Guaranty Trust Holding Company Plc · NSENG:GTCO
Guaranty Trust — FY2022 Earnings Presentation
47 slides from Guaranty Trust's earnings presentation, April 2023
Slide 1: 2022 Full Year Investor Presentation
April 2023 2022 Full Year Investor Presentation Guaranty Trust Holding Company Plc
Slide 2: Outline
Outline ▪ Global Currency and Macro-economic Review ▪ Regulatory Overview ▪ FY 2022 Performance Review ▪ Banking Subsidiary Review ▪ Non-Banking Subsidiaries Review ▪ Guidance and Plans for FY 2023 © Guaranty Trust Holding Company Plc FY 2022 Investor Presentation
Slide 3: Macro-economic Review
Macro-economic Review © Guaranty Trust Holding Company Plc FY 2022 Investor Presentation
Slide 4: Global Currency Review
Global Currency Review In 2022, the U.S. dollar strengthened against nearly every other major currency, as the Federal Reserve (Fed) aggressively increased interest rates amid a stubbornly high inflation rate. As a result, most developing economies saw huge capital flow reversal with adverse impacts
Slide 5: Interest Rates and Inflation Highlights
Interest Rates and Inflation Highlights Interest Rate Inflation The global finance system was tested as Central Banks simultaneously hiked the We anticipate that some emerging markets will prove resilient, however, downside benchmark rate in response to inflation in an environment of slow growth. Fi
Slide 6: Macro-economic Review (Nigeria)
Macro-economic Review (Nigeria) Nigeria’s oil production remains significantly below the approved quota amidst concerns of Fixed Income Securities (FIS) market turnover printed at ₦3.89Bn in 2022 from ₦3.53Bn pipeline vandalization and infrastructural gaps as oil prices hover at US$100 per barrel. r
Slide 7: Sub-Saharan Africa Interest Rates and Inflation Highlights
Sub-Saharan Africa Interest Rates 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 pressure
Slide 8: Macro-economic Review and Outlook
Macro-economic Review and Outlook Global Sub-Saharan West Africa East Africa Africa Global Inflation has moderated Sub-Saharan Africa experienced The pace of economic expansion Growth in East Africa is slightly since mid-2022 attributed in slow economic growth, falling in West Africa decelerated to
Slide 9: Regulatory Overview
Regulatory Overview © Guaranty Trust Holding Company Plc FY 2022 Investor Presentation April 2023
Slide 10: Regulatory Overview - 2022
Regulatory Overview - 2022 ▪ CBN introduces an e-Valuator and ▪ SEC mandates all CMOs to screen and ▪ PenCom publishes the status of e-Invoice as part of the documentation verify all clients against proscribed implementation of the contributory pension required for import and export groups and sanct
Slide 11: FY 2022 Financial Performance Review
FY 2022 Financial Performance Review © Guaranty Trust Holding Company Plc FY 2022 Investor Presentation
Slide 12: GTBank Ghana Impairment
GTBank Ghana Impairment ▪ Following the suspension of all Debt Service Payments in line with the Domestic Debt Exchange Group Exposure Per Instrument Type (N’Bn) Programme (DDEP), the Ghanaian Government signalled default on its obligations. The DDEP proposed a voluntary exchange of US $7.5billion (
Slide 13: Key Performance Ratios - Group
Key Performance Ratios - Group December 31, 2021 December 31, 2022 Net Interest Margin 6.74% 6.68% Cost to Income Ratio 42.28% 48.03% Capital Adequacy Ratio 23.80%* 24.08% Liquidity Ratio 38.26%* 49.93% Loans to Deposits and Borrowings 42.08%* 39.81% Return on Equity 26.10% 23.61%** Return on Assets
Slide 14: FY 2022 Group Balance Sheet Snapshot
FY 2022 Group Balance Sheet Snapshot (N ‘Billions) Total Assets Total Liabilities Total Equity 6,446.5 5,515.3 931.1 FY 2022 FY 2022 FY 2022 19% 21% 5% 5,436.0 4,552.8 883.2 FY 2021 FY 2021 FY 2021 Gross Loans Net Loans and Total Deposits and Advances Advances 1,972.4 1,885.9 4,610.3 FY 2022 FY 2022
Slide 15: Balance Sheet (Group)
