Guaranty Trust Bank Plc and Subsidiary Companies
Guaranty Trust Holding Company Plc. Unaudited Condensed Consolidated and Separate Financial Statements September 2025
Introduction
Guaranty Trust Holding Company Plc ("the Parent" or the "Company") and its Subsidiaries (hereafter referred to as 'the Group') Consolidated Financial Statements complies with the applicable legal Requirements of the Nigerian Securities and Exchange Commission interim Financial Statements and comprises Separate and Consolidated Financial Statements of the Group for the period ended 30 September 2025. The consolidated financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting', its interpretation issued by the International Accounting Standards Board and adopted by the Financial Reporting Council of Nigeria. For better understanding, certain disclosures and some prior period figures have been presented in line with current period figures. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Table of contents Page
Financial Statements 1
Statement of financial position 2-3
Income statement 4
Statement of other comprehensive income 5
Income statement - 3 months 6
Statement of other comprehensive income - 3 months 7
Consolidated statement of changes in equity 8-9
Statement of changes in equity- Parent 10-11
Statement of cash-flows 12-13
Reporting entity 14
Basis of preparation 14
Material accounting policies 14-19
Other accounting policies 20-48
Notes to the financial statements 49-83
Other Notes 84-86
Financial statements
Consolidated and separate statements of financial position
As at 30 September 2025
Group | Group | Company | Company | ||
In thousands of Nigerian Naira | Notes | Sep-2025 | Dec-2024 | Sep-2025 | Dec-2024 |
Assets | |||||
Cash and bank balances | 17 | 5,096,488,552 | 4,673,048,120 | 2,668,499 | 210,095,331 |
Financial assets at fair value through profit or | |||||
loss | 18 | 101,358,361 | 59,602,997 | - | - |
Derivative financial assets | 19 | 67,444 | - | - | - |
Investment securities: | |||||
| 20 | 13,608,086 | 5,508,086 | - | - |
income | 20 | 2,582,854,799 | 2,495,063,888 | - | - |
- Held at amortised cost | 20 | 2,313,145,805 | 1,647,724,053 | - | - |
Assets pledged as collateral | 21 | 84,105,677 | 114,570,075 | - | - |
Loans and advances to banks | 22 | 83,978 | 87,794 | - | - |
Loans and advances to customers | 23 | 3,244,492,859 | 2,785,664,040 | - | - |
Restricted deposits and other assets | 27 | 2,676,226,100 | 2,574,084,654 | 34,136,980 | 250,238,501 |
Investment in subsidiaries | 24 | - | - | 528,806,964 | 371,068,493 |
Property and equipment, and Right of use | |||||
assets | 25 | 418,662,976 | 330,232,049 | 1,010,442 | 1,134,728 |
Intangible assets | 26 | 99,990,658 | 81,244,113 | - | - |
Deferred tax assets | 28,313,884 | 28,876,962 | - | - | |
Total assets | 16,659,399,179 | 14,795,706,831 | 566,622,885 | 832,537,053 | |
Liabilities | |||||
Deposits from banks | 28 | 210,627,558 | 388,420,244 | - | - |
Deposits from customers | 29 | 11,851,737,656 | 10,013,021,406 | - | - |
Financial liabilities at fair value through profit | |||||
or loss | 30 | 4,101,414 | 51,174,468 | - | - |
Derivative financial liabilities | 19 | 21,660 | 10,759,624 | - | - |
Other liabilities | 31 | 822,723,304 | 1,020,285,051 | 250,963 | 221,179,425 |
Current income tax liabilities | 15 | 145,121,901 | 186,665,408 | 29,783 | 71,639 |
Other borrowed funds | 33 | 147,297,566 | 310,021,046 | - | - |
Deferred tax liabilities | 111,849,450 | 103,341,970 | 136,176 | 134,065 | |
Total liabilities | 13,293,480,509 | 12,083,689,217 | 416,922 | 221,385,129 | |
Consolidated and separate statements of financial position (Continued)
Group | Group | Company | Company | ||
In thousands of Nigerian Naira | Notes | Sep-2025 | Dec-2024 | Sep-2025 | Dec-2024 |
Capital and reserves | 34 | ||||
Share capital | 18,212,615 | 17,069,475 | 18,212,615 | 17,069,475 | |
Share premium | 489,367,160 | 329,229,161 | 489,367,160 | 329,229,161 | |
Treasury shares | (28,413,017) | (11,289,600) | - | - | |
Retained earnings | 1,665,973,668 | 1,319,841,616 | 49,751,188 | 255,978,288 | |
Regulatory risk reserves | 75,110,626 | 75,110,626 | - | - | |
Statutory reserves | 730,822,803 | 628,865,926 | - | - | |
Other components of equity | 347,660,469 | 296,430,677 | 8,875,000 | 8,875,000 | |
Capital and reserves attributable to equity holders of the parent entity | 3,298,734,324 | 2,655,257,881 | 566,205,963 | 611,151,924 | |
Non-controlling interests in equity | 67,184,346 | 56,759,733 | - | - | |
Total equity | 3,365,918,670 | 2,712,017,614 | 566,205,963 | 611,151,924 | |
Total liabilities and equity | 16,659,399,179 | 14,795,706,831 | 566,622,885 | 832,537,053 |
Approved by the Board of Directors on 28th October 2025:
Group Chief Financial Officer Banji Adeniyi
FRC/2013/PRO/ICAN/004/00000004318
Non Exective Director
Cathy Echeozo FRC/2013/PRO/DIR/003/00000001319
Group Chief Executive Officer
Segun Agbaje FRC/2013/PRO/DIR/003/00000001782
The accompanying notes to the financial statements form an integral part of these financial statements.
