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GT Bank Audited Half-Year Group Results For The Period Ended June 30, 2020: Declares a PBT of N109.7 Billion

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September 2, 2020 – Guaranty Trust Bank Plc, provider of diversified financial services, announces its audited financial results, in accordance with IFRS, for the period ended 30 June, 2020 and declares a PBT of N109.7bn.

Commenting on the financial results, the Chief Executive Officer of Guaranty Trust Bank plc, Segun Agbaje, said; “These are undoubtedly tough and trying times for people, businesses and economies the world over. Our financial performance in the first half of the year reflects the quality of our past decisions which have broadened our earnings and strategically positioned us to thrive, thus far, through the current global health and economic crises. Underpinning this financial performance is our commitment to being there for our customers and the communities we serve, and over the past six months we have lent the full weight of our franchise to safeguarding lives and livelihoods of our staff and customers by leading from the front in the fight to curtail the Covid-19 outbreak and offering grace periods on loans to our small business customers.”

He further stated that “Going forward, our focus is not just to survive this pandemic, but to thrive beyond it. That is why we are going ahead with our plans to reimagine how we create value for all our stakeholders. We know that making financial services work for customers goes beyond banking, and in line with our long-term strategy, we will seek to create and drive innovative financial solutions that go beyond banking.”

Financial Highlights

· Resilient Earnings

  • Profit before tax of N109.7bn (30 June 2019 N115.8bn) a decrease of 5.2%.
  • Profit after tax decreased by 4.9% to N94.3bn from N99.1bn of 30 June, 2019.
  • Earnings per share of 332kobo relative to 350kobo per share for comparative period 30 June, 2019.

· Revenue

  • Interest Income of N153.7bn (30 June 2019: N149.0bn) up 3.2%. The Interest income growth resulted largely from 5.2% growth in interest income on loans and advances and 6.9% increase in interest income on fixed income securities.
  • Non-Interest Income (NII) of N71.4bn (30 June 2019: N72.9bn) down 2.0% largely as a result of 30.0% dip in fee and commission income and partly offset by 28.1% growth in other income comprising discounts, rebate commissions, revaluation gains, recoveries & others.
  • Net Interest Margin remained strong at 9.7% (30 Jun 2019: 9.6%).

· Balance Sheet

  • Total assets of N4.511trn (31 December 2019: N3.759trn) up 20.0%.
  • Net loans and advances of N1.624trn (31 December 2019: N1.502trn) up 8.1%.
  • Deposits from customers of N3.001trn (31 December 2019: N2.533trn) up 18.5%.

· Credit Quality

  • Non-performing loans to total loans at 6.8% (31 December 2019: 6.5%).
  • Coverage for Lifetime Credit Impaired Loans at 118.1% (31 December 2019: 126.6%)
  • Cost of Risk at 0.4% (31 Dec 2019: 0.3%).

· Continued focus on efficiency

  • Cost to income of 43.2% (30 June 2019: 37.6%). Increase influenced by rise in inflation rate.

· Subsidiaries

  • Contribution to PBT from subsidiaries increased from 16.1% as at 30 June 2019 to 17.1% in 30 June 2020.

June 2020 Financial Analysis and Ratios

Key Financials (N’ billion)

H1-2020

H1-2019

∆%

Interest Income

153.7

149.0

3.2%

Net Interest Income

127.6

116.4

9.7%

Operating Income

193.0

185.7

4.0%

Operating Expenses

83.3

69.9

19.2%

Profit Before Tax

109.7

115.8

-5.2%

Profit After Tax

94.3

99.1

-4.9%

Earnings Per Share (in Naira)

3.3

3.5

-5.0%

H1-2020

FY-2019

∆%

Total Assets

4,511.3

3,758.9

20.0%

Net Loans

1,624.2

1,502.1

8.1%

Customer Deposits

3,001.3

2,532.5

18.5%

Key Ratios

H1-2020

H1-2019

ROAE(post-tax)

26.8%

33.6%

ROAA(post-tax)

4.6%

5.8%

ROAE (pre-tax)

31.2%

39.3%

ROAA (pre-tax)

5.3%

6.7%

Net Interest Margin

9.7%

9.6%

Cost-to-Income Ratio

43.2%

37.6%

H1-2020

FY-2019

Net Loans to Deposits

52.6%

56.9%

Liquidity Ratio

43.2%

49.3%

Capital Adequacy Ratio

22.9%

22.5%

NPL/Total Loans

6.8%

6.5%

Cost of Risk

0.4%

0.3%

Coverage (with Reg. Risk Reserves)

118.1%

126.6%

Guaranty Trust Bank is a diversified financial services company with N 4.511trillion in assets, providing commercial banking services through 230 local branches, 30 e-branches & Cash Centres, 60 GTExpress locations, over 1,356 ATMs, our international subsidiary offices and the Internet (gtbank.com).

The Group operates as one of the leading Nigerian banks offering a wide range of commercial banking services and products throughout Nigeria, West and East African sub-regions as well as the United Kingdom. The Bank is rated B and B by S&P and Fitch respectively, a reflection of the Bank’s stability and reputation of being a well-established franchise with strong asset quality and consistent excellent financial performance.

The Bank has ten bank subsidiaries established outside of Nigeria –

1) Guaranty Trust Bank (Gambia) Limited (“GTB Gambia”),

2) Guaranty Trust Bank (Sierra Leone) Limited (“GTB Sierra Leone”),

3) Guaranty Trust Bank (Ghana) Limited (“GTB Ghana”),

4) Guaranty Trust Bank (Liberia) Limited (“GTB Liberia”),

5) Guaranty Trust Bank (United Kingdom) Limited (“GTB UK”)

6) Guaranty Trust Bank (Cote D’Ivoire) (“GTB Cote D’Ivoire”),

7) Guaranty Trust Bank (Kenya) Limited (“GTB Kenya”),

8) Guaranty Trust Bank (Rwanda) Limited (“GTB Rwanda”),

9) Guaranty Trust Bank (Uganda) Limited (“GTB Uganda”)

10) Guaranty Trust Bank (Tanzania) Limited (“GTB Tanzania”).

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