REG - Guaranty Trust Hldng - Final Results

Banco Bilbao Vizcaya Argentaria SAAnnouncement

09/04/2024 08:15

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RNS Number : 7609J  Guaranty Trust Holding Company PLC  08 April 2024

Guaranty Trust Holding Company Plc

 

RELEASES AUDITED FULL-YEAR CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS AS
AT DECEMBER 31, 2023; DECLARES PBT OF N609.3BILLION

 

Lagos Nigeria - April 08, 2024 - Guaranty Trust Holding Company Plc ("GTCO"),
(Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified
financial services, announces its Audited Financial Results for the year ended
31 December 2023 and declares a PBT of N609.3bn.

 

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust
Holding Company Plc, Mr. Segun Agbaje, said: "The challenging operating
environment of 2023 truly tested the business model we put in place for the
Holding Company, for both our banking and non-banking business verticals.
Harnessing the Group's synergies yielded a strong performance, allowing us to
strengthen our foothold in banking whilst also building viable and resilient
businesses of HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust
Pension Managers. Also important to our success is our relentless obsession
with innovation and offering great customer experiences as demonstrated by the
successful redesign and upgrade of our mobile banking application, GTWorld."

 

Mr. Agbaje added: "In a landscape characterised by evolving regulatory
reforms, global uncertainties, and heightened competition, we have continued
to leverage our inherent strengths and capabilities to unlock significant
value, creating more opportunities for the businesses and individuals we
serve. As we navigate the challenges and opportunities that lie ahead, we are
confident that our robust underpinnings and focus on flawless execution will
continue to drive sustainable growth across all our operations and deliver
long-term value for our stakeholders."

 

Financial Highlights

 

·      Earnings

-  Profit before tax of N609.3bn (31 December 2022 N214.2bn) an increase of
184.5%.

-  Profit after tax increased by 219.0% to N539.7bn from N169.2bn as of 31
December 2022.

-  Earnings per share of 1,907kobo compared to 595kobo per share as of 31
December 2022.

-  Final dividend of 270kobo per share. In addition to the interim dividend
of 50kobo bringing total dividend of FY-2023 to N3.20/share

 

·      Revenue

-  Interest income of N550.8bn (31 December 2022: N325.4bn) up 69.3% on the
back of growth in average volume of earning assets and pick-up in yields
culminating in 345.3% pick up in interest earned on cash and cash equivalents,
112.4% increase in interest income on fixed income securities and 34.5%
increase in interest income on loans and advances.

 

-  Non-interest income of N635.7bn comprising of fee and commission income,
net trading gains, and other income (31 December 2022: N213.8bn) up 197.3%.
The Non-interest income growth resulted largely from impact of exchange rate
movement arising from Naira devaluation causing 556.9% growth in other income.
This growth was complemented by 54.4% increase in fees and commission and
18.1% increase in net trading gains.

 

-  Net interest margin of 7.9% (31 December 2022: 6.7%).

 

·      Balance Sheet

-  Total assets of N9.691trn (31 December 2022: N6.446trn) up 50.3%

-  Net loans and advances of N2.480trn (31 December 2022: N1.886trn) up
31.5%.

-  Deposit liabilities of N7.547trn (31 December 2022: N4.610trn) up 63.7%.

 

·      Credit Quality

-  IFRS 9 Stage 3 loans to total loans at 4.2% (31 December 2022: 5.2%).

-  Coverage for lifetime credit impaired loans closed at 191.1% (31 December
2022: 175.5%)

-  Cost of Risk at 4.5% (31 December 2022: 0.6%).

 

 

·      Continued focus on efficiency

-  Cost to income (CIR) closed at 29.1%, from 48.0% for the year ended 31
December 2022.

 

·      Subsidiaries

 

-  Contribution to Group PBT from West Africa increased from 12.3% in
December 2022 to 17.3% in December 2023. During the same period, the
contributions from East Africa decreased to 2.3% from 3.4% while United
Kingdom increased from -0.8% to 1.9%. The improved contribution from Banking
Entities outside Nigeria led to dip in the contribution from the Nigeria
Banking Subsidiary from 84.3% as of December 2022 to 77.6% in December 2023.
Also, Non-Banking Subsidiaries contribution decreased to 0.90% from 0.95%
during the same period.

 

December 2023 Financial Analysis and Ratios

 

 

 Key Financials (N' billion)    FY-2023  FY-2022  ∆%
 Interest income                550.8    325.4    69.3%
 Non-interest income            635.7    213.8    197.3%
 Operating income               954.7    448.0    113.1%
 Operating expenses             250.4    197.9    26.5%
 Profit before tax              609.3    214.2    184.5%
 Profit after tax               539.7    169.2    219.0%
 Earnings per share (in Naira)  19.1     6.0      220.5%

                                FY-2023  FY-2022  ∆%
 Total assets                   9,691.3  6,446.5  50.3%
 Net loans                      2,480.3  1,885.9  31.5%
 Deposit liabilities            7,546.9  4,610.3  63.7%

 

 

 Key Ratios                          FY-2023  FY-2022
 ROAE (post-tax)                     44.8%    18.6%
 ROAA (post-tax)                     6.7%     2.8%
 ROAE (pre-tax)                      50.6%    23.6%
 ROAA (pre-tax)                      7.6%     3.6%
 Net interest margin                 7.9%     6.7%
 Cost-to-income ratio                29.1%    48.0%

                                     FY-2023  FY-2022
 Net loans to deposits               32.9%    40.9%
 Liquidity ratio                     31.1%    49.9%
 Capital adequacy ratio              21.9%    24.1%
 NPL/Total loans                     4.2%     5.2%
 Cost of risk                        4.5%     0.6%
 Coverage (with Reg. Risk Reserves)  191.1%   175.5%

 

Enquiries:

 

 Guaranty Trust

 Oyinade Adegite, Head, Group Communication   +234-1-2715227

 Charles Eremi, Group Communication

 ir@gtcoplc.com

 

Notes to the Editors:

 

Guaranty Trust Holding Company Plc is a diversified financial services company
with N9.691trillion 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

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