Balance Sheet (Group) Group Group % y-o-y % y-o-y In thousands of Nigerian Naira Dec-22 Dec-21 In thousands of Nigerian Naira Dec-22 Dec-21 change change Assets Liabilities Cash and bank balances 1,621,101,169 933,591,069 74% Deposits from banks 125,229,187 118,027,576 6% Deposits from customers 4,4
Slide 16: Balance Sheet Composition
Balance Sheet Composition ▪ The Group closed FY-2022 with a Total Asset of ₦6.5tn representing a growth of 18.6% over ₦5.44tn posted in FY Loans, Deposits & Total Assets (₦'Bn) 2021; maintaining a well-structured and diversified Balance sheet across all its Banking and Non-Banking Entities (Nigeria,
Slide 17: FY 2022 Group Income Statement Snapshot
FY 2022 Group Income Statement Snapshot (N ‘Billions) Gross Earnings Profit Before Tax Profit After Tax 539.2 214.2 169.2 FY 2022 (3%) FY 2022 (3%) FY 2022 20% 447.8 221.5 174.8 FY 2021 FY 2021 FY 2021 Non-Interest Interest Income Operating Income Income 213.8 325.4 448.0 FY 2022 FY 2022 FY 2022 18%
Slide 18: Income Statement - Group
Income Statement - Group Group In thousands of Nigerian Naira Dec-22 Dec-21 % Change Gross Earnings 539,234,897 447,810,585 20% Interest income calculated using effective interest rate 295,122,190 251,466,260 17% Interest income on financial assets at fair value through Profit or loss 30,277,472 15,
Slide 19: PBT Trend
PBT Trend ▪ The Group’s Gross Earnings increased by 20.4% to ₦539.2bn in FY-2022 from ₦447.8bn in FY-2021 driven by the growth PBT (₦’Bn) recorded on the Funded and Non-Funded Income lines. Interest earnings grew by 21.9% from the twin impact of growth in Earnings Asset volume and yield (8.53% in FY
Slide 20: Revenue Generation
Revenue Generation Revenue continued to improve as Gross earnings which comprise Funded Income (FI) and Non-Funded Interest Income (₦’Bn) ● Income (NFI) increased by 20.4% from ₦447.8bn in FY-2021 to ₦539.2bn in FY-2022. ● Growth of 18.2% in Earning Assets volumes coupled with improvement in yields
Slide 21: Margin Metrics
Margin Metrics Sustained Competitive Margins Net Interest Margin • NIM is still under pressure at 6.68% in FY-2022 against 6.74% recorded in FY-2021 due to an increase in the cost of funds which outpaced the marginal increase in assets yield. • Total Asset Yield was at 8.53% in FY-2022, an increase
Slide 22: Efficient Cost Management
Efficient Cost Management • OPEX grew by 21.6% from ₦161.72bn in FY-2021 to ₦196.59bn in FY-2022 due to the impact of Cost to Income Ratio (CIR) rising inflation and exchange rate movement at both the official & parallel markets which precipitated an increase in consumer price index (CPI). • OPEX gr
Slide 23: OPEX
OPEX Group Group In billions of Naira FY 2022 FY 2021 Change (Y-o-Y) % Change (Y-o-Y) Depreciation and Amortization 35.27 35.26 0.1 0.0% AMCON Expenses 23.29 21.89 1.40 6% Occupancy Costs and Repairs & Maintenance 9.12 5.01 4.15 83% Deposit Insurance Premium 14.40 12.24 2.16 17.6% General welfare Ex
Slide 24: Risk Asset Mix
Risk Asset Mix ▪ The Group maintained a well-distributed Loan book with a continuous focus on quality across all target markets and select business segments. ▪ Exposure to Midstream Oil & Gas Sector was reduced from 14% to 9% was a result of scheduled repayments by obligors in this sector. Additiona
Slide 25: Asset Quality
Asset Quality NPL and Coverage • The Group’s IFRS 9 Stage 3 loans closed at 5.2% in FY-2022 from 6.0% in FY 2021. With Retail and Others emerged as Sectors with the highest NPL - 22.1% and 20.5%. 119.60% 105.10% 126.40% 150.40% 175.50% • IFRS 9 Stage 3 Loans improved to ₦102.8bn in FY-2022 from ₦113
Slide 26: Strong Capital Ratios – Group and Parent
Strong Capital Ratios – Group and Parent The Group maintained strong capital positions with a Full IFRS 9 impact Capital Adequacy Ratio (CAR) of 24.1%, 910bps • Capital Adequacy Ratio (Basel II) (%) above the regulatory minimum of 15%. • Tier 1 capital remained a significant component of the Group’s
Slide 27: Liquidity Ratio
Liquidity Ratio Strong Liquidity Position Liquidity Trend •Liquidity ratio closed at 49.93% in FY 2022 (FY 2021: 38.26%), well above the regulatory minimum requirement of 30%. 27
