Guaranty Trust Holding Company Plc · NSENG:GTCO
Guaranty Trust — H1 2023 Earnings Presentation
46 slides from Guaranty Trust's earnings presentation, September 2023
Slide 1: 2023 Half Year Investor Presentation
September 2023 2023 Half Year Investor Presentation Guaranty Trust Holding Company Plc
Slide 2: Outline
Outline ▪ Global Currency and Macro-economic Review ▪ Regulatory Overview ▪ HY 2023 Performance Review ▪ Banking Subsidiary Review ▪ Non-Banking Subsidiaries Review ▪ Guidance and Plans for HY 2023 © Guaranty Trust Holding Company Plc HY 2023 Investor Presentation
Slide 3: Macro-economic Review
Macro-economic Review © Guaranty Trust Holding Company Plc HY 2023 Investor Presentation
Slide 4: Global Currency Review
Global Currency Review The U.S. dollar trended weaker from the historic highs witnessed in 2022 sending ripples through currency markets around the world. Heightened forex volatility globally has resulted in the general underperformance of other major currencies. For most African Countries, currency
Slide 5: Interest Rates and Inflation Highlights
Interest Rates and Inflation Highlights Interest Rate Inflation Central Banks around the world have continued to hike interest rates in a bid to Global headline inflation seems to have peaked aided by higher than expected effectively manage inflation. We expect interest rates to hold or increase onl
Slide 6: Macro-economic Review (Nigeria)
Macro-economic Review (Nigeria) Weak economic sentiments have continued to weigh on oil prices globally, though modest Fixed income yield was bullish in Q1 2023 with the DMO surpassing borrowing targets by gains are expected with overall consumption set to ramp up in coming months. Nigeria’s oil 58.
Slide 7: Sub-Saharan Africa Interest Rates and Inflation Highlights
Sub-Saharan Africa Interest Rates and Inflation Highlights Interest Rate Inflation Most African economies we tracked have continued to experience monetary Inflation rates across the African sub-regions follow a heterogeneous pattern of tightening in reaction to persistent inflation. food, housing, a
Slide 8: Macro-economic Review and Outlook
Macro-economic Review and Outlook Global Sub-Saharan West Africa East Africa Africa Economic forecasts for 2023 The region’s performance remains Economic growth in West Africa is East Africa is projected to remain weak by historical hampered by lower long-term projected to rise from an estimated out
Slide 9: Regulatory Overview
Regulatory Overview © Guaranty Trust Holding Company Plc HY 2023 Investor Presentation
Slide 10: Regulatory Overview - HY 2023
Regulatory Overview - HY 2023 ▪ CBN abolishes segmentation in the Foreign ▪ SEC proposed a number of ▪ PENCOM proposed amendments to the Exchange Market. All segments are now amendments to the Investment and Pension Reform Act, including provisions on collapsed into the Investors and Exporters Secur
Slide 11: HY 2023 Financial Performance Review
HY 2023 Financial Performance Review © Guaranty Trust Holding Company Plc HY 2023 Investor Presentation
Slide 12: Key Performance Ratios - Group
Key Performance Ratios - Group June 30, 2022 June 30, 2023 Net Interest Margin 6.5% 7.8% Cost to Income Ratio 49.1% 27.7% Capital Adequacy Ratio 24.1%* 24.7% Liquidity Ratio 49.9%* 37.5% Loans to Deposits and Borrowings 40.9%* 36.6% Return on Equity 23.9%** 61.4%** Return on Assets 3.7% 8.8%** NPL t
Slide 13: HY 2023 Group Balance Sheet Snapshot
HY 2023 Group Balance Sheet Snapshot (N ‘Billions) Total Assets Total Liabilities Total Equity 8,509.8 7,309.4 1,200.5 HY 2023 HY 2023 HY 2023 32% 33% 29% 6,446.5 5,515.3 931.1 FY 2022 FY 2022 FY 2022 Gross Loans Net Loans and Total Deposits and Advances Advances 2,493.9 2,315.4 6,317.8 HY 2023 HY 2
Slide 14: Balance Sheet (Group)
Balance Sheet (Group) Group Group % y-o-y % y-o-y In thousands of Nigerian Naira Jun-23 Dec-22 In thousands of Nigerian Naira Jun-23 Dec-22 change change Assets Liabilities Cash and bank balances 2,295,319 1,621,101 42% Deposits from banks 79,005 125,229 -37% Deposits from customers 6,238,793 4,485,
