REG - Guaranty Trust Hldng - 1st Quarter Results

Banco Bilbao Vizcaya Argentaria SAAnnouncement

03/05/2023 13:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230503:nRSC2928Ya&default-theme=true

RNS Number : 2928Y  Guaranty Trust Holding Company PLC  03 May 2023

Guaranty Trust Holding Company Plc

 

UNAUDITED Q1 GROUP RESULTS FOR THE PERIOD ENDED MARCH 31, 2023: DECLARES A PBT
OF N74.1BILLION

 

Lagos Nigeria - April 28, 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 31 March 2023 and declares a PBT of N74.1bn.

 

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust
Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said; "Our first quarter
results reflect the strength of the GTCO franchise, the quality of our
decision making, and the unfolding success of our efforts towards becoming a
leading financial services company in Africa. Despite severe headwinds, we
delivered a decent performance, recording growth across key revenue lines. We
are also not relenting in our resolve to better outcomes for people and
businesses within our financial ecosystem."

 

He further added; "2023 is shaping up to be another interesting year. Some of
the challenges from the past few years are still lingering, and uncertainties
ahead would test the resilience of most economies and businesses. We are
confident in our positioning as a thriving financial services company
underpinned by strong business fundamentals and will continue to benefit from
a well-diversified earnings base."

 

Financial Highlights

 

·      Earnings

-  Profit before tax of ₦74.1bn (31 March 2022: N54.3bn) an increase of
36.5%.

-  Profit after tax increased by 34.6% to ₦58.2bn from N43.2bn as of 31
March 2022

-  Earnings per share of 204kobo compared to 151kobo per share as of 31 March
2022.

 

·      Revenue

-  Interest income of ₦104.1bn (31 March 2022: N70.6bn) Significantly up by
47.3% on the back of improved yield and increase in average volume of earning
assets resulting in 49.3% growth in interest earned on fixed income securities
and 25.0% increase in interest income on loans and advances and further
complemented by improved interest earned on placements.

 

-  Non-interest income of ₦54.0bn comprising of fee and commission income,
net trading gains, and other income (31 March 2022: N49.0bn) up 10.3%. The
Non-interest income growth resulted largely from 33.2% increase in fees and
commission, 17.7% increase in other income but partly offset by 30.5% decrease
in net trading gains.

 

-  Net interest margin of 7.7% (31 March 2022: 6.3%).

 

·      Balance Sheet

-  Total assets of ₦6.740trn (31 December 2022: N6.446trn) up 4.6%

-  Net loans and advances of ₦1.859trn (31 December 2022: N1.886trn) down
1.5% due to the Translation impact of Subs ex Nigeria numbers as their
currencies weakens against USD.

-  Deposit liabilities of ₦5.068trn (31 December 2022: N4.610trn) up 9.9%.

 

·      Credit Quality

-  IFRS 9 Stage 3 loans to total loans at 5.4% (31 December 2022: 5.2%).

-  Coverage for lifetime credit impaired loans at 174.4% (31 December 2022:
175.5%)

-  Cost of Risk at 0.2% (31 December 2022: 0.6%).

 

·      Continued focus on efficiency

-  Cost to income (CIR) closed at 43.1% improving from 47.0% for the period
ended 31 March 2022.

·      Subsidiaries

Contribution to Group PBT from West Africa and East Africa decreased from
27.5% and 3.9% in March 2022 to 25.8 and 3.3% in March 2023 due to improved
contribution from the United Kingdom which increased from -0.1% to 3.2%,
complemented by Non-Banking Subsidiaries contribution of 1.6% from -0.2%
during the same period. Consequently, Nigeria Banking Subsidiary dipped from
69.7% in March 2022 to 65.6% in March 2023.

 

March 2023 Financial Analysis and Ratios

 

 Key Financials (N' billion)    Q1-2023  Q1-2022  ∆%
 Interest income                104.1    70.6     47.3%
 Non-interest income            54.0     49.0     10.3%
 Operating income               130.2    102.4    27.2%
 Operating expenses             56.1     48.1     16.8%
 Profit before tax              74.1     54.3     36.5%
 Profit after tax               58.2     43.2     34.6%
 Earnings per share (in Naira)  2.0      1.5      35.0%

                                Q1-2023  FY-2022  ∆%
 Total assets                   6,740.3  6,446.5  4.6%
 Net loans                      1,858.5  1,885.9  -1.5%
 Deposit liabilities            5,067.6  4,610.3  9.9%

 

 

 

 Key Ratios                          Q1-2023  Q1-2022
 ROAE (post-tax)                     24.4%    19.3%
 ROAA (post-tax)                     3.5%     3.2%
 ROAE (pre-tax)                      31.1%    24.2%
 ROAA (pre-tax)                      4.5%     4.0%
 Net interest margin                 7.7%     6.3%
 Cost-to-income ratio                43.1%    47.0%

                                     Q1-2023  FY-2022
 Net loans to deposits               36.7%    40.9%
 Liquidity ratio                     34.3%    49.9%
 Capital adequacy ratio              23.2%    24.1%
 IFRS 9 Stage 3 Loans                5.4%     5.2%
 Cost of risk                        0.2%     0.6%
 Coverage (with Reg. Risk Reserves)  174.4%   175.5%

 

 

28 April 2023

 

Enquiries:

 

 Guaranty Trust

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

 Charles Eremi, Group Communication

 ir@gtcoplc.com (mailto:ir@gtcoplc.com)

 

Notes to the Editors:

 

Guaranty Trust Holding Company Plc is a diversified financial services company
with N6.446trillion 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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  QRFEAESDESXDEFA