Guaranty Trust Holding Company Plc (“GTCO” or the “Group”) has released its Audited Consolidated and Separate Financial Statements for the period ended June 30, 2022, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).
The Group *reported profit before tax of ₦103.2billion, representing an increase of 11.0 per cent over ₦93.1billion recorded in the corresponding period* ended June 2021.The Group’s loan book (net) increased by 1.8 per cent from ₦1.80trillion recorded as at December 2021 to ₦1.83trillion in June2022 while deposit liabilities increased by 6.4 per cent from ₦4.13trillion in December 2021 to ₦4.39trillion in June 2022.
The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at ₦5.7trillion and ₦845.7billion, respectively. Full Impact Capital Adequacy Ratio (CAR) stayed very strong, closing at 22.0 per cent, while asset quality was sustained as IFRS 9 Stage 3 Loans ratio and Cost of Risk (COR) closed at 6.2 per cent and 0.2 per cent in June 2022 from 6.0 per cent and 0.5 per cent in December 2021, respectively.
Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Segun Agbaje, said; “Our results show an increase in key revenue lines and a strong performance in other financial metrics which reinforce our growth prospects as a leading financial services company. Our priority at the start of the 2022 financial year was to bring the Group’s new businesses on-stream, starting strong with a focus on long-term viability. At present, we have successfully expanded our financial services ecosystem to include Habari Pay Ltd, Guaranty Trust Fund Managers Ltd, and Guaranty Trust Pension Managers Ltd, and all of them are P&L positive.”
He further stated that, “These newly created businesses will operate alongside our flagship banking franchise to offer increased value to our growing customer base as well as other stakeholders. We will continue to build on our core strengths of service excellence, innovation, and flawless execution to deliver our corporate objectives for the year and further our vision of being Africa’s leading financial services institution.”
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Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 23.9 per cent, Pre-Tax Return on Assets (ROAA) of 3.7 per cent, Full Impact Capital Adequacy Ratio (CAR) of 22.0 per cent and Cost to Income ratio of 49.1 per cent.
Similarly, Fidelity Bank Plc has again delighted its shareholders as it recorded an impressive performance in its audited half year (H1) ended June 30, 2022 financial statement.
This translated into first-time interim dividend pay out to shareholders of 10 kobo per 50 kobo ordinary share in the period under review.
The bank’s Profit Before Tax rose to N25.08 billion in H1’22, representing an increase of 21.6 per cent from N20.63 billion in H1’21.
The total interim dividend of the Bank amounts to N25.08 billion reported profit before tax in H1’22, representing an increase of 21.6 per cent from N20.63 billion in H1’21.
The bank’s income tax rose by 34 per cent to N1.77 billion in H1’22 from N1.32 billion in H1’21 to declare profit after tax of N23.31 billion in H1 2022 from N19.31 billion reported in H1’21.
The growth in profits was driven by significant improvement in gross earnings and net interest income.
In the period under review, Fidelity bank reported N75.64 billion gross earnings as against N50.3billion reported in corresponding half year results. Increase in Fidelity bank gross earnings was on the account of 52.9per cent growth in interest income to N136.2billion from N89.1billion in H1 2021.
The increase in Interest Income was driven by the improved yield on earnings assets and 14.9 per cent year-t0-date (YTD) expansion in earnings base to N2,546.5 billion.
However, net fee income declined by N1.4billion (9.6 per cent) due to N10.0billion (117.9 per cent) drop in foreign exchange gains.
Net Interest Margin improved to 6.4 per cent from 4.7 per cent in 2021FY, due to a combination of improved yields on average earning assets and a decline in average funding cost.
Average yields on earning assets increased by 211basis points YoY to 11.5 per cent while average funding cost declined by 84basis points to 4.0 per cent YoY, which resulted in 50.4 per cent growth in net interest income to N75.6billion.
Though funding cost has trended downward since Q1, interest rate on deposits is gradually ticking up with the recent upward review of the monetary policy rate and market yields.
The bank’s operating expenses increased by 46.8 per cent to N62.0 billion with 62.7 per cent of the cost growth coming from regulatory charges, (AMCON, NDIC) and staff cost.
The bank absorbed the 2021 FY AMCON charges of N18.3billion while expecting a moderation in operating expenses in H2’22.
Extract from the bank’s balance sheet performance showed an increase in customers’ deposits and net loans & advances as Fidelity bank maintains the leading Tier-2 bank in Nigeria.
According to its half year ended June 30, 2022 result and accounts, the lender’s significant increase in customers’ deposits and net loans & loans lifted total assets in the period under review.
As customer deposits grew by 13.1 per cent to N2.02 trillion as of June 30, 2022 from N2.29 trillion reported in 2021, Net Loans & Advances rose by 15.3 per cent to N1.66 trillion as of June 30, 2022 from N1.91 trillion reported in 2021 FY.
The growth in Fidelity Bank’s total deposits was driven by double-digit growth in low-cost deposits (Demand, Savings, Domiciliary). Low-cost deposits increased by 26.1 per cent Year-till-Date to N1.9 trillion and now represents 83.1per cent of total deposits from 74.5per cent in 2021FY, which explains the drop in funding cost.
Foreign currency (FCY) deposits increased by $497 million or 52.8 per cent YTD and now accounts for 26.5 per cent of total deposits from 19.5 per cent in 2021 FY, as the bank continue to harness the benefits of renewed drive in the export business and the diaspora banking space.
Also, net Loans and advances growth of about 15.3 per cent due to intervention funding responsible for over 32 per cent of the absolute growth in risk assets book.
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