REG - Guaranty Trust Hldng - 3rd Quarter Results

Guaranty Trust HoldingAnnouncement

26/10/2022 08:15

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RNS Number : 1009E  Guaranty Trust Holding Company PLC  25 October 2022

Guaranty Trust Holding Company Plc

 

UNAUDITED Q3 GROUP RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2022: DECLARES A
PBT OF N169.7BILLION

 

Lagos Nigeria - October 25, 2022 - 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 30 September 2022 and declares a PBT of N169.7bn.

 

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust
Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said; "The Group's 3rd
quarter result reaffirms our strategy for long-term growth and underscores our
capacity to deliver sustainable strong performance despite the volatilities in
our operating environment. We have also kept in focus our vision of supporting
small and medium enterprises specifically through our free business platforms
to help them stay in business and expand their offerings. With our non-banking
businesses fully operational alongside our core banking subsidiary, we are
well positioned to maximise our earnings potential going into the 4th quarter
of the year."

 

He further stated; "In creating a thriving financial services ecosystem, our
goal is to offer great experiences to all who interact with our brand whilst
continually enhancing access to innovative financial solutions for individuals
and businesses across Africa. We are appreciative of all our customers and
other stakeholders who are with us on this journey of building a truly global
African financial services institution."

 

Financial Highlights

 

·      Earnings

-  Profit before tax increased by 11.7% to N169.7bn in September 2022 from
N151.9bn as of 30 September 2021.

-  Profit after tax of N130.3bn (30 September 2021: N129.4bn) an increase of
0.7%.

-  Earnings per share of 455kobo compared to 454kobo per share as of 30
September 2021.

 

·      Revenue

-  Interest income of N232.5bn (30 September 2021: N195.0bn) an increase of
19.2%, largely from 151.0% increase in interest income on placements, 26.1%
increase in interest income on fixed income securities and 13.2% growth in
interest income on loans and advances.

 

-  Non-interest income of N131.8bn comprising of fee and commission income,
net trading gains, and other income grew by 6.8% from N123.5bn posted 30
September 2021.  The Non-interest income growth resulted principally from
18.3% increase in fees and commission income, 42.3% increase in net trading
gains which was partly offset by 31.3% decrease in other income.

 

-  Net interest margin of 6.6% (30 September 2021: 6.9%).

 

·      Balance Sheet

-  Total assets of N5.809trn (31 December 2021: N5.436trn) up 6.9%

-  Net loans and advances of N1.843trn (31 December 2021: N1.803trn) up 2.2%.

-  Deposit liabilities of N4.393trn (31 December 2021: N4.130trn) up 6.4%.

 

·      Credit Quality

-  IFRS Stage 3 Non-performing loans to total Loans at 5.6% (31 December
2021: 6.0%).

-  Coverage for lifetime credit impaired loans at 159.2% (31 December 2021:
150.4%)

-  Cost of Risk at 0.2% (31 December 2021: 0.5%).

 

·      Continued focus on efficiency

-  Cost to income (CIR) closed at 45.1%, from 44.9% for the period ended 30
September 2021.

 

 

·      Subsidiaries

-  Contribution to Group PBT from West African Banking Subsidiaries increased
from 22.5% in September 2021 to 27.5% in September 2022. During the same
period, the contributions from East Africa Banking Subsidiaries increased to
3.8% from 3.0%, United Kingdom Banking Subsidiary improved from -0.9% loss
contribution to 0.5%, this led to decline in the Nigeria Banking Operation
from 75% in September 2021 to 68% in September 2022. The Non-Banking
Subsidiaries contributed 0.8% to the Group PBT in September 2022.

 

September 2022 Financial Analysis and Ratios

 

 

 Key Financials (N' billion)    Q3-2022  Q3-2021  ∆%
 Interest income                232.5    195.0    19.2%
 Non-interest income            131.8    123.5    6.8%
 Operating income               309.2    275.6    12.2%
 Operating expenses             139.4    123.7    12.7%
 Profit before tax              169.7    151.9    11.7%
 Profit after tax               130.3    129.4    0.7%
 Earnings per share (in Naira)  4.6      4.5      0.3%

                                Q3-2022  FY-2021  ∆%
 Total assets                   5,808.8  5,436.0  6.9%
 Net loans                      1,843.0  1,802.7  2.2%
 Deposits liabilities           4,392.8  4,130.3  6.4%

 

 

 

 Key Ratios                          Q3-2022  Q3-2021
 ROAE (post-tax)                     19.8%    20.8%
 ROAA (post-tax)                     3.1%     3.4%
 ROAE (pre-tax)                      25.8%    24.4%
 ROAA (pre-tax)                      4.0%     4.0%
 Net interest margin                 6.6%     6.9%
 Cost-to-income ratio                45.1%    44.9%

                                     Q3-2022  FY-2021
 Net loans to deposits               42.0%    43.6%
 Liquidity ratio                     36.5%    38.3%
 Capital adequacy ratio              20.7%    23.8%
 NPL/Total loans                     5.6%     6.0%
 Cost of risk                        0.2%     0.5%
 Coverage (with Reg. Risk Reserves)  159.2%   150.4%

 

 

25 October 2022

 

Enquiries:

 

 Guaranty Trust

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

 Charles Eremi, Group Communication

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

 

Notes to the Editors:

 

Guaranty Trust Holding Company Plc is a diversified financial services company
with N5.809trillion in assets and over 28 million customers, 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) HabariPay (Nigeria) Limited

13) Guaranty Trust Fund Managers (Nigeria) Limited

14) Guaranty Trust Pension Managers (Nigeria) Limited

 

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