Guaranty Trust Holding Company Plc · NSENG:GTCO
Guaranty Trust — H1 2020 Earnings Presentation
34 slides from Guaranty Trust's earnings presentation, August 2020
Slide 1: 2020 Half Year Investors/Analysts Presentation
2020 Half Year Investors/Analysts Presentation G u a r a n t y Tr u s t B a n k p l c August 2020
Slide 2: Outline
Outline o Macro-economic Review for HY 2020 o Overview of HY 2020 o HY 2020 Performance Review o Business Segments and Subsidiary Review o Guidance and Plans for FY 2020
Slide 3: Macro-economic Review for HY 2020
Macro-economic Review for HY 2020
Slide 4: Macro-economic Review (HY 2020)
Macro-economic Review (HY 2020) Following steep dip in global oil prices, oil demand as well as production output The restriction of OMO securities investment to banks and foreign investors alone exacerbated by the outbreak of covid-19 pandemic, external reserves declined by 7.4% coupled with the re
Slide 5: Macro-economic Review for HY 2020
Macro-economic Review for HY 2020
Slide 6: Overview of HY 2020
Overview of HY 2020 ▪ CBN retains 65% Loan to Deposit Ratio (LDR) ▪ CBN reviews the Nigeria Uniform Bank Account Number ▪ The FGN announces the removal of fuel subsidy for commercial and merchant Banks, sustains (NUBAN) to include other finance institutions. across the country. penalty for defaultin
Slide 7: HY 2020 Financial Performance Review
HY 2020 Financial Performance Review
Slide 8: Key Performance Ratios
Key Performance Ratios June 30, 2019 June 30, 2020 9.55% Net Interest Margin 9.74% 37.63% Cost to Income 43.16% 22.51%* Capital Adequacy 22.93% 49.33%* Liquidity 43.15% 60.62%* Loans to Deposits and Borrowings (Bank) 56.19% 33.62% Return on Equity (post tax) 26.78% 5.76% Return on Assets (post tax)
Slide 9: Balance Sheet Snapshot - Group
Balance Sheet Snapshot - Group N4,511.3 Bn N3,790.4 Bn N720.9 Bn HY 2020 HY 2020 HY 2020 N3,758.9 Bn N3,071.6 Bn N687.3 Bn 20% FY 2019 23.4% FY 2019 4.9% FY 2019 Total Liabilities Total Equity Total Assets N1,697.9 Bn N1,624.2Bn N3,086.3 Bn HY 2020 HY 2020 HY 2020 N2,640.1 Bn N1,569.3 Bn N1,502.1 Bn
Slide 10: Balance Sheet (Group)
Balance Sheet (Group) Group Group Group Group % ytd % ytd In thousands of Nigerian Naira Jun-20 Dec-2019 change In thousands of Nigerian Naira Jun-20 Dec-2019 change Assets Liabilities Deposits from banks 84,927,490 107,518,398 -21% Cash and bank balances 758,814,019 593,551,117 28% Deposits from cu
Slide 11: Balance Sheet Composition
Balance Sheet Composition Balance Sheet Management Loans, Deposits & Total Assets (₦'Bn) ▪ The Group continued to maintain a well-structured, efficient and diversified Balance sheet with strong earnings capacity. The Balance sheet Structure enabled the Group to withstand the negative impact of COVID
Slide 12: Income Statement Snapshot - Group
Income Statement Snapshot - Group N225.1 Bn N109.7 Bn N94.3 Bn HY 2020 HY 2020 HY 2020 N221.9 Bn N115.8 Bn N99.1 Bn 1.5% HY 2019 (5.2%) HY 2019 (4.9%) HY 2019 Gross Earnings Profit Before Tax Profit After Tax N71.4 Bn N153.7 Bn N189.8 Bn HY 2020 HY 2020 HY 2020 N72.9 Bn N149.0 Bn N185.6 Bn (2.0%) HY
Slide 13: Income Statement - Group
Income Statement - Group Group Group In thousands of Nigerian Naira Jun-20 Jun-19 % Change Interest income calculated using effective interest rate 150,486,443 146,448,905 3% Interest income on financial assets at fair value through Profit or loss 3,222,038 2,543,759 27% Interest expense -26,093,017
Slide 14: PBT Trend
PBT Trend ▪ The Group posted a PBT of ₦109.7 bn in HY 2020, a 5.2% reduction from ₦115.8 bn recorded in HY 2019. The dip was primarily due to relatively lower yield environment in 2020 and the PBT (₦'Bn) implementation of CBN’s revised Bankers’ Tariff which became effective in January 1, 2020. ▪ Top
Slide 15: Revenue Generation
Revenue Generation The Group’s gross earnings improved by 1.5% due to the interplay of 3.2% growth in Funded Income ▪ and 2.0% dip in Non-Funded Income. Revenue Mix (₦'Bn) ▪ Interest income as a percentage of Gross earnings improved to 68% in HY 2020 compared to 67% recorded in HY 2019 due to the Gr
Slide 16: Margin Metrics
Margin Metrics Net Interest Margin Sustained Competitive Margins 9.74% ▪ NIM remained strong, printing at 9.7% in HY 2020 as against 9.3% of FY 2019, gaining significantly from 79 bps drop in Cost of Funds (CoF) which 9.55% adequately offset the 6 bps decrease in Asset yields. ▪ Sound Treasury Manag
Slide 17: Cost Efficiency
Cost Efficiency Cost to Income (CIR) Efficient Cost Management ▪ Cost containment remains pivotal in the achievement of the Group strategic objectives. Although Cost to Income Ratio (CIR) came in above its 40% target in HY 2020, the Group is confident of coming within plan by close of FY 2020. ▪ OPE
