Guaranty Trust Holding Company Plc · NSENG:GTCO
Guaranty Trust — H1 2024 Earnings Presentation
51 slides from Guaranty Trust's earnings presentation, June 2024
Slide 1: Guaranty Trust Holding Company Plc 2024 Half Year Investor Presentation
Guaranty Trust Holding Company Plc 2024 Half Year Investor Presentation
Slide 2: Outline
Outline ▪ Global Currency and Macro-economic Review ▪ Regulatory Overview ▪ HY 2024 Performance Review ▪ Banking Subsidiary Review ▪ Non-Banking Subsidiaries Review ▪ HabariPay ▪ GT Fund Managers ▪ GT Pension Managers ▪ Guidance and Plans for FY 2024 © Guaranty Trust Holding Company Plc HY 2024 Inve
Slide 3: Macro-economic Review
Macro-economic Review © Guaranty Trust Holding Company Plc HY 2024 Investor Presentation
Slide 4: Global Currency Review
Global Currency Review The U.S. Dollar experienced marginal fluctuations against other major currencies partly in response to anticipation of rate adjustments by Federal Reserve on the back of receding inflation numbers, but remains fairly strong. Improved growth prospects in the U.K. as well as the
Slide 5: Global Interest Rates and Inflation Highlights
Global Interest Rates and Inflation Highlights Interest Rate Inflation Central banks around the world have begun a cycle of measured rate cuts as inflation A greater-than-expected rise in the labor force amid robust employment growth begins to taper, gradually unwinding policy rates after they have
Slide 6: Sub-Saharan Africa Interest Rates and Inflation Highlights
Sub-Saharan Africa Interest Rates and Inflation Highlights Interest Rate Inflation Monetary authorities in Countries in key African economies have sustained a tight Across Sub-Saharan Africa, inflation has slowed significantly from prior year highs; monetary stance to address stubbornly high inflati
Slide 7: Macro-economic Review (Nigeria)
Macro-economic Review (Nigeria) Brent Crude averaged $83 per barrel amid dwindling global oil inventories, estimated to have The average yield on NTBs inched higher through H1-24 driven by the CBN’s policy decreased by 0.4 million barrels per day in 1H24. Ongoing investments to increase oil output m
Slide 8: Macro-economic Review and Outlook
Macro-economic Review and Outlook Global Sub-Saharan West Africa East Africa Africa Global economic growth is steadying four Growth in the region’s largest three West Africa is projected to pick up The East African region continues to years after the massive disruptions caused economies—Nigeria, Sou
Slide 9: Regulatory Overview
Regulatory Overview © Guaranty Trust Holding Company Plc HY 2024 Investor Presentation
Slide 10: Regulatory Overview
Regulatory Overview The first-half of 2024 saw a continuation of critical monetary and fiscal reforms Mar 2024 ▪ Resumption of OMO issuance ▪ MPR hike by 150 bps ▪ CBN issues new directive on ▪ Withdrawal of circular Bank’s NOP positions May 2024 implementing collection of Jan 2024 ▪ Restriction on
Slide 11: HY 2024 Financial Performance Review
HY 2024 Financial Performance Review © Guaranty Trust Holding Company Plc HY 2024 Investor Presentation
Slide 12: Key Performance Ratios - Group
Key Performance Ratios - Group June 30, 2023 June 30, 2024 Net Interest Margin 7.76% 10.45% Cost to Income Ratio 27.72% 16.74% Capital Adequacy Ratio 21.94%* 20.95% Liquidity Ratio 31.08%* 44.90% Loans to Deposits and Borrowings 35.99% 29.50% Return on Equity (post-tax) 52.63% 93.44% Return on Asset
Slide 13: HY 2024 Group Balance Sheet Snapshot
HY 2024 Group Balance Sheet Snapshot (N ‘Billions) Total Assets Total Liabilities Total Equity 14,511.0 12,111.3 2,399.6 HY 2024 HY 2024 HY 2024 50% 47% 62% 9,691.3 8,214.1 1,477.1 FY 2023 FY 2023 FY 2023 Gross Loans Net Loans and Total Deposits and Advances Advances 3,367.0 3,112.3 10,550.2 HY 2024