Consolidated and separate income statements | ||||
For the period ended 30 September 2025 | ||||
Group | Group | Company | Company | |
In thousands of Nigerian Naira Notes | Sep-2025 | Sep-2024 | Sep-2025 | Sep-2024 |
Interest income calculated using the effective interest method 4 | 1,208,409,253 | 950,866,041 | - | - |
Interest income on financial assets at fair value through profit or loss 4 | 22,459,205 | 29,472,823 | - | - |
Interest expense 5 | (278,727,978) | (198,862,508) | - | - |
Net interest income | 952,140,480 | 781,476,356 | - | - |
Loan impairment charges 6 | (69,791,136) | (63,556,601) | - | - |
Net interest income after loan impairment charges | 882,349,344 | 717,919,755 | - | - |
Fee and commission income 7 | 210,496,158 | 180,232,479 | 2,615,415 | 2,528,234 |
Fee and commission expense 8 | (27,271,441) | (21,677,692) | - | - |
Net fee and commission income | 183,224,717 | 158,554,787 | 2,615,415 | 2,528,234 |
Net trading gains on financial instruments held at fair value through profit or loss 9 | 77,212,908 | 60,272,942 | - | - |
Other income 10 | 85,845,831 | 577,394,528 | 34,203,415 | 84,507,182 |
Net impairment charge on other financial assets 11 | 37,153,264 | (326,320) | - | - |
Personnel expenses 12 | (91,610,780) | (71,526,101) | (1,182,866) | (1,016,537) |
Depreciation and amortisation 13 | (58,493,070) | (44,507,086) | (124,286) | (69,143) |
Other operating expenses 14 | (214,877,946) | (178,316,659) | (285,839) | (219,600) |
Profit before income tax | 900,804,268 | 1,219,465,846 | 35,225,839 | 85,730,136 |
Income tax expense 15 | (201,162,734) | (134,463,046) | (1,469,973) | (791,968) |
Profit for the period | 699,641,534 | 1,085,002,800 | 33,755,866 | 84,938,168 |
Profit attributable to: | ||||
Equity holders of the parent entity | 688,071,895 | 1,075,771,121 | 33,755,866 | 84,938,168 |
Non-controlling interests | 11,569,639 | 9,231,679 | - | - |
699,641,534 | 1,085,002,800 | 33,755,866 | 84,938,168 | |
Earnings per share attributable to the equity holders
of the parent entity during 'the period (expressed in naira per share):
- Basic | 16 | 20.71 | 38.41 | 0.97 | 2.89 |
- Diluted | 16 | 20.71 | 38.41 | 0.97 | 2.89 |
The accompanying notes to the financial statements form an integral part of these financial statements.
Consolidated and separate statements of other comprehensive income
Group | Group | Company | Company | ||
In thousands of Nigerian Naira | Notes | Sep-2025 | Sep-2024 | Sep-2025 | Sep-2024 |
Profit for the period | 699,641,534 | 1,085,002,800 | 33,755,866 | 84,938,168 | |
Other comprehensive income: | |||||
Other comprehensive income to be reclassified to profit or loss in | |||||
subsequent Periods: | |||||
Foreign currency translation differences for foreign operations Income tax relating to foreign currency translation differences for foreign operations | 15 | 18,999,949 (5,699,985) | 217,460,259 (65,238,078) | - - | - - |
Net change in fair value of other financial assets FVOCI Income tax relating to change in fair value of other financial | 53,480,567 | (1,157,546) | - | - | |
assets FVOCI 15 | (16,044,170) | 347,264 | - | - | |
50,736,361 | 151,411,899 | - | - | ||
Other comprehensive profit for the period, net of tax | 50,736,361 | 151,411,899 | - | - | |
Total comprehensive income for the period | 750,377,895 | 1,236,414,699 | 33,755,866 | 84,938,168 | |
Total Comprehensive Income attributable to: | |||||
Equity holders of the parent entity | 739,301,687 | 1,209,011,993 | 33,755,866 | 84,938,168 | |
Non-controlling interests | 11,076,208 | 27,402,706 | - | - | |
Total comprehensive income for the period | 750,377,895 | 1,236,414,699 | 33,755,866 | 84,938,168 | |
For the period ended 30 September 2025
I
The accompanying notes to the financial statements form an integral part of these financial statements.
Income statements For 3 months ended 30 September 2025 | |||
Group | Group | Company | Company |
In thousands of Nigerian Naira Sep-2025 | Sep-2024 | Sep-2025 | Sep-2024 |
Interest income 418,508,186 | 362,451,109 | - | - |
Interest expense (98,605,597) | (72,486,349) | - | - |
Net interest income 319,902,589 | 289,964,760 | - | - |
Loan impairment charges (14,819,838) | (16,161,519) | - | - |
Net interest income after loan impairment charges 305,082,751 | 273,803,241 | - | - |
Fee and commission income 59,035,142 | 66,313,285 | 958,986 | 784,624 |
Fee and commission expense (10,984,403) | (8,827,692) | - | - |
Net fee and commission income 48,050,739 | 57,485,593 | 958,986 | 784,624 |
Net gains on financial instruments classified as held for trading 39,292,752 | 29,801,162 | - | - |
Other income 14,922,929 | (52,876,550) | - | - |
Net impairment loss on financial assets (953,171) | 31,232 | - | - |
Personnel expenses (37,212,138) | (30,025,412) | (397,541) | (360,299) |
Depreciation and amortization (20,201,562) | (16,987,873) | (41,399) | (21,316) |
Other operating expenses (49,079,189) | (45,541,173) | (77,266) | (45,033) |
