2023-Annual-Report_2024-05-27-121846_fnoy
2023-Annual-Report_2024-05-27-121846_fnoy
2023-Annual-Report_2024-05-27-121846_fnoy
G
uaranty 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 regarding Annual Financial Statements
and comprises Separate and Consolidated Financial Statements of the
Group for the year ended 31 December 2023. The consolidated and separate financial
statements have been prepared in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board and adopted by the
Financial Reporting Council of Nigeria. For better understanding, certain disclosures and
some prior year figures have been presented in line with current year 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
003
Overview Chairman’s Statement 048
Directors, Officers & Professional Advisers 007 Line of Business MD’s Statement 059
VISION MISSION
DIRECTORS
Registered Office
Plot 635, Akin Adesola Street
Victoria Island, Lagos State
Auditors
Ernst & Young
10th Floor, UBA House
57, Marina, Lagos State
FINANCIAL
HIGHLIGHT
GROSS EARNINGS PROFIT BEFORE TAX PROFIT AFTER TAX
Major Statement of
Financial Position
Items
NOTICE OF AGM
NOTICE IS HEREBY GIVEN that the Third Annual General ant to the foregoing resolution, on the Official List of the
Meeting of GUARANTY TRUST HOLDING COMPANY PLC Nigerian Exchange Limited, the London Stock Exchange
(“the Company”) will hold at the Oriental Hotel, 3, Lekki Plc or on such other stock exchange or exchanges or se-
Road, Victoria Island, Lagos State, on Thursday, May 9, 2024, curities market or markets (as the case may be);
at 10:00 a.m. to transact the following business:
c. That the issued share capital of the Company be and is
ORDINARY BUSINESS hereby increased from N14,715,589,612.00 (fourteen bil-
lion, seven hundred and fifteen million, five hundred and
1. To receive the Audited Financial Statements for the year eighty-nine thousand, six hundred and twelve Naira only)
ended December 31, 2023, and the Reports of the Direc- divided into 29,431,179,224 (twenty-nine billion, four
tors, Auditors and the Statutory Audit Committee thereon; hundred and thirty-one million, one hundred and seven-
ty-nine thousand, two hundred and twenty-four) ordinary
2. To declare a dividend; shares of N0.50 (fifty Kobo) each to N22,215,589,612.00
(twenty-two billion, two hundred and fifteen million,
3. To re-elect Directors;
five hundred and eighty-nine thousand, six hundred and
twelve Naira only) divided into 44,431,179,224 (for-
4. To authorise Directors to fix the remuneration of the Auditors;
ty-four billion, four hundred and thirty-one million, one
5. To disclose the Remuneration of Managers of the Company; hundred and seventy-nine thousand, two hundred and
twenty-four) ordinary shares of N0.50 (fifty Kobo) by the
6. To elect Members of the Statutory Audit Committee.. creation and addition of 15,000,000,000 (fifteen billion)
ordinary shares of N0.50 (fifty Kobo) each ranking pa-
ri-passu with the existing ordinary shares of the Company,
(except that such additional ordinary shares shall not rank
SPECIAL BUSINESS for the dividend recommended by the Company in respect
of the profit for the year ended 31 December, 2023); and
7. “That in compliance with the Rule of the Nigerian Exchange that the Board (where it deems appropriate) be authorised
Limited governing transactions with Related Parties or Inter- to take the necessary steps to cancel any unallotted shares
ested Persons, the Company and its related entities (“The of the Company or to further increase the share capital of
Group”) be and are hereby granted a General Mandate in the Company to an amount sufficient to accommodate
respect of all recurrent transactions entered into with a re- any transaction undertaken by the Company to raise addi-
lated party or interested person provided such transactions tional equity capital pursuant to the foregoing resolutions;
are of a revenue or trading nature or are necessary for the
Company’s Day to day operations. This Mandate shall com- d. That Clause 6 of the Company’s Memorandum of Asso-
mence on the date on which this resolution is passed and ciation and Clause 5 of the Company’s Articles of Asso-
shall continue to operate until the date on which the next ciation be and are hereby amended to reflect the new
Annual General Meeting of the Company is held. share capital of N22,215,589,612.00 (twenty-two billion,
two hundred and fifteen million, five hundred and eighty-
8. That Directors remuneration for the financial year ending nine thousand, six hundred and twelve Naira only) divid-
December 31, 2024 and for succeeding years until re- ed into 44,431,179,224 (forty-four billion, four hundred
viewed by the Company in its Annual General Meeting, and thirty-one million, one hundred and seventy-nine
be and is hereby fixed at N58,000,000.00 (fifty-eight mil- thousand, two hundred and twenty-four) ordinary shares
lion Naira only) annually for each Director. of N0.50 (fifty Kobo) by the creation and addition of
15,000,000,000 (fifteen billion) ordinary shares of N0.50
9. To consider and approve as a Special Resolution of the
(fifty Kobo) each ranking pari-passu with the existing or-
Company:
dinary shares of the Company, and that any amendments
a. “That the Company be and is hereby authorised to raise ad- required to be made to the Memorandum and Articles of
ditional capital of up to US$750,000,000.00 (seven hundred Association of the Company as a result of the foregoing
and fifty Million United States Dollars only), (or its equivalent resolutions be approved;
in Nigerian Naira), through the issuance of securities com-
e. That the Board be and is hereby authorised, on behalf of the
prising ordinary shares, preference shares, convertible and/
Company, to enter into and execute all such agreements,
or non-convertible notes, bonds or any other instruments, in
deeds, notices and other documents as may be necessary
the Nigerian and/or international capital markets, either as a
for and/or incidental to the foregoing resolutions, (including
standalone issue(s) or by the establishment of capital raising
without limitation, the conversion of any convertible securi-
programme(s), whether by way of public offerings, private
ties into ordinary shares of the Company;
placements, rights issues and/or other transaction modes, at
price(s), coupon or interest rates determined through book f. That the Board be and is hereby authorised to take such
building or any other acceptable valuation method or com- further action and do such further things as may be required
bination of methods, in such tranches, series or proportions, to give effect to the above resolutions including but not lim-
within such maturity periods and at such dates and upon ited to obtaining the approvals of the relevant regulatory
such terms and conditions as may be determined by the authorities including the Central Bank of Nigeria and the
board of directors of the Company (the Board), subject to Securities and Exchange Commission and complying with
obtaining the requisite approvals of the relevant regulatory the directive(s) of any relevant regulatory authority;
authorities;
g. That the Company Secretary be and is hereby authorised
b. That the Board be and is hereby authorised to seek the to do all such things necessary to give effect to the above
listing and admission to trading of securities issued pursu- resolutions at the Corporate Affairs Commission”.
NOTES:
1. Dividend 5. E-Annual Report
If approved, dividend will be payable on Thursday, May 9, 2024, The electronic version of the Annual report is available at www.
at the rate of N2.70 Kobo per every 50 Kobo ordinary share, to gtcoplc.com. Shareholders who have provided their email ad-
Shareholders whose names appear in the Register of Members dresses to the Registrars will receive the electronic version of the
at the close of business on Friday, April 26, 2024 (bringing total Annual Report via email. Furthermore, Shareholders who are in-
Dividend paid for the 2023 financial year to N3.20 Kobo). Share- terested in receiving the electronic version of the Annual Report
holders who have completed the e-Dividend Mandate Forms will are kindly required to request via email to annualreports@data-
receive a direct credit of the dividend into their bank accounts maxregistrars.com.
on the date of the Annual General Meeting. Note however, that
holders of the Company’s Global Depository Receipts listed on
the London Stock Exchange will receive their dividend payments
subsequently. 6. Closure of Register
In line with the provisions of Rule 20.8 (h), Rules governing Relat- In view of the foregoing, nominations to the Statutory Audit
ed Party transactions of the Nigerian Exchange Limited, Interested Committee should be supported by the Curricula Vitae of the
Persons have undertaken to ensure that their proxies, representa- nominees.
tives or associates shall abstain from voting on resolution 7 above.
CORPORATE
GOVERNANCE
Corporate Governance
Guaranty Trust Holding Company and Subsidiary Companies
Introduction
G
uaranty Trust Holding Company Plc (GTCO) remains steadfast in implementing its strategy, aligning same
with sound corporate governance principles to increase value for its stakeholders. Recognizing the pivotal
role of GTCO in fortifying the Guaranty Trust brand, the Board of Directors remain resolute in upholding best
in class governance standards, which remain essential for business integrity and the preservation of investor
trust in the Group. The Company acknowledges that adherence to optimal corporate governance standards is integral
to the long-term success of the Group.
Operating within the interconnected corporate governance frame- Guaranty Trust Pension Managers Limited (GTPM) stands as a cor-
works, the Board fulfills its oversight responsibilities by providing nerstone within the GTCO Group, specializing in the critical realm
strategic guidance to the Group, making informed decisions, and of pension management. GTPM plays a pivotal role in the Nigeri-
ensuring compliance with regulations. Continuous efforts are an pension industry by offering a well-structured platform to ad-
dedicated to ensuring that operations generate sustainable value dress retirement challenges faced by individuals. With a focus on
for shareholders, fostering corporate success. The belief is that leveraging cutting-edge technology and implementing medium
sound corporate governance practices enhance the confidence and long-term financial methodologies, GTPM aims to enhance
of shareholders, customers, business partners, employees, and the post-retirement quality of life for contributors, making signifi-
financial markets, as well as all other stakeholders. cant strides in ensuring financial security during the golden years.
As a Proudly African and Truly International brand, the Company HabariPay Limited (Habari), is fast proving to be a dynamic force
is committed to upholding values of excellence, hard work, and in the financial technology landscape, embodying innovation and
integrity. This commitment persists as the Company innovates to empowerment in the digital economy. Habari focuses on provid-
deliver faster, more cost-effective, secure, and diverse products ing secure payment gateways that enable businesses to seamlessly
for individuals and businesses of various sizes and types. GTCO receive local and international online payments. With a strategic
remains dedicated to its founding values that have endeared the commitment to empowering Africans with the tools necessary to
brand to millions across Africa and beyond, propelling continued thrive in the digital era, Habari not only facilitates financial trans-
financial success. actions but also plays a crucial role in fostering economic growth
and inclusivity across diverse sectors.
Throughout the year, the Group’s governance framework played
a pivotal role in the development and expansion of the Compa- Together, these subsidiaries continue to highlight the GTCO brand
ny’s subsidiaries—Guaranty Trust Bank Limited, Guaranty Trust as a comprehensive financial services company with the capacity
Fund Managers Limited, Guaranty Trust Pension Managers Limit- and determination to provide end-to-end financial solutions to
ed, and the Payment Subsidiary, HabariPay Limited. every African and African business.
Guaranty Trust Bank Limited (GTBank) stands as a stalwart in the The Company is publicly quoted on The Nigerian Exchange Lim-
financial landscape, embodying a commitment to excellence and ited with Global Depositary Receipts (GDRs) listed on the London
innovation. GTBank has grown to become one of the leading fi- Stock Exchange and it remains dedicated to its duties and pledge
nancial institutions in Africa, with a reputation for delivering top- to safeguard and increase investors’ value through transparent
notch banking services. GTBank’s dedication to upholding the corporate governance practices. Our Code of Corporate Gover-
highest standards of corporate governance has earned it the trust nance provides a robust framework for the governance of the
of a diverse clientele, ranging from individual account holders to Board and the Company. The Company ensures compliance with
large corporates. the Code of Corporate Governance for Public Companies issued
by the Securities and Exchange Commission (“the SEC Code”),
Guaranty Trust Fund Managers Limited (GTFM) has emerged as a the Corporate Governance Guidelines for Financial Holding
vital arm of the Group, contributing significantly to the financial Companies in Nigeria issued by the Central Bank of Nigeria (“the
landscape through its expertise in wealth management. GTFM CBN Code”) in July 2023, the Financial Reporting Council’s Nige-
operates as a subsidiary dedicated to providing tailored financial rian Code of Corporate Governance, 2018 (“the FRC Code”), as
solutions to retail, high net worth individuals and institutional well as disclosure requirements under the Disclosure and Trans-
clients. With a strategic focus on expanding its clientele, GTFM parency Rules of the Financial Conduct Authority (FCA), United
excels in offering a diverse range of investment products and fi- Kingdom, which are applicable to non-United Kingdom compa-
nancial services, aligning its approach with the broader goals of nies with Global Depositary Receipts (GDRs) listed on the London
the Guaranty Trust brand. Stock Exchange.
The Company’s Code of Corporate Governance aligns with legal Governance Structure
and regulatory requirements and global best practices, in order to
remain at the cutting edge of good corporate governance practic- The Board
es. In addition to the Code, the Company aggressively promotes
its core values to its employees through its Code of Profession- The Board of Directors is responsible for the governance of the
al Conduct; its Ethics Policy as well as Communications Policy, Company and is accountable to shareholders for creating and de-
which regulate employee relations with internal and external par- livering sustainable value through the management of the Com-
ties. This is a strong indicator of the Company’s determination to pany’s business.
ensure that its employees remain professional at all times in their
business practices. The Company also has a culture of openness in The Board is committed to the highest standards of business in-
which healthy discourse is encouraged and employees are man- tegrity, ethical values and governance; it recognises the respon-
dated to report improper activities. sibility of the Company to conduct its affairs with transparency,
prudence, fairness, accountability and social responsibility, there-
The Company’s Subsidiaries are guided by established governance by safeguarding the interests of all stakeholders.
principles in addition to meeting the relevant regulatory require-
ments in their areas of operations. The Subsidiaries have their The Board ensures that an appropriate level of checks and bal-
own distinct boards and comply with the statutory and regulatory ances is maintained, in order to ensure that decisions are taken
requirements of the businesses they operate. The Subsidiaries op- with the best interest of the Company’s stakeholders in mind.
erate under a corporate governance structure that enables their Directors of the Company possess the right balance of expertise,
boards to balance their roles in performing their oversight and skills and experience, translating to an effective Board and an Ex-
strategic functions in ensuring compliance with the regulatory re- ecutive Management team capable of steering the affairs of the
quirements that apply in their areas of operations. Company in an ever changing and challenging environment. The
Board has put in place a robust appointment and effective succes-
The Company complies with the requirements of the Central sion planning framework to ensure that we continue to have the
Bank of Nigeria (“CBN”) in line with defined corporate gover- right people to drive the business of the Company in the desired
nance practices and submits reports on the Company’s compli- direction.
ance status to the CBN. The Company also conducts the Annual
Board and Directors’ Evaluation and Appraisal covering all aspects The Board determines the overall strategy of the Company and
of the Board’s structure, composition, responsibilities, processes follows up on its implementation and ensures adequate manage-
and relationships, in compliance with the requirements of the ment, thus actively contributing to developing the Group as a
CBN and FRC Codes. To conduct the Annual Board Evaluation focused, sustainable and global brand.
and Appraisal for the financial year ended December 31, 2023,
the Board engaged the consultancy firm of Deloitte & Touche. The The synergy between the Board and Management fosters interac-
Independent Consultants carried out a comprehensive review of tive dialogue in setting broad policy guidelines in the management
the effectiveness of the Board by evaluating the performance of and direction of the Group to enhance optimal performance and
the Board, the Board Committees and Directors. The Evaluation ensure that associated risks are properly managed. Furthermore,
and Appraisal report was reviewed by the External Auditors in line the Board plays a central role in conjunction with Management in
with the provisions of the new Code of Corporate Governance for ensuring that the Group is financially strong, well governed and
Financial Holding Companies (“FHCs”) and will be presented to risks are identified and well mitigated.
Shareholders at this Annual General Meeting of the Company.
In addition to the Board’s direct oversight, the Board exercises its
During the 2023 financial year, the Company executed various oversight responsibilities through four (4) Standing Committees
governance initiatives/activities which included; the review of the in addition to the Statutory Audit Committee of the Company,
Company’s Corporate Governance Code and Charters of some of namely; Board Risk Management and Investment Committee,
its Board Committees in order to align same with leading inter- Board Audit Committee, Board Governance, Nominations and
national practices, existing regulations and the CBN’s Corporate Remuneration Committee and Board Information Technology
Governance Guidelines for Financial Holding Companies in Ni- Strategy Committee. In addition to the Board Committees, the
geria issued by the Central Bank of Nigeria (“the CBN Code”) in Statutory Audit Committee of the Company also performs its stat-
July 2023. The Board and its Committees also carried out annual utory role as stipulated by the Companies and Allied Matters Act
self-assessments to review compliance with the terms of refer- (2020). In line with the provisions of the CBN Code of Corporate
ence as contained in their respective Charters. Governance for Financial Holding Companies (FHCs), the Com-
mittees would be reconstituted to meet the new requirements.
The Board Evaluation and Appraisal Report for the financial year
ended December 31, 2023, by the Independent Consultants to Members of the Board of Directors are seasoned professionals,
the Board revealed that the Company was in substantial com- who have excelled in various sectors including banking, account-
pliance with the provisions of the CBN Corporate Governance ing, oil and gas and Corporate Strategy. They possess the requisite
Guidelines and the FRC Code. integrity, skill set and experience to bring to bear independent
judgment on the deliberations of the Board and decisions of the
Board (without prejudice to Directors’ right to earn Directors’ fees
and hold interest in shares). They have a good understanding of The Board has delegated the responsibility for day-to-day opera-
the Group’s businesses and affairs to enable them properly evalu- tions of the Company to Management and ensures that Manage-
ate information and responses provided by Management, and to ment strikes an appropriate balance between promoting long-
provide objective challenge to Management. term growth and delivering short-term objectives. In fulfilling its
primary responsibility, the Board acknowledges the relationship
Directors are prepared to challenge each other’s assumptions, be- between good governance and risk management practices, in re-
liefs or viewpoints as necessary for the good of the Company and lation to the achievement of the Group’s strategic objectives and
question intelligently, debate constructively and make decisions good financial performance.
dispassionately.
Notwithstanding the delegation of the operation of the Company
Two (2) of the Non-Executive Directors are “Independent Di- to Management, the Board reserved certain powers which include
rectors”, appointed based on the core values enshrined in the the approval of quarterly, half-yearly and full year financial state-
Company’s Code of Corporate Governance and the criteria laid ments (whether audited or unaudited) and any significant change
down by the CBN for the appointment of Independent Directors. in accounting policies and/or practices; approval of major changes
In compliance with the provisions of the new requirements of the to the Company’s corporate structure and changes relating to the
Companies and Allied Matters Act (2020), the Company is in the Company’s capital structure or its status as a public limited com-
process of appointing the third Independent Non-Executive Direc- pany; the determination and approval of the strategic objectives
tor and appropriate announcements will be made upon receipt of and policies of the Company to deliver long-term value; approval
relevant regulatory approvals. The Independent Directors do not of the Company’s strategy, medium and short term plan and its
have any significant shareholding interest or any special business annual operating and capital expenditure budget; appointment
relationship with the Company. or removal of the Group Company Secretary; recommendation
to shareholders of the appointment or removal of auditors and
The Board meets quarterly and additional meetings are convened the remuneration of Auditors; approval of resolutions and corre-
as required. Material decisions may be taken between meetings sponding documentation for shareholders in general meeting(s),
by way of written resolutions, as provided for in the Articles of shareholders circulars, prospectus and principal regulatory filings
Association of the Company. with the Regulators.
The Directors are provided with comprehensive information at Other powers reserved for the Board are the determination of
each of the quarterly Board meetings and are also briefed on busi- Board structure, size and composition, including appointment
ness developments between Board meetings. and removal of Directors, succession planning for the Board and
senior management and Board Committee membership; approv-
The Board met four (4) times during the year ended December al of mergers and acquisitions, establishment of subsidiaries; ap-
31, 2023. proval of remuneration policy and packages of the Group Chief
Executive Officer and other Board members, appointment of the
The details of the appointment and tenure of the Board of Direc- Managing Director and other Directors of Subsidiaries nominat-
tors are stated below: ed by the Group; approval of the Board performance evaluation
S/N NAME OF DATE OF STATUS process, corporate governance framework; approval of policy
DIRECTOR APPOINTMENT documents on significant issues including Enterprise-wide Risk
TO BOARD Management, Human Resources, Corporate governance, and ap-
1 Mr. Adesola Oyinlola August 1, 2021 Current proval of all matters of importance to the Company as a whole
Member because of their strategic, financial, risk or reputational implica-
tions or consequences.
2 Mr. Segun Agbaje August 1, 2021 Current
Member
3 Mr. Suleiman Barau August 1, 2021 Current
Roles of Chairman and Chief Executive
Member
4 Mrs. Helen August 1, 2021 Current The roles of the Chairman and the Group Chief Executive are
Bouygues Member
separate and no one individual combines the two positions. The
5 Mrs. Cathy Echeozo August 1, 2021 Current Chairman’s main responsibility is to lead and manage the Board
Member to ensure that it operates effectively and fully discharges its legal
6 Mr. Banji Adeniyi August 1, 2021 Current and regulatory responsibilities. The Chairman is responsible for
Member ensuring that Directors receive accurate, timely and clear infor-
mation to enable the Board take informed decisions and provide
advice to promote the success of the Group. The Chairman also
Responsibilities of the Board facilitates the contribution of Directors and promotes effective
relationships and open communications between Executive and
The Board has ultimate responsibility for determining the strategic Non-Executive Directors, both inside and outside the Boardroom.
objectives and policies of the Company to deliver long-term value
by providing overall strategic direction within a framework of re- The Board has delegated the responsibility for the day-to-day
wards, incentives and controls.
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
14
CORPORATE GOVERNANCE
management of the Company to the Group Chief Executive Of- Changes on the Board
ficer, who is supported by Executive Management. The Group
Chief Executive Officer executes the powers delegated to him in In the course of the financial year ended December 31, 2023,
accordance with guidelines approved by the Board of Directors. there was no change on the Board.
Executive Management is accountable to the Board for the devel-
opment and implementation of strategies and policies. The Board
regularly reviews group performance, matters of strategic con- Retirement by Rotation
cern and any other matter it regards as material.
In compliance with the provisions of Article 84(b) of the Articles
of Association of the Company which requires one third of the
Director Nomination Process Directors (excluding Executive Directors) or if their number is not
a multiple of three, the number nearest to but not greater than
The Board Governance, Nominations and Remuneration Commit- one third, to retire from office at each biennial Annual General
tee is charged with the responsibility of leading the process for Meeting, Mr. Suleiman Barau and Mrs. Cathy Echeozo will retire
Board appointments and for identifying and nominating suitable at the 3rd Annual General Meeting and both being eligible, offer
candidates for the approval of the Board. themselves for re-election.
Shareholding in the Company is not considered a criterion for the Mr. Barau was a two term Deputy Governor of the Central Bank
nomination or appointment of a Director. The appointment of of Nigeria (CBN) between 2007 and 2017. Prior to that he was
Directors is subject to the approval of the shareholders and the a Special Adviser to the CBN Governor between 2005 and 2007.
Central Bank of Nigeria. Mr. Barau had been involved in significant reforms of the banking
and financial services industry during these periods particularly on
banking, payments and monetary policies.
Induction and Continuous Training
Mr. Barau has received executive education from most of the ma-
Upon appointment to the Board and to Board Committees, all jor global business schools.
