REG - Guaranty Trust Hldng - 1st Quarter Results

Turkiye Garanti Bankasi ASAnnouncement

07/05/2024 13:45

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RNS Number : 2663N  Guaranty Trust Holding Company PLC  03 May 2024

Guaranty Trust Holding Company Plc

 

UNAUDITED Q1 GROUP RESULTS FOR THE PERIOD ENDED MARCH 31, 2024: DECLARES A PBT
OF N509.3BILLION

 

Lagos Nigeria - May 03, 2024 - Guaranty Trust Holding Company Plc ("GTCO"),
(Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified
financial services, announces its unaudited Financial Results for the period
ended 31 March 2024 and declares a PBT of N509.3bn.

 

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust
Holding Company Plc, Mr. Segun Agbaje, said: "Our first quarter results
reflect the unfolding value of what we have created in all our business
verticals through the Holding Company Structure - from Banking and Payments to
Funds Management and Pension, we are positioned to compete effectively on all
fronts and fulfil all our customers' needs under a unified, thriving financial
ecosystem. Despite the challenging operating environment, we delivered a solid
performance, recording significant growth across all financial and
non-financial metrics, and we remain on track to meeting our full year
guidance."

 

Mr. Agbaje further said: "Looking ahead, we will continue to focus on
strengthening our relationships with our loyal customers, supporting not just
individuals and businesses but also our communities through our well-attested
free business platforms as well as innovative products and services. We are
confident in our credentials to lead the future of financial services in
Africa and will not relent in our commitment to excellence whilst delivering
long-term value to all stakeholders."

 

Financial Highlights

 

·      Earnings

-  Profit before tax of ₦509.3bn (31 March 2023: N74.1bn) an increase of
587.5%.

-  Profit after tax also grew by 685.9% to ₦457.1bn from N58.2bn as of 31
March 2023

-  Earnings per share of 1624kobo compared to 204kobo per share as of 31
March 2023.

 

·      Revenue

-  Interest income of ₦281.7bn (31 March 2023: N104.1bn) up by 107.6%
Primarily driven by growth in Banking Earning Assets (EA) volumes and improved
yield in interest earning recorded by GTFM and GTPFA, culminating in 307.5%
pick up in interest earned on fixed income securities, 265.9% and 91.9%
increase in interest earned on Placements and Loans and advances,
respectively.

 

-  Non-funded income (NFI) which comprises of Fee and Commission income
(14.0%), Net trading gains (4.5%), and Other Income (81.5%) grew significantly
by 638.2% to ₦398.7bn in Q1-2024 from N54.0bn in Q1-2023 due to significant
increase transactional volumes consummated by Banking and Non-Banking Business
verticals causing 72.7% and 67.4% growth in fees and commission income and net
trading income, respectively, complimented by fair value gains on financial
instruments of N331.6bn.

 

-  Net interest margin of 9.3% (31 March 2023: 7.7%).

 

·      Balance Sheet

-  Total assets of ₦13.002trn (31 December 2023: N9.691trn) up 34.2%.

-  Net loans and advances of ₦3.024trn (31 December 2023: N2.480trn) up
21.9%.

-  Deposit liabilities of ₦9.509trn (31 December 2023: N7.547trn) up 26.0%.

 

·      Credit Quality

-  IFRS 9 Stage 3 loans to total loans at 3.1% (31 December 2023: 4.2%).

-  Coverage for lifetime credit impaired loans at 485.0% (31 December 2023:
191.1%)

-  Cost of Risk at 0.4% (31 December 2023: 4.5%).

 

·      Continued focus on efficiency.

-  Cost-to-income ratio (CIR) closed at 16.3%, from 43.1% for the period
ended 31 March 2023.

 

 

·      Subsidiaries

 

-  Contribution to Group PBT from West Africa, East Africa and United Kingdom
closed at 13.3%, 1.4% and 1.1% in March 2024 from 25.8%, 3.3% and 3.2% in
March 2023 respectively due to improvement in Nigeria contribution to 85.0%
from 65.6%. Also, Non-Banking Entities contribution closed 0.7% from 1.6%
during the same period.

 

 

March 2024 Financial Analysis and Ratios

 

 Key Financials (N' billion)    Q1-2024   Q1-2023  ∆%
 Interest income                281.7     104.1    170.6%
 Non-interest income            398.7     54.0     638.2%
 Operating income               608.8     130.2    367.5%
 Operating expenses             99.3      56.1     76.9%
 Profit before tax              509.3     74.1     587.5%
 Profit after tax               457.1     58.2     685.9%
 Earnings per share (in Naira)  16.2      2.0      696.4%

                                Q1-2024   FY-2023  ∆%
 Total assets                   13,002.2  9,691.3  34.2%
 Net loans                      3,023.6   2,480.3  21.9%
 Deposit liabilities            9,508.6   7,546.9  26.0%

 

 

 Key Ratios                          Q1-2024  Q1-2023
 ROAE (post-tax)                     105.0%   24.4%
 ROAA (post-tax)                     16.1%    3.5%
 ROAE (pre-tax)                      117.0%   31.1%
 ROAA (pre-tax)                      18.0%    4.5%
 Net interest margin                 9.3%     7.7%
 Cost-to-income ratio                16.3%    43.1%

                                     Q1-2024  FY-2023
 Net loans to deposits               31.8%    32.9%
 Liquidity ratio                     42.5%    31.1%
 Capital adequacy ratio              24.9%    21.9%
 NPL/Total loans                     3.1%     4.2%
 Cost of risk                        0.4%     4.5%
 Coverage (with Reg. Risk Reserves)  485.0%   191.1%

 

02 May 2024

 
Enquiries:

 

 Guaranty Trust

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

 Charles Eremi, Group Communication

 ir@gtcoplc.com

 

Notes to the Editors:

 

Guaranty Trust Holding Company Plc is a diversified financial services company
with N13.002trillion 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 Limited

14) Guaranty Trust Pension Managers Limited

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