Guaranty Trust Holding Company Plc · NSENG:GTCO
Guaranty Trust — H1 2022 Earnings Presentation
39 slides from Guaranty Trust's earnings presentation, Sep 12, 2022
Slide 1: 2022 Half Year Investors/Analysts' Presentation
2022 Half Year Investors/Analysts’ Presentation Guaranty Trust Holding Company Plc September 2022
Slide 2: Outline
Outline ▪ Macro-economic Review for HY 2022 ▪ Regulatory Overview of HY 2022 ▪ HY 2022 Performance Review ▪ Update on Non-Banking Subsidiaries ▪ Business Segments and Banking Subsidiary Review ▪ Guidance and Plans for FY 2022
Slide 3: Macro-economic Review for HY 2022
Macro-economic Review for HY 2022
Slide 4: Global Currency Review
Global Currency Review The Fed maintained its aggressive stance on raising interest rates, making the US dollar more attractive to hold and strengthening the US Dollar against most other major currencies. The ‘safe haven’ status of the US dollar has been buoyed by fears of global economic slowdown,
Slide 5: Interest Rate and Inflation Highlights
Interest Rate and Inflation Highlights Interest Rate Inflation Post COVID-19 pandemic, major global economies remain fragile. The first Advanced economies are focused on curtailing inflationary pressures in the half of 2022 saw a slew of Central Bank rate hikes adopting monetary face of lingering su
Slide 6: Macro-economic Review (Nigeria)
Macro-economic Review (Nigeria) Nigeria’s oil production remains significantly below approved quota amidst concerns of Effects of increasing fiscal deficit has crowded out the private sector from the Fixed-Income pipeline vandalization and infrastructural gaps as oil prices hover at close to US$100
Slide 7: Sub-Saharan Africa Interest Rate and Inflation Highlights
Sub-Saharan Africa Interest Rate and Inflation Highlights Interest Rate Inflation In response to happenings in major global economies, most African Economic output is still below pre-pandemic levels this year. Inflation is expected economies raised their benchmark rate to curb inflationary pressures
Slide 8: Macro-economic Review and Outlook
Macro-economic Review and Outlook Global Sub-Saharan West Africa East Africa Africa The World economy is The war in Ukraine has Economies in West Africa are East Africa’s economy is set to experiencing increased levels significantly impacted the projected to grow at a stable expand by 4.7% on the ba
Slide 9: Regulatory Overview of HY 2022
Regulatory Overview of HY 2022
Slide 10: Regulatory Overview - HY 2022
Regulatory Overview - HY 2022 ▪ CBN introduces e-Valuator and ▪ SEC mandates all CMOs to screen and ▪ PenCom publishes status of implementation e-Invoice as part of documentation verify all clients against proscribed of the contributory pension scheme by the required for import and export groups and
Slide 11: HY 2022 Financial Performance Review
HY 2022 Financial Performance Review
Slide 12: Key Performance Ratios
Key Performance Ratios June 30, 2021 June 30, 2022 Net Interest Margin 6.98% 6.51% Cost to Income Ratio 48.98% 49.06% Capital Adequacy Ratio 23.80%* 22.02% Liquidity Ratio 38.26%* 38.85% Loans to Deposits and Borrowings (Bank) 43.65%* 41.75% Return on Equity 19.71% 23.89%** Return on Assets 3.19% 3.