Directors receive an induction, within the regulatory prescribed
timeline, tailored to meet their individual requirements. Mr. Barau joined the Board in August 2021, and is the Chair-
man of the Board Governance, Nominations and Remuneration
The induction, which is arranged by the Group Company Sec- Committee and the Board Audit Committee. He satisfied the re-
retary, may include meetings with senior management staff and quirement for attendance of Board and Committee Meetings as
key external advisors, to assist Directors in acquiring a detailed required by the Code of Corporate Governance during the period
understanding of the Company’s operations, its strategic plan, its under review. A record of his attendance at Board Meetings is
business environment, the key issues the Company faces, and to available on page 20 of this Report.
introduce Directors to their fiduciary duties and responsibilities.
Mr. Barau is in his sixties and resident in Nigeria.
The Company attaches great importance to training its Directors
and for this purpose, continuously offers training and education
from onshore and offshore institutions to its Directors, in order to Profile of Mrs. Catherine Echeozo
enhance their performance on the Board and the various com-
mittees to which they belong. The Company’s Non-Executive Mrs. Catherine Echeozo started her 33-year banking career in
Directors attended foreign and/or local courses in the year end- 1984 with Chase Merchant Bank Nigeria and also worked with
ed December 31, 2023, which included “ Becoming a Leader of Ecobank Nigeria Plc. She then began her 24-year career with GT-
Leaders” (University of Pennsylvania Wharton Executive Educa- Bank in 1993. She was appointed to the Board of GTBank as an
tion), “Managing Risk and Reputation in a complex World” (Stan- Executive Director in March 2005, and Deputy Chief Executive
ford Business School of Graduate), “ESG, Impact and Sustainable Officer of the Bank in 2011 and served in that capacity until her
Investing, Infrastructure and Project Finance” (Euromoney Learn- retirement in March 2017. Mrs. Echeozo also represented GTBank
ing), and “Strategies for Leading Successful Change Programme” on the Board of the Nigerian Interbank Settlement System (NIBSS)
(Harvard University’s Division of Continuing Education). from 2008 till March 2017.
appointed to the Council of The Nigerian Stock Exchange as the which retains responsibility for final decision making.
Second Vice President and also served as an Independent Director
of Stanbic IBTC Pension Managers Limited from 2017 – 2020. All Committees in the exercise of their powers so delegated con-
She presently manages Cathingens Empowerment Initiative, her form to the regulations laid down by the Board, with well-defined
social intervention and Investment entity and also serves in the terms of reference contained in the Charter of each Committee.
following capacities: Chairman, NGX Regulation Ltd, a subsidiary The Committees render reports to the Board at the Board’s quar-
of the Nigerian Exchange Group, External Member, Investment terly meetings.
Committee CDC Group, Member, Board of Trustees, First Cardiol-
ogy Foundation, Member, Finance Council, Catholic Archdiocese A summary of the roles, responsibilities, composition and fre-
of Lagos and Member, Board of Trustees, ICAN University. quency of meetings of each of the Committees are as stated
hereunder:
Mrs. Echeozo holds a first degree in Accountancy from the Uni-
versity of Nigeria, a Masters of Business Administration from the
University of Maryland, University College, USA. She became a Board Risk Management and Investment Committee
Fellow of the Institute of Chartered Accountants of Nigeria in the
year 2000 and a Certified Information Systems Auditor in 2005. This Committee is tasked with the responsibility of setting and
reviewing the Company’s risk policies without prejudice to the
Mrs. Echeozo joined the Board in August 2021, and is the Chair- statutory Investment Committee established in compliance with
man of the Board Risk Management and Investment Committee, CAMA, which is not considered a board committee.
in addition to being a member of the Board Audit Committee,
Board Information Technology Strategy Committee and Board The Terms of Reference of the Board Risk Management and In-
Governance, Nominations and Remuneration Committee. She vestment Committee includes to:
satisfied the requirement for attendance of Board and Commit-
tee Meetings as required by the Code of Corporate Governance • Review and recommend for the approval of the Board, the
during the period under review. A record of her attendance at Company’s Risk Management Policies including the risk profile
Board Meetings is available on page 20 of this Report. and limits;
• Determine the adequacy and effectiveness of the Company’s
Mrs. Echeozo is in her fifties and resident in Nigeria. risk detection and measurement systems and controls;
• Oversee Management’s process for the identification of sig-
nificant risks across the Company and the adequacy of risk
Non-Executive Directors’ Remuneration mitigation, prevention, detection and reporting mechanisms;
• Review and recommend to the Board for approval, the contin-
The Company’s policy on remuneration of Non-Executive Direc- gency plan for specific risks;
tors is guided by the provisions of the CBN Code which stipulates • Review the Company’s compliance level with applicable laws
that Non-Executive Directors’ remuneration should be limited to and regulatory requirements which may impact on the Com-
sitting allowances, Directors’ fees and reimbursable travel and in- pany’s risk profile;
cidental expenses. The Non-Executive Directors shall be paid out • Conduct periodic review of changes in the economic and
of the funds of the Company by way of remuneration for their business environment, including emerging trends and other
services as Directors, such sums as shall be approved by share- factors relevant to the Company’s risk profile;
holders at the Annual General Meeting. • To have oversight functions over the Company’s investment
strategies;
Details of remuneration paid to Executive and Non-Executive Di- • To recommend to the Board investment strategies in line with
rectors is contained in Note 45i of this report. Investment Regulations issued by the Central Bank of Nigeria;
• To monitor and oversee the implementation of the Company’s
investment strategy;
Board Committees • To establish the Company’s investment objectives and policies;
• To determine an optimal investment mix, consistent with the
The Board carries out its responsibilities through its Standing risk profile approved by the Board of Directors;
Committees, which have clearly defined terms of reference, set- • To ensure due diligence in the selection and approval of in-
ting out their roles, responsibilities, functions and scope of au- vestments;
thority. The Board has four (4) Standing Committees in addition • To review periodically the Company’s investment policies and
to the Statutory Audit Committee of the Company, namely; Board procedures; and
Risk Management and Investment Committee, Board Audit Com- • Handle any other issue referred to the Committee from time
mittee, Board Governance, Nominations and Remuneration Com- to time by the Board.
mittee and Board Information Technology Strategy Committee.
Through these Committees, the Board is able to effectively carry The Head of Risk and Compliance of the Company presents reg-
out its oversight responsibilities and take advantage of individual ular briefings to the Committee at its meetings.
expertise to formulate strategies for the Company and its Sub-
sidiaries. The Committees make recommendations to the Board, The Committee is required to meet quarterly and additional meet-
ings are to be convened as required. The Committee met four (4) times during the financial year ended December 31, 2023.
The Board Risk Management and Investment Committee is comprised of the following members*:
*The attendance here reflects the attendance for the Board Risk Management and Audit Committee, which was dissolved and recon-
stituted as Board Risk Management and Investment Committee and the Board Audit Committee in line with the provisions of the CBN’s
Code of Corporate Governance for Financial Holding Companies.
• Evaluate the Group’s internal control and assurance framework annually, in order to satisfy itself on the design and completeness
of the framework relative to the activities and risk profile of the Company and its Subsidiaries;
• Keep the effectiveness of the Company’s system of accounting, reporting and internal control under review and to ensure compli-
ance with legal and agreed ethical requirements;
• Review the activities, findings, conclusions and recommendations of the external auditors relating to the Company’s annual audited
financial statements;
• Review the Management Letter of the External Auditor and Management’s response thereto;
• Review the appropriateness and completeness of the Company’s statutory accounts and its other published financial statements;
• Oversee the independence of the external auditors;
• Receive a summary of whistleblowing cases reported and the result of the investigation from the Head of Internal Audit;
• Handle any other issue referred to the Committee from time to time by the Board.
The Head of Internal Audit of the Company presents regular briefings to the Committee at its meetings.
The Committee meets quarterly and additional meetings are convened as required. The Committee met four (4) times during the
financial year ended December 31, 2023.
The Board Audit Committee comprised the following members during the year under review*:
*The Board Audit Committee was established in January 2024, pursuant to the requirement of the CBN Code of Corporate Gover-
nance for FInancial Holding Companies (FHCs).
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
17
CORPORATE GOVERNANCE
This Committee is responsible for the approval of human resource matters, identification and nomination of candidates for appoint-
ment to the Board and Board governance issues such as induction and continuous education, approval of the promotion of top man-
agement staff, corporate governance, succession planning, conflict of interest situations and compliance with legal and regulatory
provisions. The Committee is also responsible for setting the principles and parameters of the Remuneration Policy across the Company
and to approve the policy relating to all remuneration schemes and long-term incentives for employees of the Company.
The Committee has oversight on strategic people issues, including employee retention, equality and diversity as well as other significant
employee relations matters.
The Board Information Technology Strategy Committee is responsible for the provision of strategic guidance to Management on
Information Technology issues and monitoring the effectiveness and efficiency of Information Technology within the Group and the
adequacy of controls.
The Terms of Reference of the Board Information Technology Strategy Committee include to:
• provide advice on the strategic direction of Information Technology issues in the Group;
• inform and advise the Board on important Information Technology issues in the Group;
• monitor overall Information Technology performance and practices in the Group.
The Board Information Technology Strategy Committee comprised the following members during the year under review:
The Committee meets bi-annually and additional meetings are convened as required. The Committee met twice during the financial
year ended December 31, 2023.
This Committee is responsible for ensuring that the Company complies with all the relevant policies and procedures both from the
regulators and as laid down by the Board of Directors. Its major functions include the approval of the annual audit plan of the internal
auditors, review and approval of the audit scope and plan of the external auditors, review of the audit report on internal weaknesses
observed by both the internal and external auditors during their respective examinations and to ascertain whether the accounting and
reporting policies of the Company are in accordance with legal requirements and agreed ethical practices.
The Committee reviews the Company’s annual and half-year audited financial statements, particularly the effectiveness of the Compa-
ny’s disclosure controls and systems of internal control as well as areas of judgment involved in the compilation of the Company’s re-
sults. The Committee is responsible for the review of the integrity of the Company’s financial reporting and oversees the independence
and objectivity of the external auditors. The Committee reviews and ensures that adequate whistle blowing procedures are in place
and that a summary of issues reported are highlighted to the Committee in addition to reviewing the independence of the external
auditors and ensuring that where non-audit services are provided by the external auditors, there is no conflict of interest. The Commit-
tee has access to the external auditors to seek explanations and additional information, while the internal and external auditors have
unrestricted access to the Committee, which ensures that their independence is in no way impaired.
The Committee is made up of two (2) Non-Executive Directors and three (3) Shareholders of the Company appointed by members
at the Annual General Meeting. The membership of the Committee at the Board level is based on relevant experience of the Board
members, while one of the Shareholders serves as the Chairman of the Committee.
The internal and external auditors are invited from time to time to attend the Meetings of the Committee. The Chief Financial Officer
and appropriate members of Management also attend the meetings upon invitation. The Committee is required to meet quarterly and
additional meetings may be convened as the need arises.
The Statutory Audit Committee of the Company met four (4) times during the year. The following members served on the Committee
during the year ended December 31, 2023:
The table below shows the frequency of meetings of the Board of Directors and Board Committees, as well as Members’ attendance
for the year ended December 31, 2023.
S/N DIRECTORS BOARD BOARD RISK MAN- BOARD GOVERNANCE, BOARD INFORMATION
AGEMENT AND AUDIT NOMINATIONS AND TECHNOLOGY
COMMITTEE REMUNERATION STRATEGY
COMMITTEE COMMITTEE
NUMBER OF 4 4 2 2
MEETINGS
1 Mr. H. A. Oyinlola1 4 N/A N/A N/A
2 Mr. J. K. O. Agbaje 4 4 N/A 2
3 Mrs. C. N. Echeozo 4 4 2 2
4 Mr. S. Barau 4 N/A 2 N/A
5 Mrs. H. L. Bouygues 4 4 2 2
6 Mr. A. I. Adeniyi 4 4 N/A N/A
1
The Chairman is not a member of any Committee in compliance with the CBN Code which prohibits the Chairman of the Board from
being a member of any Committee;
Tenure of Directors
In order to ensure both continuity and injection of fresh ideas, the tenure for Non-Executive Directors is limited to a maximum of two
(2) terms of three (3) years each, i.e. six (6) years whilst the maximum tenure for Independent Non-Executive Directors is limited to a
maximum of two (2) terms of three (3) years each, i.e. six (6) years. This is in compliance with the directives of the CBN and FRC Codes.
In the Company’s customary manner of imbibing the best corporate governance practices, the Board engaged an Independent Con-
sultant, Deloitte & Touche, to carry out the annual Board and Directors appraisal for the 2023 financial year. The annual appraisal cov-
ered all aspects of the Board’s structure, composition, responsibilities, processes, relationships, individual members’ competencies and
respective roles in the Board performance, as well as the Company’s compliance status with the provisions of the CBN and SEC Codes.
The Annual Board and Director Evaluation and Appraisal Report for the 2023 financial year will be presented to shareholders at the 3rd
Annual General Meeting of the Company.
Shareholders
The General Meeting of the Company is the highest decision-making body of the Company. The Company’s General Meetings will be
conducted in a transparent and fair manner. Shareholders have the opportunity to express their opinions on the Company’s financial
results and other issues affecting the Company. The Annual General Meeting will be attended by representatives of regulators such as
the Central Bank of Nigeria, the Securities and Exchange Commission, the Nigerian Stock Exchange, the Corporate Affairs Commission
as well as representatives of Shareholders’ Associations.
The Company has an Investors Relations Unit, which deals directly with enquiries from shareholders and ensures that Shareholders’
views are escalated to Management and the Board. In addition, quarterly, half-yearly and annual financial results are published in
widely read national newspapers.
The Company ensures that institutional investors and international holders of the Global Depositary Receipts get frequent updates on
the Company’s progress via interactive conference calls, local and international investor presentations and meetings. These conference
calls and investor meetings provide our investors with direct access to senior and executive Management.
Protection of Shareholders’ Rights ty between the Company and its subsidiaries. This contrib-
utes to maintaining a high level of accountability;
The Board ensures the protection of the statutory and general
rights of shareholders at all times, particularly their right to vote at
general meetings. All shareholders are treated equally, regardless (iv) Pro-activity:
of volume of shareholding or social status. The Company proactively develops contacts with its target
groups and identifies topics of possible mutual interest;
(i) Compliance with Rules and Regulations: The Group Company Secretary
The Company complies with the legislation and codes of
corporate governance of the jurisdictions within which it The Group Company Secretary provides a point of reference and
operates. These include the Banks and other Financial In- support for all Directors. The Group Company Secretary also con-
stitutions Act (BOFIA), the Companies and Allied Matters sults regularly with Directors to ensure that they receive required
Act (CAMA) and the Codes of Corporate Governance is- information promptly. The Board may obtain information from ex-
sued by the Central Bank of Nigeria, the Financial Report- ternal sources, such as consultants and other advisers, if there is a
ing Council, the Securities and Exchange Commission, as need for outside expertise, via the Company Secretary or directly.
well as the disclosure and transparency rules of the United
Kingdom Listing Authority (“UKLA”) (by virtue of the list- The Group Company Secretary is also responsible for assisting
ing of Global Depositary Receipts by the Company on The the Board and Management in the implementation of the Code
London Stock Exchange in July 2007); of Corporate Governance of the Company, coordinating the ori-
entation and training of new Directors and the continuous ed-
(ii) Efficiency: ucation of Non-Executive Directors; assisting the Chairman and
The Company uses modern communication technologies Group Chief Executive Officer to formulate an annual Board Plan
in a timely manner to convey its messages to its target and with the administration of other strategic issues at the Board
groups. Synergies are sought when it comes to using level; organizing Board meetings and ensuring that the minutes
different communication channels. The Company replies of Board meetings clearly and properly capture Board discussions
without unnecessary delay to information requests by the and decisions.
media and the public;
Independent professional advice is available, on request, to all Di-
(iii) Transparency: rectors at the Company’s expense when such advice is required
As an international financial institution, the Company to enable a Member of the Board effectively perform as required.
strives in its communication to be as transparent and open The Company meets the costs of independent professional advice
as possible while considering the concept of confidentiali- obtained jointly or severally by a Director or Directors where such
advice is necessary to enable the obligations imposed on an indi- through the development and implementation of use cases. It is
vidual, through membership of the Board, to be properly fulfilled. also responsible for ensuring strong ownership and buy-in of Data
and Analytics activities by Business units. Lastly, to capture econo-
mies of scale, it is responsible for centralizing talent-data scientists
Insider Trading and Price Sensitive Information and engineers-and deploying them across the Group as needed.
The standing Management Committees in the Company are: In line with the Company’s commitment to instill the best corpo-
rate governance practices, the Company has established a whis-
i. Data Steering; tle blowing procedure that ensures anonymity for whistleblow-
ii. Information Technology; ers. The Company has two (2) hotlines and a direct link in the
iii. Risk and Compliance. Company’s website provided for the purpose of whistleblowing.
The hotline numbers are 01-4480905 and 01- 4480906, and the
Company’s website is www.gtcoplc.com.
Data Steering Committee
Internally, the Company has a direct link on its Intranet for dissem-
This Committee is responsible for ensuring that the Group lever- ination of information, to enable members of staff report all iden-
ages Data Analytics to drive value and make business decisions tified breaches of the Company’s Code of Corporate Governance.
Code of Conduct eligible staff invest in ordinary shares of the Company at a dis-
count (the prevailing Net Assets Value (NAV), and buying-back
The Company has an internal Code of Professional Conduct for their stock from the Company at the market price, subject to at-
Employees “the Company’s Code” which all members of staff taining a determined length of service at the point of disengage-
subscribe to upon assumption of duties. Staff are also required ment and proper conduct at disengagement.
to reaffirm their commitment to the Company’s Code annually.
All members of staff are expected to strive to maintain the high-
est standards of ethical conduct and integrity in all aspects of Internal Management Structure
their professional life as contained in the Code of Professional
Conduct which prescribes the common ethical standards, policies The Company operates an internal management structure where
and procedures of the Company relating to employee values. The all officers are accountable for duties and responsibilities attached
Company also has a Code of Conduct for Directors. to their respective offices and there are clearly defined and ac-
ceptable lines of authority and responsibility.
SUBSIDIARY
GOVERNANCE
the unit is assessed based on the extent to which the subsidiaries To ensure an effective and consistent compliance culture across
are effectively monitored and attended to. all entities, the Group Compliance team determines the scope of
parental oversight required to manage compliance risk, promote
awareness and implement industry best practices across our sub-
Monthly Management Reporting sidiaries, thereby affirming the Group’s commitment to a zero-tol-
erance for regulatory breach.
Subsidiaries furnish Group Finance Directorate with reports on
their business activities and operating environment monthly. The
reports cover the subsidiaries’ financial performance, risk assess- Group Treasury Function
ment, regulatory activities among others.
The Group Treasury function is responsible for providing required
guidance in optimizing the deployment of resources in the sub-
Business Performance Review Session sidiaries except GTBank UK. The key focus is efficiency of the Bal-
ance Sheet. Monthly Assets and Liabilities review meetings are
The Managing Directors of the respective GTBank Subsidiaries at- held with the Group treasury team to create synergies and facil-
tend the quarterly Group Business Performance Review sessions itate transfer of knowledge, skills and competencies. The report
during which their performance is analyzed and recommenda- is presented to the Board Assets and Liabilities or Risk Committee
tions made towards achieving continuous stability and improved where applicable.
profitability. This session also serves as a platform for sharing and
dissemination of best practices and information among the Sub-
sidiaries’ executives. Group Information Security Assurance
Treasury Function GTBank Kenya Ltd GTBank Rwanda Ltd GTBank Uganda Ltd
Information
Security Function GTBank Tanzania Ltd
76.20%
SUSTAINABILITY
REPORT
Introduction view their E&S practices against key national regulations and in-
ternational best practices. We applied an exclusion checklist to
At Guaranty Trust Bank, we are committed to creating long- all credits (High, Medium, and Low). Through our due diligence
term value for our esteemed stakeholders. Through our respon- assessment, we came up with Environmental and Social Action
sible banking approach, we continue to develop and implement Plans (ESAP). We require our customers to implement the ESAP
initiatives to enrich the lives of our stakeholders (investors, and we monitor the progress of implementation over time.
shareholders, customers, employees, suppliers, regulators, and
communities). As a leading financial service provider, we fully in- As part of the Bank’s initiative to extend financial services to
tegrate sustainability in our strategy as we operate a model that unbanked individuals, the Bank currently has 18 agent banking
not only assesses economic considerations but equally evaluates locations across the country. Through these agent banking loca-
the impact of our business operations and activities on people tions, we received deposits of about N3,846,850 in the second
and the environment. We ensure that our Environmental and half of the year 2023. From our partnership with CBN SANEF ini-
Social Management System (ESMS) aligns with the requirements tiative, we opened 1,175,218 accounts in the reporting period
of IFC Performance Standards and CBN’s Nigerian Sustainable with about N 4.7 billion in deposits.
Banking Principles (NSBP).
Throughout the year, we continued to deploy the card printing
As an improvement-driven organization, we continue to devel- machines to some of our branches. With this fully digitalized
op innovative ways to enhance our environmental, social, and initiative, customers can now print their instant ATM cards by
economic performance. Our banking practices hinge on re- themselves without having to fill any form or queue at our loca-
source efficiency, improving stakeholder relationship, effective tions. We continue to add to the bouquet of services available
risk management, and excellent service delivery. In our attempt on our e-channels- Internet-banking, GTWorld, USSD, among
at promoting sustainable banking practices and the UN SDGs, others. Through our Habari platform, our customers can shop
we have formed a partnership with several organizations as well for diverse products online, pay bills, watch videos, listen to mu-
as other global bodies. We are a member of the United Nations sic, among others. We continue to improve the platform to meet
Environment Programme Finance Initiatives (UNEP-FI). We also and support the lifestyles of everyone.
remain development partners with the International Finance
Corporation (IFC) and the Central Bank of Nigeria. This bi-annu- The Bank continues to lead across all key parameters in the
al Sustainability Report reviews our journey in the second half of banking sector and was recognized with an award in the report-
the year 2023 highlighting various initiatives undertaken by the ing period.
Bank to ensure that we are an economically viable and financial-
Governance, Risk, Compliance and Financial Crime Prevention
ly sustainable organisation.
Awards (GRC & FinCrime Prevention Awards, 2023
The scope of our report covers the Marketplace, Community,
At the 3rd edition of the Governance, Risk, Compliance and Fi-
Environment, Workplace as well as our scorecard in the imple-
nancial Crime Prevention Awards (GRC & FinCrime Prevention
mentation of the Central Bank of Nigeria’s Sustainable Banking
Awards), the Chief Risk Officer of the bank was awarded the
Principles and some of the UN SDGs.
Chief Risk Officer of the year, 2023.