Profit before income tax 299,903,111 | 215,690,220 | 442,780 | 357,976 |
Income tax expense (49,272,599) | (36,254,738) | (18,477) | - |
Profit for the period 250,630,512 | 179,435,482 | 424,303 | 357,976 |
Profit attributable to: | |||
Equity holders of the parent entity 246,777,274 | 175,875,352 | 424,303 | 357,976 |
Non-controlling interests 3,853,238 | 3,560,130 | - | - |
250,630,512 | 179,435,482 | 424,303 | 357,976 |
Earnings per share for the profit from continuing operations | |||
attributable to the equity holders of the parent entity during | |||
the period (expressed in naira per share): | |||
- Basic 7.54 | 6.41 | 0.01 | 0.01 |
- Diluted 7.54 | 6.41 | 0.01 | 0.01 |
The accompanying notes are an integral part of these financial statements | |||
Statements of other comprehensive income | ||||
For 3 months ended 30 September 2025 | ||||
Group | Group | Company | Company | |
In thousands of Nigerian Naira | Sep-2025 | Sep-2024 | Sep-2025 | Sep-2024 |
Profit for the period | 250,630,512 | 179,435,482 | 424,303 | 357,976 |
Other comprehensive income: | ||||
Other comprehensive income not to be reclassified to profit or loss | in | |||
subsequent years: | ||||
Net change in fair value of equity investments FVOCI | (50,104) | (423,208) | - | - |
(50,104) | (423,208) | - | - | |
Other comprehensive income to be reclassified to profit or loss in | ||||
subsequent years: | ||||
Foreign currency translation differences for foreign operations | (100,520,947) | 63,590,535 | - | - |
Income tax relating to foreign currency translation differences for foreign operations | 30,156,284 | (19,077,161) | - | - |
Net change in fair value of financial assets FVOCI | 42,582,687 | 14,328,283 | - | - |
Income tax relating to Net change in fair value of financial Inco assets FVOCI | (12,774,806) | (4,298,485) | - | - |
(40,556,782) | 54,543,172 | - | - | |
Other comprehensive income for the period, net of tax | (40,606,886) | 54,119,964 | - | - |
Total comprehensive income for the period | 210,023,626 | 233,555,446 | 424,303 | 357,976 |
Profit attributable to: | ||||
Equity holders of the parent entity | 213,130,089 | 227,278,366 | 424,303 | 357,976 |
Non-controlling interests | (3,106,463) | 6,277,080 | - | - |
Total comprehensive income for the period | 210,023,626 | 233,555,446 | 424,303 | 357,976 |
Profit attributable to: | ||||
Equity holders of the parent entity | 213,130,089 | 227,278,366 | 424,303 | 357,976 |
Non-controlling interests | (3,106,463) | 6,277,080 | - | - |
Total comprehensive income for the period | 210,023,626 | 233,555,446 | 424,303 | 357,976 |
The accompanying notes are an integral part of these financial statements
Consolidated Statement of Changes in Equity For the period ended 30 September 2025 Group
In thousands of Nigerian Naira | Share capital | Share premium | Equity Reserve | Regulatory risk reserve | Statutory reserves | Other regulatory shares | Treasury shares | Fair value reserve | Foreign currency translation reserve | Retained earnings | Total equity attributable to parent | Non-controlling interests | Total equity |
Balance at 1 January 2025 | 17,069,475 | 329,229,161 | 8,875,000 | 75,110,626 | 628,865,926 | 81,140,824 | (11,289,600) | 3,969,641 | 202,445,212 | 1,319,841,616 | 2,655,257,881 | 56,759,733 | 2,712,017,614 |
Total comprehensive income for the period: Profit for the period | - | - | - | - | - | - | - | - | - | 688,071,895 | 688,071,895 | 11,569,639 | 699,641,534 |
Other comprehensive income, net of tax Foreign currency translation difference | - | - | - | - | - | - | - | - | 18,819,414 | - | 18,819,414 | (5,519,450) | 13,299,964 |
Actuarial gain | - | - | - | - | - | - | - | - | - | - | - | - | |
Fair value adjustment | - | - | - | - | - | - | - | 32,410,378 | - | - | 32,410,378 | 5,026,019 | 37,436,397 |
Total other comprehensive Income/(loss) | - | - | - | - | - | - | - | 32,410,378 | 18,819,414 | - | 51,229,792 | (493,431) | 50,736,361 |
Total comprehensive Income/(loss) | - | - | - | - | - | - | - | 32,410,378 | 18,819,414 | 688,071,895 | 739,301,687 | 11,076,208 | 750,377,895 |
Transactions with equity holders, recorded directly in equity: | |||||||||||||
Transfers for the period1(Acquisition)/disposal of own shares1 | - 1,143,140 | - 160,137,999 | - | - - | 101,956,877 - | - - | - (17,123,417) | - - | - - | (101,956,877) - | - 144,157,722 | - - | - 144,157,722 |
Dividend to equity holders2 | - | - | - | - | - | - | - | - | - | (239,982,966) | (239,982,966) | (651,595) | (240,634,561) |
1,143,140 | 160,137,999 | - | - | 101,956,877 | - | (17,123,417) | - | - | (341,939,843) | (95,825,244) | (651,595) | (96,476,839) | |
Balance at 30 September 2025 | 18,212,615 | 489,367,160 | 8,875,000 | 75,110,626 | 730,822,803 | 81,140,824 | (28,413,017) | 36,380,019 | 221,264,626 | 1,665,973,668 | 3,298,734,324 | 67,184,346 | 3,365,918,670 |
1Please refer to Note 34 2Please refer to Note 35 |
The accompanying notes to the financial statements form an integral part of these financial statements.