Slide 14: Balance Sheet (Group)
Balance Sheet (Group) Group Group y-o-y y-o-y In thousands of Nigerian Naira Jun-24 Dec-23 change In thousands of Nigerian Naira Jun-24 Dec-23 change (%) (%) Assets Liabilities Deposits from banks 296,081,451 136,053,409 118% Cash and bank balances 4,465,742,705 2,309,618,698 93% Deposits from custo
Slide 15: Balance Sheet Composition
Balance Sheet Composition ▪The Group recorded growth across all its asset lines and continues to maintain a well-structured, healthy, and diversified Loans, Deposits & Total Assets (₦'Bn) balance sheet across all jurisdictions where it operates a banking franchise as well as across its Payments, Pen
Slide 16: HY 2024 Group Income Statement Snapshot
HY 2024 Group Income Statement Snapshot (N ‘Billions) Gross Earnings Profit Before Tax Profit After Tax 1,392.5 1,003.8 905.6 HY 2024 206.6% HY 2024 222.9% HY 2024 107% 672.6 327.4 280.5 HY 2023 HY 2023 HY 2023 Non-Interest Interest Income Operating Income Income 774.7 617.9 1,205.9 HY 2024 HY 2024
Slide 17: Income Statement - Group
Income Statement - Group Group In thousands of Nigerian Naira Jun-24 Jun-23 % Change Gross Earnings 1,392,549,816 672,602,957 107% Interest income calculated using effective interest rate 607,699,921 214,451,051 183% Interest income on financial assets at fair value through Profit or loss 10,187,834
Slide 18: PBT Trend
PBT Trend ▪ The Group’s gross earnings grew by 107.0% to ₦1.392tr in H1-2024 from ₦672.6bn in H1-2023 due to growth in transactional volumes and sustenance of its solid balance sheet structure which led to significant increase in net interest earning and enhanced other income. ▪ Interest earnings gr
Slide 19: Revenue Generation
Revenue Generation ▪ Revenue growth remains very strong as gross earnings which comprises funded income (FI) and non-funded income (NFI) grew by 107.0% to ₦1.392tn in H1-2024 from ₦672.60bn in H1-2023. Interest Income (₦’Bn) ▪ 56.3% growth in earning asset volumes together with increase in yields on
Slide 20: Margin Metrics
Margin Metrics Sustained Competitive Margins ▪ NIM inched up to 10.45% in H1-2024 from 7.76% as of H1-2023 due to an increase in yields on 364-day Net Interest Margin T-Bills, FCY placement and loans. The uptick in yield weighed positively on the overall earnings portfolio and was sufficient to offs
Slide 21: Continued Cost Discipline
Continued Cost Discipline ▪ OPEX growth of 60.7% was precipitated by growth in headline inflation in Nigeria, other West and East African Cost to Income Ratio (CIR) Jurisdiction of operations; specifically, Nigeria’s inflation closed at 34.2% as at H1-2024. Operating cost was also impacted by advers
Slide 22: OPEX
OPEX Group Group In billions of Naira HY 2024 HY 2023 Change (Y-o-Y) % Change (Y-o-Y) Depreciation and Amortization 27.5 19.4 8.2 42.1% AMCON Expenses 36.7 27.4 9.2 33.6% Occupancy Costs and Repairs & Maintenance 7.6 4.4 3.1 70.4% Deposit Insurance Premium 12.5 8.4 4.1 48.3% Communication, Tech. rel
Slide 23: Risk Asset Mix
Risk Asset Mix ▪ The Group continued to maintain a well-distributed loan book with a specific focus on asset quality across select business segments. ▪ Exchange rate movement from ₦907.11/$1 in FY-2023 to ₦1505.30/$1 in H1-2024 resulted in an increase in the contribution of the oil & gas sector to t
Slide 24: Asset Quality
Asset Quality NPL and Coverage ▪ The Group’s IFRS 9 Stage 3 loans closed at 4.3% (Bank: 2.8%) in H1-2024 from 4.2% (Bank: 2.5%) in FY-2023. Education and Others emerged as sectors with the highest NPLs i.e., 44.6% and 19.1%, respectively. 150.40% 175.50% 236.80% 191.10% 229.91% ▪ IFRS 9 Stage 3 loan
