Guaranty Trust Holding Company Plc · NSENG:GTCO
Guaranty Trust — FY2021 Earnings Presentation
38 slides from Guaranty Trust's earnings presentation, March 2022
Slide 1: 2021 Full Year Investors/Analysts Presentation
March 2022 2021 Full Year Investors/Analysts Presentation Guaranty Trust Holding Company plc
Slide 2: Outline
Outline ▪ Macro-economic Review for FY 2021 ▪ Regulatory Overview of FY 2021 ▪ FY 2021 Performance Review ▪ Business Segments and Subsidiary Review ▪ Guidance for FY 2022
Slide 3: Macro-economic Review for FY 2021
Macro-economic Review for FY 2021
Slide 4: Sub-Saharan Africa Interest Rate and Inflation Highlights
Sub-Saharan Africa Interest Rate and Inflation Highlights Interest Rate Inflation In line with major global economies, most African countries cut interest rates to spur Most countries experienced record high inflation levels in 2021 driven by lingering growth to aid faster recovery from covid-19 ind
Slide 5: Sub-Saharan Africa Currency Review
Sub-Saharan Africa Currency Review Whilst currencies in East Africa remained relatively stable throughout the year, most west African countries recorded a marked devaluation in their currencies with the second half of the year witnessing stronger depreciation against the Dollar relative to the first
Slide 6: Macro-economic Review (Nigeria)
Macro-economic Review (Nigeria) As the Russia-Ukraine war continues to drive crude oil prices northwards, Nigeria’s oil Yields improved in the first half of 2021 despite its downward trend in 2020. We do not expect production is expected to rise gradually in line with OPEC production agreement and m
Slide 7: Macro-economic Review and Outlook
Macro-economic Review and Outlook Global West Africa East Africa After rebounding to an estimated Real GDP is projected to grow by 4.4% in The East African region is projected to growth of 5.5% in 2021, Global economic 2022, which represents a 50 bps increase grow by 4.9% in 2022, consolidating on g
Slide 8: Regulatory Overview of FY 2021
Regulatory Overview of FY 2021
Slide 9: Regulatory Overview - Nigeria 2021
Regulatory Overview - Nigeria 2021 ▪ The Central Bank of Nigeria (CBN) directs lending institutions to obtain CBN plans to include sugar and wheat to the list of commodities borrowers’ credit report from credit bureaus as part of their due diligence Q1 ▪ banned from accessing foreign exchange (FX) f
Slide 10: FY 2021 Financial Performance Review
FY 2021 Financial Performance Review
Slide 11: Key Performance Ratios
Key Performance Ratios December 31, 2020 December 31, 2021 Net Interest Margin 9.26% 6.74% Cost to Income Ratio 38.24% 42.28% Capital Adequacy Ratio 25.90% 23.80% Liquidity Ratio 38.91% 38.26% Loans to Deposits and Borrowings (Bank) 44.64% 42.08% Return on Equity (post tax) 26.83% 20.60% Return on A
Slide 12: Group Balance Sheet Snapshot (N 'Billions)
Group Balance Sheet Snapshot (N ‘Billions) Total Assets Total Liabilities Total Equity 5,436.0 4,552.8 883.2 FY 2021 10.2% FY 2021 8.5% FY 2021 9.9% 4,944.7 4,130.3 814.4 FY 2020 FY 2020 FY 2020 Gross Loans Net Loans and Total Deposits and Advances Advances 1,886.4 1,802.7 4,130.3 FY 2021 FY 2021 FY
Slide 13: Balance Sheet (Group)
Balance Sheet (Group) Group Group % y-o-y % y-o-y In thousands of Nigerian Naira Dec-21 Dec-20 In thousands of Nigerian Naira Dec-21 Dec-20 change change Assets Liabilities Cash and bank balances 933,591,069 745,557,370 25% Deposits from banks 118,027,576 101,509,550 16% Deposits from customers 4,01
Slide 14: Balance Sheet Composition
Balance Sheet Composition Loans, Deposits & Total Assets (₦'Bn) Balance ▪ Sheet The Group closed Management FY 2021 with Total Assets of ₦5.44tn representing a growth of 9.9% from FY 2020 ₦4.95tn position. Across all its Banking jurisdictions in West Africa, East Africa and United Kingdom, the Group
Slide 15: Group Income Statement Snapshot (N 'Billions)
Group Income Statement Snapshot (N ‘Billions) Gross Earnings Profit Before Tax Profit After Tax 447.8 221.5 174.8 FY 2021 FY 2021 (13.2%) FY 2021 (1.6%) (7.0%) 455.2 238.1 201.4 FY 2020 FY 2020 FY 2020 Non-Interest Interest Income Operating Income Income 180.9 226.9 383.8 FY 2021 FY 2021 FY 2021 17.