Slide 28: Digital Banking Performance (USSD)
Digital Banking Performance (USSD) ▪ Continuous growth in the adoption of digital banking platforms both in transaction volume and value and over 2 million users on GTWorld and Mobile Banking ▪ The introduction of 2-factor authentication and the impact of the N6.98 flat fee on successful USSD transa
Slide 29: 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. ▪ 28% year-on-year growth in Mobile Banking v
Slide 30: Banking Subsidiary Review
Banking Subsidiary Review © Guaranty Trust Holding Company Plc FY 2022 Investor Presentation
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
Slide 32: Business Segmentation (Banking Group) – FY 2022
Business Segmentation (Banking Group) – FY 2022 Description Loans Deposits PBT 9,369+ above N20 billion+ Large Corporates, Multinationals, Customers Turnover Energy, Telecoms, Maritime, etc. 68.1% 77.2% 16.7% N1,445.6 billion N739.6 billion N141.8 billion Loans Deposits PBT Institutional & Wholesale
Slide 33: Banking and Non-Banking Subsidiary Overview – FY 2022
Banking and Non-Banking Subsidiary Overview – FY 2022 Millions of Naira Assets Loans Total Deposit PBT FY 2022 FY 2021 % Change FY 2022 FY 2021 % Change FY 2022 FY 2021 % Change FY 2022 FY 2021 % Change Cote D’Ivoire 104,688 72,334 45% 14,317 15,666 -9% 82,495 56,836 45% 5,995 2,785 115% Gambia 82,4
Slide 34: Regional Performance (Banking Subsidiaries – FY 2022)
Regional Performance (Banking Subsidiaries – FY 2022) ▪ 32 branches East ▪ FY 2022 Gross Earnings: N24.81 bn (FY 2021: N23.50 bn) 5.6% y-o-y ▪ FY 2022 PBT: N7.22 bn (FY 2021: N6.62bn) 9.1% y-o-y Africa ▪ ROAE: 9.6% (FY 2021: 10.5%) ▪ 80 branches, 1 e-branch West Africa ▪ FY 2022 Gross Earnings: N102
Slide 35: Non-Banking Subsidiaries Review
Non-Banking Subsidiaries Review © Guaranty Trust Holding Company Plc FY 2022 Investor Presentation
Slide 36: Squad by HabariPay
@squad by HabariPay Pay with Payment Purchase Tap your card on the phone to pay Get Started 7 www.squadco.com Proudly African, Truly International
Slide 37: 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: 46 merchants to accept enables merchant provides a dedic
Slide 38: Let Your Money Work For You
Let Your Money Work For You | To start investing, visit www.gtfundmanagers.com | sco GTCO Guaranty Trust Fund Managers Ltd
Slide 39: Guaranty Trust Fund Managers
Guaranty Trust Fund Managers Business: Asset Management Key Products Licenses: Asset / Portfolio Management and Investment Advisory Services (SEC) Acquired: Feb-22 Segregated Portfolio: Locations: Lagos, Abuja, Port discretionary Harcourt portfolio offered in Money Market Fund: Guaranteed Income Equ
Slide 40: Guaranty Trust Pension Managers Ltd
‘ust Pension Managers Ltd See | Pension Differently
Slide 41: Guaranty Trust Pension Managers
Guaranty Trust Pension Managers Business: Pension Fund Managers Key Products Licenses: Pension Fund Retirement Savings Additional Approved Existing Additional Exit Micro-pensions: Administrator (PENCOM) Account (RSA): An RSA Voluntary Scheme (AES): Benefit Scheme pension product is an account opened
Slide 42: Non-Financial Highlights for FY 2022
Non-Financial Highlights for FY 2022` 42
Slide 43: 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
Slide 44: FY 2023 Guidance and Plans
FY 2023 Guidance and Plans © Guaranty Trust Holding Company Plc FY 2022 Investor Presentation
Slide 45: FY 2023 Guidance
FY 2023 Guidance FY 2022 Guidance FY 2022 Actual FY 2023 Guidance PBT N243.0 bn N214.2 bn N280.0 bn Deposit Growth 25.0% 12.0% 25.0% Loan Growth 10.0% 5.0% 15.0% Coverage (with Reg. Risk Reserve) 100.0% 175.5% 150.0% Cost of Risk <1.0% 0.6% <1.0% NPL to Total Loans 6.00% 5.20% 4.9% Return on average
Slide 46: 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, 2022, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Account
Slide 47: Thank You.
a GTCO Thank You.
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