Slide 13: HY 2022 Group Balance Sheet Snapshot
HY 2022 Group Balance Sheet Snapshot (N ‘Billions) Total Assets Total Liabilities Total Equity 5,686.0 4,840.3 845.7 HY 2022 HY 2022 HY 2022 4.6% 6.3% (4.2%) 5,436.0 4,552.8 883.2 FY 2021 FY 2021 FY 2021 Gross Loans Net Loans and Total Deposits and Advances Advances 1,918.9 1,834.7 4,394.4 HY 2022 H
Slide 14: Balance Sheet (Group)
Balance Sheet (Group) Group Group % y-o-y % y-o-y In thousands of Nigerian Naira Jun-22 Dec-21 In thousands of Nigerian Naira Jun-22 Dec-21 change change Assets Liabilities Cash and bank balances 1,038,773,906 933,591,069 11% Deposits from banks 131,799,616 118,027,576 12% Deposits from customers 4,
Slide 15: Balance Sheet Composition
Balance Sheet Composition Loans, Deposits & Total Assets (₦'Bn) ▪ The Group closed H1 2022 with Balance Sheet size of ₦5.69tn representing a 4.6% growth over ₦5.44tn recorded FY 2021. Across all its jurisdictions of Operations (West Africa, East Africa and United Kingdom), the Group’s Balance sheet
Slide 16: HY 2022 Group Income Statement Snapshot
HY 2022 Group Income Statement Snapshot (N ‘Billions) Gross Earnings Profit Before Tax Profit After Tax 239.3 103.2 77.6 HY 2022 HY 2022 (2.3%) HY 2022 15.1% 11.0% 207.9 93.1 79.4 HY 2021 HY 2021 HY 2021 Non-Interest Interest Income Operating Income Income 92.1 147.2 202.7 HY 2022 HY 2022 HY 2022 12
Slide 17: Income Statement - Group
Income Statement - Group Group In thousands of Nigerian Naira Jun-22 Jun-21 % Change Interest income calculated using effective interest rate 134,985,729 116,864,807 16% Interest income on financial assets at fair value through Profit or loss 12,213,878 9,226,294 32% Interest expense (26,351,379) (1
Slide 18: PBT Trend
PBT Trend ▪ The Group’s Gross Earnings increased by 15.1% to ₦239.3bn in H1-2022 from ₦207.9bn in H1-2021 primarily from growth recorded on all revenue lines apart from the Other Income line which dipped by 14.9%. Interest Income PBT (₦'Bn) increased by 16.7% (₦147.2bn vs ₦126.0bn), Fee and Commissi
Slide 19: Revenue Generation
Revenue Generation ● Revenue continued to improve as Gross earnings which comprises Funded Income (FI) and Non-Funded Revenue Mix (₦'Bn) Income (NFI) increased by 15.1% from ₦207.9bn in H1-2021 to ₦239.3bn in H1-2022. ● Growth of 4.1% in Earning Assets volume coupled with improvement in yields on Fi
Slide 20: Margin Metrics
Margin Metrics Net Interest Margin Sustained Competitive Margins • NIM under pressure at 6.5% in H1-2022 as against 7.0% as of H1-2021 largely due to Increase in cost of funds and marginal dip in assets yield. • Total Asset Yield was at 8.0% in H1-2022, a reduction of 10bps from 8.1% in H1-2021. • T
Slide 21: Efficient Cost Management
Efficient Cost Management Cost to Income (CIR) • OPEX grew by 11.3% from ₦89.3bn in H1-2021 to ₦99.5bn in H1-2022 due to the impact of rising inflation and exchange rate movement at both the official & parallel market which precipitated an increase in the general prices of goods and services. • OPEX
Slide 22: OPEX
OPEX Group Group In billions of Naira HY 2022 HY 2021 Change (Y-o-Y) % Change (Y-o-Y) Depreciation and Amortization 17.35 17.76 (0.42) (2.3%) AMCON Expenses 23.3 21.9 1.4 6.4% Occupancy Costs and Repairs & Maintenance 6.4 4.3 2.1 48.2% Deposit Insurance Premium 7.1 5.9 1.2 20.0% General welfare Expe
Slide 23: Risk Asset Mix
Risk Asset Mix ▪ The Group continued to maintain a well diversified Loan book with specific focus on quality of risk assets across all our select business segments. ▪ Reduced exposure to the Agriculture sector was largely driven by scheduled paydowns on Anchor Borrowers’ Fund (Intervention Loans). ▪
Slide 24: Asset Quality
Asset Quality NPL and Coverage 12876% 128.76% 150.4% 150.4% 140.5% 146.7% 175.2% 150.3% • The Group’s IFRS 9 Stage 3 loans closed at 6.2% in H1-2022 from 6.0% in FY 2021. • The marginal increase in NPL was as a result of stress noted with certain exposures within the Hospitality, Individuals, Clubs,
