REG - Guaranty Trust Hldng - 3rd Quarter Results

Banco Bilbao Vizcaya Argentaria SAAnnouncement

25/10/2023 12:45

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RNS Number : 2825R  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   +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 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

 

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