Marketplace
Community
At GTBank, we are aware of the impact of sustainable financing
At GTBank, we remain committed to creating sustainable im-
in the advancement of economic growth and development. This
pact through Corporate Social Responsibility. Our CSR strategy
drives our lending activities as we remain a top player in the
is designed to enrich lives through four pillars: Community De-
active funding of the real sector of the economy such as Agricul-
velopment, Education, Environment, and Arts. These four pillars
ture, Manufacturing, Real Estate, Infrastructure, Health, Educa-
are essential for the development and growth of communities.
tion, Power, Oil and Gas, among others. We continue to support
In line with the UN SDGs to create shared prosperity and protect
the economic diversification efforts of the Nigerian government
the environment, we implemented multiple initiatives guided by
by allocating capital to these essential sectors.
the four pillars to contribute in no small measure to the overall
development of our host communities.
The Bank’s Environmental & Social Risk Management (ESRM) For community development, the bank held its annual GTCO
framework is integrated into our credit approval process to en- Autism Conference, a programme created to promote inclu-
sure that our lending activities do not have adverse environmental sivity and self-advocacy for persons on the Autism Spectrum.
and social implications on the environment. Thus, in the reporting The bank also supported The Swiss Red Cross (the largest hu-
period, we screened all the 196 corporate credits approved by manitarian organization in Switzerland) towards healthcare for
the Bank for E&S risks. Our ESRM team categorizes project-relat- maternal and child mortality in Togo. GTBank also supported
ed transactions into high, medium, and low risks. We conducted the Lagos State World Food Day celebration aimed at hunger
enhanced due diligence for customers operating in the high-risk alleviation and donated ICU equipment to intensive care iso-
sectors and moderate due diligence for customers in medium-risk lation centres. Other community development projects include
sectors, as classified by the Central Bank of Nigeria (CBN), to re- support for the 7th Annual Clina Lancet Medical Examination,
support for the Lebanese Ladies Society (LLS) of Nigeria 2023 An- support for British International School Charity Fun Day, support
nual Charity Event, support for Annual Experience Concert which for Doveland International School Annual Graduation Ceremony,
had about 100,000 people in attendance, and the Massey Street Support for Punuka Foundation Childcare Centre, etc.
Children’s Hospital Yuletide Visit.
A summary of CSR projects facilitated by the Bank in second half
As part of its commitment towards education, GTBank sponsored of 2023 are listed below:
different education initiatives across different schools including
The Swiss Red Cross (SRC) is the largest and most important
humanitarian organization in Switzerland and the world. Our 1,500 participants
2023 contribution to the cause was used to support health-
care for maternal and child mortality in Togo
Support for Lagos State World Food Day aimed at hunger 1,000 Participants
alleviation
Community
Development
ICU equipment for intensive care isolation centre 600 Participants
Support for 7th Annual Clina Lancet Medical Examina-
tion 750 Participants
Support for healthcare education
Support for LLS 2023 Annual Charity Event
Guaranty Trust Bank (GTBank) is committed to supporting the (ISSB) published Exposure Draft IFRS S2 Climate-related Disclo-
transitioning of the environment to a sustainable, low-carbon sures, integrating and building on the recommendations of the
economy that balances society’s environmental, social and eco- Task Force on Climate-related Financial Disclosures (TCFD) and in-
nomic needs. GTBank is committed to managing identified cli- corporating industry-based disclosure requirements derived from
mate risks in its business and operations by building on its existing SASB Standards. The ISSB redeliberated the proposals after con-
Environmental and Social Risk Management (ESRM) policy and sidering the feedback on the Exposure Draft. In June 2023, the
benchmarking its practices to global best standards and pro- ISSB issued IFRS S2 Climate-related Disclosures.
nouncements on climate risk management. As part of its com-
mitment, the bank has developed its CLIMATE RISK POLICY (ap- The objective of IFRS S2 is to require an entity to disclose informa-
proved by the Board) which highlights its commitment, strategy, tion about its climate-related risks and opportunities that is useful
and integration action plan. to users of general-purpose financial reports in making decisions
relating to providing resources to the entity. IFRS S2 requires an
The following principles and commitments toward climate change entity to disclose information about climate-related risks and op-
guide the organization’s everyday decision-making and behaviour. portunities that could reasonably be expected to affect the entity’s
cash flows, its access to finance or cost of capital over the short,
i. Work to achieve net-zero (cutting greenhouse gas emis- medium, or long term (collectively referred to as ‘climate-related
sions to as close to zero as possible) operations and reduce risks and opportunities that could reasonably be expected to af-
supply chain emissions by investing in the continued de- fect the entity’s prospects’).
carbonization of our operations and developing a net-zero
pathway for the emissions from our supply chain. GTBank In addition to the regulatory framework listed above, GTBank’s
would strive to support energy efficiencies by promoting Climate Risk reporting aligns with the requirement of the IFRS S2
or utilizing renewable power generation, reducing busi- Climate-related Disclosures. The disclosure highlights four (4) con-
ness travel, commuting, and other green initiatives. tent areas for reporting (Governance, strategy, Risk Management
and Metrics and Targets), which also form the core pillars for the
ii. Incorporate climate-related risk factors in GTBank’s invest- bank’s climate change roadmap.
ment and credit underwriting decisions as well as our en-
gagements with third parties.
Climate Risk Initiatives and Integration and Action Plans
iii. Financing the transition to a low-carbon economy pres-
ents to GTBank a defining opportunity for innovation and GTBank considers the management of climate risks and oppor-
growth. There is a significant opportunity for the bank to tunities very important. Therefore, the bank has taken several ac-
play a leading role in helping to meet the demand for cli- tions and outlined others to effectively manage these risks.
mate change related financing to support the transition.
GTBank will strive to direct investment into new green 1. Update of the Bank’s Sustainability KRIs and En-
technologies and infrastructure projects that will build up hanced Due Diligence forms
low-carbon capacity and capability.
The bank has updated its sustainability KRIs with cli-
mate-related disclosures. Additionally, templates utilized
Regulatory Framework for conducting enhanced due diligence to assess E&S risks
of customers have been updated accordingly to include
GTBank’s Climate Risk Policy is benchmarked against the follow- KRIs for monitoring climate risks.
ing guidelines
2. Collateral assessment for climate change impact
1. Financial Stability Board Task Force on Climate-related Fi-
nancial Risk Disclosures Physical risks, such as damage to physical assets, as well as
2. Basel’s principles for the effective management of cli- transition risks, such as changes in real estate values, may
mate-related risks. affect the values of assets pledged as security. The location
3. The Paris Agreement of physical collaterals can also be used to estimate how
4. The Nigerian Climate Change Act and other associated climate change might affect property value.
guidelines.
As such, collaterals of this nature have been documented
By adopting these guides, the bank would be able to measure the and analysed to determine the exposure of the bank’s col-
resilience of its portfolio to physical and transition risks as related laterals to climate change. The collateral report has been
to climate change. updated with information gathered from the analysis,
highlighting securities that are in areas prone to climate
physical risks. The acknowledges that the identification of
IFRS S2 Climate-related Disclosures collateral in this category may be cumbersome, however,
it would continue to review and refine the criteria till the
In March 2022, the International Sustainability Standards Board data is accurately captured.
3. Partnership organizations man Resources Group releases weekly educational slides on the
intranet tagged Wellness Wednesday, which encourages employ-
Partnership with organizations to drive GTBank’s climate ees to adopt a healthy lifestyle, and Finance Fridays which pro-
risk management goals. This would be done in tandem vides savings and investment-related tips. Periodic seminars and
with GTBank’s CSR (Corporate Social Responsibility) initia- webinars are also organised for employees on wellness, security,
tive. and health to improve their awareness and well-being.
4. Climate Risk Initiatives towards net-zero emissions In line with our drive for capacity building, we trained 3,321 em-
and financing the transition to a low-carbon econo- ployees on courses ranging from Basic First Aid, CPR, Fire and
my Safety, Building a Sustainable Enterprise: The Role of ESG, Green,
Social and Sustainability (GSS) Bonds, IFRS for Small and Medium
Scale Entities (SMEs), Nigeria’s Security Challenges: Implications
As part of its commitment towards net-zero emissions and financ- for the Financial Industry and the Way Forward, Risk Manager
ing the transition to a low-carbon economy, the bank has high- Training according to ISO 31000:2019, Data Analytics using Pow-
lighted several initiatives to be implemented in the coming year. erBI, Cybersecurity & Data Privacy: How to Protect Yourself and
Others, Integrating Renewable Energy into Nigeria’s Energy Mix:
1) Installation of solar panels to power ATMs at offsite loca- Prospects and Challenges, among others.
tions and subsequent installation across suitable branches.
Guaranty Trust Bank remains committed to promoting gender
2) Implementing waste segregation techniques in branches equality and women empowerment. The ratio of women in the
by purchasing colour coded waste bins for segregation. employment of the Bank and in senior management positions
is currently 49.47% and 41.03%, respectively. The percentage
3) Partnering with accredited waste management companies of women on our Board of Directors is currently at 50%. The
for the management of the bank’s plastic waste for recy- bank celebrated the International Men’s Day (IMD 2023) themed
cling. Recyclable waste will be turned into more valuable “Zero Male Suicide” which focused on raising awareness of men’s
products and donated to local communities and schools, well-being. The bank celebrated the event through activities such
fostering a sustainable and circular economy. as webinars on substance abuse and addiction, managing stress,
anger management, financial management, Men’s dress-up con-
test, Sport Trivia, after party, etc.
Workplace
Progress on CBN’s Nigerian Sustainable Banking Principles
Our workforce remains our most valued asset at GTBank as we (NSBP)
continue to channel resources towards human capital develop-
ment and maintaining a safe workplace. During the reporting The Bank as a signatory to the CBN’s Nigerian Sustainable Bank-
period, our staff benefitted from several trainings and webinars ing Principles (NSBP) aligns with relevant international standards.
on key subjects including Data Privacy, Workplace Safety and First Our business activities and operations are in line with the provi-
Aid Management, Maintaining a Mentally Healthy Workplace, as sions of the nine (9) principles of NSBP. The table below highlights
well as Fire Safety Awareness. some of our key achievements in the implementation of CBN’s
NSBP in the second half of the year:
In line with our commitment to support employees, the Bank has
an Employee Assistance Programme accessible to all employees to
provide psychological and emotional support at all times. The Hu-
Principle 2 Our Business Operations: Environmental & Social Foot- • We presently have 8 branches pow-
print: Avoidance of the negative impact of our Business ered by alternative power source
Operations. (ATMs and communication equip-
ment). We currently have 59 ATMs
powered by alternative sources of
energy (solar energy).
Principle 3 Human Rights: Respect for the rights of all in Business • All 196 transactions booked were
Operations. assessed for human rights risks such
as child labour and forced labour. As-
sessment comprises of initial screening
with the Exclusion Checklist for all
customers and Further Due Diligence
Assessment for High-Risk customers.
Principle 4 Women’s Economic Empowerment: Promote economic • There was a slight increase (41) in the
empowerment through a gender inclusive workplace culture number of female employees in the
and provide products and services for women. work force.
Principle 9 Reporting: Regular review and implementation progress • The Bank rendered the Bi-Annual
report. Sustainability Report to the regulator
(CBN) and dedicated a chapter on the
Bank’s sustainability journey in the
financials.
At Guaranty Trust Bank, our business strategy is geared towards making impactful contributions towards the Sustainable Development
Goals (SDGs). The 17 SDGs represent an ambitious agenda to achieve a sustainable future by 2030. As a leading African Bank, our
business operations positively contribute to achieving all the 17 interrelated goals, however, our activities directly impact the following
8 goals:
The Bank continues to finance poverty alleviation initiatives through payment of taxes to the govern-
ment and introduction of collateral free credits for low-income earners such as Quick Credit, Fashion
Industry Credit, Food Industry Credit, among others. Since inception, our commitment has always been
to give back to the society through various CSR initiatives such as provision of scholarship to indigent
students, renovation of schools, among others.
SDG 2- End hunger, achieve food security, improved nutrition and promote sustainable agri-
culture.
Through our financing activities, we continue to eradicate hunger through strategic allocation of capital
and lending to customers in the agribusiness such as AFEX commodities, PRESCO, GY Farmers Limited,
Olam Hatcheries, Great Northern, CHI Farms, Life Care Ventures, among several others. Using various
initiatives such as food credit for SMEs in the food industry, we provided access to cheap and affordable
food, thereby reducing hunger.
SDG 3 - Ensure healthy lives and promote well-being for all at all ages
The bank continues to prioritise health and safety of its employees by investing in health and safety
practices, including the mandatory bank wide annual medical check-up for all employees. The Bank
also has an Employee Assistance Programme accessible to all employees to provide psychological and
emotional support at all times. In addition to these, the bank holds an annual Autism conference which
serves as a key advocacy platform for people living with autism and other developmental orders.
SDG 4 - Ensure inclusive and equitable quality education and promote lifelong learning op-
portunities for all
Education remains a critical part of our CSR initiatives, as we recognise that education has multiplier
effects on the economic growth and development of a nation. We continue to finance educational
facilities and lending to schools. We also continually implement several initiatives to promote education
such as provision of support for school activities in secondary schools and universities, renovation of
school hostels, financial literacy training and World Savings Day initiatives for secondary schools, host-
ing of the Masters Cup, amongst others..
SDG 8 - Promote sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all
At GTBank, we operate an inclusive system that provides equal employment opportunities for all.
Through our strategic credit model, we lend to businesses across development-oriented sectors to
promote sustainable economic growth and decent work for all. Through this model, we are able to
indirectly provide more job opportunities for people. This is in addition to the direct jobs that we create
through recruitment of staff to meet the needs of our customers. We continue to offer competitive
salary and benefits to promote decent living for all our employees.
SDG 9 - Build resilient infrastructure, promote inclusive and sustainable industrialization and
foster innovation
We remain committed to using our value-adding banking products and services to improve the condi-
tion of Nigeria’s social infrastructure. We ensure that our investments in infrastructure is environmen-
tally friendly and respond to the needs of low-income users, women, and other marginalized groups
(including persons with disabilities, indigenous persons, racial and ethnic minorities, and older persons).
SDG 13 - Take urgent action to combat climate change and its impacts
At GTBank, we are aware of the impact of climate change on our business activities and operations.
As such, we integrate environmental considerations in our lending process by conducting enhanced
due diligence for customers operating in high-risk sectors and moderate due diligence for customers in
medium risk sectors. This is with a view to minimizing the effects of climate change in the operations
of our customers.
As an organization, we measure our carbon footprint in the use of utilities such as water, fuel, paper,
and electricity usage and develop several initiatives to reduce carbon emissions. We report our tracking
of carbon emissions to the Central Bank of Nigeria through our Nigerian Sustainable Banking Principles
(NSBP) Report. The bank has also developed its Climate Risk Policy with implementation in progress.
SDG 17 - Strengthen the means of implementation and revitalize the global partnership for
sustainable development
We are aware of the vital role partner organisations play in realizing the UN SDGs. As such, we have
formed partnership with several organizations as well as other global bodies. Some of these organi-
zations are United Nations Environment Programme Finance Initiative (UNEP-FI), Nigerian Sustainable
Banking Principles Champions, Central Bank of Nigeria (CBN), International Finance Corporation (IFC),
amongst others...
At GTBank, we continue to thrive towards becoming a single, integrated platform. Thus, we are dedicated to the development of
innovative initiatives to meet the needs of all our stakeholders. We continue to conduct stakeholders’ analysis and develop strategies
to meet the expectations of our stakeholders. Our material ESG issues are summarized below:
• Access and affordability: At GTBank, we continue to improve access to our services and create affordable services. In the
year 2023, we further deployed the card printing machine to some of our locations for customers to print their instant ATM
cards by themselves. We also continue to enhance the features of our Alternative Delivery Channels such as GTWorld, *737#,
internet banking among others to improve access to the bank’s financial services.
• Labour practices: We continue to train and provide a competitive welfare package to all our employees. This is based on our
awareness of the importance of our workforce in achieving our strategic business objectives.
• Data security and customer privacy: Considering the importance of data security, we have put in place sophisticated tools
to prevent cyber-attacks and promote data security. We also ensure customer privacy by aligning with best international prac-
tice. We continue to create awareness to all our staff, customers, and vendors to prevent fraud.
• Lifecycle impacts of products and services: We have fully integrated environmental and social considerations into all our
business activities and operations. This is to ensure that our lending activities do not have adverse environmental and social
implications on the environment.
• Business ethics: As our brand signifies, we maintain strong business ethics and professionalism. We promote our core values
to employees through our Code of Professional Conduct; our Ethics Policy as well as Communications Policy, which helps to
regulate employee relations with internal and external parties.
• Systemic risk management: The Bank’s Enterprise Risk Management (ERM) Division works with relevant units in the Bank
in managing risks in our business operations and activities. There are several risk management units in charge of managing
different risks such as environmental and social, credit, operational, reputational, market, legal, cyber risks, among others.
COMPLAINTS
AND FEEDBACK
We recognize that customer feedback is an important tool in The Company is committed to effective complaint handling and
monitoring and responding to customer expectations hence we values feedback through complaints when they arise. The com-
continued to embed good conduct practice across our business, plaints and feedback structure ensure the prompt resolution of
with a range of initiatives to further improve the service and ex- customers’ complaints. The Complaints Unit of the Company is
perience we offer to customers. charged with the responsibility for oversight of the resolution of
customers’ complaints. It also serves as the liaison between the
In a bid to improve our products and services, we analyze data Company and its customers as well as regulatory authorities.
and feedback received to identify recurring issues. The informa-
tion gathered is used for detailed analysis which is reviewed by Complaints received are given a unique identifier number for
the relevant stakeholders for learning purposes and to prevent a tracking purposes, acknowledged, and addressed promptly.
reoccurrence of identified issues. Where a resolution can be provided immediately, the customer is
provided with feedback, if not, the issue raised is referred to the
appropriate team in the Company for prompt resolution. The cus-
The Feedback Channels/ Customer Touchpoints tomer is kept informed throughout the process until final feed-
back is provided and resolution attained. The complaint is then
We value the feedback provided by our customers, as such the marked as closed.
following channels/touch points are available to encourage our
customers’ interaction with the Company: The complaints handling process is reviewed periodically and
complaints received are categorized and reviewed properly with
• The Complaints received via the complaint portal on the the aim of enhancing the Company’s delivery of efficient and ef-
Company’s website and letters; fective services.
• GT Connect (our 24 hours self-service interactive call cen- The Company ensures that complaints are dealt with in an equi-
ter); table, objective, and unbiased manner. We also endeavor to align
• Social Media feedback platform; our procedures with regulatory requirements and international
• The Customer Information Service desk at any of our best practice in a bid to ensure that the complaint handling pro-
branches; cess is fair and reasonable.
• The Whistle Blowing portal on the Company’s website.
The table below show Complaints received and resolved by the Company in other currencies for the full year 2023 and 2022, re-
spectively.
RECEIVED COMPLAINTS (Per Currency)
In line with Section 5.1.2 (L) of the CBN Code of Corporate governance, the breakdown of fraud and forgeries for the financial year
is provided below:
AML/CFT
FRAMEWORK
Anti-Money Laundering, Combating the Financing of Ter- and assesses the risks from a proactive stance and allocates the
rorism and Countering Proliferation Financing (AML/CFT/ requisite resources which center around systems and controls to
CPF) Framework manage these risks.
The Bank’s framework ensures compliance with AML/CFT/CPF In accordance with AML/CFT/CPF global best practice, the “tone
legislation and regulations in Nigeria and has incorporated lead- is set from the top”. The Board of Directors of the Bank has over-
ing best practices including, but not limited to: sight responsibilities for the AML/CFT/CPF framework. The Board
ensures that the Bank’s Management and all employees adhere
• The Financial Action Task Force (FATF) 40 Recommenda- strictly to all regulatory and internal procedures relating to AML/
tions. CFT/CPF and that the Bank maintains a zero-tolerance threshold to
• Money Laundering (Prevention and Prohibition) Act, 2022. regulatory infraction. The Bank’s Chief Compliance Officer (CCO)
• Terrorism (Prevention and Prohibition) Act, 2022. is appointed by the Board of Directors and approved by the CBN.
• Central Bank of Nigeria’s (“CBN”) AML/CFT/CPF Regula-
tions, 2022. The Bank has appointed an Executive Compliance Officer (ECO)
• CBN’s Guidance Notes on Targeted Financial Sanctions Re- who is an Executive Director of the Bank as provided by CBN’s reg-
lated to Terrorism and Terrorism Financing 2022 ulation. The ECO monitors all breaches of extant regulations and
• Corrupt Practices and Other Related Offences Act, Cap. receives Compliance reports from the CCO. The ECO periodically
C31, Laws of the Federation of Nigeria, 2004. reviews the AML/CFT/CPF Framework and provides requisite re-
• UK Bribery Act 2010. sources, guidance and support needed to maintain the Framework.
• USA Foreign Corrupt Practices Act (Amendment) 1998
• Proceeds of Crimes (Recovery and Management) Act,
2022. (ii) Reports to Senior Management and the Board:
• CBN’s Customer Due Diligence Regulations, 2023
• CBN’s Guidance Notes on Politically Exposed Persons, 2023 On a monthly and quarterly basis, AML/CFT/CPF reports are sub-
• CBN’s Circulars. mitted to the Bank’s Senior Management and Board Members
respectively. These reports provide the Board and Senior Man-
agement with information to enable them to assess the Bank’s
Structure of the Framework compliance with its regulatory obligations. The reports also en-
sure that Directors and Senior Management are kept abreast of
The Bank has developed policies and procedural guidelines, and current trends and developments in the Financial Industry, partic-
these documents are regularly reviewed/revised to ensure that ularly in AML/CFT/CPF Risk Management.
they remain relevant and current and are in line with the evolving
regulatory requirements and best practices. The policies and pro-
cedures clearly articulate the Bank’s AML/CFT/CPF stance in the (iii) Know Your Customer (KYC) Procedures:
global fight against financial crime and are available on the Bank’s
intranet site for access to all employees at any point in time. To ensure that only customers that align with the Bank’s risk ap-
petite are on-boarded, duly completed account opening forms,
Annually, the Bank’s Compliance Policies are reviewed and ap- identification documents and other relevant information and
proved by the Board of Directors and where it is necessary to documents are provided. This is the foundation/ bedrock for on
update the policies between cycles, an addendum is issued for im- boarding a customer in the Bank.
plementation and incorporated in the relevant Policy at the next
annual review. Customer Due Diligence (CDD) is conducted prior to entering any
banking relationship with a customer. This includes at a minimum,
The Bank has moved away from a “rule based, tick box” ap- identity and address verification as well as ascertaining the source
proach for Combating Financial Crime and Proliferation Financing of income and wealth of the customer.
risk to a risk-based approach. Consequently, the Bank identifies
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
41
AML/CFT FRAMEWORK
Customers that are identified as high risk are subjected to Enhanced (v) Transaction Reporting:
Due Diligence (EDD). EDD is conducted on such customers includ-
ing Politically Exposed Persons (PEPs) to assess and manage the risks Regulatory and statutory requirements stipulate that certain re-
that the customers may pose. The approval of Senior Management ports and returns are made to regulatory bodies. In Nigeria, the
and the Compliance team is required prior to the commencement NFIU is the agency charged with the responsibility of receiving the
of banking relationship with such high-risk customers. following core transaction-based reports:
In compliance with regulatory requirements and perceived AML/ • Currency Transaction Report (CTR)
CFT/CPF risk threats, Designated Non-Financial Businesses and • Foreign Currency Transaction Report (FTR)
Professionals (DNFBPs) and other similar businesses are required • Suspicious Transaction Report (STR)
to undertake requisite and regulatory measures prior to account
opening. The Bank renders reports to the NFIU and the CBN in accordance
with the provisions of Sections 3, 7 and 11 of the Money Launder-
As part of the Bank’s KYC and CDD procedures, identification ing (Prevention and Prohibition), Act 2022 (“the Act”).
documents are requested and obtained to confirm the Ultimate
Beneficial Owners of a business and the organization’s control Section 3 of the Act provides that financial institutions must sub-
and structure. mit a report on all international transfer of funds and securities of
a sum exceeding ten thousand dollars ($10,000) or its equivalent
Sanction screening is also conducted prior to entering a relation- in other foreign currencies.
ship as well as prior to effecting a transaction to ensure that the
Bank does not enter a relationship with a sanctioned person/entity. Section 7 of the Act provides that a Financial Institution must sub-
mit a report on all unusual and suspicious transactions.
