3rd Quarter Results

Guaranty Trust Holding Company PLC

25 October 2023

 

Guaranty Trust Holding Company Plc

UNAUDITED Q3 GROUP RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2023: DECLARES A PBT OF N433.2BILLION

Lagos Nigeria - October 24, 2023 - Guaranty Trust Holding Company Plc ("GTCO"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its unaudited Financial Results for the period ended 30 September 2023 and declares a PBT of N433.2bn.

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr. Segun Agbaje, said; Our 3rd Quarter performance underpins our strategic positioning as a leading Financial Holding Company and reaffirms our strong capabilities to successfully navigate the challenges in our operating environment. Going into the final quarter of the year, we will continue to leverage the strengths within our growing financial services ecosystem to improve our products and service offerings, enhance customer experience, and maximise shareholder value."

He further said; "We are proud of our work towards Promoting Enterprise across the African continent over the years and remain committed to helping indigenous small businesses thrive through our consumer-focused fairs. The 6th Edition of the GTCO Fashion Weekend is scheduled to hold in Lagos, Nigeria, on 11/12 November 2023, and will give entrepreneurs in the Nigerian fashion retail space a free-business platform to showcase their diverse talents and creativity to a global audience."

Financial Highlights

·      Earnings

-  Profit before tax of ₦433.2bn (30 September 2022: N169.7bn) an increase of 155.2%.

-  Profit after tax increased by 181.9% to ₦367.4bn from N130.3bn as of 30 September 2022.

-  Earnings per share of 1298kobo compared to 455kobo per share as of 30 September 2022.

·      Revenue

-  Interest income of ₦374.6bn (30 September 2022: N232.5bn) up by 61.1% on the back of improved yield and increase in average volume of earning assets as reflected by increases in interest earned on cash and cash equivalents (414.1%), fixed income securities (78.8%) and loans and advances (32.8%).

-  Non-funded income of ₦475.8bn comprising of fee and commission income, net trading gains, and other income (30 September 2022: N131.8bn) up 260.9%. The non-funded income growth benefitted significantly from the Naira devaluation in June 2023 which resulted in increase in revaluation gains as of H1-2023, now moderated by slight appreciation of Naira closing exchange rate to USD dollars in Q3-2023. The dip in revaluation gains was further worsened by 20.3% decrease in net trading gains, however, growth in volumes of fee-based transactions helped to curtail the impact of the decreases noted.

-  Net interest margin of 7.8% (30 September 2022: 6.6%).

·      Balance Sheet

-  Total assets of ₦8.616trn (31 December 2022: N6.446trn) up 33.6%.

-  Net loans and advances of ₦2.219trn (31 December 2022: N1.886trn) up 17.7%.

-  Deposit liabilities of ₦6.356trn (31 December 2022: N4.610trn) up 37.9%.

·      Credit Quality    

-  IFRS 9 Stage 3 loans to total loans at 3.8% (31 December 2022: 5.2%).

-  Coverage for lifetime credit impaired loans at 305.0% (31 December 2022: 175.5%)

-  Cost of Risk at 4.1% (31 December 2022: 0.6%).

·      Continued focus on efficiency.

-  Cost to income (CIR) closed at 29.7% benefiting immensely from the positive impact of growth posted on interest income and non-interest income lines causing improvement over 45.1% CIR reported for the period ended 30 September 2022.

·      Subsidiaries

Contribution to Group PBT from West Africa and East Africa dipped to 16.9% and 2.3% in September 2023 from 27.5% and 3.8% in September 2022 due to a pick-up in contributions from Nigeria and United Kingdom to 78.0% to 1.9% from 67.8% to 0.5%, respectively. Also, Non-Banking Subsidiaries contribution improved to 1.0% from 0.8% during the same period.

September 2023 Financial Analysis and Ratios

Key Financials (N' billion)	Q3-2023	Q3-2022	∆%
Interest income	374.6	232.5	61.1%
Non-interest income	475.8	131.8	260.9%
Operating income	675.0	309.2	118.3%
Operating expenses	182.7	139.4	31.0%
Profit before tax	433.2	169.7	155.2%
Profit after tax	367.4	130.3	181.9%
Earnings per share (in Naira)	13.0	4.6	185.0%
	Q3-2023	FY-2022	∆%
Total assets	8,615.5	6,446.5	33.6%
Net loans	2,219.3	1,885.9	17.7%
Deposit liabilities	6,356.0	4,610.3	37.9%

Key Ratios	Q3-2023	Q3-2022
ROAE (post-tax)	44.5%	19.8%
ROAA (post-tax)	6.5%	3.1%
ROAE (pre-tax)	52.4%	25.8%
ROAA (pre-tax)	7.7%	4.0%
Net interest margin	7.8%	6.6%
Cost-to-income ratio	29.7%	45.1%
	Q3-2023	FY-2022
Net loans to deposits	34.9%	40.9%
Liquidity ratio	36.8%	49.9%
Capital adequacy ratio	25.1%	24.1%
IFRS 9 stage 3 loans	3.8%	5.2%
Cost of risk	4.1%	0.6%
Coverage (with Reg. Risk Reserves)	305.0%	175.5%

24 October 2023

Enquiries:

Guaranty Trust Oyinade Adegite, Head, Group Communication	[phone]
Charles Eremi, Group Communication [e-mail]

Notes to the Editors:

Guaranty Trust Holding Company Plc is a diversified financial services company with N8.616trillion in assets, providing commercial banking services and non-banking financial services across eleven countries.

The Group operates as one of the leading Nigerian financial services companies offering a wide range of commercial banking as well as non-banking financial services in Nigeria, West Africa, East Africa, and the United Kingdom. The Group is rated B- by S&P, a reflection of the Group's stability and reputation of being a well-established franchise with strong asset quality and consistent excellent financial performance.

The Group has the following Banking subsidiaries (including sub-subsidiaries) and non-banking subsidiaries within and outside of Nigeria -

1)   Guaranty Trust Bank (Nigeria) Limited     ("GTB Nigeria"),

2)   Guaranty Trust Bank (Gambia) Limited    ("GTB Gambia"),

3)   Guaranty Trust Bank (Sierra Leone) Limited ("GTB Sierra Leone"),

4)   Guaranty Trust Bank (Ghana) Limited      ("GTB Ghana"),

5)   Guaranty Trust Bank (Liberia) Limited     ("GTB Liberia"),

6)   Guaranty Trust Bank (United Kingdom) Limited ("GTB UK")

7)   Guaranty Trust Bank (Cote D'Ivoire)        ("GTB Cote D'Ivoire"),

8)   Guaranty Trust Bank (Kenya) Limited      ("GTB Kenya"),

9)   Guaranty Trust Bank (Rwanda) Plc Limited ("GTB Rwanda"),

10) Guaranty Trust Bank (Uganda) Limited    ("GTB Uganda")

11) Guaranty Trust Bank (Tanzania) Limited ("GTB Tanzania")

12) Habari Pay (Nigeria) Limited

13) Guaranty Trust Fund Managers Limited

14) Guaranty Trust Pension Managers Limited

 

END