REG - Guaranty Trust Hldng - Half-year Report

Banco Bilbao Vizcaya Argentaria SAAnnouncement

02/09/2023 01:15

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RNS Number : 1889L  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   +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 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

 

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