Guaranty Trust Holding Company Plc · NSENG:GTCO

Guaranty Trust — FY2023 Earnings Presentation

54 slides from Guaranty Trust's earnings presentation, April 2024

  1. Slide 1: 2023 Full Year Investor Presentation

    2023 Full Year Investor Presentation Guaranty Trust Holding Company Plc April 2024 A Fully Fledged Financial Services Group

  2. Slide 2: Outline

    Outline ▪ Global Currency and Macro-economic Review ▪ Regulatory Overview ▪ FY 2023 Performance Review ▪ Banking Subsidiary Review ▪ Non-Banking Subsidiaries Review ▪ Payment ▪ Fund Managers ▪ Pension Managers ▪ Guidance and Plans for FY 2024 © Guaranty Trust Holding Company Plc FY 2023 Investor Pre

  3. Slide 3: Macro-economic Review

    Macro-economic Review © Guaranty Trust Holding Company Plc FY 2023 Investor Presentation

  4. Slide 4: Global Currency Review

    Global Currency Review After a historic bull run last year, the U.S. Dollar Index declined off its highs while still maintaining fairly elevated levels as interest rates held steady globally. Lower gas prices and positive growth momentum in the euro-area boosted the euro’s fortunes in 2023. Despite

  5. Slide 5: Global Interest Rates and Inflation Highlights

    Global Interest Rates and Inflation Highlights Interest Rate Inflation Central banks favoured interest rate hikes as part of a monetary tightening strategy to Inflation remained above target but declined steadily from the high levels starting the curb inflation and align long-term target objectives.

  6. Slide 6: Sub-Saharan Africa Interest Rates and Inflation Highlights

    Sub-Saharan Africa Interest Rates and Inflation Highlights Interest Rate Inflation Countries in Sub-saharan Africa continue to grapple with elevated interest The build-up of inflationary pressures in 2022 eased gradually through 2023 as rates given downside risks from a significant global slowdown,

  7. Slide 7: Macro-economic Review (Nigeria)

    Macro-economic Review (Nigeria) The slowdown in the prices of crude oil and sluggish growth in oil production had a negative Rates across the Naira yield curve climbed on average around 128bps, driven by sell-offs impact on Nigeria’s foreign exchange reserves. Brent crude oil price averaged $83 per

  8. Slide 8: Macro-economic Review and Outlook

    Macro-economic Review and Outlook Global Sub-Saharan West Africa East Africa Africa Global recovery remains slow, with Growth in Sub-Saharan Africa In Nigeria, the immediate effects While headwinds are still at work, growing regional divergences amid (SSA) decelerated to an estimated of reforms impl

  9. Slide 9: Regulatory Overview

    Regulatory Overview © Guaranty Trust Holding Company Plc FY 2023 Investor Presentation April 2023

  10. Slide 10: Regulatory Overview

    Regulatory Overview H1 2023 H2 2023 Q1 2024 ▪ CBN abolishes segmentation in the ▪ CBN restricts banks and other ▪ CBN discontinues daily Cash Foreign Exchange Market. All financial institutions from operating Reserve Ratio (CRR) debits and segments are now collapsed into accounts for cryptocurrency

  11. Slide 11: FY 2023 Financial Performance Review

    FY 2023 Financial Performance Review © Guaranty Trust Holding Company Plc FY 2023 Investor Presentation

  12. Slide 12: Key Performance Ratios - Group

    Key Performance Ratios - Group December 31, 2022 December 31, 2023 Net Interest Margin 6.68% 7.88% Cost to Income Ratio 48.03% 29.13% Capital Adequacy Ratio 24.08% 21.94% Liquidity Ratio 49.93% 31.08% Loans to Deposits and Borrowings 42.89% 38.11% Return on Equity (Post Tax) 18.65% 44.82% Return on

  13. Slide 13: FY 2023 Group Balance Sheet Snapshot

    FY 2023 Group Balance Sheet Snapshot (N ‘Billions) Total Assets Total Liabilities Total Equity 9,691.3 8,214.1 1,477.1 FY 2023 FY 2023 FY 2023 50% 49% 59% 6,446.5 5,515.3 931.1 FY 2022 FY 2022 FY 2022 Gross Loans Net Loans and Total Deposits and Advances Advances 2,614.6 2,480.3 7,546.9 FY 2023 FY 2

