Guaranty Trust Holding Company Plc · NSENG:GTCO
Guaranty Trust — FY2020 Earnings Presentation
34 slides from Guaranty Trust's earnings presentation, March 2021
Slide 1: 2020 Full Year Investors/Analysts Presentation
2020 Full Year Investors/Analysts Presentation G u a r a n t y Tr u s t B a n k p l c March 2021
Slide 2: Outline
Outline o Macro-economic Review for FY 2020 o Overview of FY 2020 o FY 2020 Performance Review o Business Segments and Subsidiary Review o Guidance and Plans for FY 2021
Slide 3: Macro-economic Review for FY 2020
Macro-economic Review for FY 2020
Slide 4: Macro-economic Review (FY 2020)
Macro-economic Review (FY 2020) In view of the OPEC+ output cut deal and eased movement restriction from the Yields across all tenures maintained a downward trend in the year following covid-19 pandemic, oil prices rallied to US$60 pb levels from a low of US19.33 the restriction of OMO securities in
Slide 5: Overview of FY 2020
Overview of FY 2020
Slide 6: Overview of FY 2020
Overview of FY 2020 ▪ CBN retains 65% Loan to Deposit Ratio (LDR) for Deposit Money Banks (DMB) and • President Buhari signs revised 2020 Appropriation Bill into law. merchant banks, sustains penalty for defaulting banks. • CBN announces N50 billion special mechanism funds to revive ailing textiles
Slide 7: FY 2020 Financial Performance Review
FY 2020 Financial Performance Review
Slide 8: Key Performance Ratios
Key Performance Ratios December 31, 2019 December 31, 2020 9.28% Net Interest Margin 9.26% 36.11% Cost to Income Ratio 38.24% 22.51% Capital Adequacy Ratio 21.89% 49.33% Liquidity Ratio 38.91% 60.62% Loans to Deposits and Borrowings (Bank) 49.42% 31.16% Return on Equity (post tax) 26.83% 5.59% Retur
Slide 9: Balance Sheet Snapshot - Group
Balance Sheet Snapshot - Group N4,944.7 Bn N4,130.3 Bn N814.4 Bn FY 2020 FY 2020 FY 2020 N3,758.9 Bn N3,071.6 Bn N687.3 Bn 31.5% FY 2019 34.5% FY 2019 18.5% FY 2019 Total Liabilities Total Equity Total Assets N1,743.9 Bn N1,662.8Bn N3,610.8 Bn FY 2020 FY 2020 FY 2020 N2,640.1 Bn N1,569.3 Bn N1,502.1
Slide 10: Balance Sheet (Group)
Balance Sheet (Group) Group Group Group Group % y-o-y % y-o-y In thousands of Nigerian Naira Dec-20 Dec-2019 change In thousands of Nigerian Naira Dec-20 Dec-2019 change Liabilities Assets Deposits from banks 101,509,550 107,518,398 (6%) Cash and bank balances 745,557,370 593,551,117 26% Deposits fr
Slide 11: Balance Sheet Composition
Loans, Deposits & Total Assets (₦'Bn) Balance Sheet Composition 4,945 Balance Sheet Management 3,351 3,759 3,611 3,116 3,287 ▪ The Group’s Total Assets closed at ₦4.945tn as at FY 2020, a 32% growth from ₦3.759tn in 2,357 2,640 2,111 2,147 FY 2019 and continues to maintain a well-structured and dive
Slide 12: Income Statement Snapshot - Group
Income Statement Snapshot - Group N455.2 Bn N238.1 Bn N201.4 Bn FY 2020 FY 2020 FY 2020 N435.3 Bn N231.7 Bn N196.9 Bn 4.6% FY 2019 2.8% FY 2019 2.3% FY 2019 Gross Earnings Profit Before Tax Profit After Tax N154.5 Bn N300.7 Bn N382.3 Bn FY 2020 FY 2020 FY 2020 N139.1 Bn N296.2 Bn N362.6 Bn 11.1% FY
Slide 13: Income Statement - Group
Income Statement - Group Group Group % In thousands of Nigerian Naira Dec-20 Dec-19 Change Interest income calculated using effective interest rate 288,278,670 291,658,237 (1%) Interest income on financial assets at fair value through Profit or loss 12,458,918 4,546,462 174% Interest expense (47,069
Slide 14: PBT Trend
PBT Trend PBT (₦'Bn) • Interest Income recorded marginal growth of ₦4.5bn (1.5%) from ₦296.2bn in FY 2019 to ₦300.7bn in FY 2020. Interest Income grew amidst low interest rate environment that 238.10 characterised most part of FY 2020 resulting in Asset yield compression of FIS and downward 231.71 r
Slide 15: Revenue Generation
Revenue Generation Revenue Mix (₦'Bn) • Gross earnings grew by 4.6% from ₦435.3bn in FY 2019 to ₦455.2bn in FY 2020, growth driven largely by 11.1% increase in earnings from Non-Funded Income (₦139.1bn ₦414.04 ₦419.23 ₦434.70 ₦435.31 ₦455.23 in 2019 vs ₦154.5bn in 2020) and marginal growth of 1.5% (
Slide 16: Margin Metrics
Margin Metrics Net Interest Margin Sustained Competitive Margins 10.42% ▪ NIM remained strong at 9.26% in FY 2020 as against 9.28% of FY 2019, gaining significantly from 111 bps drop in Cost of Funds (CoF) which adequately offset the 86 bps decrease in Asset yields. ▪ Sound Treasury Management weigh
Slide 17: Cost Efficiency
Cost Efficiency Cost to Income (CIR) Efficient Cost Management • Increase in VAT from 5% to 7.5% coupled with general increase in prices of energy and 40.76% utility products, land border closure (eventually re-opened in December 2020), pushed up headline inflation, consequently OPEX increased by 12
Slide 18: OPEX Drivers
OPEX Drivers Group Group % Change (Y-o- In billions of Naira December 2020 December 2019 Change (Y-o-Y) Y) Depreciation and Amortization 29.05 22.69 6.35 28.0% AMCON Expenses 17.20 15.49 1.71 11.1% Occupancy Costs and Repairs & Maintenance 12.86 10.31 2.56 24.8% Deposit & Other Insurance premium 10.