The Bank is also in compliance with the Foreign Account Tax
Compliance Act (FATCA) and Common Reporting Standards cri- Section 11 of the Act provides that any lodgment or transfer of
teria, and thus, have put measures in place to identify the de- funds in excess of N5 million and above for individuals and N10
fined persons in the Bank’s database. All identified US persons million and above for corporate customers must be reported.
are required to complete the requisite tax forms i.e., W8 BEN, W8
BEN-E and W9. Customer who fails to complete the forms would
be regarded as not compliant. The Bank also, where applicable, in accordance with the Act,
provides transaction-based reports to competent authorities as
required.
(iv) Transaction Monitoring:
Transaction monitoring is done using manual and automated (vi) Relationship with Regulators and Law Enforcement
methods. The former is performed by employees, who regularly Agencies:
identify red flags in transactions/activities and the latter resides
within the Compliance team with the aid of transaction monitor- The Bank maintains a cordial and supportive relationship with all
ing solutions. regulatory and law enforcement agencies. The Bank promptly
complies with and responds to all requests made, pursuant to the
Employees are aware that suspicious activities/ transactions should law, and provides information to regulators including the NFIU,
immediately be referred to the Compliance team. the CBN and other relevant agencies.
Suspicious Transactions are brought to the attention of the Com- The Bank is also at the forefront of cooperating with regulators to
pliance team on a manual or automated basis; the former by way give feedback on new regulations and means to mitigate the risks
of employees filing internal suspicious transaction reports to the that are being encountered in the financial industry brought on by
Compliance team and the latter by way of transaction monitoring new innovations and developing trends.
tools reviewed by Compliance Officers. If deemed appropriate,
suspicious transaction reports (STRs) are filed with the Nigerian
Financial Intelligence Unit (NFIU). (vii) Sanctions Compliance Management:
To properly monitor transactions passing through the Bank’s sys- As a policy, the Bank does not enter any relationship with sanc-
tems, the SAS AML tool, has been fully deployed in the Bank, tioned individuals/entities. All employees, as applicable to their
providing an advancement in how transactions are monitored and functions, are required to screen names of individuals and orga-
investigated. nizations who have or plan to enter a business relationship or
carry out a transaction with/through the Bank against the Bank’s
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
42
AML/CFT FRAMEWORK
internal watch list. The Bank also does not maintain relationships with individuals or
entities that have been sanctioned.
The Internal Watch List (IWL) contains amongst others, the names
of individuals and entities, who have been blacklisted by various
regulatory bodies worldwide: Office of Foreign Asset Control (xi) Risk Assessment:
(OFAC); European Union (EU); Her Majesty’s Treasury (HMT); The
Ministry of Economy, Finance, and Industry in France (MINEFI); The Bank conducts Risk Assessment on its customers, branches
The United Nations (UN) and The Local List as provided by local products and services. This is to ensure that AML/CFT/CPF risks are
regulatory and enforcement bodies. identified, assessed, and mitigated.
(x) Prohibited Business Relationships: The reports and findings of the audit are circulated to Senior Man-
agement. A follow-up to the audits takes place to ensure that the
In line with international best practice, the Bank does not open relevant issues are closed out and that the highlighted recommen-
accounts or conduct transactions for customers using pseud- dations have been implemented.
onyms or numbers instead of actual names.
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
43
AML/CFT FRAMEWORK
The Bank will not allow, facilitate, or condone any form of Mod-
(xvii) Whistle Blowing: ern Slavery or Human Trafficking across our business. The Bank
also expects the same standards to be applied by suppliers and
The Bank has a Whistle Blowing Policy which is approved by the third parties acting on behalf of the Bank.
Board. This Policy governs the reporting and investigation of im-
proper, unethical, or illegal activities at the Bank, as well as the This is supported through the communication, established con-
protection offered to the “Whistle Blowers”. trols and, proactive steps to ensure compliance with all Anti-slav-
ery and Human trafficking laws and regulations as well as ensur-
All disclosures will be treated with strict confidence and the iden- ing alignment to the organization’s ethical standards and Code
tity of the Whistle Blower will not be revealed except as required of Conduct.
for Security, Regulatory or Legal purposes.
The Bank continuously ensures that all AML/CFT/CPF regu-
The following guidelines should be noted: lations are strictly adhered to.
INTERNAL
CONTROL AND RISK
MANAGEMENT
SYSTEMS
The internal control and risk Management systems comprise the In line with the Nigerian Code of Corporate Governance, com-
following areas: panies are to undergo an independent Quality Assurance Review
(QAR) of their Internal Audit function. The objective of this review
• Control Environment is to assess the Internal Audit function’s conformance to regulato-
• Risk Assessment ry standards and requirements, as well as to identify improvement
• Control Activities opportunities. This review will be conducted periodically as man-
• Information and Communication dated by the Code.
• Monitoring
Control Activities
Control Environment
Control activities are an integral part of the Company’s Day to day
The Company has the Board Risk and Audit Committee that have operations. Senior Management has set up a control structure to
oversight function on the Company’s Risk Management Processes. ensure control activities are defined at every business area.
The Committee is responsible for setting risk Management poli-
cies that ensure material risks inherent in the Company’s business Examples of the Group’s control activities include the following;
are identified and mitigated or controlled. The Company’s Audit
Committee which is made up of three shareholders’ representa- Top Management Reviews
tives and three Non- Executive Directors; one of the shareholders’
representatives is the Chairman. The Audit Committee is there- • Internal Audit Reports eliciting control weaknesses are
fore independent. Its oversight functions include among others, presented periodically to Management and Board Audit
ensuring that quality accounting policies, internal controls, inde- Committee.
pendent and objective statutory auditors are in place to prevent • Preparation of financial statements on a daily basis for
and detect fraud and material errors in financial reporting. Management review.
• Monthly and quarterly profitability review, where the
The Company’s Management committees are responsible for im- Company’s financial performance is reviewed and com-
plementing risk Management policies set out by the Board. They pared with set budgets. Quarterly reports of the Chief
are also responsible for setting internal control policies and mon- Risk Officer to the Board, eliciting the existing and poten-
itoring the effectiveness of the internal control systems. They en- tial risks facing the Company and the mitigants deployed.
sure proper books of accounts are kept and accounting policies
are in conformity with: International Financial Reporting Stan-
dards; Prudential Guidelines for licensed Banks; Circulars issued Whistle Blowing
by the Central Bank of Nigeria; The requirements of the Banks
and Other Financial Institutions Act; and the requirements of the The Company has instituted a strong whistle blowing culture
Companies and Allied Matters Act. among staff and also created awareness among its stakeholders.
The whistle blowing platform is accessible to all and the aim is
primarily to ensure that all cases of irregularities are made known
and addressed by the Company.
CHAIRMAN’S
STATEMENT
BUILDING MOMENTUM
FOR SUSTAINABLE
GROWTH
Distinguished Shareholders, Members of the Board of Directors, with projections adjusted to 3.0% and 2.9% for 2023 and 2024,
Ladies and Gentlemen, it is my pleasure to welcome you to the respectively. This downward revision was attributed to the slug-
3rd Annual General Meeting of our company, Guaranty Trust gish pace of recovery observed in both China and Europe.
Holding Company Plc.
In addition to enduring fiscal and economic vulnerabilities, dem-
After three years of reorganizing and fitting all the business verti- ocratic institutions across Africa grappled with significant threats
cals into a holding company structure, we successfully made the as a series of coup events rattled several nations on the continent.
first wave of progress in our drive to broaden and diversify our In July 2023, the military leadership in Niger, under Abdouraha-
revenue streams and solidify our standing as a leading financial mane Tchiani, staged a coup, toppling the democratically elected
services provider in Africa. President Mohamed Bazoum. Similarly, in Gabon, President Ali
Bongo was ousted by the military following a contentious gen-
I am very proud of the great strides we continue to make in po- eral election. Meanwhile, both Sierra Leone and Guinea-Bissau
sitioning our organisation as a Proudly African and Truly Interna- experienced failed coup attempts, adding to the region’s political
tional Financial Institution on the Continent and internationally. instability.
Globally and locally, 2023 posed daunting challenges that Against this backdrop, socio-economic conditions across the
demanded innovative responses. Key amongst these chal- continent deteriorated, exacerbated by the spillover effects from
lenges include, a notable decline in purchasing power fueled by adverse global conditions. Throughout 2023, many African cur-
an uptick in food and energy prices, the prolonged effect of the rencies experienced significant depreciation against the US dollar,
war in Ukraine, the looming spectre of oil supply shocks from the further intensifying economic challenges. These exchange-rate
escalating Israel-Gaza conflict which carries significant ramifica- weaknesses are expected to persist into 2024, albeit with some-
tions, dampening economic activity in nations reliant on energy what reduced intensity.
imports and exerting broader strains on the global economy. On
the upside, global inflation began to taper as the Covid-19 pan- The trajectory of Nigeria’s economic activities was shaped
demic, which the WHO had declared “no longer a global health by events unfolding in the political, fiscal, and monetary
emergency”, gradually loosened its grip on economies worldwide. spaces. The securitization of Nigeria’s N22.7 trillion ways and
Consequently, China, as the world’s second-largest economy, re- means debt by the National Assembly resulted in a substantial
laxed its “Zero-Covid” policies in response to mounting economic surge in the country’s domestic debt stock by the end of the sec-
pressures and evolving scientific understanding of the virus. More- ond quarter of 2023. Following the February 2023 Presidential
so, forecasts from the IMF provided a beacon of hope, predicting elections, the ruling All Progressives Congress Party’s candidate,
a decline in the global inflation rate from its peak of 8.7% in 2022 Senator Bola Ahmed Tinubu emerged the 16th President of the
to 6.9% in 2023, and a further decline to 5.8% by 2024. Federal Republic of Nigeria. Whilst delivering his inauguration
speech on May 29th, President Bola Ahmed Tinubu announced
In July 2023, the IMF initially forecasted a decline in global eco- the removal of subsidy on petroleum, citing budgetary constraints
nomic growth from 3.5% in 2022 to 3.0% for both 2023 and and triggering petroleum marketers to swiftly raise the pump
2024. However, this outlook was revised downwards in October, price of fuel by up to 200% across the country.
Meanwhile, in the monetary policy space, the redesign of the Under the helm of new leadership, the CBN introduced
N200, N500, and N1,000 naira notes early in the year had a slew of policy reforms to achieve financial stability
repercussions on cash availability, imposing significant strains amidst sluggish economic growth and FX illiquidity. In
on individuals and businesses alike. Furthermore, the Central line with the Foreign Exchange (Monitoring and Miscellaneous
Bank of Nigeria’s decision to transition from a managed float Provisions) Act, the Central Bank of Nigeria (CBN) rebranded
exchange rate system to a free float regime in June 2023 pre- the official market, previously known as the Investors & Ex-
cipitated a notable devaluation of the Nigerian Naira against porters’ FX window, as the Nigerian Autonomous Foreign Ex-
the US dollar. The Naira plummeted from an initial rate of change Market (NAFEM). It also reinstated the “Willing Buyer,
N461.5/$ in January to close at N907.11/$ by December 2023 Willing Seller” model and reintroduced the participation of
in the official market. Bureau De Change (BDC) entities in the FX market. Moving
forward, BDCs are now required to submit statutory periodic
The confluence of currency devaluation and the removal of fuel returns to the CBN and are required to sell to end-users at a
subsidy exerted upward pressure on costs, causing inflation to rate not exceeding 1% of the purchase price from the apex
spike. This dual impact proved particularly burdensome for busi- bank. Furthermore, in a move aimed at redirecting FX flows,
nesses, with many small and medium-scale enterprises grappling the CBN lifted the ban on 43 items that were previously ineli-
with severe capital and liquidity constraints. Similarly, numerous gible for FX transactions at the official market.
large corporations reported substantial losses throughout fiscal
2023 due to heightened exposure to currency fluctuations. The RT200 Programme, launched in February 2022 with the aim
of mitigating the country’s reliance on volatile foreign exchange
Nigeria’s headline inflation rate rose significantly from the closing sources and fostering more stable and sustainable FX inflows
rate of 21.34 percent in January 2023 to 28.92 percent in De- through the expedited development of the non-oil export value
cember 2023, principally as a result of rise in food, energy, and chain, came to an end on June 30th, 2023. Initially envisioned to
transport prices. The Central Bank of Nigeria (CBN) continued to generate $200 billion in foreign exchange earnings from non-oil
tighten liquidity in order to curb inflationary pressures; increasing revenues over a span of 3 to 5 years, the RT200 Programme was
thr monetary policy rate (MPR) on a cumulative basis from 16.50 officially discontinued.
percent in January 2023 to 18.75 percent at the end of the year
and removal of the cap on Standing Deposit Facility (SDF). We ex- The CBN commenced the clearance of backlogs in their FX obli-
pect a further upward adjustment in the benchmark rate in early gations to Banks and Airline companies whilst also intermittently
2024 as inflation targeting remains a core priority of the Apex interfering in the FX market to boost liquidity. We expect the fre-
Bank. quency of interference to decline as the market becomes more
stable. The CBN also resumed the provision of offer quotes of
Year-on-year, Nigeria’s GDP expanded by 3.46% in the fourth Naira-Settled OTC FX Futures (NSOFF) contracts with durations
quarter of 2023, slightly lower than the 3.52% growth registered of thirteen (13) to sixty (60) months in an effort to promote long-
in 2022. Notably, the services sector spearheaded this growth term hedging against FX risk as a result of fluctuations in the
surge, witnessing a remarkable uptick of 3.98%, constituting a market.
significant portion of Nigeria’s GDP at 56.55%. Despite a mod-
est uptick of 2.10% in real terms, the agriculture sector faced Focus on Service Excellence and Growth In spite of eco-
headwinds due to heightened operational costs following fuel nomic challenges. Recognizing that we live in a rapidly chang-
subsidy removal. Consequently, its contribution to the aggre- ing digital environment - which offers customers more choices,
gate GDP stood at 26.11%, lower than the figures recorded in lower costs and easier mobility in an always-on, always-connect-
the fourth quarter of 2022 (26.46%) and the third quarter of ed world - we have continued to invest in improving our digital
2023 (29.31%). In contrast, the industrial sector demonstrated banking platforms in line with global trends. One of the ways we
remarkable resilience, rebounding from a negative growth rate achieved this in the year under review was through the redesign
of -0.94% in 2022 to an impressive 3.86% in the fourth quarter and upgrade of our Mobile Banking App, GTWorld, to enhance
of 2023, contributing 17.34% to the total GDP. Oil production, user experience and provide a much simpler way to transact. The
however, fell short of OPEC’s 2023 quota, averaging 1.55 million new GTWorld Application provides our customers with access to
barrels per day (mbd). Meanwhile, the non-oil sector, which ac- a range of banking services via 24/7, including access to consum-
counted for 95.30% of the GDP, experienced a slower growth er loans and FX Sales. The Application which is enjoying wide
rate of 3.07% in the fourth quarter of 2023, compared to 4.44% public acceptance with more than a million downloads to date, is
in the same period of 2022. available on IOS and Android devices
Across Group operations, our franchises in Africa and the have continued to amplify our vision of Promoting Enterprise, and
UK remain strong. Efficient strategies were deployed to navigate drive shared economic growth especially considering the tough
the complexities posed by evolving macros to record a post-tax challenges — around access to markets, costs, and profitability —
Return on Average Assets of 6.7% and pre-tax Return on Average which small business owners face. By bringing hundreds of thou-
Equity of 44.8%. CRR, which is the key component of restricted sands of consumers to patronise indigenous businesses year on
deposits, continued to grow on the back of the Central Bank of year, we have helped thousands of small businesses in the food
Nigeria’s stance on sterilising Naira deposits to address inflation. and fashion sectors acquire new customers, improve sales and
The Group also changed its investment strategy to benefit from reach of their brands. Also, by delivering Great Experiences that
the uptick in yields in Sovereign securities especially in Ghana, bring together some of the biggest and most exciting global per-
Sierra Leone, and Cote D’Ivoire as Central Banks’ continued with sonalities in food and fashion, we are putting our local industries,
their monetary policy tightening, enabling the Group to lock in and the vibrant and innovative small businesses behind them, on
on a long-term basis to hedge against future decline in yields. The the world map. This kind of impact is only possible because of
shift in strategy was also to reduce the impact of exchange rate the strength of our brand and our unflinching commitment to
movement on the loan book and to mitigate against sovereign ensuring that our customers grow with us.
risks in key markets. The Group’s Balance sheet remained well
structured and distributed with loans and advances accounting We also continued to sustain our support for persons with de-
for 25.4% in FY-2023 from 29.3% in FY-2022, investment se- velopmental disabilities with a focus on those with autism spec-
curities at 25.3% in FY-2023 from 22.3% in FY-2022 and place- trum disorders (ASD), through the Orange Ribbon Initiative. Many
ment 16.1% in FY-2023 from 9.0% in FY-2022. The Group grew persons affected by autism in both urban and rural communities
its total Assets by 51.3% (N3.3trn) to N9.8trn in FY-2023 from across Nigeria and Ghana have continued to benefit from our ad-
N6.446trn in FY-2022 due to increases posted on key asset lines vocacy and intervention efforts delivered using the annual GTCO
including investment securities, cash & bank balances, loans and Autism Conference. Themed “Empowering Voices for Autism”,
advances, and restricted deposits. the 2023 Autism Conference featured lectures, panel discussions,
and performances carefully prepared to showcase the diverse tal-
The Group was able to navigate all the various challenges in the ents that exists in the Autism community, whilst also creating a
operating environment, especially the large CRR debits and in- platform for children and adults with ASD and their families to
creased sterilisation ratio of Naira deposits for GTBank Nigeria connect and share ideas with subject-matter experts.
through continued implementation of its retail strategy and focus
on core banking activities. The strategy adopted complemented The industry awards and recognitions that we received during the
by the significant Revaluation gain posted led to achievement of year also tell a compelling story of excellence. In 2023, Guaranty
184.7% growth in PBT to N609.6bn in FY-2023 from N214.2bn in Trust Bank was recognized as Nigeria’s Best Bank at the 2023 Eu-
FY-2022. Contribution to Group PBT from West Africa increased romoney Awards for Excellence. We were also named Best Bank-
from 12.3% in December 2022 to 17.3% in December 2023. ing Group in Nigeria by World Finance and Best Bank in Nigeria
During the same period, contributions from East Africa decreased by Global Finance. Guaranty Trust Bank also featured in the Top
to 2.3% from 3.4% while the United Kingdom increased from 1000 Banks in the World and Top 100 Banks in Africa rankings
-0.8% to 1.9%. The improved contribution from banking entities by The Banker.
outside Nigeria impacted the contribution from GTBank Nigeria
which closed at 77.6% in December 2023 from 84.3% as of
December 2022. Non-Banking Subsidiaries contribution stood at Outlook for Fiscal Year 2024
0.90% in 2023. In 2024 and beyond, the Group expects revenue
streams from all its business verticals to continue to grow as the Due to the risk overhang from prior years, the global economy is
Financial Holding Structure builds momentum and consolidates forecasted to expand moderately by 2.9% in 2024. This down-
on current achievements. turn in growth is anticipated to be widespread, with projections
for 2024 revised downward for 90% of advanced economies
Beyond the bottom-line, we understand that building an (from 1.5% in 2023 to 1.4% in 2024) and nearly 60% of emerg-
enduring institution is also about the underlying drive to ing market and developing economies. Factors contributing to
make a sustainable impact in the communities we serve this decline include reduced investment volumes, tighter mone-
and operate in. Through strategic initiatives and partnerships, tary policies, currency depreciation, and high levels of inflation.
we strive to address pressing social and economic challenges, en- Despite headline inflation remaining above pre-pandemic levels, it
riching lives and fostering better outcomes for people and busi- is expected to decrease from 6.9% in 2023 to 4.8% by the close
nesses across Africa. Over the years, our free business platforms of 2024. This anticipated decline is attributed to the expected
reduction in international commodity prices and the impact of tive measures to address potential vulnerabilities.
stringent monetary policies. However, it’s noteworthy that low-in-
come economies are still forecasted to grapple with double-digit Across East and West Africa, currency fluctuations and geopo-
inflation rates throughout 2024. litical risks require that we focus on revenue diversification and
leverage localised market insights. Across all our operations,
On the domestic front, Nigeria’s economy faces challenges stem- evolving regulatory actions and market uncertainties necessitate
ming from a high-interest environment, protracted FX illiquidity, proactive measures to ensure compliance and sustained growth
and mounting inflationary pressures. The International Monetary amidst evolving consumer preferences.
Fund (IMF) forecasts a marginal rise in Nigeria’s real GDP growth
to 3.0% in 2024, up from 2.74% in 2023. However, the Federal As we build momentum for future growth, we remain steadfast
Government of Nigeria anticipates a more optimistic growth pro- in our commitment to deliver long-term value to our stakeholders
jection of 3.76% for 2024, contingent upon subsidy removal and whilst strengthening our market leadership across all our business
increased daily oil production to 1.78 million barrels, aiming to verticals of Banking, Payments, Funds and Pension Management.
stimulate growth. Nevertheless, the lingering effects of rising in- I am confident in our resilience, adaptability and capabilities to
flation are anticipated to persist in 2024, prompting a tightening capitalise on emerging opportunities and deliver sustainable value
in borrowing as the Monetary Policy Committee (MPC) seeks to to you, our esteemed shareholders.
raise the monetary policy rate to mitigate inflationary pressures.
As monetary and fiscal reforms gradually take effect, an increase Thank you for your continued trust.
in foreign direct investments is expected, thereby contributing to
a more stabilised foreign exchange market. Despite these positive
developments, lingering challenges persist, including ongoing in- H. A. Oyinlola
security, oil bunkering activities, and a significant level of public Chairman of the Board of Directors
debt. These factors pose continued downside risks to Nigeria’s
economic outlook, necessitating vigilant monitoring and proac-
GROUP CHIEF
EXECUTIVE
OFFICER’S
STATEMENT
Dear Shareholders, steering the country in a new direction. Yet, TOGETHER, we nav-
igated the evolving landscape of 2023, emerging more resilient.