Consolidated Statement of Changes in Equity For the period ended 30 September 2024 Group | ||||||||||||
Regulatory | Other | Foreign currency | Total equity | Non- | ||||||||
In thousands of Nigerian Naira Share | Share | risk | Equity | Statutory | regulatory | Treasury | Fair value | translation | Retained | attributable | controlling | Total |
capital | premium | reserve | reserves | reserves | shares | shares | reserve | reserve | earnings | to parent | interest | equity |
Balance at 1 January 2024 14,715,590 | 123,471,114 | 75,085,447 | 8,875,000 | 487,807,671 | 59,242,693 | (8,125,998) | 20,165,099 | 86,371,196 | 580,033,938 | 1,447,641,750 | 29,486,321 | 1,477,128,071 |
Total comprehensive income for the period: Profit for the period - | - | - | - | - | - | - | - | - | 1,075,771,121 | 1,075,771,121 | 9,231,679 | 1,085,002,800 |
Other comprehensive income, net of tax | ||||||||||||
Foreign currency translation difference - | - | - | - | - | - | - | - | 137,853,356 | - | 137,853,356 | 14,368,825 | 152,222,181 |
Fair value adjustment - | - | - | - | - | - | - | (4,612,484) | - | - | (4,612,484) | 3,802,202 | (810,282) |
Total other comprehensive (loss)/income - | - | - | - | - | - | - | (4,612,484) | 137,853,356 | - | 133,240,872 | 18,171,027 | 151,411,899 |
Total comprehensive (loss)/income - | - | - | - | - | - | - | (4,612,484) | 137,853,356 | 1,075,771,121 | 1,209,011,993 | 27,402,706 | 1,236,414,699 |
Transactions with equity holders, recorded directly in equity: | ||||||||||||
Transfers for the period - | - | (216,475) | - | 156,997,336 | (18,475) | - | - | - | (156,762,386) | - | - | - |
- | - | (216,475) | - | 156,997,336 | (18,475) | - | - | - | (236,226,570) | (79,464,184) | (446,481) | (79,910,665) |
Balance at 30 September 2024 14,715,590 | 123,471,114 | 74,868,972 | 8,875,000 | 644,805,007 | 59,224,218 | (8,125,998) | 15,552,615 | 224,224,552 | 1,419,578,489 | 2,577,189,559 | 56,442,546 | 2,633,632,105 |
The accompanying notes to the financial statements form an integral part of these financial statements.
Statement of Changes in Equity | |||||||||
For the period ended 30 September 2025 | |||||||||
Company | |||||||||
In thousands of Nigerian Naira | Share | Share | Equity | Regulatory risk | Statutory | Other regulatory | Fair value | Retained | Total |
capital | premium | Reserve | reserve | reserves | reserves | reserve | earnings | equity | |
Balance at 1 January 2025 | 17,069,475 | 329,229,161 | 8,875,000 | - | - | - | - | 255,978,288 | 611,151,924 |
Total comprehensive income for the period: | |||||||||
Profit for the period | - | - | - | - | - | - | - | 33,755,866 | 33,755,866 |
Other comprehensive income, net of tax | |||||||||
Total other comprehensive income | - | - | - | - | - | - | - | - | |
Total comprehensive income | - | - | - | - | - | - | - | 33,755,866 | 33,755,866 |
Transactions with equity holders, recorded directly in equity: | |||||||||
Dividend to equity holders | - | - | - | - | - | - | - | (239,982,966) | (239,982,966) |
1,143,140 | 160,137,999 | - | - | - | - | - | (239,982,966) | (78,701,827) | |
Balance at 30 September 2025 | 18,212,615 | 489,367,160 | 8,875,000 | - | - | - | - | 49,751,188 | 566,205,963 |
The accompanying notes to the financial statements form an integral part of these financial statements.
Statement of Changes in Equity | ||||||||||
For the period ended 30 September 2024 | ||||||||||
Company | ||||||||||
In thousands of Nigerian Naira | Share | Share | Equity | Regulatory risk | Statutory | Other regulatory | Fair value | Retained | Total | |
capital | premium | Reserve | reserve | reserves | reserves | reserve | earnings | equity | ||
Balance at 1 January 2024 | 14,715,590 | 123,471,114 | 8,875,000 | - | - | - | - | 168,800 | 147,230,504 | |
Total comprehensive income for the period: | ||||||||||
Profit for the period | - | - | - | - | - | - | - | 84,938,168 | 84,938,168 | |
Other comprehensive income, net of tax | ||||||||||
Total comprehensive income | - | - | - | - | - | - | - | 84,938,168 | 84,938,168 | |
Transactions with equity holders, recorded directly in equity: | ||||||||||
Dividend to equity holders1 | - | - | - | - | - | - | (79,464,184) | (79,464,184) | ||
- | - | - | - | - | - | - | (79,464,184) | (79,464,184) | ||
Balance at 30 September 2024 | 14,715,590 | 123,471,114 | 8,875,000 | - | - | - | - | 5,642,784 | 152,704,488 | |
The accompanying notes to the financial statements form an integral part of these financial statements.
Consolidated and separate statements of cash flows For the period ended 30 September 2025 | |||
Group | Group | Company | Company |
In thousands of Nigerian Naira Notes Sep-2025 | Sep-2024 | Sep-2025 | Sep-2024 |
Cash flows from operating activities Profit for the period 699,641,534 | 1,085,002,800 | 33,755,866 | 84,938,168 |
Adjustments for: Depreciation of property and equipment 13 45,937,053 | 39,540,824 | 124,286 | 69,143 |
Amortisation of Intangible assets 13 12,556,017 | 4,966,262 | - | - |
Gain on disposal of property and equipment 10 (126,879) | (182,008) | - | - |
Impairment on financial assets 6&11 32,637,872 | 63,882,921 | - | - |
Net interest income 4&5 (952,140,480) | (781,476,356) | - | - |
Unrealised Fair Value Gain on Financial Instrument 10 49,165,105 | (523,219,970) | - | - |
Unrealised Foreign exchange gains 10 (16,192,397) | 1,745,154 | - | - |
Unrealised Gain on forward transactions 10 (49,037,758) | (32,173,501) | - | - |
Fair value changes for assets at FVTPL 10 (10,015,621) | (10,004,440) | - | - |
Dividend income 10 (687,869) | (430,718) | (34,136,980) | (84,467,484) |
Income tax expense 15 201,162,734 | 134,463,046 | 1,469,973 | 791,968 |
12,899,311 Net changes in: | (17,885,986) | 1,213,145 | 1,331,795 |
Financial assets at fair value through profit or loss (29,459,858) | (16,060,973) | - | - |
Assets pledged as collateral 34,530,049 | 9,825,757 | - | - |
Loans and advances to banks and placements with banks (319,812,028) | (217,979,639) | - | - |
Loans and advances to customers (557,170,174) | 487,702,198 | - | - |
Restricted deposits and other assets (96,370,389) | (316,139,616) | 216,101,521 | (814,357) |
Deposits from banks (204,926,201) | 197,407,219 | - | - |
Deposits from customers 1,746,809,929 | 1,176,160,111 | - | - |
Financial liabilities at fair value through profit or loss (47,073,054) | 18,666,231 | - | - |
Other liabilities (97,748,678) | (143,842,481) | (220,928,462) | (4,217,817) |
428,779,596 | 1,195,738,807 | (4,826,941) | (5,032,174) |
Interest received 1,268,662,099 | 912,698,213 | - | - |
Interest paid (310,615,599) | (175,988,016) | - | - |
958,046,500 | 736,710,197 | - | - |
1,399,725,407 | 1,914,563,018 | (3,613,796) | (3,700,379) |
Income tax paid 15(b) (247,045,433) | (83,149,038) | (1,509,718) | (763,384) |
Net cash flow (used in)/generated from operating activities 1,152,679,974 | 1,831,413,980 | (5,123,514) | (4,463,763) |
The accompanying notes to the financial statements form an integral part of these financial statements.