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 Downstream Oil and Gas sector was due to scheduled paydowns and also in line with our intention to reduce our exposure to that s
Slide 20: Asset Quality
Asset Quality NPL and Coverage ▪ 70% of the increase in loan impairment charge in 2020 was due to the Bank’s decision to increase the level of provisioning on one of its Obligors owing to the impact of worsening 222.9% 119.6% 105.1% 126.6% 128.7% macros on the company’s operations and financial cond
Slide 21: Strong Capital Ratios – Group and Parent
Strong Capital Ratios – Group and Parent • The Group continued to maintain robust capital buffers with Full IFRS 9 impact and transitional IFRS 9 impact Capital Adequacy Ratio (CAR) of 21.9% and 24.9% respectively, creating a buffer which was adequate to meet the additional 1% higher Loss Absorbency
Slide 22: Liquidity Ratio
Liquidity Ratio Strong Liquidity Position • Liquidity ratio closed at 38.9% in FY 2020 (FY 2019: 49.3%) well above regulatory minimum of 30%. • Despite the pressure from the covid-19 pandemic and the regulatory CRR debits, the Group maintained average liquidity ratio of 40.7% in FY 2020 (FY 2019: 44
Slide 23: Digital Banking Performance (USSD)
Digital Banking Performance (USSD) ▪ Total number of USSD unique Users grew by 13.1% y-o-y from 6.1 million in Dec. 2019 to 6.9 million in Dec. 2020. ▪ Total number of active Users on the USSD platform also increased by 900,000 users (18.8% y-o-y) from 4.8 million in Dec. 2019 to 5.7 million in Dec.
Slide 24: Digital Banking Performance (Mobile and Internet Banking)
Digital Banking Performance (Mobile and Internet Banking) Mobile Banking (Value in Billions of Naira) Mobile Banking (Volume in Millions) 1743.0 1686.8 1659.9 1566.1 25.3 1544.4 1535.2 1483.0 22.4 1227.1 19.7 19.7 20.2 20.4 18.9 18.4 1022.7 1011.6 1049.6 16.7 16.8 16.0 16.7 950.7 954.9 977.1 907.1 1
Slide 25: Business Segments & Subsidiary Review
Business Segments & Subsidiary Review
Slide 26: Business Segmentation (Group) – FY 2020
Business Segmentation (Group) – FY 2020 Description Loans Deposits PBT 2,000+ N5 billion+ Large Corporates, Customers Turnover Multinationals, Energy, Telecoms, Maritime etc. 75.9% 24.2% 69.4% N1,262.3 billion N874.8 billion N164.1 billion Institutional and Loans Deposits PBT Wholesale 74.8%* 26.7%*
Slide 27: Geographical Presence – FY 2020
Geographical Presence – FY 2020 Liberia GTBank plc • Established in 2009 • Parent Company • 99.43% owned by parent • Established in 1990 • 10 branches • 232 branches, 16 e-branches, 14 cash • N1.95bn invested by parent centres & 60 GTExpress • FY 2020 PBT: N1.76 Bn • N702.4 bn in SHF (Parent) • ROE:
Slide 28: Group PBT Breakdown
Group PBT Breakdown FY 2020 PBT – Group (₦’bn) 1.20 (0.42) (1.62) 1.76 238.10 2.34 2.88 4.01 26.36 205.1 Kenya Sierra Cote United FY 2020 GTBank Plc Ghana Gambia Liberia Tanzania Group Leone D’Ivoire Kingdom Group PBT (Nigeria) 28
Slide 29: Parent and Subsidiary Highlights
Parent and Subsidiary Highlights Millions of Naira Assets Loans Total Deposit PBT FY 2020 FY 2019 % Change FY 2020 FY 2019 % Change FY 2020 FY 2019 % Change FY 2020 FY 2019 % Change Cote D’Ivoire 54,403 30,364 79% 15,428 8,162 89% 40,218 20,379 97% 1,203 1,313 -8% Gambia 66,300 49,735 33% 7,598 7,71
Slide 30: Non-Financial Highlights for FY 2020
Non-Financial Highlights for FY 2020 30
Slide 31: Guidance and Plans for FY 2021
Guidance and Plans for FY 2021
Slide 32: FY 2021 Guidance
FY 2021 Guidance FY 2021 FY 2019 FY 2020 Guidance PBT N231.7 bn N238.1 bn N243 bn Deposit Growth 12% 36.8% 25% Loan Growth 19% 10.7% 10% Coverage (with Reg. Risk Reserve) 126.6% 128.7% 100% Cost of Risk 0.34% 1.18% 1% NPL to Total Loans 6.5% 6.4% 6% Return on average Assets 5.6% 4.6% 5% Return on av
Slide 33: Disclaimer
Disclaimer This presentation is based on Guaranty Trust Bank Plc (“GTBank” or “Bank”)’s audited financial results for the full year ended December 31, 2020 prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (IASB
Slide 34: Thank You
Thank You
Guaranty Trust Holding Company — FY2020 Earnings Presentation on 6ix