Last checked at 27 Apr 2022 12:22
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 |
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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