Consolidated and separate statements of | cash flows | |||
For the period ended 30 September 2025 | ||||
Group | Group | Company | Company | |
In thousands of Nigerian Naira | Notes Sep-2025 | Sep-2024 | Sep-2025 | Sep-2024 |
Cash flows from investing activities | ||||
Redemption of investment securities | 1,994,901,074 | 3,653,839,053 | - | - |
Purchase of investment securities | (2,643,133,894) | (4,632,859,955) | - | - |
Dividends received | 10 687,869 | 430,718 | 34,136,980 | 84,467,484 |
Purchase of property and equipment and Right of use assets | 25 (131,667,578) | (156,234,618) | - | (160) |
Proceeds from the sale of property and equipment | 1,319,022 | 221,072 | - | - |
Purchase of intangible assets | 26 (31,238,941) | (11,953,976) | - | - |
Investment in subsidiaries | - - | - | (157,738,471) | - |
Net cash flow used in investing activities | (809,132,448) | (1,146,557,706) | (123,601,491) | 84,467,324 |
Cash flows from financing activities | ||||
Repayment of long term borrowings | (129,888,838) | (45,071,123) | - | - |
Proceeds from long term borrowings | - | 254,560,120 | - | - |
Proceeds from share issue | 161,281,139 | - | 161,281,139 | - |
Purchase of treasury shares | (17,123,417) | (896,739) | - | - |
Dividends paid to owners | 35 (239,982,966) | (79,464,184) | (239,982,966) | (79,464,184) |
Dividends paid to non-controlling interests | (651,595) | (446,481) | - | - |
Net cash flow (used in) / from financing activities | (226,365,677) | 128,681,593 | (78,701,827) | (79,464,184) |
Net increase in cash and cash equivalents | 117,181,849 | 813,537,867 | (207,426,832) | 539,377 |
Cash and cash equivalents at beginning of the period | 4,401,589,918 | 2,005,936,197 | 210,095,331 | 60,169 |
Effect of exchange rate fluctuations on cash held | (18,155,463) | 1,469,647,408 | - | - |
Cash and cash equivalents at end of the period | 17(b) 4,500,616,304 | 4,289,121,472 | 2,668,499 | 599,546 |
The accompanying notes to the financial statements form an integral part of these financial statements.
Reporting entity
Guaranty Trust Holding Company PLC ("the Parent" or the "the Company") is a company incorporated in Nigeria. The address of the Company's registered office is Plot 635, Akin Adesola Street, Victoria Island, Lagos. These separate and consolidated financial statements, for the period ended 30 September 2025, are prepared for the Company and the Group (Holding Company and its subsidiaries, separately referred to as "Group entities") respectively. The Group is primarily involved in the provision of banking and other financial services to corporate and individual customers.
Basis of preparation
The interim consolidated and separate financial statements for the period ended 30 September 2025 have been prepared in accordance with IAS 34 - 'Interim Financial Reporting' and the requirements of the Companies and Allied Matters Act, the Banks and Other Financial Institutions Act and the Financial Reporting Council of Nigeria Act.
The Financial Statements were authorized for issue by the directors on 28 October 2025.
(a) Material Accounting Policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements. All entities within the Group apply the same accounting policies.
Functional and presentation currency
These Consolidated and Separate financial statements are presented in Nigerian Naira, which is the Company's functional currency. Except where indicated, financial information presented in Naira has been rounded to the nearest thousand.
Basis of measurement
These financial statements have been prepared on the historical cost basis except for the following:
Derivative financial instruments which are measured at fair value.
Assets and liabilities at fair value through profit or loss are measured at fair value.
Assets and Liabilities held to maturity are measured at amortised cost.
Fair value through other comprehensive income (FVOCI) financial assets are measured at fair value.
Liabilities for cash-settled share-based payment arrangements are measured at fair value.
The Employee benefit asset is recognized as the present value of the defined benefit obligation less the fair value of the plan assets.
The plan assets for defined benefit obligations are measured at fair value.
Use of Estimates and Judgements
The preparation of the financial statements in conformity with IFRS requires the directors to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
Changes to accounting policies
The accounting policies adopted are consistent with those of the previous financial period.
Standards and interpretations effective during the reporting period
Amendments to the following standard(s) became effective in the annual period starting from 1 January, 2025. The new reporting requirements as a result of the amendments and/or clarifications have been evaluated and their impact or otherwise are noted below:
Amendments to IAS 21 - Lack of exchangeability
In August 2023, the Board issued Lack of exchangeability amendments to IAS 21. The amendments specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. A currency is considered to be exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations.
If a currency is not exchangeable into another currency, an entity is required to estimate the spot exchange rate at the measurement date. An entity's objective in estimating the spot exchange rate is to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. The amendments note that an entity can use an observable exchange rate without adjustment or another estimation technique.
The amendment does not have any material impact on the Group.
