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.

05 September 2022

Enquiries:

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