Slide 25: Strong Capital Ratios – Group and Parent
Strong Capital Ratios – Group and Parent Capital Adequacy Ratio (Basel II) (%) ▪ The Group continued to maintain strong capital positions with Full IFRS 9 impact Capital Adequacy Ratio (CAR) of 21.0% (Bank:19.9%); 600bps above the regulatory minimum of 15% and 500bps if adjusted for 1% loss absorben
Slide 26: Liquidity Ratio
Liquidity Ratio Strong Liquidity Position ▪ Liquidity ratio closed at 44.9% in H1-2024 up from 37.51% in H1-2023 well above the regulatory minimum requirement of 30%. ▪ Despite the pressure from competition and the need to cover for regulatory CRR debits, the Group maintained an average liquidity ra
Slide 27: Digital Banking Performance
Digital Banking Performance Mobile Banking Value (in trillions of Naira) Mobile Banking Volume (in millions) ▪ Strong growth in both Mobile Banking (36.78%) and Internet Banking (46.76%) volume, reflecting investments in GTWorld upgrade and better user experience on the platforms. ▪ Total transactio
Slide 28: Digital Banking Performance (USSD)
Digital Banking Performance (USSD) ▪ Since the implementation of N6.98 transaction charges borne by customers, the use of USSD as a transfer channel has steadily declined. Additionally, customers are increasingly opting for mobile and internet banking platforms, particularly for higher-value transac
Slide 29: Banking and Non-Banking Subsidiary Overview – HY 2024
Banking and Non-Banking Subsidiary Overview – HY 2024 Millions of Naira Assets Loans Total Deposit PBT HY 2024 FY 2023 % Change HY 2024 FY 2023 % Change HY 2024 FY 2023 % Change HY 2024 HY 2023 % Change Nigeria 9,757,849 6,947,904 40% 2,462,856 2,034,581 21% 6,658,251 5,266,607 26% 843,193 277,310 2
Slide 30: Banking Subsidiary Review
Banking Subsidiary Review © Guaranty Trust Holding Company Plc HY 2024 Investor Presentation
Slide 31: Give your Business the Premium Touch
Give your Business the Premium Touch With GTBusiness Premium, you can access exclusive benefits that give your business the right advantage. + Reduced banking cost = Access to personalised digital solutions + Round the clock support and business advisory Visit gtbank.com to open an account For mor e
Slide 32: Business Segmentation (Banking Group) – HY 2024
Business Segmentation (Banking Group) – HY 2024 Description Loans Deposits PBT 16,496+ above N20 billion+ Large Corporates, Multinationals, Customers Turnover Energy, Telecoms, Maritime, etc. 51.6% 89.1% 21.0% N2,772.2 billion N2,021.1 billion N513.5 billion Loans Deposits PBT Institutional & Wholes
Slide 33: Regional Performance (Banking Subsidiaries – HY 2024)
Regional Performance (Banking Subsidiaries – HY 2024) ▪ 80 branches, 1 e-branch West Africa ▪ HY 2024 Gross Earnings: N224.10 bn (HY 2023: N66.14 bn) 238.8% y-o-y (ex. Nigeria) ▪ HY 2024 PBT: N130.58 bn (HY 2023: N38.18 bn ) 242.0% y-o-y ▪ ROAE: 52.6% (HY 2023: 28.8%) ▪ 33 branches East ▪ HY 2024 Gr
Slide 34: Non-Banking Subsidiaries Review
Non-Banking Subsidiaries Review © Guaranty Trust Holding Company Plc HY 2024 Investor Presentation
Slide 35: Squad by HabariPay
squad by HabariPay cabeuated a The Payment Solution Africa relies on Virtual Account | Payment | USSD | Switching Services | Airtime and Data Bundles
Slide 36: HabariPay
HabariPay Strong Revenue and EBITDA Performance Revenue Mix Per Vertical EBITDA Growth 76% ₦2,817,276,718 ₦2,145,772,072 30% ₦2,326,025,402 ₦1,647,152,333 EBITDA Margin 21% 71% ▪ 21% growth in revenue from ₦2.326 billion (HY-2023) to ₦2.817 billion in HY-2024.. ▪ EBITDA growth of 30%. ▪ Revenue grow
