVERS SHELL RA PH 3 eBRANCH Shell Residential Area Port Harcourt

BRANCH NETWORK
List of Agents and Locations
S/N Name Location
1 Prince Ebeano Supermarket 9, Northern Business District, Lekki Phase 1, Lagos

2 De Prince Supermarket 3A Adejokun Street, Isheri-Magodo
3 Hubmart Supermarket Plot 1263, Adeola-Odeku Street, Victoria Island Lagos
4 Etisalat Nigeria Plc Plot 19 Zone L Banana Island Ikoyi, Lagos.
Select Forte Oil Filling Stations in Lagos, Ogun and Port-harcourt
5 Forte Oil, Bank Road 1, Bank Road Opposite Federal Secretariat Alagbon Ikoyi Lagos
6 Forte Oil, Old Airport Road Muritala Mohammed 2, Local Airport Road, Ikeja
7 Forte Oil, Kingsway Road Apapa 72 Kofo Abayomi Road, Kingsway Avenue Apapa Lagos.
8 Forte Oil, Mushin Isolo 259, Agege Motor Road, Mushin, Lagos
9 Forte Oil, Festac Town 21, Road, Festac Town, Lagos
10 Forte Oil, Shomolu 138, Ikorodu Road Onipanu Bus Stop, Shomolu Lagos
11 Forte Oil, Wharf Road Apapa Barracks Bus Stop, Wharf Road, Apapa, Lagos
12 Forte Oil, Ikorodu Round About 2, Sagamu Road, Ikorodu
13 Forte Oil, Jebba 80, Herbert Macaulay Road, Jebba Ebute - Metta, Lagos
14 Forte Oil Campus Road 1, Igbosere Road, Campos Lagos Island
15 Forte Oil, Oshodi Apapa (Mile 2) Berger Yard B/stop Oshodi-Apapa Expressway, Mile 2, Lagos
16 Forte Oil, Western Avenue 113/115, Funsho Williams Avenue, Surulere
17 Forte Oil, Boundary Apapa 82/84 Mobil Road, Boundary Bus stop Ajegunle Lagos
18 Forte Oil, Old Apapa Road, Costain 80, Old Apapa Road Ebute Metta West , Costain Lagos
19 Forte Oil, Ogba Oba Ogunji Road, Pen Cinema, Ogba Lagos
20 Forte Oil, Oba-Akran 39, Oba Akran Avenue Ikeja Lagos
21 Forte Oil, Ladipo-Mushin 110, Ladipo Street , Matori Industrial Estate Mushin
22 Forte Oil, Bariga 6/ 8 Fetuga Street, Bariga
23 Forte Oil, Ajiwe-Ajah Block A, Plot 7, Budo Farm Layout, Ajiwe-Ajah Lagos
24 Forte Oil, Okota 51 Okota Road Opposite Police Barracks, Okota
25 Forte Oil, Idimu 222 Egbeda-Idimu road, Carwash Bus-stop, Idimu
26 Forte Oil, Awolowo Road 111 – 113 Awolowo Road, Ikoyi
27 Forte Oil, Egbe 71, Egbe Road, Powerline B/Stop, Ejigbo-Lagos
28 Forte Oil Idimu 2 215/217 Idimu Ikotun Road, Ikotun- Lagos.
29 Forte Oil, Tantalizers Lekki Admiralty Way, Lekki Phase 1 Lagos
30 Forte Oil, Iyana Iyesi- Sango Otta Iyana Iyesi road, Sango Otta-Ogun
31 Forte Oil, Ilo Awela - Sango Otta 11, Ilo Awela road, Sango Otta-Ogun
32 Forte Oil, Rumubekwe PH Ph/Aba Expressway By Shell RA , Port Harcourt
33 Forte Oil, Moscow Road PH 11, Moscow road opp Rivers St House Of Assembly, Port Harcourt
34 Forte Oil Mile 5 PH By Rumuokwuta Round About, Port Harcourt
35 Forte Oil Aggrey Road 2, PH Aggrey Road 2, Port Harcourt.
36 Forte Oil, Lorry Park, PH 29 Station Road, Lagos Bustop, Port Harcourt
37 Forte Oil, Eliozu Road, PH Eliozu Road off Eastwest Port Harcourt
Select Total Nigeria Plc Filling Stations in Lagos
38 Total, Sura - Lagos Island 4 Simpson Street beside Sura shopping complex, Lagos Island
39 Total, Ogijo - Ikorodu KM 12 Sagamu Express road, Ikorodu Ogijo Ogun State

FORMS

PROXY FORM
GUARANTY TRUST BANK PLC RC 152321

27th ANNUAL GENERAL MEETING to be held at the NUMBER OF SHARES:
Oriental Hotel, 3 Lekki Road, Victoria Island, Lagos State on RESOLUTIONS FOR AGAINST
Friday, April 7, 2017, at 10 a.m. Ordinary Business
To receive the Audited Financial Statements for the year

I/We ____________________________________________ ended December 31, 2016, and the Reports of the Directors,
being a member/members of Guaranty Trust Bank plc here- Auditors and Statutory Audit Committee thereon.
by appoint _______________________________________ To declare a dividend1

or failing him/her/it, Mrs. Osaretin Demuren or failing her,
To Elect Directors:
Mr. Segun Agbaje, as my/our proxy to attend and vote for i. Mr. Babatunde Temitope Soyoye as an Independent
Non-Executive Director2;
me/us and on my/our behalf at the Annual General Meeting ii. Mr. Mobolaji Jubril Lawal as an Executive Director.3
of the Bank to be held on Friday, April 7, 2017, and at any
To Re-elect Directors4:
adjournment thereof. i. Mrs. Osaretin Demuren as a Non-Executive Director;
ii. Mr. Ibrahim Hassan as a Non-Executive Director.
Dated this _______ day of _______________ , 2017. To authorise Directors to fix the remuneration of the
Auditors5.
To elect Members of the Statutory Audit Committee.
Signature of Shareholder Special Business:
To consider, and if thought fit, to pass the following as an

