REG - Guaranty Trust Hldng - GTCO RELEASES Q1 22 RESULTS; DECLARES N54.3BN PBT

Guaranty Trust HoldingAnnouncement

27/04/2022 12:30

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RNS Number : 5594J  Guaranty Trust Holding Company PLC  27 April 2022

Guaranty Trust Holding Company Plc

 

UNAUDITED Q1 GROUP RESULTS FOR THE PERIOD ENDED MARCH 31, 2022: DECLARES A PBT
OF N54.3BILLION

 

Lagos Nigeria - April 27, 2022 - Guaranty Trust Holding Company Plc ("GTCO
Plc" of "the Group"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider
of diversified financial services, announces its unaudited Financial Results
for the period ended 31 March 2022 and declares a PBT of N54.3bn.

 

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust
Holding Company Plc, Mr. Segun Agbaje, said; "Our first quarter results show a
decent improvement across key revenue lines as well as other financial
metrics, which demonstrates our ability to effectively navigate the evolving
business landscape anchored on our strong business fundamentals."

 

He further added, "With this performance, we are optimistic about the rest of
2022 as we rapidly consolidate the gains of our new holding company structure
to deliver superior Stakeholder value. Importantly, our non-banking businesses
including Pension Management, Wealth Management and Payments will serve to
diversify our earnings capacity as we look to create a model financial
services ecosystem for all of Africa. As a Group, we are fully committed to
providing innovative financial solutions whilst constantly delivering
best-in-class customer experiences in line with our long-term strategy."

 

Financial Highlights

 

·      Earnings

-  Profit before tax of N54.3bn (31 March 2021 N53.7bn) an increase of 1.1%.

-  Profit after tax decreased by 5.1% to N43.2bn from N45.5bn as of 31 March
2021 due to full impact of adoption of the new provisions contained in the
Finance Tax Act.

-  Earnings per share of 151kobo compared to 160kobo per share as of 31 March
2021.

 

·      Revenue

-  Interest income of N70.6bn (31 March 2021: N60.3bn) an increase of 17.1%
largely as a result of a 45.9% increase in interest income on cash and cash
equivalents, 22.4% increase in interest income on fixed income securities and
14.8% increase in interest income on loans and advances.

 

-  Non-interest income of N49.0bn comprising of fee and commission income,
net trading gains, and other income (31 March 2021: N45.9bn) up 6.7%. The
Non-interest income growth resulted largely from 21.4% increase in fees and
commission income, 1.2% increase in other income but partly offset by 5.0%
decrease in net trading gains.

 

-  Net interest margin of 6.3% (31 March 2021: 7.0%).

 

·      Balance Sheet

-  Total assets of N5.498trn (31 December 2021: N5.436trn) up 1.1%

-  Net loans and advances of N1.718trn (31 December 2021: N1.803trn) down
4.7%.

-  Deposit liabilities of N4.158trn (31 December 2021: N4.130trn) up 0.7%.

 

·      Credit Quality

-  Non-performing loans to total loans at 5.9% (31 December 2021: 6.0%).

-  Coverage for lifetime credit impaired loans at 159.8% (31 December 2021:
150.4%)

-  Cost of Risk at 0.1% (31 December 2021: 0.5%).

 

·      Continued focus on efficiency

-  Cost to income (CIR) closed at 47.0%, from 42.6% for the period ended 31
March 2021.

 

 

 

 

 

 

·      Subsidiaries

-  Contribution to Group PBT from West African Banking Subsidiaries increased
from 20.6% in March 2021 to 27.5% in March 2022. During the same period, the
contributions from East Africa Banking Subsidiaries increased to 3.9% from
2.3%, United Kingdom Banking Subsidiary improved from -1.1% to -0.1% while the
Nigeria Banking Subsidiary dipped from 78.2% in March 2021 to 69.2% in March
2022.The Non- Banking Subsidiaries contributed -0.2% to the Group PBT in March
2022.

 

March 2022 Financial Analysis and Ratios

 

 

 Key Financials (N' billion)    Q1-2022  Q1-2021  ∆%
 Interest income                70.6     60.3     17.1%
 Non-interest income            49.0     45.9     6.7%
 Operating income               102.4    93.5     9.5%
 Operating expenses             48.1     39.8     20.9%
 Profit before tax              54.3     53.7     1.1%
 Profit after tax               43.2     45.5     -5.1%
 Earnings per share (in Naira)  1.5      1.6      -5.6%

                                Q1-2022  FY-2021  ∆%
 Total assets                   5,498.2  5,436.0  1.1%
 Net loans                      1,718.4  1,802.7  -4.7%
 Deposit liabilities            4,158.5  4,130.3  0.7%

 

 

 Key Ratios                          Q1-2022  Q1-2021
 ROAE (post-tax)                     19.3%    22.1%
 ROAA (post-tax)                     3.2%     3.7%
 ROAE (pre-tax)                      24.2%    26.0%
 ROAA (pre-tax)                      4.0%     4.3%
 Net Interest Margin                 6.3%     7.0%
 Cost-to-Income Ratio                47.0%    42.6%

                                     Q1-2022  FY-2021
 Net Loans to Deposits               41.3%    43.6%
 Liquidity Ratio                     39.9%    38.3%
 Capital Adequacy Ratio              22.9%    23.8%
 NPL/Total Loans                     5.9%     6.0%
 Cost of Risk                        0.1%     0.5%
 Coverage (with reg. risk reserves)  159.8%   150.4%

 

 

27 April 2022

 

Enquiries:

 

 Guaranty Trust

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

 Golden Nwaiwu, 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 N5.498trillion 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) Limited ("GTB Cote D'Ivoire"),

8)   Guaranty Trust Bank (Kenya) Limited      ("GTB Kenya"),

9)   Guaranty Trust Bank (Rwanda) 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 Pension Managers Limited

14) Guaranty Trust Fund Managers Limited

 

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