Slide 16: Income Statement - Group
Income Statement - Group Group In thousands of Nigerian Naira Dec-21 Dec-20 % Change Interest income calculated using effective interest rate 251,466,260 288,278,670 -13% Interest income on financial assets at fair value through Profit or loss 15,427,483 12,458,918 24% Interest expense (46,281,121)
Slide 17: PBT Trend
PBT Trend • The Group’s Gross Earnings dipped marginally by 1.6% to ₦447.8bn in FY 2021 from ₦455.2bn in FY 2020 primarily as a PBT (₦'Bn) result of a reduction in Interest Income from ₦300.7bn to ₦266.9bn (11.3%), which was in turn partly offset by growth in Fees and Commissions (₦74.1bn vs ₦53.2bn
Slide 18: Revenue Generation
Revenue Generation Revenue Mix (₦'Bn) • Revenue continued to be challenged as Gross earnings which comprises Funded and Non-Funded Income dipped by 1.6% from ₦455.2bn in FY 2020 to ₦447.8bn in FY 2021. 327.33 306.96 296.20 300.74 • Yield compression on Earning assets impacted the Funded Income compo
Slide 19: Margin Metrics
Margin Metrics Sustained Competitive Margins Net Interest Margin • NIM under pressure at 6.74% in FY 2021 as against 9.26% as of FY-2020 due to declining Asset Yields. 10.42% • Sound Treasury Management weighed positively and limited Asset yields compression by 302 bps 9.23% 9.28% 9.26% to 8.05% in
Slide 20: Efficient Cost Management
Efficient Cost Management • OPEX grew by 10.1% from ₦147.4bn in FY 2020 to ₦162.3bn in FY 2021 due to the impact of rising Cost to Income (CIR) headline inflation and exchange rate movement at the official market which precipitated an increase in general prices of goods and services. 42.28% • OPEX g
Slide 21: OPEX
OPEX Group Group In billions of Naira FY 2021 FY 2020 Change (Y-o-Y) % Change (Y-o-Y) Depreciation and Amortization 35.3 29.0 6.3 21.5% AMCON Expenses 21.9 17.2 4.7 27.3% Occupancy Costs and Repairs & Maintenance 9.6 12.9 (3.2) (25.0%) Deposit Insurance Premium 12.2 8.5 3.7 43.9% General welfare Exp
Slide 22: Risk Asset Mix
Risk Asset Mix ▪ Well diversified loan book with specific focus on quality risk assets across all our select business segments. ▪ Reduced exposure to the manufacturing sector was largely driven by scheduled paydowns and the slow recovery from significant disruptions caused by the impact of the Covid
Slide 23: Asset Quality
Asset Quality NPL and Coverage • The Group improved its asset quality with IFRS 9 Stage 3 loans closing at 6.04% in FY 2021 from 6.39% in FY 119.6% 105.1% 126.4% 128.7% 150.4% 2020. 7.66% 7.30% • The marginal increase in prudential NPLs from 6.86% to 6.92% was as a result of stress noted with certai
Slide 24: Strong Capital Ratios – Group and Parent
Strong Capital Ratios – Group and Parent • The Group continued to maintain strong capital positions with Full and Transitional IFRS 9 impact Capital Adequacy Ratio (CAR) of 23.8% and 25.4% respectively, 883bps above the regulatory minimum of 15%. 25.90% 25.68% 25.40% • Tier 1 capital remained a very
Slide 25: Liquidity Ratio
Liquidity Ratio Strong Liquidity Position Liquidity Trend 49.33% 48.52% • Liquidity ratio closed at 38.26% in FY 41.44% 2021 (FY 2020: 38.91%) well above the 38.91% 38.26% regulatory minimum requirement of 30% • Despite the pressure from intense competition and need to cover for regulatory debits, t
Slide 26: Digital Banking Performance (USSD)