Ordinary Resolution:
“That the Directors’ fee for the financial year ending

December 31, 2017, and for succeeding years until reviewed
by the Company in its Annual General Meeting, be and is
hereby fixed at N24,500,000.00 (twenty-four million, five
Name of Shareholder hundred thousand Naira only) for each financial year.”
Please mark the appropriate box with an “X” to indicate how you wish your votes
to be cast on the resolutions set above. Unless otherwise instructed, the proxy will
vote or abstain from voting at his/her/its discretion.
ADMISSION CARD
Twenty-seventh Annual General Meeting to be held on Friday, April 7, 2017, at Oriental Hotel, 3, Lekki Road, Victoria Island,
Lagos State at 10 a.m.
Name of Shareholder (in BLOCK CAPITALS)
(Surname) (Firstname)
Shareholder’s Account No: Number of Shares:
IMPORTANT
1. Before posting the above Proxy Form, please tear off this part and retain it. A person attending the Annual General Meeting of the Company or his/her/its proxy should produce
this card to secure admission to the Meeting.
2. A member of the Company is entitled to attend and vote at the Annual General Meeting of the Company. He/She/It is also entitled to appoint a proxy to attend and vote instead
of him/her/it, and in this case, the above card is required for the appointment of a proxy.
3. In line with the current practice, the names of two Directors of the Company have been entered on the Proxy Form to ensure that someone will be at the meeting to act as proxy.
You may however wish to insert in the blank space on the form (marked “*”) the name of any person, whether a member of the Company or not, who will attend the meeting
and vote on your behalf instead of one of the named Directors.
4. The above Proxy Form, when completed, must be deposited at the office of the Registrars, Datamax Registrars Limited, No. 2c, Gbagada Express Road, Gbagada Phase 1, Lagos
State, not less than 48 hours before the time fixed for the meeting.
5. It is a requirement of the law under the Stamp Duties Act, Cap. A8, Laws of the Federation of Nigeria, 2004, that any instrument of proxy to be used for the purpose of voting by
any person entitled to vote at any meeting of shareholders must be duly stamped in accordance with the provisions of the Stamp Duties Act.
6. If the Proxy Form is executed on behalf of a Company, it should be sealed under its Common Seal or under the hand and seal of its attorney.
Signature of the person attending _____________________________________________

1
N1.75k for every 50 Kobo Ordinary Share;
2
Mr. Babatunde Temitope Soyoye was appointed as a Director on July 27, 2016, and will be presented for Shareholders’ approval at the 27th Annual General Meeting;
3
Mr. Mobolaji Jubril Lawal was appointed as a Director with effect from March 17, 2017, and will be presented for Shareholders’ approval at the 27th Annual General
Meeting;
4
Mrs. Demuren and Mr. Hassan, being due for retirement by rotation have offered themselves for re-election as Directors;
5
PricewaterhouseCoopers are the Auditors of the Bank.

NOTES

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INTRODUCTION

Guaranty Trust Bank’s Consolidated Financial Statements

#EnrichingLives Guaranty Trust Bank plc | 2016 Annual Report | 1

Overview AML/CFT Framework 034

Directors, Officers & Professional Chairman’s Statement 041

Managing Director’s Statement 049

Result at a Glance 006

N414.62billion N165.14billion N132.28billion

Notice of Annual General Meeting 007

Corporate Governance 009

Subsidiary Governance 025 Report of the Independent Auditor to the

Complaints and Feedback 031

#EnrichingLives Guaranty Trust Bank plc | 2016 Annual Report | 2

Share Capitalisation History 328

Accounting Policies 087

Financial Risk Management 109 Corporate Social

Other notes to the Financial Statements 209

Regulatory Requirements under 308

Operational Risk Management 313

Value Added Statements 320

We are synonymous with innovation, building excellence

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4 Mr. A.O Akintoye

Registrar & Transfer Office

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GROSS EARNINGS PROFIT BEFORE TAX PROFIT AFTER TAX

N414.62billion N165.14billion N132.28billion

Group Group Increased/ Parent Parent Increased/

Profit before income tax 165,136 120,695 37 154,005 113,027 36

Profit after income tax 132,281 99,437 33 126,837 94,308 34

Earnings Per Share (Kobo) 467 351 431 320

Major Statement of Financial

Deposits from customers 1,986,246 1,610,350 23 1,681,185 1,422,550 18

Total assets 3,116,393 2,524,594 23 2,613,340 2,277,629 15

Total equity 504,903 413,562 22 476,918 405,608 18

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NOTICE IS HEREBY GIVEN that the Twenty-seventh NOTES:

SPECIAL BUSINESS Shareholders are kindly requested to update their

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Bank of Nigeria (CBN) indicate that members of Bank’s website at www.gtbank.com.

The appointments of both Directors have been

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Introduction Communications Policy, which regulate employee

Management in ensuring that the Bank is financially Responsibilities of the Board

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Non-Executive Directors’ Remuneration The Terms of Reference of the Board Risk

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• To ensure that the Bank complies with

consideration; 2 Mr. A. O. Akintoye Non-Executive (In- Chairman

• To review the Bank’s internal control procedures

3 Mr. A. O. Akintoye Non-Executive (In- Member1

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Board Audit Committee S/No Name Status Designation

1. Ms. I. L. Akpofure Non-Executive (Inde- Chairman

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