  14. Slide 14: Balance Sheet (Group)

    Balance Sheet (Group) Group Group y-o-y y-o-y In thousands of Nigerian Naira Dec-23 Dec-22 change In thousands of Nigerian Naira Dec-23 Dec-22 change (%) (%) Assets Liabilities Cash and bank balances 2,309,618,698 1,621,101,169 42% Deposits from banks 136,053,409 125,229,187 9% Deposits from custome

  15. Slide 15: Balance Sheet Composition

    Balance Sheet Composition ▪ The Group closed FY-2023 with Total Asset of ₦9.7tn, a 50.3% growth over ₦6.45tn recorded in FY 2022, maintaining a well-structured and diversified balance sheet across its Banking and Non-Banking Business Verticals (Payments, Loans, Deposits & Total Assets (₦'Bn) Pension

  16. Slide 16: FY 2023 Group Income Statement Snapshot

    FY 2023 Group Income Statement Snapshot (N ‘Billions) Gross Earnings Profit Before Tax Profit After Tax 1,186.5 609.3 539.7 FY 2023 185% FY 2023 219% FY 2023 120% 539.2 214.2 169.2 FY 2022 FY 2022 FY 2022 Non-Interest Interest Income Operating Income Income 635.7 550.8 954.7 FY 2023 FY 2023 FY 2023

  17. Slide 17: Income Statement - Group

    Income Statement - Group Group In thousands of Nigerian Naira Dec-23 Dec-22 % Change Gross Earnings 1,186,465,425 539,234,897 120% Interest income calculated using effective interest rate 531,017,544 295,122,190 80% Interest income on financial assets at fair value through Profit or loss 19,737,584

  18. Slide 18: PBT Trend

    PBT Trend ▪ The Group’s gross earnings increased by 120.0% to ₦1.186trn in FY-2023 from ₦539.2bn in FY-2022 driven by a growth in core banking activities from increased transactional volumes and enhanced “Other Income”. PBT (₦’Bn) ▪ Interest earnings grew by 69.3% primarily as a result of growth in

  19. Slide 19: Revenue Generation

    Revenue Generation ▪ Revenue growth remains strong, as gross earnings which comprises Funded Income (FI) and Non-Funded Income (NFI) increased by 120.0% to ₦1.186trn in FY-2023 from ₦539.2bn. ▪ Growth in earning asset volumes (32.8%) coupled with a 210 bps increase in yields on Fixed Income Securiti

  20. Slide 20: Margin Metrics

    Margin Metrics Sustained Competitive Margins Net Interest Margin ▪ NIM inched up by 120bps to 7.88% in FY-2023 from 6.68% as of FY-2022 due to an increase in yields offered on 364-day T-Bills, FCY placement and Loans. The uptick in yields weighed positively on the overall earnings portfolio and was

  21. Slide 21: Efficient Cost Management

    Efficient Cost Management ▪ The 26.5% growth in Operating Expenses (OPEX) recorded by the Group came in below headline inflation rate in Nigeria of 28.9% and average Inflation rate in Ghana of 40.3%; the two Jurisdictions that accounts for 81% and 88% of the Group’s Balance sheet and PBT respectivel

  22. Slide 22: OPEX

    OPEX Group Group In billions of Naira FY 2023 FY 2022 Change (Y-o-Y) % Change (Y-o-Y) Depreciation and Amortization 39.1 35.5 3.6 10% AMCON Expenses 27.3 23.3 4.0 17% Occupancy Costs and Repairs & Maintenance 19.1 15.1 3.9 26% Deposit Insurance Premium 17.0 14.0 2.6 18% Customer Service Related Expe

  23. 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 ₦461.5/$1 in FY-2022 to ₦907.11/$1 in FY-2023 resulted in an increase in the contribution of the oil & gas sector to the

  24. Slide 24: Asset Quality

    Asset Quality NPL and Coverage ▪ The Group’s IFRS 9 Stage 3 loans closed at 4.2% (Bank: 2.5%) in FY-2023 improving from 5.2% (Bank: 4.7%) position in FY-2022. Education and Others emerged as sectors with the highest NPLs i.e., 20.9% and 18.0%, respectively. 105.10% 126.40% 150.40% 175.50% 191.10% ▪

  25. 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 21.9% (Bank: 21.0%) based on approved CBN June 2023 capital position, 690 bps above the regulatory minimum of 15% Capital Adequacy Ratio (Basel

  26. Slide 26: Liquidity Ratio

    Liquidity Ratio Strong Liquidity Position ▪ Liquidity ratio closed at 31.1% in FY-2023 down from 49.9% in FY-2022 but above the regulatory minimum requirement of 30%. ▪ CRR increase of ₦632.2bn mapped under restricted deposits with Central Bank largely accounted for the y-o-y dip in liquidity ratio.