Standards and interpretations issued/amended but not yet effective
The following standards have been issued or amended by the IASB but are yet to become effective for annual periods beginning on 1 January 2025:
Standard/Amendment
Content
Effective Data
IFRS 9 & IFRS 7
Classification and Measurement of Financial Instruments
01-Jan-26
IFRS 9 & IFRS 7
Power Purchase Agreements
01-Jan-26
IFRS
Annual Improvement to IFRS Accounting Standards-
Volume 11
01-Jan-26
IFRS 18
Presentation and Disclosure in Financial Statements
01-Jan-27
IFRS 19
Subsidiaries without Public Accountability: Disclosures
01-Jan-27
The Group did not apply the following new or amended standards in preparing these consolidated and separate financial statements as it plans to adopt these standards at their respective effective dates. Commentaries on these new standards/amendments are provided below.
IFRS 9 & IFRS 7 - Classification and Measurement of Financial Instruments
In May 2024, the Board issued Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7), which:
Clarifies that a financial liability is derecognised on the 'settlement date', i.e., when the related obligation is discharged, cancelled, expires or the liability otherwise qualifies for derecognition. It also introduces an accounting policy option to derecognise financial liabilities that are settled through an electronic payment system before settlement date if certain conditions are met
Clarified how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features
Clarifies the treatment of non-recourse assets and contractually linked instruments
Requires additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income.
The amendment does not have any material impact on the Group
IFRS 9 & IFRS 7 - Contracts Referencing Nature - dependent Electricity
In December 2024, the Board issued Contracts Referencing Nature-dependent Electricity
(Amendments to IFRS 9 and IFRS 7). The amendments include:
Clarifying the application of the 'own-use' requirements
Permitting hedge accounting if these contracts are used as hedging instruments
Adding new disclosure requirements to enable investors to understand the effect of
these contracts on a company's financial performance and cash flows.
The clarifications regarding the 'own use' requirements must be applied retrospectively, but the guidance permitting hedge accounting have to be applied prospectively to new hedging relationships designated on or after the date of initial application.
The amendment does not have any material impact on the Group
Improvements to International Financial Reporting Standards
The IASB's annual improvements process deals with non-urgent, but necessary, clarifications and amendments to IFRS. In July 2024, the IASB issued Annual Improvements to IFRS Accounting Standards - Volume 11
The following is the amendments from the Annual Improvements to IFRS Accounting Standards-Volume 11:
IFRS 1 First-time Adoption of International Financial Reporting Standards - Hedge Accounting by a First-time Adopter
IFRS 7 Financial Instruments: Disclosures - Gain or Loss on Derecognition
Guidance on implementing IFRS 7 Financial Instruments: Disclosures - Disclosure of Deferred Difference between Fair Value and Transaction Price
Guidance on implementing IFRS 7 Financial Instruments: Disclosures - Credit Risk Disclosures
IFRS 9 Financial Instruments - Lessee Derecognition of Lease Liabilities
IFRS 9 Financial Instruments - Transaction Price
IFRS 10 Consolidated Financial Statements - Determination of a 'De Facto Agent'
IAS 7 Statement of Cash Flows - Cost Method
The amendment does not have any material impact on the Group
IFRS 18 - Presentation and Disclosure in Financial Statements
In April 2024, the Board issued IFRS 18 to become effective on 1 January 2027. The objective of the Standard is to set out requirements for the presentation and disclosure of information in general purpose financial statements to help ensure they provide relevant information that faithfully represents an entity's assets, liabilities, equity, income and expenses, with emphasis on the subject matter as shown below:
Aggregation : The adding together of assets, liabilities, equity, income, expenses or cash flows that share characteristics and are included in the same classification.
Classification: The sorting of assets, liabilities, equity, income, expenses and cash flows based on shared characteristics.
Disaggregation: The separation of an item into component parts that have characteristics that are not shared
The Group plans to adopt the full scope of the Standard when it becomes effective.
IFRS 19 - Subsidiaries without Public Accountability: Disclosures
In May 2024, the Board issued IFRS 19 Subsidiaries without Public Accountability: Disclosures (IFRS 19), which allows eligible to elect to apply reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other IFRS accounting standards. Unless otherwise specified eligible entities that elect to apply IFRS 19 will not need to apply the disclosure requirements in other IFRS accounting standards.
An entity applying IFRS 19 is required to disclose that fact as part of its general IFRS accounting standards compliance statement. IFRS 19 requires an entity whose financial statements comply with IFRS accounting standards including IFRS 19 to make an explicit and unreserved statement of such compliance.
Eligible entities
It is a subsidiary as defined in IFRS 10 Consolidation Financial Statement
It does not have public accountability
It has a parent (either ultimate or intermediate) that prepares consolidated financial statements, available for public use, which comply with IFRS accounting standards.
The standard does not have any Impact on the Group as the group is not an Eligible entity
Other Material Accounting Policies
Other accounting policies that have been applied are:
Consolidation
The financial statements of the subsidiaries used to prepare the consolidated financial statements were prepared as at the Holding Company's reporting date. The consolidation principles are unchanged as against the comparative period.
Subsidiaries
Subsidiaries are entities controlled by the Company. Control exists when the Company has:
power over the investee;
exposure, or rights, to variable returns from its involvement with the investee; and
the ability to use its power over the investee to affect the amount of the investor's
returns.
Acquisition of subsidiaries
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Company. The Group measures goodwill as the fair value of the consideration transferred including the recognised amount of any non-controlling interest in the acquiree, less the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
The Group elects on a transaction-by-transaction basis whether to measure at the acquisition date components of non-controlling interests in the acquiree at its fair value, or at its proportionate share of the acquiree's identifiable net assets. All other components of non-controlling interests are measured at their acquisition-date fair values, unless another measurement basis is required by IFRS. Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred.
Structured entity
A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. A structured entity is consolidated if the Group is exposed, or has rights to variable returns from its involvement with the Structured Entity and has the ability to affect those returns through its power over the Structured Entity. Power is the current ability to direct the activities that significantly influence returns.
Accounting method of consolidation
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. The results of the subsidiaries acquired or disposed of during the year are included in the consolidated financial statements from the effective acquisition date and or up to the effective date on which control ceases, as appropriate. The integration of the subsidiaries into the consolidated financial statements is based on consistent accounting and valuation methods for similar transactions and other occurrences under similar circumstances.