I am pleased to present our full-year report, which highlights our All Banking businesses and all our non-banking business verticals
performance in our third year of operation as a Financial Services worked and grew their respective share of market. Our balance
Group. sheet is de-risked and has proven to be a fortress. This makes me
even more confident of the strength of the business model we
Throughout our 34-year history - from our beginnings as Guar- have in place for all our businesses and reinforces my conviction
anty Trust Bank - we have built our reputation on serving our that we are indeed on the right path.
customers, stakeholders, and communities with a passion that
demands an unwavering commitment to excellence and continu- In spite of the varying challenges in the operating environment and
ous improvement; this has not changed even after our transition headwinds that weighed on growth in 2023, the Group delivered
to a Holding Company Structure. What began in 2020 as a bold a strong performance posting a PBT of N609.3bn representing
vision to build four strong business verticals in Banking, Payments, a growth of 184.5% from N214.2bn achieved in FY-2022. This
Funds and Pension Management, covering the entire breadth of result was on the back of impressive growth in gross earnings,
financial services is now transforming into a properly synergized increasing by 120% to N1,186.4bn in FY-2023 from N539.2bn in
Holding Company, positioned to compete effectively in an evolv- FY-2022, underpinned by the growth on funded and non-funded
ing business landscape and serve our customers through their income lines. The 69.3% growth in interest income (N550.7bn
journey. vs N325.3bn) was further complemented by the 197.3% growth
in non-funded income (N635.7bn vs N213.8bn) comprising fees
2023 was a challenging year. Global GDP exhibited a mixed and commission income (18% growth), other income (556.9%
picture; while some economies recorded moderate expansion, growth), and trading income (54.4% growth). Other income
others experienced sluggish recovery. Growth rates in advanced growth resulted largely from FX revaluation gains of N441.7 bil-
economies were buoyed by expansionary fiscal measures and im- lion accrued from the impact of exchange rate movement (the
proved consumer spending. Emerging markets displayed varying Naira devalued in the I&E Window from N461.5/$1 in December
degrees of economic resilience with some nations capitalising on 2022 to N907.11 in December 2023) on the Group’s long USD
export-led growth, however, most currencies faced acute vulner- Position and an increase in the forward rates applied to revalue
abilities, as the economies grappled with external imbalances and its US$363 million swap positions. Our Nigerian Banking opera-
capital outflows. Inflationary pressures remained a key concern tion accounts for 77.5% of the Group’s profitability, West Africa
across various markets fuelled by rising commodity prices, supply constitutes 17.5%, East Africa contributes 2.2%, UK 1.9%, and
chain disruptions, and pent-up demand, prompting Central Banks Non-Banking Entities make up 0.9%.
to constantly reassess their monetary policy stance.
In line with our conservative posture of building up credit risk
Going into 2023, we knew that it would be a year of two halves reserves to deal with adverse situations and the possibility of mac-
that would test the business model we had put in place for the roeconomic variables weakening, the Group booked loan impair-
Banking business, along with our non-banking business verticals ment charges of N102.95 billion for FY-2023 using the predictive
in Payments, Pension, and Funds Management. The first half EC model and caused management overlay on stage 2 facilities as
unfolded against the backdrop of an election, and the second permitted under IFRS 9. The Group also recognised N94.9 billion
half was ushered in by a change of government. As anticipated, as an impairment charge on other Financial Assets (FA) by way of
the new government came in with a different approach to policy management overlay due to the projected loss rate on Ghanaian
making and a preference for market driven macros. It immediately sovereign securities and other foreign currency financial instru-
moved to remove petrol and foreign exchange subsidies, resulting ments whose underlying values are sensitive to adverse exchange
in a shift to a ‘willing buyer, willing seller’ market dynamic, thus rate movement. Cost of funds went up from 1.24% in FY-2022
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
56
GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT
to 1.40% in FY-2023 due to increase in interest rates in response the year for our Pension business was the successful launch of
to rising inflationary pressures which impacted interest paid on our self-service portal, a cutting-edge platform that empowers
savings accounts and time deposits. The Group’s total operating our RSA account holders to effortlessly monitor and manage their
expenses (Opex) grew by 26.2% (N250.4 billion vs N197.9 billion) pension. This initiative was particularly well-received among the
primarily from an increase in AMCON levy and NDIC premium. younger, tech-savvy demographic, aligning our platform with the
Other contributory factors to Opex growth include, incremen- evolving preferences of our target audience.
tal depreciation charge arising from capital spending, effect of
increased energy costs, impact of salary reviews, and impact of Our Funds Management business achieved remarkable milestones
adverse exchange rate movement of functional currencies against and delivered substantial returns for investors, hitting N379.9Bn
the US Dollar across our jurisdiction of operations outside Nigeria. in Asset under Management (AuM) at the end of December
The Group continues to maintain a well-structured and diversi- 2023. As part of our continued efforts to become one of the Top
fied balance sheet across its Banking franchise as well as across 3 Fund Management businesses in Nigeria by AuM by 2025, we
its non-banking verticals, posting growth across all asset lines completed the first phase of full digitization of all our business
to close FY-2023 with total assets of N9.69 trillion representing processes. This project encompasses a comprehensive overhaul of
a 50.0% growth over N6.45 trillion recorded in FY 2022. GT- traditional manual processes, replacing them with cutting-edge
Bank Ltd, which constitutes 74% of the Group’s balance sheet, technologies and software solutions, including the implementa-
recorded large gains from its FCY asset mix, benefitting from the tion of advanced portfolio management systems, automated risk
recent exchange rate unification instituted by the Central Bank assessment tools, and real-time reporting mechanisms. We are
of Nigeria (the move to a market-determined clearing rate led confident that these will not only help Guaranty Trust Fund Man-
to a 96.6% devaluation of the Naira to USD at the I&E Window; agers better understand the risk appetite and financial objectives
N461.5/$1 in FY-2022 vs N907.11/$1 in FY-2023). of investors, but also set new benchmarks for excellence in the
Nigerian Wealth Management industry.
One of the key things we did to reaffirm our commitment to cre-
ating great customer experiences was to redesign and upgrade Our Banking business continues to lead as the flagship franchise
our mobile banking application, GTWorld. The new GTWorld App of the Group. Guaranty Trust Bank’s unique market positioning,
features a simpler interface - improving ease of use and reducing forged over the years, situates us not only to benefit from the
complexity. Shortly after its launch, we accelerated the rollout of evolving competitive landscape, but also supplies the required
additional exciting features to help customers bank however and momentum towards enhanced competitiveness across our oth-
wherever they want, but in the simplest and most efficient way. er business verticals. In 2023, Guaranty Trust Bank was named
the Best Bank in Nigeria at the Euromoney Awards for Excellence
Delivering a simpler and better mobile banking experience for 2023, marking the 12th time that the Bank has been recognised
our customers who just want to make their lives simpler amidst as the leading financial institution in Nigeria. The Bank was also
increasingly complex times was only one of the ways we support- awarded the Best in Nigeria by both Global Finance and World
ed our growing base of consumer and small business customers Finance and featured in the Top 1000 Banks in the World and Top
throughout the year. When the Central Bank of Nigeria (CBN) 100 African Banks rankings by The Banker.
initiated the redesign of the national currency and put a limit on
weekly cash withdrawals by businesses and individuals, which re- When people speak of the GTCO brand, they do not just reference
sulted in a nationwide scarcity of cash, our Payments Business, the immense value we create with our products and services, but
HabariPay provided solutions to help businesses and individuals also the invaluable role we play as one of Africa’s leading corpo-
go cashless and navigate the impacts of the cash scarcity. The rate citizens in enriching lives, uplifting communities and foster-
Squad virtual account was a great solution for businesses, includ- ing societal development. In 2023, we expanded our event space
ing supermarkets, restaurants, street vendors and fashion stores; to provide even greater opportunities for two hundred and nine
allowing businesses receive payments efficiently and timely. food businesses to connect, learn and promote their enterprises
to the over 750,000 people who attended the 2023 GTCO Food
Our Pension business continues to make inroads to building a and Drink Festival. Themed “A Celebration of Everything Food”,
sustainable business model, whilst positioning as a Proudly Nige- the 3-day event, was included masterclasses showcasing a variety
rian pension fund. This positioning is not just a strategic move but of international and continental cuisines, vibrant food retail ex-
also a reflection of our deep commitment to contributing to the periences and family activities that ensured there was something
economic wellbeing of Nigerians, and our intimate understand- for everyone.
ing of what it means to be Nigerian. In spite of aggressive with-
drawals from Retirement Savings Accounts (RSAs) due to loss of When we hosted our 1st Fashion Weekend in 2016 with seventy
jobs, mortgage contributions and relocation, the Pension industry small businesses in fashion retailing, we continued to work each
in Nigeria is forecasted to experience double digit year-on-year year with the goal of increasing the number of fashion businesses
growth, propelling growth of total pension assets to an impres- that are given the opportunity to promote their businesses for
sive N19 trillion by the end of 2024. One of the key highlights of free on our Fashion Weekend platform. In 2023, we doubled the
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
57
GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT
number of businesses who leveraged this free business platform support of the NPA Lagos International Polo Tournament demon-
to showcase their businesses to the over 650,000 fashion enthu- strates our unwavering commitment to offering great experienc-
siasts and guests that attended the festival. es, particularly in celebrating the heritage and tradition of the
‘Sport of Kings’. In 2023, we sponsored the 119th edition of the
Introduced thirteen years ago, the GTCO Annual Autism Con- oldest polo tournament in Africa. Our partnership with the Lagos
ference is a declaration of our commitment to helping the world Polo Club has been rewarding, bringing increased exposure to the
take baby steps towards understanding and supporting people sport of polo in Nigeria and contributing to the remarkable stories
living with Autism and other neuro-developmental disorders. We of sportsmanship being told across Africa.
hosted the 13th edition of what has come to be the reference
point for autism advocacy and intervention in Africa. Our 2023 Dear Shareholders, notwithstanding the uncertainties and mod-
Autism Conference was themed “Empowering Voices for Au- erate economic growth forecasts, we approach 2024 with great
tism” to promote inclusivity and self-advocacy for persons on the optimism, knowing that it is under these conditions that good or-
Autism Spectrum. ganisations that are blessed with exceptional people succeed. Our
success in 2023 and through the years is down to the hard work
Working with specialists and partner organisations within and of our talented and exceptional staff. Together, as a team, we
outside Nigeria, the conference featured lectures, panel discus- have made great progress in positioning our institution for long
sions, and performances carefully prepared to showcase the di- term growth and now have the immediate task of unleashing the
verse talents that exist in the autism community whilst also creat- full power of what we have created in all our business verticals
ing a platform for persons with ASD and their families to connect through the Holding Company Structure. Looking at the progress
and share ideas with subject-matter experts on different aspects we have made in such a short time, I am fully convinced that we
of autism spectrum disorder including its nature and manage- will not only lead the future of Banking, but also the future of
ment. Our in-person consultations spanned five days, ensuring Financial Services in Africa.
effective and inclusive assistance. We also extended our impact by
hosting a post-conference consultation in Accra, Ghana, embody- Thank you for your continued trust.
ing our goal to create a brighter, more inclusive future worldwide.
For decades, we have been nurturing strategic partnerships that Segun Agbaje
foster innovation and positive cultural values. Our continuing
LINE OF BUSINESS
MANAGING
DIRECTOR’S
STATEMENT
STAYING AHEAD IN A
RAPIDLY CHANGING
LANDSCAPE
was designed to offer affordable financing and foster long-term the proper governance and effective processes in place to ensure
financial stability for every Nigerian. Despite the constraints pre- that our business operations meet regulatory demands and ex-
sented by the rising rate environment, we have managed to cap ceed customer expectations. To enhance our risk management
rate adjustments on QuickCredit and keep it accessible to our framework, we focused on maintaining a portfolio of high-quality
customers all year round. assets and sufficiently de-risked our balance sheet to build resil-
ience against market volatilities and provide needed flexibility to
The competition amongst banks with the emergence of shadow pursue genuine growth opportunities.
banks and Fintechs as well as increasing participation of large
technology companies in financial services is intensifying. Tradi- Our ability to proactively identify customers’ shifting preferenc-
tional banks seek to enhance their digital capabilities, streamline es and relentlessly pursue innovation has earned the Bank more
operations, and deliver personalised experiences to retain and goodwill and recognition. Guaranty Trust Bank was named Ni-
attract customers. Shadow banks and Fintechs, with their agile geria’s Best Bank and Best Bank in CSR at the 2023 Euromoney
structures and innovative solutions, pose a threat by offering al- Awards for Excellence, Best Banking Group in Nigeria by World
ternative lending platforms, payment systems, and investment Finance, and Best Bank in Nigeria by Global Finance. We also fea-
options. Large technology companies also leverage their vast re- tured in the Top 1000 Banks in the World and Top 100 Banks in
sources and data insights to offer services of a financial nature. Africa rankings by The Banker Magazine. Our Chief Risk Officer
This has spurred innovation, challenged established business again emerged Chief Risk Officer of the Year at the GRC & Finan-
models, and reshaped customer expectations. We remain com- cial Crime Prevention Excellence Awards 2023.
mitted to leveraging technology to drive innovation and deliver
exceptional value to our customers. Our e-channels and self-ser- The fast pace of our business environment demands significant-
vice platforms provide customers with round-the-clock access ly more leadership today than in the past. Competition for tal-
to banking services, allowing them to manage their accounts, ent—especially ours—has never been fiercer. We recognize that
make transactions, and access support whenever they need it, having a strong culture with diverse talent is crucial to achieving
irrespective of time or location. This advantage was most evident our long-term aspirations as a market leader and are committed
in periods of cash crunch as we provided customers with secure, to fostering a diverse and inclusive workplace where all employ-
reliable, cost-effective digital alternatives to carry out financial ees feel valued, respected, and empowered to contribute their
transactions and keep their businesses running with minimal dis- unique perspectives and talents. We are extremely proud of what
ruption. we have been able to achieve with a relatively younger and high-
ly adaptive workforce. Our ongoing employee support initiatives
The above notwithstanding, there is much scope to deepen ex- have resulted in improved staff engagement and productivity.
isting customer relationships and serve new ones, particularly by During the year, we also recorded a marked increase in the num-
identifying viable customer segments and channelling resources ber of women in our workforce, many of them in middle and
to effectively drive these relationships. The newly formed Business senior management positions across the Bank.
Banking Division recorded significant traction in both existing and
new customer activity. By leveraging the enhanced ability of the Looking ahead, we believe our strategic intent to harness the syn-
customers to articulate their business needs, the relationship ergies inherent in the Holding Company whilst strengthening our
teams have grown more valuable to the small and mid-sized busi- foothold in banking will create increasing value for our stakehold-
nesses that comprise this important customer category, offering ers. With the innovative depth of our brand, growing scale and
tailor-made solutions and providing ongoing advisory support. efficiencies, and our people, I am confident in our capabilities to
Insights from this experience will be applied in evaluating oth- deliver excellent customer service experience and drive long-term
er customer segments to streamline service delivery and increase growth.
share of wallet. Service beyond limitations also means that we
expand our products and services to cater to customers in the Thank you for your trust.
diaspora through various ways, leveraging technology and stra-
tegic partnerships to provide Nigerians living abroad continuing
access to financial services, which allows them to maintain vital Miriam Olusanya
connections with their relatives and loved ones as well as facilitate Managing Director, Guaranty Trust Bank Ltd
ongoing business interests locally.
BOARD OF
DIRECTORS
Mr. H. A. Oyinlola
Chairman, Board of Directors
Mrs. A. O. Martins
Chairman, Board of Directors
Mrs. C. Echeozo
Chairman, Board of Directors
Mrs. S. A. Giwa-Osagie
Chairman, Board of Directors
DIRECTORS’
REPORT
Directors’ Report
For the financial year ended December 31, 2023
The Directors of Guaranty Trust Holding Company Plc (“the Company”) are pleased to present their report on the affairs of the Com-
pany and its Subsidiaries (“the Group”), together with the Group audited financial statements and the auditor’s report for the financial
year ended December 31, 2023.
Guaranty Trust Holding Company Plc was incorporated as a public limited company on July 24, 2020. The Company was licensed as
a non-operating financial holding company on April 14, 2021, with the listing of its shares on The Nigerian Exchange Limited on June
24, 2021. The Company commenced operations on August 1, 2021.
The Company is a non-operating financial holding company, and its subsidiaries handle Banking, Payments, Pension Fund Administra-
tion and Asset Management.
The financial results of all the Subsidiaries have been consolidated in these financial statements.
Operating results
The highlights of the Group’s operating results for the financial year ended December 31, 2023, are as follows:
Dividends
During the 2023 financial year, Directors declared and paid an interim dividend of 50 Kobo per ordinary share on the share capital of
29,431,179,224 Ordinary Shares of 50 Kobo each, for the half-year period ended June 30, 2023.
There was no income tax consequence on the Company as a result of the dividend pay-out, as the Company is only required to deduct
this tax at source on behalf of Tax authorities in Nigeria. The tax so withheld represents advance payment of income tax by the recipient
shareholders.
The Directors recommend the payment of a final dividend of N2.70K (two Naira and seventy Kobo only) per ordinary share of 50 Kobo
(bringing the total dividend for the financial year ended December 31, 2023, to N3.20K (three Naira and twenty Kobo only). Withhold-
ing tax would be deducted at the point of payment.
The Directors who held office during the year, together with their direct and indirect interests in the issued share capital (including
the Global Depositary Receipts (GDRs)) of the Company as recorded in the register of Directors’ Shareholding and/or as notified by
the Directors for the purposes of sections 301 and 302 of the Companies and Allied Matters Act and the listing requirements of The
Nigerian Exchange Limited is noted below:
Names Direct *Indirect Direct *Indirect
Holding Holding Holding Holding
December 2023 December 2023 December 2022 December 2022
Directors’ Remuneration
The Company ensures that remuneration paid to its Directors complies with the provisions of the codes of corporate governance issued
by its regulators. The Non-Executive Directors shall be paid out of the funds of the Company by way of remuneration for their services
as Directors, such sums as shall be approved by shareholders at the Annual General Meeting.
In compliance with Section 34(5) of the Code of Corporate Governance for Public Companies as issued by the Securities and Exchange
Commission, the Company makes disclosure of the remuneration paid to its directors as follows:
In the course of the financial year ended December 31, 2023, there was no change on the Board.
Retirement by Rotation
In compliance with the provisions of Article 84(b) of the Articles of Association of the Company which requires one third of the Direc-
tors (excluding Executive Directors) or if their number is not a multiple of three, the number nearest to but not greater than one third,
to retire from office at each biennial Annual General Meeting, Mr. Suleiman Barau and Mrs. Cathy Echeozo will retire at the 3rd Annual
General Meeting and both being eligible, offer themselves for re-election.
Mr. Suleiman Barau holds post graduate degree in Economics and Certificates in Management Research and Projects Planning. He is a
seasoned banker and economist. His experience in the banking sector covered merchant, commercial and central banking.
Mr. Barau was between 2007 and 2017 a two term Deputy Governor of the Central Bank of Nigeria (CBN). Prior to that he was a
Special Adviser to the CBN Governor between 2005 and 2007. Mr. Barau had been involved in significant reforms of the banking and
financial services industry during these periods particularly on banking, payments and monetary policies.
Mr. Barau has received executive education from most of the major global business schools.
Mr. Barau joined the Board in August 2021, and is the Chairman of the Board Governance, Nominations and Remuneration Commit-
tee. He satisfied the requirement for attendance of Board and Committee Meetings as required by the Code of Corporate Governance
during the period under review. A record of his attendance at Board Meetings is available on page 20 of this Report.
Mrs. Catherine Echeozo started her 33-year banking career in 1984 with Chase Merchant Bank Nigeria and also worked with Ecobank
Nigeria Plc. She then began her 24-year career with GTBank in 1993. She was appointed to the Board of GTBank as an Executive Director
in March 2005, and Deputy Chief Executive Officer of the Bank in 2011 and served in that capacity until her retirement in March 2017.
Mrs. Echeozo also represented GTBank on the Board of Nigerian Interbank Settlement System (NIBSS) from 2008 till March 2017.
After her retirement in 2017 from GTBank, Mrs. Echeozo was appointed to the Council of The Nigerian Stock Exchange as the Second Vice
President and also served as an Independent Director of Stanbic IBTC Pension Managers Limited from 2017 – 2020. She presently manages
Cathingens Empowerment Initiative, her social intervention & Investment entity and also serves in the following capacities: Chairman, NGX
Regulation Ltd, a subsidiary of the Nigerian Exchange Group, External Member, Investment Committee CDC Group, Member, Board of Trust-
ees, First Cardiology Foundation, Member, Finance Council, Catholic Archdiocese of Lagos and Member, Board of Trustees, ICAN University.
Mrs. Echeozo holds a first degree in Accountancy from the University of Nigeria, a Masters of Business Administration from the Univer-
sity of Maryland, University College, USA. She became a Fellow of the Institute of Chartered Accountants of Nigeria in the year 2000
and a Certified Information Systems Auditor in 2005.
Mrs. Echeozo joined the Board in August 2021, and is the Chairman of the Board Risk Management and Audit Committee, in addition
to being a member of the Board Information Technology Strategy Committee and Board Governance, Nominations and Remuneration
Committee. She satisfied the requirement for attendance of Board and Committee Meetings as required by the Code of Corporate
Governance during the period under review. A record of her attendance at Board Meetings is available on page 20 of this Report.
Shareholding analysis
The analysis of the distribution of the shares of the Company as at December 31, 2023, is as follows:
According to the Register of Members as at December 31, 2023, no individual shareholder held more than 5% of the issued share
capital of the Bank except for the following:
Stanbic Nominees Nigeria Limited (“Stanbic”) and Zenith Pension Fund Custodian (Zenith PFC) held 19.78% and 8.32% respectively
of the Company ‘s shares largely in trading accounts on behalf of various investors. Stanbic and Zenith PFC does not exercise personal
voting rights on the said shares.
In order to identify with the aspirations of various sections of the society, the Group donated a total sum of N489,032,418 (December
31, 2022: N488,172,863) as donations and charitable contributions during the year. It comprises contributions to Educational organi-
zations, Art and Cultural organizations, and Professional organizations amongst others.
A listing of the beneficiary organizations and the amounts donated to them is shown in the table:
There were no post balance sheet events which could have had a material effect on the financial position of the Group as at December
31, 2023 and profit attributable to equity holders on the date other than as disclosed in Note 47 of the financial statements.
The Company, on a continuous basis, carries out research into new financial products and services.
Gender Analysis
The average number and percentage of males and females employed during the year ended December 31, 2023 vis-a-vis total work-
force is as follows:
Holding Company
Holding Company: Gender analysis in terms of Board and Top Management as at December 31, 2023 is as follows:
Holding Company: Detailed Gender analysis in terms of Board and Top Management as at December 31, 2023 is as follows:
The average number and percentage of males and females employed during the period ended December 31, 2023 by Guaranty Trust
Bank Ltd (the Holding Company’s Largest Subsidiary) vis-a-vis total workforce is as follows:
Guaranty Trust Bank Ltd: Gender analysis in average terms of Board and Top Management as at December 31, 2023 is as follows:
Guaranty Trust Bank Ltd: Detailed Gender analysis in average terms of Board and Top Management as at December 31, 2023 is as
follows:
The Company conforms with all regulatory requirements in the employment of staff, whilst also ensuring that only fit and proper per-
sons are approved for appointment to board or top management positions. All prescribed pre-employment screening for prospective
employees and other requirements for regulatory confirmation of top management appointments are duly implemented.