  27. Slide 27: Digital Banking Performance (Mobile and Internet Banking)

    Digital Banking Performance (Mobile and Internet Banking) Mobile Banking Value Mobile Banking Volume ▪ Strong growth in both volume (27%) and value (17%) of Mobile Banking. ▪ Mobile Banking value grew from N32.8 trillion in 2022 to N38.4 trillion in 2023 on the back of an 27% increase in volume from

  28. Slide 28: Digital Banking Performance (USSD)

    Digital Banking Performance (USSD) ▪ Y-o-Y growth in USSD volume (N1,007 mn vs N972 mn), while value dropped (N2.82 trn vs N3.21 trn) reflecting customers’ preference for mobile and internet banking for NIP and other transfers. USSD Value (in billions of Naira) USSD Volume (in millions) Total Value

  29. Slide 29: Banking and Non-Banking Subsidiary Overview – FY 2023

    Banking and Non-Banking Subsidiary Overview – FY 2023 Millions of Naira Assets Loans Total Deposit PBT FY 2023 FY 2022 % Change FY 2023 FY 2022 % Change FY 2023 FY 2022 % Change FY 2023 FY 2022 % Change Nigeria 6,947,904 5,208,577 33% 2,034,581 1,557,246 29% 5,266,607 3,551,299 48% 472,612 180,628 1

  30. Slide 30: Banking Subsidiary Review

    Banking Subsidiary Review © Guaranty Trust Holding Company Plc FY 2023 Investor Presentation

  31. 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

  32. Slide 32: Business Segmentation (Banking Group) – FY 2023

    Business Segmentation (Banking Group) – FY 2023 Description Loans Deposits PBT 12,557+ above N20 billion+ Large Corporates, Multinationals, Customers Turnover Energy, Telecoms, Maritime, etc. 71.0% 86.5% 16.3% N2,146.1 billion N1,156.7 billion N426.8 billion Loans Deposits PBT Institutional & Wholes

  33. Slide 33: Regional Performance (Banking Subsidiaries – FY 2023)

    Regional Performance (Banking Subsidiaries – FY 2023) ▪ 80 branches, 1 e-branch West Africa ▪ FY 2023 Gross Earnings: N187.97 bn (FY 2022: N102.14 bn) 84% y-o-y (ex. Nigeria) ▪ FY 2023 PBT: N105.57 bn (FY 2022: N26.27 bn ) 301.9% y-o-y ▪ ROAE: 37.7% (FY 2022: 16.5%) ▪ 33 branches East ▪ FY 2023 Gros

  34. Slide 34: Non-Banking Subsidiaries Review

    Non-Banking Subsidiaries Review © Guaranty Trust Holding Company Plc FY 2023 Investor Presentation

  35. 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

  36. Slide 36: HabariPay - Financial Highlights

    HabariPay - Financial Highlights y-o-y In thousands of Nigerian Naira Dec-23 Dec-22 change (%) Income Statement Revenue: merchant acquiring 154,983 4,095 3685% ▪ Gross revenue increased by 198% to ₦4.905Bn in FY-2023 from Revenue: switching 852,642 12,506 6718% ₦1.648Bn in FY-2022 underpinned by sig

  37. Slide 37: HabariPay - Performance Highlights

    HabariPay - Performance Highlights (N ‘Millions) TPC** Operating TPV* Expense 415,661.44 2,359.21 12,145,683.35 FY 2023 FY 2023 FY 2023 2805% 28805% 8620% 334.3% 0.0144 1,438.03 543.27 139,284.25 FY 2022 FY 2022 FY 2022 Gross EBITDA PBT Earnings 4,905.89 2,546.68 2,342.49 FY 2023 FY 2023 FY 2023 218

  38. Slide 38: HabariPay - Transaction Growth

    HabariPay - Transaction Growth Total Payment Total Payment Value (N’000) Value 8620% 1337409% Merchant Acquiring Transaction Growth (Value) ● Gateway & Switching: N12,145.68Bn ● International Payments: $2,353m 38

  39. Slide 39: HabariPay - Revenue and EBITDA Performance

    HabariPay - Revenue and EBITDA Performance Revenue Mix Per Vertical EBITDA Growth ₦2,546,680 154.8% ₦4,905,892 64% EBITDA Margin 52% 218% ₦999,397 ₦1,542,667 ▪ 218% growth in revenue y-o-y. ▪ EBITDA growth of 154.8% y-o-y . ▪ Switching and processing vertical displayed growth ▪ Strong EBITDA margin