Transactions eliminated on consolidation
Intra-group balances, income and expenses (except for foreign currency translation gains or losses) arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with subsidiaries are eliminated to the extent of the Group's interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Profits and losses resulting from intra-group transactions are also eliminated.
Non-controlling interest
The Group applies IFRS 10 Consolidated Financial Statements (2011) in accounting for acquisitions of non-controlling interests. Under this accounting policy, acquisitions of non-controlling interests are accounted for as transactions with equity holders in their capacity as owners and therefore no goodwill is recognised as a result of such transactions. The adjustments to non-controlling interests are based on the proportionate amount of the net assets of the subsidiary.
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency').
Transactions and balances
Foreign currency transactions, that is transactions denominated, or that require settlement in a foreign currency, are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
Monetary items denominated in foreign currency are translated using the closing rate as at the reporting date. Non-monetary items measured at historical cost denominated in a foreign currency are translated with the exchange rate as at the date of initial recognition; non monetary items in a foreign currency that are measured at fair value are translated using the exchange rates at the date when the fair value was determined.
Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the year end translation of monetary assets and liabilities denominated
in foreign currencies are recognised in the Income statement, except when deferred in equity as gains or losses from qualifying cash flow hedging instruments or qualifying net investment hedging instruments.
All foreign exchange gains and losses recognised in the Income statement are presented net in the Income statement within the corresponding item. Foreign exchange gains and losses on other comprehensive income items are presented in other comprehensive income within the corresponding item.
In the case of changes in the fair value of monetary assets denominated in foreign currency classified as fair value through other comprehensive income, a distinction is made between translation differences resulting from changes in amortised cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in the amortised cost are recognised in profit or loss, and other changes in the carrying amount, except impairment, are recognised in equity.
Group Entities
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;
Income and expenses for each Income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions);
All resulting exchange differences are recognised in other comprehensive income.
Exchange differences arising from the above process are reported in shareholders' equity as 'Foreign currency translation reserve'.
On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to 'Other comprehensive income'. When a foreign operation is disposed of, or partially disposed of, such exchange differences are recognised in the consolidated income statement as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
Interest
Interest income and expense for all interest-earning and interest-bearing financial instruments are recognised in the income statement within "interest income" and "interest expense" using the Effective Interest Method.
The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability (or, where appropriate, the next re-pricing date) to the carrying amount of the financial asset or liability. When calculating the effective interest rate, the Group estimates future cash flows considering all contractual terms of the financial instruments but not future credit losses.
The calculation of the effective interest rate includes contractual fees paid or received, transaction costs, and discounts or premiums that are an integral part of the effective interest rate.
Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or liability.
Interest income and expense presented in the Income statement include:
Interest on financial assets and liabilities measured at amortised cost calculated on an effective interest rate basis.
Interest on financial assets measured at fair value through OCI calculated on an effective interest rate basis.
Whilst interest revenue is always required to be presented as a separate line item, it is calculated differently according to the status of the asset with regard to credit impairment.
For a financial asset that has not become credit impaired since initial recognition, interest revenue is calculated using a 'gross method' of applying the effective interest rate method to the gross carrying amount of the asset (i.e. its carrying amount excluding the loss allowance).
For a financial asset that subsequently has become credit-impaired, from the beginning of the next reporting period, interest revenue is calculated using a 'net method' of applying the effective interest rate to the net amortised cost balance (i.e. including the loss allowance).
Revenue from contract with customers
IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers. It applies to all contracts with customers except leases, financial instruments and insurance contracts. The standard establishes a more systematic approach for revenue measurement and recognition by introducing a five-step model governing revenue recognition. The five step model requires the Company to (i) identify the contract with the customer, (i" identity each of the performance obligations included in the contract, (ii) determine the amount of consideration in the contract, (iv) allocate the consideration to each of the identified performance obligations and (v) recognise revenue as each performance obligation is satisfied.
Guaranty Trust Pension Managers Limited
Revenue recognition by the Pension Manager subsidiary are under the following;
Asset Based Fees: These are fees earned on pension funds by the company and held by fund custodians as stipulated by Pension Reform Act 2014. It is earned over time and invoiced on a preceding month basis at the approved rates for the various funds under the multi-fund structure.
Fee Income earned from administrative services: These are fees earned over time from contributors to cover cost of administering each Retirement Savings Account. The Company does not recognize revenue from a contributor that has not made contribution for a particular month. The performance obligation is satisfied over the administration of each Retirement Savings Account.
Fee Income from providing management services: Fees earned for the provision of services over a period of time are accrued over that period. That is, the fees are invoiced on a preceding month basis but accrued on a daily basis on the fund. These fees include the administration and supervision of Pension Fund Assets. Revenue recognized is based on a percentage of the opening Net Asset value of the Pension Fund investment at the beginning of the period of charge. The performance obligation is satisfied over the administration and supervision of Pension Fund Assets.
Guaranty Trust Fund Managers Limited
Guaranty Trust Fund Managers Limited provides funds management services to individuals and corporate organisations. Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements.
The Company has applied IFRS 15 practical expedient to a portfolio of contracts (or performance obligations) with similar characteristics since the Company reasonably expects that the accounting result will not be materially different from the result of applying the standard to the individual contracts. The disclosures of significant accounting judgements, estimates and assumptions relating to revenue from contracts with customers are provided below.
Payments Company- HabariPay Limited
The Company's sources of revenue are derived from the following:
Net commission recognized on merchant service charged to transaction value processed on behalf of our merchants.
Sales margin recognized on bills payments i.e., airtime vending, and bulk SMS sent on behalf of our customers.
The Company has generally concluded that it is the principal in its revenue arrangement. The five-step model as suggested by IFRS-15 has been followed in recognizing revenue.
Fees and commission
Fees and Commission that are integral to the effective interest rate on a financial asset are included in the measurement of the effective interest rate. These fees are management fees on non revolving credit facilities.