Slide 15: Balance Sheet Composition
Balance Sheet Composition ▪ The Group posted growth across all asset lines and continues to maintain a well-structured and diversified balance sheet across all jurisdictions wherein it operates a Banking franchise, as well as across its Payments, Loans, Deposits & Total Assets (₦'Bn) Pension and Fun
Slide 16: HY 2023 Group Income Statement Snapshot
HY 2023 Group Income Statement Snapshot (N ‘Billions) Gross Earnings Profit Before Tax Profit After Tax 672.6 327.4 280.5 HY 2023 HY 2023 262% HY 2023 181% 217% 239.3 103.2 77.6 HY 2022 HY 2022 HY 2022 Non-Interest Interest Income Operating Income Income 446.7 225.9 534.3 HY 2023 HY 2023 HY 2023 385
Slide 17: Income Statement - Group
Income Statement - Group Group In thousands of Nigerian Naira Jun-23 Jun-22 % Change Gross Earnings 672,603 239,289 181% Interest income calculated using effective interest rate 214,618 134,986 59% Interest income on financial assets at fair value through Profit or loss 11,328 12,214 -7% Interest ex
Slide 18: PBT Trend
PBT Trend ▪ The Group’s gross earnings increased by 181.1% to ₦672.6bn in H1-2023 from ₦239.3bn in H1-2022 driven by growth in core banking activities from increased transactional volumes and enhanced Other Income. PBT (₦’Bn) ▪ Interest earnings grew by 53.5% as a result of growth in earning assets
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 181.1% to ₦672.6bn in H1-2023 from ₦239.3bn in H1-2022. Interest Income (₦’Bn) ▪ Growth in earning asset volumes (21.3%) coupled with a 210bps increase in
Slide 20: Margin Metrics
Margin Metrics Sustained Competitive Margins Net Interest Margin ▪ NIM inched up to 7.76% in H1-2023 from 6.51% as of H1-2022 due to an increase in yields on 364-day T-Bills, FCY placement and loans. The uptick in yield weighed positively on the overall earnings portfolio and was sufficient to offse
Slide 21: Efficient Cost Management
Efficient Cost Management ▪ OPEX growth of 26.2% was in tandem with headline inflation in Nigeria which closed at 22.8% as Cost to Income Ratio (CIR) at June 2023. Operating cost was driven by the increase in personnel cost and outsourced services expenses on the back of salary reviews of both core
Slide 22: OPEX
OPEX Group Group In billions of Naira HY 2023 HY 2022 Change (Y-o-Y) % Change (Y-o-Y) Depreciation and Amortization 19.36 17.35 2.01 12% AMCON Expenses 27.43 23.30 4.13 18% Occupancy Costs and Repairs & Maintenance 4.44 3.76 0.68 18% Deposit Insurance Premium 8.44 7.10 1.34 19% General welfare Expen
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 ₦769.25/$1 in H1-2023 resulted in an increase in the contribution of the oil & gas sector to the
Slide 24: Asset Quality
Asset Quality ▪ The Group’s IFRS 9 Stage 3 loans closed at 4.6% (Bank: 3.6%) in H1-2023 from 5.2% (Bank:4.7%) in NPL and Coverage FY-2022. Individuals and Others emerged as sectors with the highest NPLs i.e., 20.9% and 30.96% respectively. 105.10% 126.40% 150.40% 175.50% 236.8% ▪ IFRS 9 Stage 3 loan
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 Capital Adequacy Ratio (Basel II) (%) 24.7% (Bank:20.4%); 970bps above the regulatory minimum of 15% and 870bps over if adjusted for 1% loss abs
Slide 26: Liquidity Ratio
Liquidity Ratio Strong Liquidity Position Liquidity Trend ▪ Liquidity ratio closed at 37.5% in H1-2023 down from 38.9% in H1-2022 and 49.9% in FY 2022 but well above the regulatory minimum requirement of 30%. ▪ Despite the pressure from competition and the need to cover for regulatory CRR debits, th
Slide 27: Digital Banking Performance (USSD)
Digital Banking Performance (USSD) ▪ We continued to make significant investments in enhancing our digital banking capabilities to consolidate our dominance in this key market segment. ▪ In terms of value, USSD transactions stood at ₦1.43 trillion dipping by 15% over the corresponding period and mir
Slide 28: Digital Banking Performance (Mobile and Internet Banking)