  40. Slide 40: Invest with Guaranty Trust Fund Managers

    Your Investment Should be there for your future Invest with Guaranty Trust Fund Managers a GTCO Guaranty Trust Fund Managers Ltd

  41. Slide 41: Guaranty Trust Fund Managers - Financial Highlights

    Guaranty Trust Fund Managers - Financial Highlights y-o-y In thousands of Nigerian Naira Dec-23 Dec-22 change (%) Income Statement ▪ Recorded growth across all key lines, maintaining a Interest income 14,000,086 2,515,328 457% well-structured and diversified balance sheet. Closing FY 2023 with a tot

  42. Slide 42: Guaranty Trust Fund Managers Performance Highlights

    Guaranty Trust Fund Managers Performance Highlights (N ‘Millions) Total Assets Gross AUM Earnings 330.47 330.5 15,964.69 FY 2023 FY 2023 380% FY 2023 206% 442.7% 68.89 108.0 2,941.71 FY 2022 FY 2022 FY 2022 Operating Operating Income Expense PBT 2,984.8 857.38 FY 2023 FY 2023 2,127 341.9% 120.3% 643

  43. Slide 43: Guaranty Trust Fund Managers - AUM and PBT Trend

    Guaranty Trust Fund Managers - AUM and PBT Trend ₦2,127 AUM (N BN) PBT Trend 643.3% ₦286 ▪ Strong AUM growth of 250.7% y-o-y from organic customer ▪ PBT growth of 643.3% y-o-y driven by strong revenue acquisition. growth and increased operational efficiency. 43

  44. Slide 44: Guaranty Trust Fund Managers - AUM Composition

    Guaranty Trust Fund Managers - AUM COMPOSITION AUM Mix by Client ▪ Improved mix due to growth of retail customer base. AUM Mix by Fund (₦’Bn) FY 2022 compared to FY 2023 ₦270,890 FY 2022 Private Dollar Money Guaranteed Balanced Equity FY 2023 Portfolio Fund Market Income Fund Income Fund Fund Fund 4

  45. Slide 45: Guaranty Trust Pension Managers Ltd

    Guaranty Trust Pension Managers Ltd AC 681066 Your Proudly Nigerian Pension Manager 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 Proudly African, Tru

  46. Slide 46: Guaranty Trust Pension Managers - Financial Highlights

    Guaranty Trust Pension Managers - Financial Highlights y-o-y In thousands of Nigerian Naira Dec-23 Dec-22 change (%) ▪ Closed FY-2023 with a total asset of ₦13.04bn representing a Income Statement growth of 9.5% over ₦11.92bn posted in FY 2022; maintaining a well-structured and adequately capitalise

  47. Slide 47: Guaranty Trust Pension Managers Performance Highlights

    Guaranty Trust Pension Managers Performance Highlights (N ‘Millions) ₦79.98 Total Assets AUM AUM Trend 13.04 79.98 ₦59.56 FY 2023 FY 2023 9% 34.3% 12.01 59.56 34.3% FY 2022 FY 2022 Operating Income 2,086.61 2,086.61 FY 2023 FY 2023 46% 46% 1,429.14 1,429.14 FY 2022 FY 2022 PBT Trend ₦1,OO2 ₦797 Oper

  48. Slide 48: Guaranty Trust Pension Managers - AUM Composition

    Guaranty Trust Pension Managers - AUM COMPOSITION AUM Mix by Client ▪ Improved mix due to growth of RSA customer base. Total AUM ₦79,988 ₦59,569 48

  49. Slide 49: Non-Financial Highlights for FY 2023

    Non-Financial Highlights for FY 2023 49

  50. Slide 50: 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

  51. Slide 51: FY 2024 Guidance and Plans

    FY 2024 Guidance and Plans © Guaranty Trust Holding Company Plc FY 2023 Investor Presentation

  52. Slide 52: FY 2024 Guidance

    FY 2024 Guidance FY 2023 Guidance FY 2023 Actual FY 2024 Guidance PBT N280.0 bn N609.3 bn N806.0 bn Deposit Growth 25.0% 64.0% 45.0% Loan Growth 15.0% 32.0% 30.0% Coverage (with Reg. Risk Reserve) 150.0% 191.10% 180.0% Cost of Risk <1.0% 4.5% 0.8% NPL to Total Loans 4.9% 4.20% 4.5% Return on average

  53. Slide 53: 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 December 31, 2023, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Account

  54. Slide 54: Thank You

    Thank You EUROMONEY, Ait FOR ALN

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