The Company treats all employees, prospective employees and customers fairly and equally, regardless of their gender, sexual orien-
tation, family status, race, colour, nationality, ethnic or national origin, religious belief, age, physical or mental disability, or any such
factor.
The Company seeks to achieve a minimum of 30% and 40% female representation at Board and Top Management levels respectively,
subject to identification of candidates with appropriate skills. For the purpose of this statement, “Board” refers to Group Chief Exec-
utive Officer, Executive Directors and Non-Executive Directors while “Top Management” refers to General Manager, Deputy General
Manager and Assistant General Manager grades.
The Company operates a non-discriminatory policy in the consideration of applications for employment, including those received from
physically challenged persons.
In the event of any employee becoming physically challenged in the course of employment, where possible, the Company is in a posi-
tion to arrange training to ensure the continuous employment of such a person without subjecting him/her to any disadvantage in his/
her career development. In the year under review, the Company had 3 persons on its staff list with physical challenges.
The Company encourages participation of employees in arriving at decisions in respect of matters affecting their well-being through
various fora including town hall meetings. Towards this end, the Company provides opportunities where employees deliberate on
issues affecting the Company and employee interests, with a view to making inputs to decisions thereon.
The Company places a high premium on the development of its workforce. Consequently, the Company sponsored its employees for
various training courses, both locally and overseas, in the year under review. The Company has also gone into partnership with top-
notch executive business schools in Europe and North America to deliver world-class technical and leadership training to employees
in Nigeria.
The Company maintains business premises designed with a view to guaranteeing the safety and healthy living conditions of its employ-
ees and customers alike. Employees are adequately insured against occupational and other hazards. In addition, the Company provides
medical facilities to its employees and their immediate families at its expense. In line with the status of the Company as a family-friend-
ly organization, we operate a creche facility at our office. There is a state-of-the-art gymnasium for staff at our office. This is in addition
to the registration of staff members at fitness centres and social clubs within their vicinity towards achieving employee wellness.
The Company has in place a number of training programmes, workshops and enlightenment programmes/publications designed to
equip staff members with basic health management tips, First Aid, fire prevention and other occupational safety skills. Fire prevention
and fire-fighting equipment are installed in strategic locations within the Company’s premises.
The Company operates Group Life and Group Personal Accident (formerly known as Workmen’s Compensation) Insurance covers and
Employee Compensation Act contributions for the benefits of its employees. It also operates a contributory pension plan in line with
the Pension Reform Act 2004 (amended in 2014) as well as a terminal gratuity scheme for its employees.
Erhi Obebeduo
Group General Counsel/
Company Secretary
FRC/2017/NBA/00000016024
Plot 635, Akin Adesola Street,
Victoria Island, Lagos
January, 2024
Statement of Directors’ Responsibilities in Relation to the Financial Statements for the period ended
December 31, 2023
The Directors accept responsibility for the preparation of the financial statements set out from pages 86-293 that give a true and fair
view in accordance with the requirements of the International Financial Reporting Standards.
The Directors further accept responsibility for maintaining adequate accounting records as required by the Companies and Allied
Matters Act of Nigeria and for such internal control as the Directors determine is necessary to enable the preparation of financial state-
ments that are free from material misstatement whether due to fraud or error.
The Directors have made assessment of the Company’s ability to continue as a going concern and have no reason to believe that the
Company will not remain a going concern in the years ahead.
Resulting from the above, the directors have a reasonable expectation that the company has adequate resources to continue oper-
ations for the foreseeable future. Thus, directors continued the adoption of the going concern basis of accounting in preparing the
financial statements.
SEGUN AGBAJE
BANJI ADENIYI GROUP MANAGING DIRECTOR
CHIEF FINANCIAL OFFICER FRC/2013/CIBN/00000001782
FRC/2013/ICAN/00000004318 30 January 2024
30 January 2024
In accordance with the provisions of Section 404(7) of the Companies and Allied Matters Act 2020, the members of the Audit Com-
mittee of Guaranty Trust Holding Company Plc hereby report as follows:
• We have exercised our statutory functions under Section 404(7) of the Companies and Allied Matters Act, 2020 and acknowledge
the co-operation of management and staff in the conduct of these responsibilities.
• We are of the opinion that the accounting and reporting policies of the Company and Group are in accordance with legal require-
ments and agreed ethical practices and that the scope and planning of both the external and internal audits for the year ended
December 31, 2023, were satisfactory and reinforce the Group’s internal control systems.
• We are satisfied that the Company has complied with the provisions of Central Bank of Nigeria circular BSD/1/2004 dated
18 February, 2004 on “Disclosure of directors’ related credits in the financial statements of Companys”, and hereby confirm that
an aggregate amount of N253,375,000 (31 December, 2022: N76,549,000) was outstanding as at 31 December, 2023. The status
of performance of insider related credits is as disclosed in Note 45d.
• We have deliberated with the External Auditors, who have confirmed that necessary cooperation was received from Management
in the course of their statutory audit and we are satisfied with Management’s responses to the External Auditor’s recommendations
on accounting and internal control matters and the effectiveness of the Company’s system of accounting and internal control.
The Group Chief Executive Officer and the Group Chief Financial Officer of Guaranty Trust Holding Company Plc. have reviewed the
audited financial statements and accept responsibility for the financial and other information within the annual report. The following
certifications and disclosures regarding the true and fair view of the financial statements as well as the effectiveness of the Internal
Controls established within the Group are hereby provided below:
Financial Information
I. The audited financial statements do not contain any untrue statement of material fact or omit to state a material fact, which
would make the statements misleading.
II. The audited financial statements and all other financial information included in the statements fairly present, in all material
respects, the financial condition and results of operation of the Group as of and for the year ended December 31, 2023.
Disclosures
I. There were no significant deficiencies in the design or operation of internal controls which could adversely affect the Group’s
ability to record, process, summarize and report financial data. Furthermore, there were no identified material weaknesses in
the Group’s Internal Control systems.
II. There were no fraud events involving Senior Management or other employees who have a significant role in the company’s
Internal control.
III. There were no significant changes in internal controls or in other factors that could significantly affect internal controls.
SIGNED BY:
Management’s Annual Assessment of, and Report on, Internal Control over Financial Reporting for
the year ended 31 December 2023
To comply with the provisions of Section 1.3 of SEC Guidance on Implementation of Sections 60-63 of Investments and Securities Act
2007, we hereby make the following statements regarding the Internal Controls of Guaranty Trust Holding Company Plc for the year
ended 31 December 2023:
a) Guaranty Trust Holding Company Plc’s management is responsible for establishing and maintaining a system of internal con-
trol over financial reporting (“ICFR”) that provides reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with International Financial Reporting Standards.
b) Guaranty Trust Holding Company Plc’s management used the Committee of Sponsoring Organization of the Treadway Com-
mission (COSO) Internal Control-Integrated Framework to conduct the required evaluation of the effectiveness of the entity’s
ICFR;
c) Guaranty Trust Holding Company Plc’s management has assessed that the entity’s ICFR as of the end of 31 December 2023 is
effective.
d) Guaranty Trust Holding Company Plc’s external auditor Ernst & Young that audited the financial statements, included in the
annual report, has issued an attestation report on management’s assessment of the entity’s internal control over financial re-
porting.
The attestation report of Ernst & Young that audited its financial statements will be filed as part of Guaranty Trust Holding Company
Plc’s ‘s annual report.
To comply with the provisions of Section 1.1 of SEC Guidance on Implementation of Sections 60-63 of Investments and Securities Act
2007, I hereby make the following statements regarding the Internal Controls of Guaranty Trust Holding Company Plc for the year
ended 31 December 2023.
a) I have reviewed this management assessment on internal control over financial reporting of Guaranty Trust Holding Company
Plc;
b) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this report;
c) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods pre-
sented in this report;
e) The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control system, to
the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent
functions):
1) There are no significant deficiencies and material weaknesses in the design or operation of the internal control system
which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial
information; and
2) There are no frauds, whether or not material, that involves management or other employees who have a significant role in
the company’s internal control system.
The company’s other certifying officer and I have identified, in the report whether or not there were significant changes in internal
controls or other facts that could significantly affect internal controls subsequent to the date of their evaluation including any corrective
actions with regard to significant deficiencies and material weaknesses.
SEGUN AGBAJE
GROUP MANAGING DIRECTOR
FRC/2013/CIBN/00000001782
30 January, 2024
To comply with the provisions of Section 1.1 of SEC Guidance on Implementation of Sections 60-63 of Investments and Securities Act
2007, I hereby make the following statements regarding the Internal Controls of Guaranty Trust Holding Company Plc for the year
ended 31 December 2023.
a) I have reviewed this management assessment on internal control over financial reporting of Guaranty Trust Holding Company
Plc;
b) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this report;
c) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods pre-
sented in this report;
e) The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control system, to
the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent
functions):
1) There are no significant deficiencies and material weaknesses in the design or operation of the internal control system
which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial
information; and
2) There are no fraud, whether or not material, that involves management or other employees who have a significant role in
the company’s internal control system.
The company’s other certifying officer and I have identified, in the report whether or not there were significant changes in internal
controls or other facts that could significantly affect internal controls subsequent to the date of their evaluation including any corrective
actions with regard to significant deficiencies and material weaknesses.
BANJI ADENIYI
CHIEF FINANCIAL OFFICER
FRC/2013/ICAN/00000004318
30 January, 2024
The Shareholders
Guaranty Trust Holding Company PLC,
Plot 635, Akin Adesola Street,
Victoria Island,
Lagos.
Report of the Independent Consultants on the Review of the Corporate Governance Framework and Performance of
the Board of Directors of Guaranty Trust Holding Company PLC
Deloitte & Touche has performed the annual review of the corporate governance framework and evaluation of the
performance of the Board of Directors of Guaranty Trust Holding Company PLC (“GTCO”) for the year ended 31 December
2023. The scope of the review included an assessment of the structure, mandate and performance of the Board, Board
Committees and Management as it relates to the overall strategic direction of the company, stakeholder engagement,
disclosures, and transparency.
The review was performed in compliance with Section 12.1 and Section 12.2 of the Central Bank of Nigeria for Financial
Holding Company (CBN CG Guidelines for FHC), and Principle 14 and Principle 15 of the Nigerian Code of Corporate
Governance ("NCCG"). The scope of the review included an assessment of key areas of GTCO’s corporate governance
framework, including the framework of the Board structure and composition, Board operations and effectiveness,
assurance functions, corporate disclosures, and relationship with stakeholders. The report of our evaluation was
premised on desk review of relevant governance documents, policies, and procedures, interview sessions with Directors
and select members of executive management and survey responses received from the Directors.
The result of our evaluation has shown that the Board and Corporate Governance framework and practices in GTCO
substantially comply with the provisions of the extant Codes of Corporate Governance. We also ascertained that the key
Board functionaries (Board and Board Committee Chairpersons) and the Board Committees met their responsibilities
under the Codes and governance charters in GTCO. The report further highlights details of our review activities,
observations and some recommendations for the Board and Executive Management’s action for sustained improvement
to the performance of the Board, Corporate Governance and Secretarial functions of GTCO.
It should be noted that the matters raised in this report are only those that came to our attention during the course of
our review. The evaluation is limited in nature and does not necessarily disclose all significant matters about the company
or reveal any irregularities. As such, we do not express any opinion on the activities reported. The report should be read
in conjunction with the Corporate Governance Section of the Annual Report.
Yours faithfully,
For: Deloitte and Touche
Ibukun Beecroft
FRC/2020/ICAN/00000020765
Partner
Opinion
We have audited the consolidated and separate financial statements of Guaranty Trust Holding Company Plc
(“the Company”)and its subsidiaries (together “the Group’’), which comprise the consolidated and separate
statements of financial position as at 31 December 2023, and the consolidated and separate income
statements, the consolidated and separate statements of other comprehensive income, the consolidated and
separate statements of changes in equity and the consolidated and separate statements of cash flows for the
year then ended, and notes to the consolidated and separate financial statements, including material
accounting policy information.
In our opinion, the accompanying consolidated and separate financial statements give a true and fair view of
the consolidated and separate financial position of the Group and the Company as at 31 December 2023, and
its consolidated and separate financial performance and consolidated and separate cash flows for the year
then ended in accordance with International Financial Reporting Standards, the provisions of the Companies
and Allied Matters Act, 2020, the Banks and Other Financial Institutions Act (BOFIA) 2020, and relevant
circulars issued by the Central Bank of Nigeria (CBN)and in compliance with the Financial Reporting Council
of Nigeria (Amendment)Act, 2023.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Consolidated and Separate Financial Statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our assessment of the
risks of material misstatement of the consolidated and separate financial statements. The results of our audit
procedures, including the procedures performed to address the matters below, provide the basis for our audit
opinion on the accompanying consolidated and separate financial statements.
Disclosures
We evaluated the adequacy of disclosures in the
consolidated and separate financial statements including
the appropriateness of assumptions and sensitivities
disclosed. We tested the data and calculations supporting
the disclosures.
Other Information
The Directors are responsible for the other information. The other information comprises the information
included in the document titled “Guaranty Trust Holding Company Plc Financial Statements together with
Directors’ and Auditor’s Reports for the year ended 31 December 2023”, which includes the Corporate
Governance, Subsidiaries Governance, Sustainability Report, Complaints and Feedback, Anti-Money
Laundering and Combating Terrorist Financing Framework, Internal Control and Risk Management Systems,
Directors’ Report, Statement of Directors’ Responsibilities in Relation to the Financial Statements, Report of
the Audit Committee; Corporate Responsibility for the Financial Statements, and Other National
Disclosures/Other Information. The other information does not include the consolidated and separate
financial statements and our auditor’s report thereon.
Our opinion on the consolidated and separate financial statements does not cover the other information and
we do not express an audit opinion or any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Consolidated and Separate Financial Statements
The Directors are responsible for the preparation and fair presentation of the consolidated and separate
financial statements in accordance with International Financial Reporting Standards, the provisions of the
Companies and Allied Matters Act, 2020, the Banks and Other Financial Institutions Act (BOFIA)2020, and
relevant circulars issued by the Central Bank of Nigeria (CBN)and in compliance with the Financial Reporting
Council of Nigeria (Amendment) Act, 2023, and for such internal control as the Directors determine is
necessary to enable the preparation of consolidated and separate financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, the Directors are responsible for assessing
the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Directors either intend
to liquidate the Group and/or the Company or to cease operations, or have no realistic alternative but to do
so.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis
of these consolidated and separate financial statements.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements - continued
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional
skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated and separate financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Group’s and the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors.
Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the consolidated and separate financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Group and/or the
Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated and separate financial
statements, including the disclosures, and whether the consolidated and separate financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the consolidated and separate financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
86
INDEPENDENT AUDIT OPINION
In accordance with the requirement of the Fifth Schedule of the Companies and Allied Matters Act, 2020, we
confirm that:
We have obtained all the information and explanations which, to the best of our knowledge and belief,
were necessary for the purpose of our audit;
In our opinion, proper books of account have been kept by the Group and Company, in so far as it appears
from our examination of those books;
The consolidated and separate income statements, consolidated and separate statements of other
comprehensive income, the consolidated and separate statements of changes in equity and the
consolidated and separate statements of cash flows are in agreement with the books of account; and
In our opinion, the consolidated and separate financial statements have been prepared in accordance with
the provisions of the Companies and Allied Matters Act, 2020 so as to give a true and fair view of the state
of affairs and financial performance of the Company and its subsidiaries.
In compliance with the Banks and Other Financial Institutions Act 2020, and circulars issued by the Central
Bank of Nigeria, we confirm that:
i) Related party transactions and balances are disclosed in Note 45 to the consolidated and separate
financial statements in compliance with Central Bank of Nigeria circular No. BSD/1/2004.
ii) Returns on customers’ complaints of Guaranty Trust Bank Limited, a wholly-owned subsidiary of
Guaranty Trust Holding Company Plc are disclosed on page 320 - Other Information - Complaints and
Feedback in compliance with Central Bank of Nigeria circular No. PDR/DIR/CIR/01/20.
iii) As disclosed in Note 46 to the consolidated and separate financial statements, the Company and
Guaranty Trust Bank Limited, paid penalties in respect of contraventions of certain sections of the Banks
and Other Financial Institutions Act 2020 and certain circulars issued by the Central Bank of Nigeria,
during the year ended 31 December 2023.
In accordance with the requirements of the Financial Reporting Council of Nigeria (FRC)Guidance on
Assurance Engagement Report on Internal Control over Financial Reporting:
We performed a limited assurance engagement and reported on management’s assessment of the Company's
internal control over financial reporting as of December 31, 2023. The work performed was done in
accordance with the International Standard for Assurance Engagements Other Than Audits or Reviews of
Historical Financial Information (‘ISAE 3000 (Revised)’)and FRC Guidance on Assurance Engagement Report
on Internal Control over Financial Reporting, and we have issued an unmodified opinion in our report dated
8 April 2024. The report is included in the Consolidated and separate financial statements.
Anthony Oputa
FRC/2013/PRO/ICAN/004/00000000980
For Ernst & Young
Lagos, Nigeria
8 April 2024
FINANCIALS
Assets
Cash and bank balances 22 2,309,618,698 1,621,101,169 60,169 -
Financial assets at fair value
23 28,066,613 128,782,374 - -
through profit or loss
Derivative financial assets 24 28,961,143 33,913,351 - -
Investment securities: -
– Fair value through profit or loss 25 3,947,850 3,904,458 - -
– Fair value through other compre-
25 894,064,002 357,704,355 - -
hensive income
– Held at amortised cost 25 1,571,317,478 863,421,525 - -
Assets pledged as collateral 26 86,552,701 80,909,062 - -
Loans and advances to banks 27 66,935 54,765 - -
Loans and advances to customers 28 2,480,183,368 1,885,798,639 - -
Restricted deposits and other assets 33 2,012,815,346 1,232,611,251 - 144,538
Investment in subsidiaries 29 - - 162,956,560 162,956,560
Property and equipment, and Right
30 224,298,652 197,860,484 798,270 893,924
of use assets
Intangible assets 31 33,076,038 29,411,898 - -
Deferred tax assets 32 18,285,854 10,983,098 - -
Total assets 9,691,254,678 6,446,456,429 163,814,999 163,995,022
Liabilities
Deposits from banks 34 136,053,409 125,229,187 - -
Deposits from customers 35 7,410,834,190 4,485,113,979 - -
Financial liabilities at fair value
36 809,342 1,830,228 - -
through profit or loss
Derivative financial liabilities 24 - 4,367,494 - -
Other liabilities 37 493,325,925 724,902,202 16,483,941 26,043,503
Current income tax liabilities 20 41,303,351 35,307,860 88,692 -
Other borrowed funds 39 72,119,485 126,528,105 - -
Deferred tax liabilities 32 59,680,905 12,028,172 11,862 -
Total liabilities 8,214,126,607 5,515,307,227 16,584,495 26,043,503
The accompanying notes to the financial statements form an integral part of these financial statements.
Earnings per share attributable to the equity holders of the parent entity during the year (expressed in naira per share):
The accompanying notes to the financial statements form an integral part of these financial statements.
The accompanying notes to the financial statements form an integral part of these financial statements
Foreign
FINANCIALS
1
Please refer to Note 41
The accompanying notes to the financial statements form an integral part of these financial statements.
94
PAGE
For the year ended 31 December 2022
Group
Balance at 1 January 2022 14,715,590 123,471,114 - 87,614,884 424,084,348 (8,125,998) 6,604,907 17,634,006 198,358,025 864,356,876 18,870,216 883,227,092
1
Please refer to Note 40
2
Please refer to Note 41
The accompanying notes to the financial statements form an integral part of these financial statements.
FINANCIALS
Statement of Changes in Equity
For the year ended 31 December 2023
Company
FINANCIALS
1
Please refer to Note 41
The accompanying notes to the financial statements form an integral part of these financial statements.
96
PAGE
For the year ended 31 December 2022
Company
In thousands of Nigerian Naira Share Share Equity Regulatory risk Other regulatory Fair value Retained Total
capital premium Reserve reserve reserves reserve earnings/(loss) equity
1
Please refer to Note 41
The accompanying notes to the financial statements form an integral part of these financial statements.
FINANCIALS
FINANCIALS
The accompanying notes to the financial statements form an integral part of these financial statements.
The accompanying notes to the financial statements form an integral part of these financial statements.
ACCOUNTING
POLICIES
1. Reporting entity the choices available in accounting for such transactions. In ac-
counting for this restructuring, the Group applied the pooling of
Guaranty Trust Holding Company PLC (“the Parent” or the “the interests method of accounting after taking the following into
Company”) is a company incorporated in Nigeria. The address consideration:
of the Company’s registered office is Plot 635, Akin Adesola
Street, Victoria Island, Lagos. These separate and consolidated • The assets and liabilities of the company and subsidiaries
financial statements, for the year ended 31 December 2023, are are reflected at their carrying amounts as no adjustments
prepared for the Company and the Group (Holding Company have been made to reflect fair values, or recognise any new
and its subsidiaries, separately referred to as “Group entities”) assets or liabilities, at the date of the combination. The ac-
respectively. The Group is primarily involved in the provision of counting policies of the company and subsidiaries are well
banking and other financial services to corporate and individual aligned upon the reorganization.
customers.
• No ‘new’ goodwill is recognised as a result of the reorgani-
Guaranty Trust Holding Company PLC (GTCO PLC) commenced zation.
operations on August 1, 2021, after the transitioning of Guar-
anty Trust Bank PLC into a Financial Holding Company in ac- • The consolidated income statements reflect the results of
cordance with the Central Bank of Nigeria (CBN)’s Guidelines the company and its subsidiaries.
for Licensing and Regulation of Financial Holding Companies in
Although Guaranty Trust Holdings PLC commenced operations
Nigeria on July 1, 2021.
on August 1, 2021, the accounting information has been pre-
The transition was sequel to receipt of shareholders’ approval in pared as if the Group had always been in existence in its current
November 2020 by way of a scheme of arrangement which al- form and prior period comparatives presented accordingly.
lows the Group to hold equity investments in non-core banking
The Financial Statements were authorized for issue by the direc-
businesses under a subsidiary arrangement.
tors on 30 January 2024.
It is therefore expected that the restructuring would afford the
Group greater strategic agility to harness opportunities across
the financial services landscape while strengthening the Group’s 3.(a) Material Accounting Policies
resilience in the face of regulatory/consumer behaviour changes.