Digital Banking Performance (USSD) ▪ Continuous growth in the level of adoption of digital banking both in volume and value. ▪ Total number of USSD unique users grew by 4.3% (300,000) from 6.9 million in Dec. 2020 to 7.2 million in Dec. 2021. ▪ The introduction of N6.98 flat fee on successful USSD t
Slide 27: Digital Banking Performance (Mobile and Internet Banking)
Digital Banking Performance (Mobile and Internet Banking) ▪ The increase in transactions Mobile Banking (Value in Trillions of Naira) Mobile Banking (Volume in Millions) on the internet and mobile 2.5 2.8 47.4 2.3 2.4 banking platforms was 2.2 38.9 40.0 41.8 2.0 2.0 2.0 2.0 2.0 37.5 buoyed by the in
Slide 28: Update on our Holding Company Structure
Update on our Holding Company Structure Holding Company Structure Transaction Update Re-organization exercise was concluded and became effective August 1, 2021 We started 2021 with our corporate re- Guaranty Trust Holding Company Plc is the Parent company organisation, and finished the year more of
Slide 29: Business Segments & Subsidiary Review
Business Segments & Subsidiary Review
Slide 30: Business Segmentation (Group) – FY 2021
Business Segmentation (Group) – FY 2021 Description Loans Deposits PBT 2,100+ N5 billion+ Large Corporates, Multinationals, Customers Turnover Energy, Telecoms, Maritime etc. 78.1% 24.8% 63.3% N1,408.1 billion N1,022.8 billion N137.7 billion Loans Deposits PBT Institutional and 75.9%* 24.2%* 69.4%*
Slide 31: Geographical Presence – FY 2021
Geographical Presence – FY 2021 GTBank Ltd. Habari Pay United Kingdom Liberia • 100% owned by GTCO • Established in Aug. 2021 • Established in 1990 • Established in 2008 • Established in 2009 • 100% owned by GTCO • 235 branches, 16 e-branches, 14 cash • 100% owned by GTBank Ltd. • 99.43% owned by GT
Slide 32: Banking and Non-Banking Subsidiary Overview – FY 2021
Banking and Non-Banking Subsidiary Overview – FY 2021 Millions of Naira Assets Loans Total Deposit PBT FY 2021 FY 2020 % Change FY 2021 FY 2020 % Change FY 2021 FY 2020 % Change FY 2021 FY 2020 % Change Cote D’Ivoire 72,334 54,403 33% 15,666 15,428 2% 56,837 40,218 41% 2,785 1,203 132% Gambia 85,857
Slide 33: Regional Performance – FY 2021
Regional Performance – FY 2021 ▪ 32 branches East ▪ FY 2021 Gross Earnings: N23.50 bn (FY 2020: N19.19 bn) 22.5% y-o-y FY 2021 PBT: N6.61 bn (FY 2020: N3.59 bn) 84.1% y-o-y Africa ▪ ▪ ROE: 10.5% (FY 2020: 7.2%) West Africa ▪ 80 branches, 1 e-branch (excluding ▪ FY 2021 Gross Earnings: N87.83 bn (FY
Slide 34: Non-Financial Highlights for FY 2021
Non-Financial Highlights for FY 2021 34
Slide 35: FY 2022 Guidance
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Slide 36: FY 2022 Guidance
FY 2022 Guidance FY 2020 FY 2021 FY 2022 Guidance PBT N238.1 bn N221.5 bn N243 bn Deposit Growth 36.8% 14.4% 25% Loan Growth 10.7% 8.4% 10% Coverage (with Reg. Risk Reserve) 128.7% 150.4% 100% Cost of Risk 1.18% 0.50% 1% NPL to Total Loans 6.4% 6.00% 6% Return on average Assets 4.6% 3.4% 5% Return o
Slide 37: Disclaimer
Disclaimer This presentation is based on Guaranty Trust Holding Company Plc (“GTCO” or “Group”)’s audited financial results for the full year ended December 31, 2021 prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards B
Slide 38: Thank You
Thank You Same Orange MORE RANGE
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