Half-year Report

Guaranty Trust Holding Company PLC

01 September 2023

 

Guaranty Trust Holding Company Plc

AUDITED HALF YEAR GROUP RESULTS FOR THE PERIOD ENDED JUNE 30, 2023: DECLARES A PBT OF N327.4BILLION

Lagos Nigeria - September 01, 2023 - Guaranty Trust Holding Company Plc ("GTCO"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its audited Financial Results for the period ended 30 June 2023 and declares a PBT of N327.4bn.

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO), Mr. Segun Agbaje, said; "Our half year audited results reflect the strong business fundamentals underpinning the GTCO franchise, the quality of our past decisions in future proofing our balance sheet for challenging times, and the sound practices that guide our day-to-day operations. Despite the challenges in the business environment, notably inflationary pressures and exchange rate fluctuations, we are starting to see the gains in the transformation of our businesses following our transition to a Holding Company structure. Improved profitability and a solid performance across key metrics reflect efficiencies and justify the investments we continue to make in technology, product development, and our people."

He further said; "We recognise the impact prevailing economic and market conditions have on people and livelihoods and we remain committed to seeking better outcomes for our customers by ensuring that our products and service offerings support our customers and their businesses through their evolving realities, whilst also taking every opportunity to optimise stakeholder value."

Financial Highlights

·      Earnings

-  Profit before tax of ₦327.4bn (30 June 2022: N103.2bn) an increase of 217.1%.

-  Profit after tax increased by 261.6% to ₦280.5bn from N77.6bn as of 30 June 2022

-  Earnings per share of 994kobo compared to 270kobo per share as of 30 June 2022.

·      Revenue

-  Interest income of ₦225.9bn (30 June 2022: N147.2bn) up 53.5% largely on the back of growth in average volume of earning assets and pick-up in yields resulting in 774.6% increase in interest income on cash and cash equivalents, 66.7% increase in interest income on fixed income securities and 29.8% increase in interest income on loans and advances.

-  Non-interest income of ₦446.7bn comprising of fee and commission income, net trading gains, and other income (30 June 2022: N92.1bn) up 385.0%. The Non-interest income growth resulted primarily from y-o-y exchange rate movement with resultant increase in Revaluation gains, complimented by growth in volumes of fee-based transactions but partly offset by 32.1% decrease in net trading gains.

-  Net interest margin of 7.8% (30 June 2022: 6.5%).

·      Balance Sheet

-  Total assets of ₦8.510trn (31 December 2022: N6.446trn) up 32.0%

-  Net loans and advances of ₦2.315trn (31 December 2022: N1.886trn) up 22.8%.

-  Deposit liabilities of ₦6.318trn (31 December 2022: N4.610trn) up 37.0%.

·      Credit Quality    

-  IFRS 9 Stage 3 loans to total loans at 4.6% (31 December 2022: 5.2%).

-  Coverage for lifetime credit impaired loans at 262.1% (31 December 2022: 175.5%)

-  Cost of Risk at 3.7% (31 December 2022: 0.6%).

·      Continued focus on efficiency

-  Cost to income (CIR) closed at 27.7% benefitted immensely from the positive impact of growth posted on interest income and non-Interest income lines causing improvement from 49.1% CIR reported for the period ended 30 June 2022.

·      Subsidiaries

Contribution to Group PBT from West Africa and East Africa decreased from 28.8% and 3.9% in June 2022 to 11.7% and 1.6% in June 2023 due to improved contribution from Nigeria and United Kingdom from 67.4% to 84.7% and 0.1% to 1.5% in June 2022 to June 2023 respectively. Also, Non-Banking Subsidiaries contribution improved to 0.8% from 0.6% during the same period.

June 2023 Financial Analysis and Ratios

Key Financials (N' billion)	H1-2023	H1-2022	∆%
Interest income	225.9	147.2	53.5%
Non-interest income	446.7	92.1	385.0%
Operating income	534.3	202.7	163.6%
Operating expenses	125.6	99.5	26.3%
Profit before tax	327.4	103.2	217.1%
Profit after tax	280.5	77.6	261.6%
Earnings per share (in Naira)	9.9	2.7	267.5%
	H1-2023	FY-2022	∆%
Total assets	8,509.9	6,446.5	32.0%
Net loans	2,315.4	1,885.9	22.8%
Deposit liabilities	6,317.8	4,610.3	37.0%

Key Ratios	H1-2023	H1-2022
ROAE (post-tax)	52.6%	17.9%
ROAA (post-tax)	7.5%	2.8%
ROAE (pre-tax)	61.4%	23.9%
ROAA (pre-tax)	8.8%	3.7%
Net interest margin	7.8%	6.5%
Cost-to-income ratio	27.7%	49.1%
	H1-2023	FY-2022
Net loans to deposits	36.6%	40.9%
Liquidity ratio	37.5%	49.9%
Capital adequacy ratio	24.7%	24.1%
IFRS 9 Stage 3 Loans	4.6%	5.2%
Cost of risk	3.7%	0.6%
Coverage (with Reg. Risk Reserves)	262.1%	175.5%

01 September 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 N8.510trillion 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