The accounting policies set out below have been applied consis-
Under the terms of the approved scheme of arrangement, the tently to all periods presented in these financial statements. All
Bank’s shareholders agreed to exchange their shares on a one- entities within the Group apply the same accounting policies.
for-one basis for shares in Guaranty Trust Holding Company Plc
(the Holding Company), and holders of Global Depositary Re- • Functional and presentation currency
ceipts (GDRs) representing shares issued by the Bank (the Bank
These Consolidated and Separate financial statements are
GDRs) have agreed to exchange their GDRs on a one-for-one
presented in Nigerian Naira, which is the Company’s func-
basis for GDRs representing shares issued by the Holding Com-
tional currency. Except where indicated, financial informa-
pany.
tion presented in Naira has been rounded to the nearest
The Holding Company’s shares were admitted on the Official thousand.
List of the Nigerian Exchange (NGX) on June 24, 2021 and the
• Basis of measurement
GDRs were admitted to trading on the main market of the Lon-
don Stock Exchange on July 1, 2021. Pursuant to the listings, These financial statements have been prepared on the
the Bank was registered as a Limited Liability Company with the historical cost basis except for the following:
Corporate Affairs Commission (Nigeria) under the name Guar-
anty Trust Bank Limited.
value of the defined benefit obligation less the fair value • Amendments to IAS 8 – Definition of Accounting Esti-
of the plan assets. mates
» The plan assets for defined benefit obligations are mea- The amended standard clarifies that the effects on an ac-
sured at fair value. counting estimate of a change in an input or a change in a
measurement technique are changes in accounting estimates
if they do not result from the correction of prior period errors.
The previous definition of a change in accounting estimate
• Use of Estimates and Judgements
specified that changes in accounting estimates may result
The preparation of the financial statements in conformity from new information or new developments. Therefore, such
with IFRS requires the directors to make judgements, esti- changes are not corrections of errors. This aspect of the defi-
mates and assumptions that affect the application of poli- nition was retained by the Board.
cies and reported amounts of assets and liabilities, income
The amendment does not have any material impact on the
and expenses. The estimates and associated assumptions are
Group.
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 • Amendments to IAS 12 – Deferred Tax related to Assets
readily apparent from other sources. Actual results may differ and Liabilities arising from a Single Transaction
from these estimates.
The amendments clarify that where payments that settle
The estimates and underlying assumptions are reviewed on a liability are deductible for tax purposes, it is a matter of
an ongoing basis. Revisions to accounting estimates are rec- judgement (having considered the applicable tax law) wheth-
ognized in the period in which the estimate is revised and in er such deductions are attributable for tax purposes to the
any future periods affected. liability recognised in the financial statements (and interest
expense) or to the related asset component (and interest ex-
pense). This judgement is important in determining whether
any temporary differences exist on initial recognition of the
• Changes to accounting policies
asset and liability.
The accounting policies adopted are consistent with those of
Under the amendments, the initial recognition exception
the previous financial period.
does not apply to transactions that, on initial recognition,
give rise to equal taxable and deductible temporary differenc-
es. It only applies if the recognition of a lease asset and lease
liability (or decommissioning liability and decommissioning
asset component) give rise to taxable and deductible tempo-
Standards and interpretations effective during the report-
rary differences that are not equal.
ing period
Nevertheless, it is possible that the resulting deferred tax as-
Amendments to the following standard(s) became effective in the
sets and liabilities are not equal (e.g., if the entity is unable
annual period starting from 1 January, 2023. The new reporting
to benefit from the tax deductions or if different tax rates
requirements as a result of the amendments and/or clarifications
apply to the taxable and deductible temporary differences).
have been evaluated and their impact or otherwise are noted be-
In such cases, which the Board expects to occur infrequently,
low:
an entity would need to account for the difference between
• IFRS 17 – Insurance Contracts the deferred tax asset and liability in profit or loss.
The IASB issued IFRS 17 in May 2017 and applies to annual The amendment does not have any material impact on the
reporting periods beginning on or after 1 January 2023. The Group.
new IFRS 17 standard establishes the principles for the rec-
• Amendments to IAS 1 and IFRS Practice Statement 2 -
ognition, measurement, presentation and disclosure of Insur-
Disclosure of Accounting Policies
ance contracts within the scope of the Standard.
In February 2021, the Board issued amendments to IAS 1 and
The objective of IFRS 17 is to ensure an entity provides rel-
IFRS Practice Statement 2 Making Materiality Judgements
evant information that faithfully represents those contracts.
(the PS), in which it provides guidance and examples to help
This information gives a basis for users of financial state-
entities apply materiality judgements to accounting policy
ments to assess the effect that insurance contracts have on
disclosures.
the entity’s financial position, financial performance and cash
flows. This standard does not impact the Group in anyway The amendments aim to help entities provide accounting policy
as the Bank and its subsidiary companies do not engage in disclosures that are more useful by:
insurance business.
» Replacing the requirement for entities to disclose their
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
101
ACCOUNTING POLICIES
‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies.
» Adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosure.
The amendment is not expected to have any material impact on the Group.
The following standards have been issued or amended by the IASB but are yet to become effective for annual periods beginning on 1
January 2023:
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.
In January 2020, the IASB issued amendment to IAS 1 to specify the requirements for classifying liabilities as current or non-cur-
rent. The amendments are effective for annual reporting periods beginning on or after 1 January 2024 and must be applied retro-
spectively.The amendment clarify:
• That a right to defer must exist at the end of the reporting period.
• That classification is unaffected by the likelihood that an entity will exercise its deferral right.
• That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not im-
pact its classification.
The Board also added two new paragraphs (Paragraph 76A and 76B) to IAS1 to clarify what is meant by “settlement” of a liability.
The Board concluded that it was important to link the settlement of the liability with the outflow of resources of the entity.
The amendment does not have any material impact on the Group.
In September 2022, the Board issued Lease Liability in a Sale and Leaseback. The amendment to IFRS 16 specifies the requirements
that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does
not recognise any amount of the gain or loss that relates to the right of use it retains.
However, the requirements do not prevent the seller-lessee from recognizing any gain or loss arising from the partial or full termi-
naton of a lease.
The amendment is not expected to have any significant impact on the Group at the time it will take effect, as there is non-existent
of such transaction as Sale and Leaseback within the Group or with external parties.
In May 2023, the Board issued amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments. The amendments
clarify the characteristics of supplier finance arrangements. In these arrangements, one or more finance providers pay amounts an
entity owes to its suppliers. The entity agrees to settle those » power over the investee;
amounts with the finance providers according to the terms
and conditions of the arrangements, either at the same date » exposure, or rights, to variable returns from its involve-
or at a later date than that on which the finance providers ment with the investee; and
pay the entity’s suppliers.
» the ability to use its power over the investee to affect the
The amendments require an entity to provide information amount of the investor’s returns.
about the impact of supplier finance arrangements on liabil-
ities and cash flows, including terms and conditions of those
arrangements, quantitative information on liabilities related Acquisition of subsidiaries
to those arrangements as at the beginning and end of the re-
porting period and the type and effect of non-cash changes Business combinations are accounted for using the acquisition
in the carrying amounts of those arrangements. The infor- method as at the acquisition date, which is the date on which
mation on those arrangements is required to be aggregated control is transferred to the Company. The Group measures
unless the individual arrangements have dissimilar or unique goodwill as the fair value of the consideration transferred in-
terms and conditions. cluding the recognised amount of any non-controlling inter-
est in the acquiree, less the net recognised amount (generally
The amendment does not have any material impact on the fair value) of the identifiable assets acquired and liabilities
Group. assumed, all measured as of the acquisition date. When the
excess is negative, a bargain purchase gain is recognised im-
mediately in profit or loss.
• Amendments to IAS 21 – Lack of exchangeability
The Group elects on a transaction-by-transaction basis
In August 2023, the Board issued Lack of exchangeability whether to measure at the acquisition date components of
amendments to IAS 21. The amendments specifies how non-controlling interests in the acquiree at its fair value, or
an entity should assess whether a currency is exchangeable at its proportionate share of the acquiree’s identifiable net
and how it should determine a spot exchange rate when ex- assets. All other components of non-controlling interests are
changeability is lacking. A currency is considered to be ex- measured at their acquisition-date fair values, unless anoth-
changeable into another currency when an entity is able to er measurement basis is required by IFRS. Transaction costs,
obtain the other currency within a time frame that allows for other than those associated with the issue of debt or equity
a normal administrative delay and through a market or ex- securities, that the Group incurs in connection with a busi-
change mechanism in which an exchange transaction would ness combination are expensed as incurred.
create enforceable rights and obligations.
(ii) Structured entity
If a currency is not exchangeable into another currency, an
A structured entity is an entity that has been designed so
entity is required to estimate the spot exchange rate at the
that voting or similar rights are not the dominant factor in
measurement date. An entity’s objective in estimating the
deciding who controls the entity, such as when any voting
spot exchange rate is to reflect the rate at which an orderly
rights relate to administrative tasks only and the relevant ac-
exchange transaction would take place at the measurement
tivities are directed by means of contractual arrangements. A
date between market participants under prevailing economic
structured entity is consolidated if the Group is exposed, or
conditions. The amendments note that an entity can use an
has rights to variable returns from its involvement with the
observable exchange rate without adjustment or another es-
Structured Entity and has the ability to affect those returns
timation technique.
through its power over the Structured Entity. Power is the
current ability to direct the activities that significantly influ-
ence returns.
(b) Other Accounting Policies
(iv) Transactions eliminated on consolidation come statement are presented net in the Income statement
within the corresponding item. Foreign exchange gains and
Intra-group balances, income and expenses (except for for- losses on other comprehensive income items are presented in
eign currency translation gains or losses) arising from in- other comprehensive income within the corresponding item
tra-group transactions, are eliminated in preparing the con-
solidated financial statements. Unrealised gains arising from In the case of changes in the fair value of monetary assets de-
transactions with subsidiaries are eliminated to the extent of nominated in foreign currency classified as fair value through
the Group’s interest in the entity. Unrealised losses are elim- other comprehensive income, a distinction is made between
inated in the same way as unrealised gains, but only to the translation differences resulting from changes in amortised
extent that there is no evidence of impairment. Profits and cost of the security and other changes in the carrying amount
losses resulting from intra-group transactions are also elimi- of the security. Translation differences related to changes in
nated. the amortised cost are recognised in profit or loss, and other
changes in the carrying amount, except impairment, are rec-
ognised in equity.
(v) Non-controlling interest
The Group applies IFRS 10 Consolidated Financial Statements (iii) Group Entities
(2011) in accounting for acquisitions of non-controlling inter-
ests. Under this accounting policy, acquisitions of non-con- The results and financial position of all the Group entities
trolling interests are accounted for as transactions with equity (none of which has the currency of a hyperinflationary econ-
holders in their capacity as owners and therefore no goodwill omy) that have a functional currency different from the pre-
is recognised as a result of such transactions. The adjustments sentation currency are translated into the presentation cur-
to non-controlling interests are based on the proportionate rency as follows:
amount of the net assets of the subsidiary.
income statement within “interest income” and “interest Guaranty Trust Pension Managers Limited
expense” using the Effective Interest Method.
Revenue recognition by the Pension Manager subsidiary are
The effective interest rate is the rate that exactly discounts under the following;
the estimated future cash payments and receipts through the
expected life of the financial asset or liability (or, where ap- Asset Based Fees: These are fees earned on pension funds
propriate, the next re-pricing date) to the carrying amount of by the company and held by fund custodians as stipulated by
the financial asset or liability. When calculating the effective Pension Reform Act 2014. It is earned over time and invoiced
interest rate, the Group estimates future cash flows consider- on a preceding month basis at the approved rates for the
ing all contractual terms of the financial instruments but not various funds under the multi-fund structure.
future credit losses.
Fee Income earned from administrative services: These
The calculation of the effective interest rate includes contrac- are fees earned over time from contributors to cover cost of
tual fees paid or received, transaction costs, and discounts or administering each Retirement Savings Account. The Com-
premiums that are an integral part of the effective interest pany does not recognize revenue from a contributor that has
rate. not made contribution for a particular month. The perfor-
mance obligation is satisfied over the administration of each
Transaction costs are incremental costs that are directly attrib- Retirement Savings Account.
utable to the acquisition, issue or disposal of a financial asset
or liability. Fee Income from providing management services: Fees
earned for the provision of services over a period of time are
Interest income and expense presented in the Income state- accrued over that period. That is, the fees are invoiced on a
ment include: preceding month basis but accrued on a daily basis on the
fund. These fees include the administration and supervision
» Interest on financial assets and liabilities measured at am- of Pension Fund Assets. Revenue recognized is based on a
ortised cost calculated on an effective interest rate basis. percentage of the opening Net Asset value of the Pension
Fund investment at the beginning of the period of charge.
» Interest on financial assets measured at fair value through
The performance obligation is satisfied over the administra-
OCI calculated on an effective interest rate basis.
tion and supervision of Pension Fund Assets.
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. Guaranty Trust Fund Managers Limited
For a financial asset that has not become credit impaired Guaranty Trust Fund Managers Limited provides funds man-
since initial recognition, interest revenue is calculated using a agement services to individuals and corporate organisations.
‘gross method’ of applying the effective interest rate method Revenue from contracts with customers is recognised when
to the gross carrying amount of the asset (i.e. its carrying control of the goods or services are transferred to the cus-
amount excluding the loss allowance). tomer at an amount that reflects the consideration to which
the Company expects to be entitled in exchange for those
For a financial asset that subsequently has become credit-im-
goods or services. The Company has generally concluded
paired, from the beginning of the next reporting period, in-
that it is the principal in its revenue arrangements.
terest revenue is calculated using a ‘net method’ of applying
the effective interest rate to the net amortised cost balance The Company has applied IFRS 15 practical expedient to a
(i.e. including the loss allowance). portfolio of contracts (or performance obligations) with simi-
lar characteristics since the Company reasonably expects that
the accounting result will not be materially different from the
(d) Revenue from contract with customers result of applying the standard to the individual contracts.
The disclosures of significant accounting judgements, esti-
IFRS 15 establishes a five-step model to account for revenue mates and assumptions relating to revenue from contracts
arising from contracts with customers. It applies to all con- with customers are provided below.
tracts with customers except leases, financial instruments
and insurance contracts. The standard establishes a more
systematic approach for revenue measurement and recog-
Payments Company- HabariPay Limited
nition by introducing a five-step model governing revenue
recognition. The five step model requires the Company to (i) The Company’s sources of revenue are derived from the fol-
identify the contract with the customer, (i” identity each of lowing:
the performance obligations included in the contract, (il) de-
termine the amount of consideration in the contract, (iv) allo- Net commission recognized on merchant service charged to
cate the consideration to each of the identified performance transaction value processed on behalf of our merchants.
obligations and (v) recognise revenue as each performance
obligation is satisfied. Sales margin recognized on bills payments i.e., airtime vend-
ing, and bulk SMS sent on behalf of our customers. ing investments in the Income statement.
Other fees and commissions which relates mainly to trans- (I) Leases
action and service fees, including commitment fees which
are charged on undisbursed portion of credit facilities, in- Leases (right-of-use asset) are accounted for in accordance
vestment management and other fiduciary activity fees, sales with IFRS 16 and are accounted for in line with the following
commission, placement line fees, syndication fees and guar- based on whether the Group is the Lessor or the Lessee:
antee issuance fees are recognised at a point in time, or over
(i) The Group is the lessee
time as the related services are provided / performed.
At the commencement date, the Group recognises a right-
of-use asset at cost and a lease liability, where applicable, at
Payments Company- HabariPay Limited the present value of the lease payments that are not paid at
that date.
The Payment Company’s fees and commissions are derived
from net commissions recognized on merchant services The cost of the right-of-use asset comprises the amount of
charged to transaction value processed on behalf of our mer- the initial measurement of the lease liability, any lease pay-
chants. Revenue related to the above transactions are recog- ments made at or before the commencement date less any
nized at the point in time when the transaction takes place lease incentives received, any initial direct costs incurred by
the lessee and an estimate of costs to be incurred by the les-
see in dismantling and removing the underlying asset, restor-
ing the site on which it is located or restoring the underlying
Guaranty Trust Fund Managers Limited asset to the condition required by the terms and conditions
of the lease.
Fees and commissions in the Fund Manager subsidiary are
recognized on an accrual basis for the period under review After the commencement date, the Group measures the
at amortized cost. The management fees earned on funds right-of-use asset at cost less any accumulated deprecia-
being managed are as stipulated by the guiding of the re- tion and any accumulated impairment losses and adjusted
spective individual trust deeds. 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
(f) Net gains on financial instruments held at fair value the carrying amount to reflect interest on the lease liability,
through profit or loss. reducing the carrying amount to reflect the lease payments
made and remeasuring the carrying amount to reflect any
Net trading income comprises gains less losses related to reassessment or lease modifications.
trading assets and liabilities, and it includes all fair value
changes, dividends and foreign exchange differences. The corresponding lease liabilities, where applicable, are in-
cluded 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
(g) Net income from other financial instruments at fair
the remaining balance of the liability for each period.
value through profit or loss
(ii) The Group is the lessor
Net income from other financial instruments at fair value
through profit or loss relates to derivatives held for risk man- When assets are leased to a third party under finance lease
agement purposes that do not form part of qualifying hedge terms, the present value of the lease income is recognised as
relationships. Fair value changes on other derivatives held for a receivable. The difference between the gross receivable and
risk management purposes, and other financial assets and the present value of the receivable is recognised as unearned
liabilities carried at fair value through profit or loss, are pre- finance income. Lease income is recognised over the term
sented in Other Income – Mark to market gain/(loss) on trad- of the lease using the net investment method (before tax),
which reflects a constant periodic rate of return. • temporary differences arising on the initial recognition of
goodwill.
Where the Group has tax losses that can be relieved only by
(k) Financial assets and liabilities
carrying it forward against taxable profits of future periods,
a deductible temporary difference arises. Those losses carried i. Recognition
forward are set off against deferred tax liabilities carried in
the consolidated statement of financial position. The Group on the date of origination or purchase recogniz-
es loans, debt and equity securities, deposits and subordi-
The Group evaluates positions stated in tax returns; ensuring nated debentures at the fair value of consideration paid. For
information disclosed are in agreement with the underlying non-revolving facilities, origination date is the date the facility
tax liability, which has been adequately provided for in the is disbursed, origination date for revolving facilities is the date
financial statements. The Group had determined that interest the line is availed, while origination date for credit card is
and penalties relating to income taxes, including uncertain the date the credit limit is availed on the card. Regular-way
tax treatments, do not meet the definition of income tax- purchases and sales of financial assets are recognized on the
es, and therefore are accounted for under IAS 37 Provisions, settlement date. All other financial assets and liabilities, in-
Contingent Liabilities and Contingent Assets cluding derivatives, are initially recognized on the trade date
at which the Bank becomes a party to the contractual provi-
(ii) Deferred income tax
sions of the instrument.
Deferred income tax is provided in full, using the liability
ii. Classification and Measurement
method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in Initial measurement of a financial asset or liability is at fair
the financial statements. Deferred income tax is determined value plus transaction costs that are directly attributable to its
using tax rates (and laws) that have been enacted or sub- purchase or issuance. For instruments measured at fair value
stantively enacted by the end of the reporting period and through profit or loss, transaction costs are recognized imme-
are expected to apply when the related deferred income tax diately in profit or loss. Financial assets include both debt and
asset is realised or the deferred income tax liability is settled equity instruments.
However, the deferred income tax is not recognised for: Financial assets are classified into one of the following mea-
surement categories:
• temporary differences on the initial recognition of assets
or liabilities in a transaction that is not a business com- • Amortised cost
bination and that affects neither accounting nor taxable
profit or loss; • Fair Value through Other Comprehensive Income (FVOCI)
• temporary differences related to investments in subsidiar- • Fair Value through Profit or Loss (FVTPL) for trading related
ies where the timing of the reversal of the temporary dif- assets
ference is controlled by the Group and it is probable that
they will not reverse in the foreseeable future; and
The Group classifies all of its financial assets based on the busi-
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
107
ACCOUNTING POLICIES
ness model for managing the assets and the asset’s contrac- • Where these sales are infrequent even if significant in val-
tual cash flow characteristics. ue. A Sale of financial assets is considered infrequent if the
sale is one-off during the Financial Year and/or occurs at
most once during the quarter or at most three (3) times
within the Financial Year.
Business Model Assessment
• Where these sales are insignificant in value both individ-
Business model assessment involves determining whether fi-
ually and in aggregate, even if frequent. A sale is consid-
nancial assets are managed in order to generate cash flows
ered insignificant if the portion of the financial assets sold
from collection of contractual cash flows, selling financial as-
is equal to or less than five (5) per cent of the carrying
sets or both. The Bank assesses business model at a portfolio
amount (book value) of the total assets within the busi-
level reflective of how groups of assets are managed together
ness model.
to achieve a particular business objective. For the assessment
of business model the Bank takes into consideration the fol- • When these sales are made close to the maturity of the
lowing factors: financial assets and the proceeds from the sales approx-
imates the collection of the remaining contractual cash
• the stated policies and objectives for the portfolio and
flows. A sale is considered to be close to maturity if the
the operation of those policies in practice. In particular,
financial assets has a tenor to maturity of not more than
whether management’s strategy focuses on earning con-
one (1) year and/or the difference between the remaining
tractual interest revenue, maintaining a particular interest
contractual cash flows expected from the financial asset
rate profile, matching the duration of the financial assets
does not exceed the cash flows from the sales by ten (10)
to the duration of the liabilities that are funding those as-
per cent.
sets or realizing cash flows through the sale of the assets
• Other reasons: The following reasons outlined below may
• how the performance of assets in a portfolio is evaluated
constitute ‘Other Reasons’ that may necessitate selling fi-
and reported to Group heads and other key decision mak-
nancial assets from the BM1 category that will not consti-
ers within the Bank’s business lines;
tute a change in business model:
• the risks that affect the performance of assets held within
» Selling the financial asset to realize cash to deal with
a business model and how those risks are managed;
unforeseen need for liquidity (infrequent).
• how compensation is determined for the Bank’s business
» Selling the financial asset to manage credit concen-
lines’ management that manages the assets; and
tration risk (infrequent).
• the frequency and volume of sales in prior periods and
» Selling the financial assets as a result of changes in
expectations about future sales activity.
tax laws (infrequent).
Management determines the classification of the financial
» Other situations also depends upon the facts and cir-
instruments at initial recognition. The business model assess-
cumstances which need to be judged by the man-
ment falls under three categories:
agement.
• Business Model 1(BM1): Financial assets held with the
sole objective to collect contractual cash flows;
Cash flow characteristics assessment
• Business Model 2 (BM2): Financial assets held with the
objective of both collecting contractual cash flows and The contractual cash flow characteristics assessment involves
selling; and assessing the contractual features of an instrument to deter-
mine if they give rise to cash flows that are consistent with a
• Business Model 3 (BM3): Financial assets held with neither
basic lending arrangement. Contractual cash flows are con-
of the objectives mentioned in BM1 or BM2 above. These
sistent with a basic lending arrangement if they represent
are basically financial assets held with the sole objective to
cash flows that are solely payments of principal and interest
trade and to realize fair value changes.
on the principal amount outstanding (SPPI).