Slide 25: Strong Capital Ratios – Group and Parent
Strong Capital Ratios – Group and Parent • The Group continued to maintain strong capital positions with Full IFRS 9 impact Capital Adequacy Ratio (CAR) of 22.02%; 702bps above the regulatory minimum of 15%. 24.00% • Tier 1 capital remained a very significant component of the Group’s CAR closing at
Slide 26: Liquidity Ratio
Liquidity Ratio Liquidity Trend Strong Liquidity Position •Liquidity ratio closed at 38.85% in FY 2022 (FY 2021: 38.26%) well above the regulatory minimum requirement of 30%. 38.26% •Despite the pressure from intense competition and need to cover for regulatory debits, the Group maintained average l
Slide 27: Digital Banking Performance (USSD)
Digital Banking Performance (USSD) ▪ Continuous growth in the adoption of digital banking platforms both in transaction volume and value with over 2 million users on GTWorld and Mobile Banking. ▪ Impact of N6.98 flat fee applied on successful USSD transactions sustained. Volume of transactions remai
Slide 28: Digital Banking Performance (Mobile and Internet Banking)
Digital Banking Performance (Mobile and Internet Banking) Mobile Banking Value (in trillions of Naira) Mobile Banking Volume (in millions) ▪ Increased adoption of electronic banking platforms with strong growth in both volume and value of Mobile Banking. ▪ The 52% year-on-year growth in Mobile Banki
Slide 29: Update on Non-Banking Subsidiaries
Update on Non-Banking Subsidiaries HabariPay GT Fund Managers GT Pension Managers ▪ Flagship Product: Squad, ▪ AUM: N73.8 billion ▪ AUM: N54.36 billion launched 01 June 2022 (pre-acquisition: N28.3 billion) (pre-acquisition: N48.7 billion) ▪ Services: Online & offline ▪ Active Unit Holders: 14,357 ▪
Slide 30: Business Segments & Banking Subsidiary Review
Business Segments & Banking Subsidiary Review
Slide 31: Business Segmentation (Banking Group) – HY 2022
Business Segmentation (Banking Group) – HY 2022 Description Loans Deposits PBT 9,369+ above N20 billion+ Large Corporates, Multinationals, Customers Turnover Energy, Telecoms, Maritime, etc. 65.1% 78.8% 24.9% N1,445.1 billion N1,096.4 billion Loans N64.7 billion Deposits PBT Institutional & Wholesal
Slide 32: Geographical Presence – HY 2022
Geographical Presence – HY 2022 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 GT
Slide 33: Banking and Non-Banking Subsidiary Overview – HY 2022
Banking and Non-Banking Subsidiary Overview – HY 2022 Millions of Naira Assets Loans Total Deposit PBT HY 2022 FY 2021 % Change HY 2022 FY 2021 % Change HY 2022 FY 2021 % Change HY 2022 HY 2021 % Change Cote D’Ivoire 83,564 72,334 16% 14,414 15,666 -8% 61,569 56,837 8% 2,778 1,113 150% Gambia 84,659
Slide 34: Regional Performance (Banking Subsidiaries – HY 2022)
Regional Performance (Banking Subsidiaries – HY 2022) ▪ 32 branches East ▪ HY 2022 Gross Earnings: N12.05 bn (HY 2021: N10.84 bn) 11.2% y-o-y ▪ HY 2022 PBT: N4.04 bn (HY 2021: N2.92bn) 38.4% y-o-y Africa ▪ ROE: 13.2% (HY 2021: 10.7%) ▪ 80 branches, 1 e-branch West Africa ▪ HY 2022 Gross Earnings: N5
Slide 35: Non-Financial Highlights for HY 2022
Non-Financial Highlights for HY 2022 35
Slide 36: FY 2022 Guidance and Plans
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Slide 37: FY 2022 Guidance
FY 2022 Guidance FY 2021 HY 2022 FY 2022 Guidance PBT N221.5 bn N103.3 bn N243 bn Deposit Growth 14.4% 6.4% 25.0% Loan Growth 8.4% 1.8% 10.0% Coverage (with Reg. Risk Reserve) 150.4% 150.3% 100.0% Cost of Risk 0.5% 0.2% 1.0% NPL to Total Loans 6.00% 6.20% 6.00% Return on average Assets 3.4% 3.71%* 5
Slide 38: Disclaimer
Disclaimer This presentation is based on Guaranty Trust Holding Company Plc (“GTCO” or the “Group”)’s audited financial results for the period ended June 30, 2022, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Boa
Slide 39: Thank You
Thank You ma me Ne eas alee ff : AB we ey J q a EA e ks by AALS Se ed TRS
Guaranty Trust Holding Company — H1 2022 Earnings Presentation on 6ix