Digital Banking Performance (Mobile and Internet Banking) ▪ Increased adoption of electronic banking Mobile Banking Value (in trillions of Naira) Mobile Banking Volume (in millions) platforms with strong growth in both volume and value of Mobile Banking. ▪ 14% year-on-year growth in Mobile Banking t
Slide 29: Banking Subsidiary Review
Banking Subsidiary Review © Guaranty Trust Holding Company Plc HY 2023 Investor Presentation
Slide 30: 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 31: Business Segmentation (Banking Group) – HY 2023
Business Segmentation (Banking Group) – HY 2023 Description Loans Deposits PBT 12,296+ above N20 billion+ Large Corporates, Multinationals, Customers Turnover Energy, Telecoms, Maritime, etc. 71.5% 83.5% 18.4% N1,933.5 billion N1,106.5billion N229.9 billion Loans Deposits PBT Institutional & Wholesa
Slide 32: Banking and Non-Banking Subsidiary Overview – HY 2023
Banking and Non-Banking Subsidiary Overview – HY 2023 Millions of Naira Assets Loans Total Deposit PBT HY 2023 FY 2022 % Change HY 2023 FY 2022 % Change HY 2023 FY 2022 % Change HY 2023 HY 2022 % Change Cote D’Ivoire 224,072 104,688 114% 28,916 14,317 102% 181,407 82,495 120% 4,055 2,778 46% Gambia
Slide 33: Regional Performance (Banking Subsidiaries – HY 2023)
Regional Performance (Banking Subsidiaries – HY 2023) ▪ 32 branches East ▪ HY 2023 Gross Earnings: N13.19bn (HY 2022: N12.05bn) 8.9% y-o-y ▪ HY 2023 PBT: N5.08bn (HY 2022: N4.04bn) 25.8% y-o-y Africa ▪ ROAE: 11.6% (HY 2022: 14.2%) ▪ 80 branches, 1 e-branch West Africa ▪ HY 2023 Gross Earnings: N66.1
Slide 34: Non-Banking Subsidiaries Review
Non-Banking Subsidiaries Review © Guaranty Trust Holding Company Plc HY 2023 Investor Presentation
Slide 35: Squad by HabariPay
| byHabariPay Get Started 7 www.squadco.com
Slide 36: HabariPay (Squad)
HabariPay (Squad) Business: Payments Key Products Licenses: Switching & Processing (CBN), VAS (NCC) Started Operations: Jun-22 Location: Lagos SquadPOS enables Squad Gateway Squad Virtual Account Squad Switching Value Added Services Employees: 52 merchants to accept enables merchant provides a dedic
Slide 37: GTCO Dollar Fund Investment
a GTCO Guaranty Trust Fund Managers Ltd Beat the C Earn up to 7.89% per annum with our Dollar Fund Investment To start, visit www.gtfundmanagers.com
Slide 38: Guaranty Trust Fund Managers
Guaranty Trust Fund Managers Key Products Business: Asset Management Licenses: Asset / Portfolio Management and Investment Advisory Services (SEC) Segregated Portfolio: Acquired: Feb-22 discretionary portfolio offered in Locations: Lagos, Abuja, Port Money Market Fund: Guaranteed Income Equity Incom
Slide 39: Slide 39
Slide 40: Guaranty Trust Pension Managers
Guaranty Trust Pension Managers Business: Pension Fund Key Products Managers Retirement Savings Additional Approved Existing Additional Exit Micro-pensions: Licenses: Pension Fund Account (RSA): An RSA Voluntary Scheme (AES): Benefit Scheme pension product Administrator (PENCOM) is an account opened
Slide 41: Non-Financial Highlights for HY 2023
Non-Financial Highlights for HY 2023 41
Slide 42: Our Geographical Presence
Our Geographical Presence GTBank Ltd. Habari Pay United Kingdom Liberia • 100% owned by GTCO • Established in Aug. 2021 • Established in 2009 • Established in 1990 • Established in 2008 • 100% owned by GTCO • 99.43% owned by GTBank Ltd. • 237 branches, 16 e-branches, 14 cash • 100% owned by GTBank L
Slide 43: FY 2023 Guidance and Plans
FY 2023 Guidance and Plans © Guaranty Trust Holding Company Plc HY 2023 Investor Presentation
Slide 44: HY 2023 Guidance
HY 2023 Guidance FY 2022 HY 2023 Actual FY 2023 Guidance PBT N214.2 bn N327.4 bn N350.0 bn Deposit Growth 12.0% 37.0% 25.0% Loan Growth 5.0% 22.8% 10.0% Coverage (with Reg. Risk Reserve) 175.5% 262.1% >150.0% Cost of Risk 0.60% 3.70% <1.00% NPL to Total Loans 5.20% 4.60% 4.50% Return on average Asse
Slide 45: 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, 2023, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting
Slide 46: Thank You.
a GTCO Thank You.
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