Guaranty Trust Holding Company Plc

RELEASES UNAUDITED INTERIM Q3 CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS AS AT SEPTEMBER 30, 2021; DECLARES PBT OF N151.9BILLION

Lagos Nigeria - October 27, 2021 - Guaranty Trust Holding Company Plc ("GTCO"), (Bloomberg: GUARANTY:NL/Reuters: GUARANT.LG), provider of diversified financial services, announces its unaudited financial results for the period ended 30 September 2021 and declares a PBT of N151.9bn.

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr. Segun Agbaje, said; "Our performance validates the resilience of our balance sheet in spite of the challenges in the operating environment and, further justifies our decision to diversify our earnings by going beyond banking in creating long-term value for our discerning stakeholders. Looking forward, we will replicate our digital-first, customer-centric banking strategy in the wealth management and payment spaces to rapidly scale our service offerings in line with our long-term strategy."

He further stated that; "As businesses and households continue to recover from the lingering impact of covid-19 pandemic, our resolve to stand with our customers and communities through the recovery process is yielding the desired results. Ultimately, we aim to improve the lives of our stakeholders and build partnerships with our communities."

Financial Highlights

·      Earnings

-  Profit before tax of N151.9bn (30 September 2020 N167.4bn) a decrease of 9.2%.

-  Profit after tax decreased by 9.1% to N129.4bn from N142.3bn as of 30 September 2020.

-  Earnings per share of 454kobo compared to 502kobo per share as of 30 September 2020.

·      Revenue

-  Interest income of N195.0bn (30 September 2020: N228.2bn) down 14.5% largely as a result of a 32.3% dip in interest income on cash and cash equivalents and 56.6% dip in interest income on investment securities but partly offset by 2.9% increase in interest income on loans and advances.

-  Non-interest income of N123.5bn comprising of fee and commission income, net trading gains, and other income (30 September 2020: N101.7bn) up 21.4%. The Non-interest income growth resulted largely from 51.3% increase in fees and commission income, 6.7% increase in other income but partly offset by 2.7% decrease in net trading gains.

-  Net interest margin of 6.9% (30 September 2020: 9.9%).

·      Balance Sheet

-  Total assets of N5.144trn (31 December 2020: N4.945trn) up 4.0%

-  Net loans and advances of N1.737trn (31 December 2020: N1.663trn) ups 4.5%.

-  Deposit liabilities of N3.900trn (31 December 2020: N3.611trn) up 8.0%.

·      Credit Quality

-  Non-performing loans to total loans at 5.8% (31 December 2020: 6.4%).

-  Coverage for lifetime credit impaired loans at 144.1% (31 December 2020: 128.7%)

-  Cost of Risk at 0.3% (31 December 2020: 1.2%).

·      Continued focus on efficiency

-  Cost to income (CIR) closed at 44.9%, from 40.2% for the period 30 September 2020.

·      Subsidiaries

-  Contribution to Group PBT from West Africa increased from 15.4% in September 2020 to 21.7% in September 2021. During the same period, the contributions from East Africa increased to 3.0% from 1.6% while United Kingdom decreased from -0.7% to -0.9%. The improvement noted in West and East Africa caused Nigeria to drop from 84.2% in September 2020 to 79.0% in September 2021 owing to 23.1% decrease in interest income earned on Fixed Income Securities (FIS) portfolio as FIS average yield dropped from 13.8% to 4.3% year on year due to the lower yield offering of 0.5% on special bills which constitutes 61.3% of the FIS portfolio as at 30 September 2021.

September 2021 Financial Analysis and Ratios

27 October 2021

Enquiries:

Notes to the Editors:

Guaranty Trust Holding Company Plc is a diversified financial services company with N5.144trillion in assets, providing commercial banking services and non-banking financial services across eleven countries.

The Group operates as one of the leading Nigerian financial services companies offering a wide range of commercial banking as well as non-banking financial services in Nigeria, West Africa, East Africa, and the United Kingdom. The Group is rated B- by S&P, a reflection of the Group's stability and reputation of being a well-established franchise with strong asset quality and consistent excellent financial performance.

The Group has the following Banking subsidiaries (including sub-subsidiaries) and non-banking subsidiaries within and outside of Nigeria -

1)   Guaranty Trust Bank (Nigeria) Limited     ("GTB Nigeria"),

2)   Guaranty Trust Bank (Gambia) Limited    ("GTB Gambia"),

3)   Guaranty Trust Bank (Sierra Leone) Limited ("GTB Sierra Leone"),

4)   Guaranty Trust Bank (Ghana) Limited      ("GTB Ghana"),

5)   Guaranty Trust Bank (Liberia) Limited     ("GTB Liberia"),

6)   Guaranty Trust Bank (United Kingdom) Limited ("GTB UK")

7)   Guaranty Trust Bank (Cote D'Ivoire)        ("GTB Cote D'Ivoire"),

8)   Guaranty Trust Bank (Kenya) Limited      ("GTB Kenya"),

9)   Guaranty Trust Bank (Rwanda) Plc          ("GTB Rwanda"),

10) Guaranty Trust Bank (Uganda) Limited    ("GTB Uganda")

11) Guaranty Trust Bank (Tanzania) Limited ("GTB Tanzania")

12) Habari Pay (Nigeria) Limited.