Guaranty Trust Holding Company (GTCO) H1 2024 earnings summary

Executive summary

• Half-year 2024 results significantly exceeded expectations, with PBT already surpassing full-year guidance, driven by strong core income and non-fund income growth.

• Gross earnings surged 107% year-over-year to ₦1.39tn in H1-2024, with profit before tax up 206.6% to ₦1.00tn and profit after tax reaching ₦905.6bn.

• Total assets increased 49.7% to ₦14.5tn, with net loans up 25.5% and customer deposits up 38.4% year-over-year.

• The group operates across banking, payments, pension, and asset management, with subsidiaries in multiple African countries and the UK.

• Non-banking subsidiaries, including payments, fund management, and pensions, posted significant growth in assets under management and transaction volumes.

Financial highlights

• Interest income rose 173% year-over-year; non-fund income increased 73% year-over-year; non-interest income grew 73.4% to ₦774.7bn.

• Net interest margin improved to 10.45% from 7.76% year-over-year, with NIM guidance for the year at 11%.

• Cost-to-income ratio at 16.1%–16.74% due to strong revenue; operating expenses up 16% but expected to slow in H2.

• Return on equity soared to 93.44% and return on assets to 14.97% as of June 2024.

• Earnings per share rose to 3,212 kobo, and total dividend doubled to ₦1.00.

Outlook and guidance

• External FY 2024 guidance remains unchanged, despite H1 PBT exceeding full-year target; directors confirm the group’s ability to continue as a going concern.

• FY 2024 guidance targets PBT of ₦806bn, deposit growth of 45%, and loan growth of 30%.

• Management expects to maintain strong yields on fixed income and loan books, with NIM targeted at 11%.

• Dividend payout ratio remains at 50%, with interim dividend of ₦1.00 per share proposed.

• Focus remains on leveraging the holding company structure for business diversification and resilience.