Other fees and commissions which relates mainly to transaction and service fees, including commitment fees which are charged on undisbursed portion of credit facilities, investment management and other fiduciary activity fees, sales commission, placement line fees, syndication fees and guarantee issuance fees are recognised at a point in time, or over time as the related services are provided / performed.
Payments Company- HabariPay Limited
The Payment Company's fees and commissions are derived from net commissions recognized on merchant services charged to transaction value processed on behalf of our merchants. Revenue related to the above transactions are recognized at the point in time when the transaction takes place.
Guaranty Trust Fund Managers Limited
Fees and commissions in the Fund Manager subsidiary are recognized on an accrual basis for the period under review at amortized cost. The management fees earned on funds being managed are as stipulated by the guiding of the respective individual trust deeds.
Net gains on financial instruments held at fair value through profit or loss.
Net trading income comprises gains less losses related to trading assets and liabilities, and it includes all fair value changes, dividends and foreign exchange differences.
Net income from other financial instruments at fair value through profit or loss
Net income from other financial instruments at fair value through profit or loss relates to derivatives held for risk management purposes that do not form part of qualifying hedge relationships. Fair value changes on other derivatives held for risk management purposes, and other financial assets and liabilities carried at fair value through profit or loss, are presented in Other Income - Mark to market gain/(loss) on trading investments in the Income statement.
Dividend income
Dividend income is recognised when the right to receive income is established. Dividends on trading equities are reflected as a component of Net gains on financial instruments held at fair value through profit or loss. Dividend income on long term equity investments is recognised as a component of other income.
Leases
Leases (right-of-use asset) are accounted for in accordance with IFRS 16 and are accounted for in line with the following based on whether the Group is the Lessor or the Lessee:
The Group is the lessee
At the commencement date, the Group recognises a right-of-use asset at cost and a lease liability, where applicable, at the present value of the lease payments that are not paid at that date.
The cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs incurred by the lessee and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.
After the commencement date, the Group measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses and adjusted for any remeasurement of the lease liability, the right-of-use asset is included in Restricted deposit and other assets. The Group subsequently measures the lease liability by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications.
The corresponding lease liabilities, where applicable, are included in other liabilities. The interest element of the lease liabilities is charged to the Income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
The Group is the lessor
When assets are leased to a third party under finance lease terms, the present value of the lease income is recognised as a receivable. The difference between the gross receivable and the present value of the receivable is recognised as unearned finance income. Lease income is recognised over the term of the lease using the net investment method (before tax), which reflects a constant periodic rate of return.
Income Tax
Current income tax
Income tax payable is calculated on the basis of the applicable tax law in the respective jurisdiction and it consists of Company Income Tax, Education tax, NITDEF tax and Nigeria Police Trust Fund levy. Company Income tax is assessed at a statutory rate of 30% of total profit or Dividend Declared, whichever is higher. Education tax is computed as 3% of assessable profit, NITDEF tax is a 1% levy on Profit before tax of the Bank, and Nigeria Police Trust Fund Levy is 0.005% of Net profit.
Current income tax is recognised as an expense for the period except to the extent that current tax is related to items that are charged or credited in other comprehensive income or directly to equity. In these circumstances, deferred tax is charged or credit to other comprehensive income or to equity (for example, current tax on FVOCI).
Where the Group has tax losses that can be relieved only by carrying it forward against taxable profits of future periods, a deductible temporary difference arises. Those losses carried forward are set off against deferred tax liabilities carried in the consolidated statement of financial position.
The Group evaluates positions stated in tax returns; ensuring information disclosed are in agreement with the underlying tax liability, which has been adequately provided for in the financial statements. The Group had determined that interest and penalties relating to income taxes, including uncertain tax treatments, do not meet the definition of income taxes, and therefore are accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets
Deferred income tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
However, the deferred income tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
temporary differences related to investments in subsidiaries where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that they will not reverse in the foreseeable future; and
temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised when it is probable that future taxable profit will be available against which these temporary differences can be utilised. The tax effects of carry-forwards of unused losses or unused tax credits are recognised as an asset when it is probable that future taxable profits will be available against which these losses can be utilised. Deferred tax related to fair value re-measurement of FVOCI investments and cash flow hedges, which are recognised in other comprehensive income, is also recognised in the other comprehensive income and subsequently in the income statement together with the deferred gain or loss.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities against current tax assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
Financial assets and liabilities
Recognition
The Group on the date of origination or purchase recognizes loans, debt and equity securities, deposits and subordinated debentures at the fair value of consideration paid. For non-revolving facilities, origination date is the date the facility is disbursed, origination date for revolving facilities is the date the line is availed, while origination date for credit card is the date the credit limit is availed on the card. Regular-way purchases and sales of financial assets are recognized on the settlement date. All other financial assets and liabilities, including derivatives, are initially recognized on the trade date at which the Bank becomes a party to the contractual provisions of the instrument.
Classification and Measurement
Initial measurement of a financial asset or liability is at fair value plus transaction costs that are directly attributable to its purchase or issuance. For instruments measured at fair value through profit or loss, transaction costs are recognized immediately in profit or loss. Financial assets include both debt and equity instruments.
Financial assets are classified into one of the following measurement categories:
Amortised cost
Fair Value through Other Comprehensive Income (FVOCI)
Fair Value through Profit or Loss (FVTPL) for trading related assets
The Group classifies all of its financial assets based on the business model for managing the
assets and the asset's contractual cash flow characteristics.
Business Model Assessment
Business model assessment involves determining whether financial assets are managed in order to generate cash flows from collection of contractual cash flows, selling financial assets or both. The Bank assesses business model at a portfolio level reflective of how groups of assets are managed together to achieve a particular business objective. For the assessment of business model the Bank takes into consideration the following factors:
the stated policies and objectives for the portfolio and the operation of those policies in practice. In particular, whether management's strategy focuses on earning contractual interest revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realizing cash flows through the sale of the assets
how the performance of assets in a portfolio is evaluated and reported to Group heads and other key decision makers within the Bank's business lines;
the risks that affect the performance of assets held within a business model and how those risks are managed;
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