REG - Guaranty Trust Hldng - Half-year Report

Turkiye Garanti Bankasi ASAnnouncement

11/09/2024 18:30

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RNS Number : 8405D  Guaranty Trust Holding Company PLC  11 September 2024

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%

                                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%

                                     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

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

 

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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