Slide 18: OPEX Drivers
OPEX Drivers Group Group In billions of Naira June 2020 June 2019 Change (Y-o-Y) % Change (Y-o-Y) AMCON Expenses 17.20 15.49 1.71 11% Deposit & Other Insurance premium 8.26 4.03 4.23 105% Occupancy Costs and Repairs & Maintenance 4.86 5.06 (0.20) (3.9%) Depreciation and Amortization 14.02 10.62 3.40
Slide 19: Risk Asset Mix
Risk Asset Mix Asset Diversification ▪ Well diversified Loan book with specific focus on quality risk assets across all our select business segments. ▪ Reduced exposure to Individuals was due to paydown and the impact of the pandemic which necessitated a slowdown in extension of loans to this sector
Slide 20: Asset Quality
Asset Quality The Group sustained its asset quality with NPL increasing marginally from 6.5% in FY 2019 to ▪ 6.8% in HY 2020. NPL and Coverage ▪ NPL is kept low owing to cautious approach to credit growth especially during the pandemic 105.1% 126.6% 84.7% 118.1% which weighed negatively on every seg
Slide 21: Strong Capital Ratios – Group and Parent
Strong Capital Ratios – Group and Parent • The Group continued to maintain robust capital position with capital buffers of 7.9% and 10.93% under both full IFRS 9 impact and transitional IFRS 9 impact. The buffer was also adequate to meet the additional 1% higher Loss Absorbency required of Deposit S
Slide 22: Liquidity Ratio
Liquidity Ratio Strong Liquidity Position • Liquidity ratio closed at 43.2% in HY 2020 (FY 2019: 49.3%) which is well above regulatory minimum of 30%. • The Group also maintained average liquidity ratio of 43.8% in HY 2020 (FY 2019: 44.4%). This reflects consistency and strength of the Group’s liqui
Slide 23: Digital Banking and USSD Banking Performance
Digital Banking and USSD Banking Performance ▪ Total number of USSD unique Users grew by 10% y-t-d from 6.1 million in Dec. 2019 to 6.7 million in June 2020. ▪ Total number of active Users on the USSD platform also increased by 600,000 users (13% y-t-d) from 4.8 million in Dec. 2019 to 5.4 million i
Slide 24: Digital Banking and USSD Banking Performance Contd.
Digital Banking and USSD Banking Performance Contd. Mobile Banking (Value in Billions of Naira) Mobile Banking (Volume in Millions) 18.9 1227.1 16.7 16.8 14.9 14.7 1022.7 950.7 954.9 13.1 850.9 11.1 10.4 10.5 10.5 674.1 697.8 651.0 647.7 9.1 8.6 614.8 656.3 573.7 Jan Feb Mar Apr May Jun Jan Feb Mar
Slide 25: Business Segments & Subsidiary Review
Business Segments & Subsidiary Review
Slide 26: Business Segmentation (Group) – HY 2020
Business Segmentation (Group) – HY 2020 Description Loans Deposits PBT 1,900+ N5 billion+ Large Corporates, Multinationals, Customers Turnover Energy, Telecoms, Maritime etc. 76.6% 23.6% 70.3% N1,243.7 billion N727.2 billion N75.7 billion Institutional and Loans Deposits PBT Wholesale 74.8%* 26.7%*
Slide 27: Geographical Presence – HY 2020
Geographical Presence – HY 2020 Liberia GTBank plc • Established in 2009 • Parent Company • 99.43% owned by parent • Established in 1990 • 10 branches • 227 branches, 16 e-branches, 14 cash • N1.95bn invested by parent centres & 60 GTExpress • HY 2020 PBT: N957.41mn • N623.8bn in SHF (Parent) • ROE:
Slide 28: Group PBT Breakdown
Group PBT Breakdown HY 2020 PBT – Group (₦’bn) 0.61 (0.21) (0.38) 0.96 109.71 2.09 1.14 1.46 13.06 91.30 Kenya Cote Tanzania United GTBank Plc Ghana Sierra Gambia Liberia HY 2020 Group D’Ivoire Kingdom (Nigeria) Leone Group PBT 28
Slide 29: Parent and Subsidiary Highlights
Parent and Subsidiary Highlights Millions of Naira Assets Loans Total Deposit PBT HY 2020 FY 2019 % Change HY 2020 FY 2019 % Change HY 2020 FY 2019 % Change HY 2020 HY 2019 % Change Cote D’Ivoire 40,688 30,364 34% 10,878 8,162 33% 28,588 20,379 40% 612 567 8% Gambia 56,824 49,735 14% 8,183 7,714 6%
Slide 30: Non-Financial Highlights for HY 2020
Non-Financial Highlights for HY 2020 30
Slide 31: Guidance and Plans for FY 2020
Guidance and Plans for FY 2020
Slide 32: FY 2020 Guidance
FY 2020 Guidance FY 2020 FY 2019 HY 2020 Guidance PBT N231.7 bn N109.7 bn N235bn Deposit Growth 12% 16.9% 12% Loan Growth 19% 8.1% 13% Coverage (with Reg. Risk Reserve) 126.6% 118.1% 100% Cost of Risk 0.34% 0.41% Below 1% NPL to Total Loans 6.5% 6.8% Below 5% Return on average Assets 5.6% 4.6% 5% Re
Slide 33: Disclaimer
Disclaimer This presentation is based on Guaranty Trust Bank Plc (“GTBank” or “Bank”)’s audited financial results for the half year ended June 30, 2020 prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (IASB). T
Slide 34: Thank You
Thank You
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