Guaranty Trust Holding Company Plc
AUDITED HALF YEAR GROUP RESULTS FOR THE PERIOD ENDED JUNE 30, 2024: DECLARES A PBT OF N1.004TRILLION… The 1st Nigerian Financial institution to cross the ₦1trillion mark in profit.
Lagos Nigeria - September 11, 2024 - 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 2024 and declares a PBT of N1.004tr.
Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr. Segun Agbaje, said; "We are immensely proud of the progress we have made as a leading financial holding company. Despite the uncertainties in the operating environment, our performance in the first half of the year, where we recorded our highest profit to date, is a testament to the resilience and adaptability of our business model. We remain optimistic about the future and are committed to leveraging our unique strengths as a thriving financial services ecosystem to create sustainable value for all our stakeholders as we continue to position all our business verticals-Banking, Funds Management, Pension, and Payments-for rapid growth across key markets."
Financial Highlights
· Earnings
- Profit before tax of ₦1.004tr (30 June 2023: N327.4bn) an increase of 206.6%.
- Profit after tax also grew by 222.9% to ₦905.6bn from N280.5bn as of 30 June 2023
- Earnings per share of 3,212kobo compared to 994kobo per share as of 30 June 2023.
· Revenue
- Interest income of ₦617.9bn (30 June 2023: N225.9bn) up by 173.5% Primarily driven by growth in Banking Earning Assets (EA) volumes and improved yield recorded by the Banking Vertical. AUM growth posted by the Non-Banking Business Verticals- GTFM and GTPFA, all culminating in 352.4% pick up in interest earned on Placements, 296.0% and 81.4% increase in interest earned on fixed income securities and Loans and advances, respectively.
- Non-funded income (NFI) which comprises of Fee and Commission income (14.7%), Net trading gains (3.9%), and Other Income (81.4%) grew by 73.4% to ₦774.7bn in H1-2024 from N446.7bn in H1-2023 due to significant increase in transactional volumes consummated by Banking and Non-Banking Business Verticals causing 95.0% and 90.2% growth in fees and commission income and net trading income, respectively, complimented by unrealized Fair Value gains on Financial Instrument of N493.0bn.
- Net interest margin of 10.4% (30 June 2023: 7.8%).
· Balance Sheet
- Total assets of ₦14.511trn (31 December 2023: N9.691trn) up 49.7%.
- Net loans and advances of ₦3.112trn (31 December 2023: N2.480trn) up 25.5%.
- Deposit liabilities of ₦10.550trn (31 December 2023: N7.547trn) up 39.8%.
· Credit Quality
- IFRS 9 Stage 3 loans to total loans at 4.3% (31 December 2023: 4.2%).
- Coverage for lifetime credit impaired loans closed at 229.9% (31 December 2023: 191.1%)
- Cost of Risk improved to 1.6% (31 December 2023: 4.5%).
· Continued focus on efficiency.
- Cost to income (CIR) closed at 16.7%, from 27.7% for the period ended 30 June 2024.
· Subsidiaries
Contribution to Group PBT from West Africa increased from 11.7% in H1- 2023 to 13.0% in H1- 2024. During the same period, the contributions from East Africa decreased to 1.1% from 1.6%, United Kingdom decreased from 1.5% to 1.1% while the Nigeria Banking Subsidiary decreased from 84.7% in June 2023 to 84.0% in June 2024. The Non-Banking Entities contribution closed at 0.7% from 0.8% during the same period.
June 2024 Financial Analysis and Ratios
| Key Financials (N' billion) | H1-2024 | H1-2023 | ∆% |
| Interest income | 617.9 | 225.9 | 173.5% |
| Non-interest income | 774.7 | 446.7 | 73.4% |
| Operating income | 1,205.9 | 534.3 | 125.7% |
| Operating expenses | 201.8 | 125.6 | 60.7% |
| Profit before tax | 1,003.8 | 327.4 | 206.6% |
| Profit after tax | 905.6 | 280.5 | 222.9% |
| Earnings per share (in Naira) | 32.1 | 9.9 | 223.2% |
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| | H1-2024 | FY-2023 | ∆% |
| Total assets | 14,511.0 | 9,691.3 | 49.7% |
| Net loans | 3,112.3 | 2,480.3 | 25.5% |
| Deposit liabilities | 10,254.1 | 7,546.9 | 39.4% |
| Key Ratios | H1-2024 | H1-2023 |
| ROAE (post-tax) | 93.4% | 52.64% |
| ROAA (post-tax) | 15.0% | 7.5% |
| ROAE (pre-tax) | 103.6% | 61.4% |
| ROAA (pre-tax) | 16.6% | 8.8% |
| Net interest margin | 10.4% | 7.8% |
| Cost-to-income ratio | 16.7% | 27.7% |
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| | H1-2024 | FY-2023 |
| Net loans to deposits | 29.5% | 32.9% |
| Liquidity ratio | 44.9% | 31.1% |
| Capital adequacy ratio | 21.0% | 21.9% |
| IFRS 9 Stage 3 Loans | 4.3% | 4.2% |
| Cost of risk | 1.6% | 4.5% |
| Coverage (with Reg. Risk Reserves) | 229.9% | 191.1% |
10 September 2024
Enquiries:
| Guaranty Trust Oyinade Adegite, Head, Group Communication |
+234-1-2715227 |
|
Charles Eremi, Group Communication |
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Notes to the Editors:
Guaranty Trust Holding Company Plc is a diversified financial services company with N14.511trillion 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
14) Guaranty Trust Pension Fund Administrators
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