Slide 37: HabariPay
HabariPay Robust Merchant Acquiring Growth ● Gateway & Switching: N9.805 tn ● International Payments: $1.240 mn Gateway & Switching (N ‘billions) Int’l Payment ($ ‘thousands) TPV Trend ▪ The Payments arm of the Group saw increase in the number of entities that switched transactions through the PayCo
Slide 38: HabariPay
HabariPay TPV by Currency 16.93% 171.83% TPV by Currency (NGN) TPV by Currency (USD) 38
Slide 39: Your Investment Should be there
Your Investment Should be there Guaranty Trust Fund Managers Ltd
Slide 40: Guaranty Trust Fund Managers
Guaranty Trust Fund Managers Strong Revenue and PBT Growth Revenue (N MN) PBT Trend (N MN) 505.14% 367.62% ▪ 367.62% growth in revenue from ₦1,024.5 billion (HY-2023) ▪ 505.14% growth in PBT from ₦631.5 million (HY-2023) to to ₦4,750.3 billion in HY-2024. ₦3,821.5 billion in HY-2024. ▪ Revenue growt
Slide 41: Guaranty Trust Fund Managers
Guaranty Trust Fund Managers Broadly diversified business with high growth potential AUM Trend (N BN) AUM Growth (N BN) 90% ▪ Consistent growth in Assets Under Management (AUM) from ₦379.94 billion (HY-2023) to ₦721.96 billion in HY-2024, representing a 90% increase. ▪ On track to achieve milestone
Slide 42: Guaranty Trust Fund Managers
Guaranty Trust Fund Managers Strong AUM mix anchored on HoldCo Synergies AUM Mix by Client AUM Mix by Fund ▪ The business continues to benefit strong relationship with institutional clients based on trust and superior fund performance. ▪ Ongoing efforts to deepen customer share of wallet and rapidly
Slide 43: As an indigenous Pension Fund Company, our roots run deeper
As an indigenous Pension Fund Company, our roots run deeper. We help millions of Nigerians make smart and future-proof retirement decisions. To open a pension account, visit gtpensionmanagers.com
Slide 44: Guaranty Trust Pension Managers
Guaranty Trust Pension Managers Creating Sustainable Value N738.7 Revenue (N MN) N1,442.8 PBT (N MN) 37.80% N536.1 47.73% N976.5 ▪ Revenue grew by 47.75% to ₦1,442.8 mn in HY-2024 (HY-2023: ▪ Recorded ₦738.7 mn in PBT in HY-2024 (HY-2023: ₦536.1 mn), ₦976.5 mn) driven by organic growth in AUM. repre
Slide 45: Guaranty Trust Pension Managers
Guaranty Trust Pension Managers Steady AUM Growth With Sights on New Market Segments AUM Trend (N MN) AUM Growth (N MN) 12.9% ▪ Growth in Assets Under Management (AUM) to ₦90.12 billion. ▪ Significant opportunity to grow AUM within existing customer base and new market segments. AUM Mix by Client 45
Slide 46: Non-Financial Highlights for HY 2024
Non-Financial Highlights for HY 2024 46
Slide 47: Our Geographical Presence
Our Geographical Presence 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 • 237 branches, 16 e-branches, 14 cash • 100% owned by GTBank Ltd. • 99.43% owned by GTBank L
Slide 48: FY 2024 Guidance and Plans
FY 2024 Guidance and Plans © Guaranty Trust Holding Company Plc HY 2024 Investor Presentation
Slide 49: FY 2024 Guidance
FY 2024 Guidance FY 2023 HY 2024 Actual FY 2024 Guidance PBT N609.3 bn N1,003.8 bn N806.0 bn Deposit Growth 64.0% 40.0% 45.0% Loan Growth 32.0% 25.5% 30.0% Coverage (with Reg. Risk Reserve) 191.10% 229.9% 180.0% Cost of Risk 4.5% 1.58% 0.8% NPL to Total Loans 4.20% 4.26% 4.5% Return on average Asset
Slide 50: Disclaimer
Disclaimer This presentation is based on Guaranty Trust Holding Company Plc (“GTCO” or the “Group”)’s audited consolidated financial results for the period ended June 30, 2024, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting
Slide 51: Thank You
Thank You EUROMONEY, Ait FOR ALN
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