REG - Guaranty Trust Hldng - Half-year Report

Guaranty Trust HoldingAnnouncement

05/09/2022 17:45

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RNS Number : 3270Y  Guaranty Trust Holding Company PLC  05 September 2022

Guaranty Trust Holding Company Plc

 

AUDITED HALF-YEAR GROUP RESULTS FOR THE PERIOD ENDED JUNE 30, 2022: DECLARES A
PBT OF N103.2BILLION

 

Lagos Nigeria - September 05, 2022 - 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 2022 and declares a PBT of N103.2bn.

 

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust
Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said; "Our results show an
increase in key revenue lines and a strong performance in other financial
metrics which reinforce our growth prospects as a leading financial services
company. Our priority at the start of the 2022 financial year was to bring the
Group's new businesses on-stream, starting strong with a focus on long-term
viability. At present, we have successfully expanded our financial services
ecosystem to include HabariPay Ltd, Guaranty Trust Fund Managers Ltd, and
Guaranty Trust Pension Managers Ltd, and all of them are P&L positive."

 

He further stated that, "These newly created businesses will operate alongside
our flagship banking franchise to offer increased value to our growing
customer base as well as other stakeholders. We will continue to build on our
core strengths of service excellence, innovation, and flawless execution to
deliver our corporate objectives for the year and further our vision of being
Africa's leading financial services institution."

 

Financial Highlights

 

●      Earnings

-  Profit before tax of ₦103.2bn (30 June 2021: N93.1bn) an increase of
11.0%.

-  Profit after tax decreased by 2.3% to ₦77.6bn from N79.4bn as of 30 June
2021 largely due to the expiration of the tax-exempt status for Fixed Income
Securities, excluding FGN Bonds which increased Effective Tax Rate to 24.9%
(30 June 2021: 14.7%).

-  Earnings per share of 270kobo compared to 279kobo per share as of 30 June
2021.

 

 

●      Revenue

-  Interest income of ₦147.2bn (30 June 2021: N126.1bn) up 16.7% largely as
a result of a 15.5% increase in interest income on cash and cash equivalents
and 26.0% increase in interest income on fixed income securities and 13.5%
increase in interest income on loans and advances.

 

-  Non-interest income of ₦92.1bn comprising of fee and commission income,
net trading gains, and other income (30 June 2021: N81.8bn) up 12.5%. The
Non-interest income growth resulted largely from 33.4% increase in net trading
gains, 21.4% increase in fees and commission but partly offset by 14.9%
decrease in other income.

 

-  Net interest margin of 6.5% (30 June 2021: 7.0%).

 

●      Balance Sheet

-  Total assets of ₦5.686trn (31 December 2021: N5.436trn) up 4.6%

-  Net loans and advances of ₦1.835trn (31 December 2021: N1.803trn) up
1.8%.

-  Deposit liabilities of ₦4.394trn (31 December 2021: N4.130trn) up 6.4%.

 

●      Credit Quality

-  IFRS 9 Stage 3 loans to total loans at 6.2% (31 December 2021: 6.0%).

-  Coverage for lifetime credit impaired loans at 150.3% (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 49.1%, from 49.0% for the period ended 30
June 2021.

 

 

 

●      Subsidiaries

-  Contribution to Group PBT from West Africa increased from 23.5% in June
2021 to 28.8% in June 2022. During the same period, the contributions from
East Africa increased to 3.9% from 3.1%, United Kingdom increased from -1.1%
to 0.1% while the Nigeria Banking Subsidiary dipped from 81.0% in June 2021 to
67.4% in June 2022. The Non-Banking Subsidiaries contributed 0.6% to the Group
PBT in June 2022.

 

 

 Key Financials (N' billion)    H1-2022  H1-2021  ∆%
 Interest income                147.2    126.1    16.7%
 Non-interest income            92.1     81.8     12.5%
 Operating income               202.7    182.7    10.9%
 Operating expenses             99.5     89.3     11.3%
 Profit before tax              103.2    93.1     11.0%
 Profit after tax               77.6     79.4     -2.3%
 Earnings per share (in Naira)  2.7      2.8      -2.9%

                                H1-2022  FY-2021  ∆%
 Total assets                   5,686.0  5,436.0  4.6%
 Net loans                      1,834.7  1,802.7  1.8%
 Deposit liabilities            4,394.4  4,130.3  6.4%

 

 

 

 Key Ratios                          H1-2022  H1-2021
 ROAE (pre-tax)                      23.9%    23.1%
 ROAA (pre-tax)                      3.7%     3.7%
 Net interest margin                 6.5%     7.0%
 Cost-to-income ratio                49.1%    49.0%

                                     H1-2022  FY-2021
 Net loans to deposits               41.8%    43.6%
 Liquidity ratio                     38.9%    38.3%
 Capital adequacy ratio              22.0%    23.8%
 IFRS 9 Stage 3 Loans                6.2%     6.0%
 Cost of risk                        0.2%     0.5%
 Coverage (with Reg. Risk Reserves)  150.3%   150.4%

 

 

05 September 2022

 

Enquiries:

 

 Guaranty Trust Holding Company Plc

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

 Charles Eremi, Group Corporate Communication

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

 Telephone: +234 (1) 2715227

 

Notes to the Editors:

 

Guaranty Trust Holding Company Plc is a diversified financial services company
with N5.7trillion 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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