The Group may decide to sell financial instruments held un-
Principal is defined as the fair value of the instrument at initial
der the BM1 category with the objective to collect contractu-
recognition. Principal may change over the life of the instru-
al cash flows without necessarily changing its business model
ments due to repayments. Interest is defined as consideration
if one or more of the following conditions are met:
for the time value of money and the credit risk associated
• When the Group sells financial assets to reduce credit risk with the principal amount outstanding and for other basic
or losses because of an increase in the assets’ credit risk. lending risks and costs (liquidity risk and administrative costs),
The Group considers sale of financial assets that may oc- as well as a profit margin.
cur in BM1 to be infrequent if the sales is one-off during
In assessing whether the contractual cash flows are solely
the Financial Year and/or occurs at most once during the
payments of principal and interest, the Group considers the
quarter or at most three (3) times within the financial year.
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
108
ACCOUNTING POLICIES
contractual terms of the instrument. This includes assessing recognition, unrealized gains and losses on debt instruments
whether the financial asset contains a contractual term that measured at FVOCI are recorded in other comprehensive In-
could change the timing or amount of contractual cash flows come (OCI), unless the instrument is designated in a fair value
such that it would not meet this condition. In making the hedge relationship. Upon derecognition, realized gains and
assessment, the Group considers: losses are reclassified from OCI and recorded in Other Income
in the Consolidated and Separate Income Statement. Foreign
• contingent events that would change the amount and exchange gains and losses that relate to the amortised cost
timing of cash flows; of the debt instrument are recognized in the Consolidated
and Separate Income Statement. Premiums, discounts and
• leverage features;
related transaction costs are amortised over the expected
• prepayment and extension terms; life of the instrument to Interest income in the Consolidated
and Separate of Income Statement using the effective inter-
• terms that limit the Group’s claim to cash flows from spec- est rate method. Impairment on financial assets measured at
ified assets (e.g. non-recourse asset arrangements); and FVOCI is calculated using the expected credit loss approach.
Financial liabilities are classified into one of the following the Group’s business model will occur only when the Group
measurement categories: either begins or ceases to perform an activity that is signifi-
cant to its operations such as:
• Amortised cost
• Significant internal restructuring or business combina-
• Fair Value through Profit or Loss (FVTPL) tions; for example an acquisition of a private asset man-
agement company that might necessitate transfer and
sale of loans to willing buyers, this action will constitute
(e) Financial Liabilities at fair value through profit or changes in business model and subsequent reclassification
loss of the Loan held from BM1 to BM2 Category
Financial liabilities at fair value through profit or loss are fi- • Disposal of a business line i.e. disposal of a business seg-
nancial liabilities held for trading. A financial liability is clas- ment
sified as held for trading if it is incurred principally for the
• Any other reason that might warrant a change in the
purpose of repurchasing it in the near term or if it is part of a
Group’s business model as determined by management
portfolio of identified financial instruments that are managed
based on facts and circumstances.
together and for which there is evidence of a recent actual
pattern of short-term profit-taking. Derivatives are also cat- The following are not considered to be changes in the busi-
egorized as held for trading unless they are designated and ness model:
effective as hedging instruments. Financial liabilities held for
trading also include obligations to deliver financial assets bor- • A change in intention related to particular financial assets
rowed by a short seller. (even in circumstances of significant changes in market
conditions)
Gains and losses arising from changes in fair value of finan-
cial liabilities classified as held for trading are included in the • A temporary disappearance of a particular market for fi-
income statement and are reported as ‘Net gains/(losses) on nancial assets.
financial instruments held at fair value through profit or loss’.
Interest expenses on financial liabilities held for trading are • A transfer of financial assets between parts of the Group
included in ‘Net interest income’. with different business models.
Financial Liabilities are designated at FVTPL when either the When reclassification occurs, the Group reclassifies all af-
designation eliminates or significantly reduces an account- fected financial assets in accordance with the new business
ing mismatch which would otherwise arise or the financial model. Reclassification is applied prospectively from the ‘re-
liability contains one or more embedded derivatives which classification date’. Reclassification date is ‘the first day of the
significantly modify the cash flows otherwise required. For first reporting period following the change in business mod-
liabilities designated at fair value through profit or loss, all el. For example, if the Group decides to shut down the retail
changes in fair value are recognized in Other Income in the business segment on 31 January 2018, the reclassification
Consolidated and Separate Statement of Income, except for date will be 1 April, 2019 (i.e. the first day of the entity’s next
changes in fair value arising from changes in the Bank’s own reporting period), the Group shall not engage in activities
credit risk which are recognized in OCI. Changes in fair val- consistent with its former business model after 31 January,
ue of liabilities due to changes in the Bank’s own credit risk, 2018. Gains, losses or interest previously recognised are not
which are recognized in OCI, are not subsequently reclassi- restated when reclassification occurs.
fied to the Consolidated and Separate Income Statement
upon derecognition/extinguishment of the liabilities.
iv. Modification of financial assets and liabilities
Scenarios where modifications will lead to derecognition of transfers the financial asset and substantially all the risks and
existing loan and recognition of a new loan include but not rewards of ownership of the asset to another entity. If the
limited to: Group neither transfers nor retains substantially all the risks
and rewards of ownership and continues to control the trans-
» The exchange of a loan for another financial asset with ferred asset, the Group recognises its retained interest in the
substantially different contractual terms and conditions asset and an associated liability for amounts it may have to
such as the restructuring of a loan to a bond; conversion pay. If the Group retains substantially all the risks and rewards
of a loan to an equity instrument of the borrower. of ownership of a transferred financial asset, the Group con-
tinues to recognise the financial asset and also recognises a
» Roll up of interest into a single bullet payment of interest
collateralised borrowing for the proceeds received.
and principal at the end of the loan term.
Financial assets that are transferred to a third party but do
» Conversion of a loan from one currency to another cur-
not qualify for derecognition are presented in the statement
rency.
of financial position as ‘Assets pledged as collateral’, if the
» Extension of maturity dates will lead to modification and transferee has the right to sell or repledge them.
derecognition of existing loan and recognition of a new
On derecognition of a financial asset, the difference between
loan.
the carrying amount of the asset (or the carrying amount al-
When the contractual cash flows of a financial asset are re- located to the portion of the asset transferred), and the sum
negotiated or otherwise modified and the renegotiation or of (i) the consideration received (including any new asset ob-
modification does not result in the derecognition of that fi- tained less any new liability assumed) and (ii) any cumulative
nancial asset in accordance with IFRS 9, the Group shall re- gain or loss that had been recognized in other comprehen-
calculate the gross carrying amount of the financial asset and sive income is recognized in profit or loss.
shall recognize a modification gain or loss in profit or loss.
For example, contractual cashflows of loan to customers may
also be modified due to blanket payment holidays imposed (v) Impairment of Financial Assets
by law and regulations and effective automatically without
amendments being made to the loan agreements. In this sce- In line with IFRS 9, the Group assesses the under listed finan-
nario, the bank revises the expected gross carrying amount cial instruments for impairment using Expected Credit Loss
by discounting the rescheduled payments at original effective (ECL) approach:
interest rate and the resulting loss is recognised immediately
in Other income in Profit or loss as a cumulative catch-up • Amortised cost financial assets;
adjustment.
• Debt securities classified as at FVOCI;
Fees that are considered in determining the fair value of mod-
• Off-balance sheet loan commitments; and
ified financial asset and fees that represent reimbursement of
eligible transaction costs are included in the initial measure- • Financial guarantee contracts.
ment of the asset and form part of the effective interest on
the modified financial asset while other fees are included in
profit or loss as part of the gain or loss on derecognition.
Equity instruments and financial assets measured at FVPL are
Impairment assessment is performed on modified financial not subjected to impairment under the standard.
assets before modification.
Expected Credit Loss Impairment Model
The Group derecognizes a financial asset only when the con- • Stage 1 – Where there has not been a significant increase
tractual rights to the cash flows from the asset expire or it in credit risk (SICR) since initial recognition of a financial
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
111
ACCOUNTING POLICIES
cal relationships with the risk parameters (LGD, EAD, CCF (LGD, EAD, CCF and PD) – Normal, Upturn and Downturn,
and PD) used in the estimation of the ECLs, and are capa- which in turn is used in the estimation of the multiple scenar-
ble of predicting future conditions that are not captured io ECLs.
within the base ECL calculations.
The ‘ normal case’ represents the most likely outcome and
• Forward looking adjustments for both general macro-eco- is aligned with information used by the Bank for other pur-
nomic adjustments and more targeted at portfolio / indus- poses such as strategic planning and budgeting. The other
try levels. The methodologies and assumptions, including scenarios represent more optimistic and more pessimistic
any forecasts of future economic conditions, are reviewed outcomes. The Bank has identified and documented key driv-
regularly. ers of credit risk and credit losses for each portfolio of finan-
cial instruments and, using an analysis of historical data, has
Macroeconomic factors estimated relationships between macro-economic variables,
credit risk and credit losses.
The Group relies on a broad range of forward looking infor-
mation as economic inputs, such as: GDP growth, unemploy- Assessment of significant increase in credit risk (SICR)
ment rates, central bank base rates, crude oil prices, inflation
rates and foreign exchange rates. The inputs and models At each reporting date, the Bank assesses whether there has
used for calculating expected credit losses may not always been a significant increase in credit risk for exposures since
capture all characteristics of the market at the date of the fi- initial recognition by comparing the risk of default occurring
nancial statements. To reflect this, qualitative adjustments or over the remaining expected life from the reporting date
overlays may be made as temporary adjustments using expert and the date of initial recognition. The assessment consid-
credit judgement. ers borrower-specific quantitative and qualitative informa-
tion without consideration of collateral, and the impact of
The macroeconomic variables and economic forecasts as well forward-looking macroeconomic factors.The common as-
as other key inputs are reviewed and approved by manage- sessments for SICR on retail and non-retail portfolios include
ment before incorporated in the ECL model. Any subsequent macroeconomic outlook, management judgement, and de-
changes to the forward looking information are also ap- linquency and monitoring. Forward looking macroeconomic
proved before such are inputted in the ECL model. factors are a key component of the macroeconomic outlook.
The importance and relevance of each specific macroeco-
The macro economic variables are obtained for 3 years in the
nomic factor depends on the type of product, characteristics
future and are reassessed every 6 months to ensure that they
of the financial instruments and the borrower and the geo-
reflect prevalent circumstances and are up to date.
graphical region.
Where there is a non-linear relationships, one forward-look-
The Group adopts a multi factor approach in assessing
ing scenario is never sufficient as it may result in the esti-
changes in credit risk. This approach considers: Quantitative
mation of a worst-case scenario or a best-case scenario. The
(primary), Qualitative (secondary) and Back stop indicators
Bank’s ECL methodology considers weighted average of mul-
which are critical in allocating financial assets into stages.
tiple economic scenarios for the risk parameters (basically the
forecast macroeconomic variables) in arriving at impairment The quantitative models considers deterioration in the cred-
figure for a particular reporting period. The model is struc- it rating of obligor/counterparty based on the Bank’s inter-
tured in a manner that the final outcome, which is a proba- nal rating system or External Credit Assessment Institutions
bility cannot be negative. (ECAI) while qualitative factors considers information such as
expected forbearance, restructuring, exposure classification
SICR is assessed once there is an objective indicator of a de-
by licensed credit bureau, etc.
terioration in credit risk of customer. In addition, the Bank as
part of its routine credit processes perform an assessment on A backstop is typically used to ensure that in the (unlike-
a quarterly basis to identify instances of SICR. ly) event that the primary (quantitative) indicators do not
change and there is no trigger from the secondary (quali-
Multiple forward-looking scenarios
tative) indicators, an account that has breached the 30 days
The Group determines allowance for credit losses using three past due criteria for SICR and 90 days past due criteria for
probability-weighted forward-looking scenarios. The Group default is transferred to stage 2 or stage 3 as the case may be
considers both internal and external sources of information in except there is a reasonable and supportable evidence avail-
order to achieve an unbiased measure of the scenarios used. able without undue cost to rebut the presumption.
The Group prepares the scenarios using forecasts generated
Definition of Default and Credit Impaired Financial
by credible sources such as Business Monitor International
Assets
(BMI), International Monetary Fund (IMF), Nigeria Bureau of
Statistics (NBS), World Bank, Central Bank of Nigeria (CBN), At each reporting date, the Group assesses whether financial
Financial Markets Dealers Quotation (FMDQ), and Trading assets carried at amortised cost and debt financial assets car-
Economics. ried at FVOCI are credit-impaired. A financial asset is ‘cred-
it-impaired’ when one or more events that have a detrimen-
The Group estimates three scenarios for each risk parameter
tal impact on the estimated future cash flows of the financial
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
113
ACCOUNTING POLICIES
asset have occurred. the carrying amount of these assets is their fair value.
However, the loss allowance is disclosed and is recognised
Evidence that a financial asset is credit-impaired includes the in the fair value reserve.
following observable data:
• Financial assets measured at amortised cost: as a deduc-
• Significant financial difficulty of the borrower or issuer; tion from the gross carrying amount of the assets;
• A breach of contract such as a default or past due event; • Loan commitments and financial guarantee contracts:
generally, as a provision;
• The lender(s) of the borrower, for economic or contrac-
tual reasons relating to the borrower’s financial difficulty, • Where a financial instrument includes both a drawn and
having granted to the borrower a concession(s) that the an undrawn component, and the Group cannot identify
lender(s) would not otherwise consider; the ECL on the loan commitment component separately
from those on the drawn component: the Group presents
• It is becoming probable that the borrower will enter bank-
a combined loss allowance for both components. The
ruptcy or other financial reorganisation; or
combined amount is presented as a deduction from the
• The disappearance of an active market for a security be- gross carrying amount of the drawn component. Any ex-
cause of financial difficulties. cess of the loss allowance over the gross amount of the
drawn component is presented as a provision.
• The purchase or origination of a financial asset at a deep
discount that reflects the incurred credit losses.
• The market’s assessment of creditworthiness as reflected • recovery cost is expected to be higher than the outstand-
in the bond yields. ing debt;
• The rating agencies’ assessments of creditworthiness. • The bank’s recovery method is foreclosing collateral and
the value of the collateral is such that there is reasonable
• The country’s ability to access the capital markets for new expectation of recovering the balance in full.
debt issuance.
All credit facility write-offs shall require endorsement at the
• The probability of debt being restructured, resulting in appropriate level, as defined by the Bank. Credit write-off ap-
holders suffering losses through voluntary or mandatory proval shall be documented in writing and properly initialed
debt forgiveness. by the approving authority.
• The international support mechanisms in place to pro- A write-off constitute a derecognition event. However, fi-
vide the necessary support as ‘lender of last resort’ to nancial assets that are written off could still be subject to
that country, as well as the intention, reflected in public enforcement activities in order to comply with the Group’s
statements, of governments and agencies to use those procedures for recovery of amount due. Whenever amounts
mechanisms. This includes an assessment of the depth of are recovered on previously written-off credit exposures, such
those mechanisms and, irrespective of the political intent, amount recovered is recognised as income on a cash basis
whether there is the capacity to fulfil the required criteria. only.
to a specified interest rate, financial instrument price, com- initially at fair value; attributable transaction costs are rec-
modity price, foreign exchange rate, index of prices or rates, ognised in profit or loss when incurred. Subsequent to ini-
credit rating or credit index, or other variable, provided in the tial recognition, derivatives are measured at fair value with
case of a non-financial variable that the variable is not spe- changes in fair value recognised in profit or loss.
cific to a party to the contract. A derivative that is attached
to a financial instrument but is contractually transferable in- (n) Repossessed Collateral
dependently of that instrument, or has a different counter-
In certain circumstances, property is repossessed following
party, is not an embedded derivative, but a separate financial
the foreclosure on loans that are in default. Repossessed
instrument. Where a hybrid contains a host that is a financial
properties are measured at the lower of carrying amount and
asset in the scope of IFRS 9, the entire hybrid contract, includ-
fair value less costs to sell and reported within ‘Other assets’
ing the embedded features, is measured at FVTPL.
(o) Investment in subsidiaries
probable that the future economic benefits embodied with- (q) Intangible assets
in the part will flow to the Group and its cost can be mea-
sured reliably. The carrying amount of the replaced part is (i) Goodwill
derecognised. The costs of the day-to- day servicing of prop-
Goodwill represents the excess of the cost of the acquisition
erty and equipment are recognised in the income statement
over the Group’s interest in the net fair value of the identifi-
as incurred.
able assets, liabilities and contingent liabilities of the acquired
(iii) Depreciation subsidiaries at the date of acquisition. When the excess is
negative, it is recognised immediately in profit or loss; Good-
Depreciation is recognised in the income statement on a will on acquisition of subsidiaries is included in intangible as-
straight-line basis to write down the cost of each asset, to sets.
their residual values over the estimated useful lives of each
part of an item of property and equipment. Leased assets
under finance lease are depreciated over the shorter of the
Subsequent measurement
lease term and their useful lives.
Goodwill is allocated to cash-generating units or groups of
Depreciation begins when an asset is available for use and
cash-generating units for the purpose of impairment test-
ceases at the earlier of the date that the asset is derecognised
ing. The allocation is made to those cash-generating units or
or classified as held for sale in accordance with IFRS 5. A
groups of cash-generating units that are expected to benefit
non-current asset or disposal group is not depreciated while
from the business combination in which the goodwill arose
it is classified as held for sale.
identified in accordance with IFRS 8. Goodwill is tested annu-
ally as well as whenever a trigger event has been observed for
Item of Property and Estimated Useful Life
impairment by comparing the present value of the expected
Equipment
future cash flows from a cash generating unit with the carry-
Leasehold improvements ing value of its net assets, including attributable goodwill and
and buildings: carried at cost less accumulated impairment losses. Impair-
Leasehold improvements Over the shorter of the ment losses on goodwill are not reversed. Gains and losses
useful life of the item or on the disposal of an entity include the carrying amount of
lease term goodwill relating to the entity sold.
Buildings 50 years
Leasehold Land Over the remaining life of
the lease (ii) Software
Furniture and equipment:
Software acquired by the Group is stated at cost less accumu-
Furniture and fittings 5years lated amortisation and accumulated impairment losses.
Machine and equipment 5years
Expenditure on internally developed software is recognised
Computer hardware 3years
as an asset when the Group is able to demonstrate its inten-
Motor vehicles: 4years tion and ability to complete the development and use the
software in a manner that will generate future economic
benefits, and can reliably measure the costs to complete the
Capital work in progress is not depreciated. Upon completion development. Development costs previously expensed can-
it is transferred to the relevant asset category. Depreciation not be capitalised. The capitalised costs of internally devel-
methods, useful lives and residual values are reassessed at oped software include all costs directly attributable to devel-
each reporting date. oping the software and capitalised borrowing costs, and are
amortised over its useful life. Internally developed software is
Cost of leasehold land is amortised over the remaining life of stated at capitalised cost less accumulated amortisation and
the lease as stated in the certificate of occupancy issued by impairment.
Government.
Subsequent expenditure on software assets is capitalised only
(iv) De-recognition when it increases the future economic benefits embodied in
the specific asset to which it relates. All other expenditure is
An item of property and equipment is derecognised on dis- expensed as incurred.
posal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on de-recog- Amortisation is recognised in profit or loss on a straight-line
nition of the asset (calculated as the difference between the basis over the estimated useful life of the software, from the
net disposal proceeds and the carrying amount of the asset) date that it is available for use since this most closely reflects
is included in the income statement in the year the asset is the expected pattern of consumption of the future economic
derecognised. benefits embodied in the asset. The maximum useful life of
software is five years.
Amortisation methods, useful lives and residual values are (t) Provisions
reviewed at each financial year-end and adjusted if appropri-
ate. A provision is recognized if, as a result of a past event, the
Group has a present legal or constructive obligation that can
(r) Impairment of Non financial assets be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
The carrying amounts of the Group’s non-financial assets, in- Provisions are determined by discounting the expected future
clusive of deferred tax assets are reviewed at each reporting cash flows at a pre-tax rate that reflects current market as-
date to determine whether there is any indication of impair- sessments of the time value of money and, where appropri-
ment. If any such indication exists then the asset’s recover- ate, the risks specific to the liability.
able amount is estimated. For goodwill and intangible assets
that have indefinite useful lives or that are available for use, A provision for restructuring is recognised when the Group
the recoverable amount is estimated each year. has approved a detailed and formal restructuring plan, and
the restructuring either has commenced or has been an-
An impairment loss is recognised in the income statement if nounced publicly. The Group recognizes no provision for fu-
the carrying amount of an asset or its cash-generating unit ture operating losses.
exceeds its recoverable amount. A cash-generating unit is the
smallest identifiable asset group that generates cash flows A provision for onerous contracts is recognised when the ex-
that largely are independent from other assets and groups. pected benefits to be derived by the Group from a contract
Impairment losses recognised in respect of cash-generating are lower than the unavoidable cost of meeting its obliga-
units are allocated first to reduce the carrying amount of any tions under the contract. The provision is measured at the
goodwill allocated to the units and then to reduce the carry- present value of the lower of the expected cost of terminat-
ing amount of the other assets in the unit (group of units) on ing the contract and the expected net cost of continuing with
a pro rata basis. the contract. Before a provision is established, the Group rec-
ognises any impairment loss on the assets associated with
The recoverable amount of an asset or cash-generating unit that contract.
is the greater of its value in use and its fair value less costs to
sell. In assessing value in use, the estimated future cash flows (u) Financial guarantees and loan commitments
are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time val- Financial guarantees are contracts that require the Group to
ue of money and the risks specific to the asset. make specified payments to reimburse the holder for a loss
it incurs because a specified debtor fails to make payment
An impairment loss in respect of goodwill is not reversed. when due in accordance with the terms of a debt instrument.
In respect of other assets, impairment losses recognised in Financial guarantee liabilities are initially recognised at their
prior periods are assessed at each reporting date for any in- fair value, and the initial fair value is amortised over the life of
dications that the loss has decreased or no longer exists. An the financial guarantee. After initial recognition, guarantee
impairment loss is reversed if there has been a change in the contracts are subsequently measured at the higher of:
estimates used to determine the recoverable amount only to
the extent that the asset’s carrying amount does not exceed a) The amount of the loss allowance, and
the carrying amount that would have been determined, net
b) The amount initially recognised less, when appropriate,
of depreciation or amortisation, if no impairment loss had
the cumulative amount of income recognised in accor-
been recognised.
dance with the principles of IFRS 15.
(s) Deposits, debt securities issued
Financial guarantees, principally consisting of letters of credit
Deposits and debt securities issued are the Group’s sources of are included within other liabilities.
debt funding. When the Group sells a financial asset and si-
Loan commitments are firm commitments to provide credit
multaneously enters into a “repo” or “stock lending” agree-
under pre-specified terms and conditions. The Group recog-
ment to repurchase the asset (or a similar asset) at a fixed
nises a provision in accordance with IAS 37 if the contract
price on a future date, the arrangement is accounted for as a
was considered to be onerous.
deposit, and the underlying asset continues to be recognised
in the Group’s financial statements. (v) Employee benefits
The Group classifies capital instruments as financial liabilities (i) Defined contribution plans
or equity instruments in accordance with the substance of
the contractual terms of the instruments. A defined contribution plan is a pension plan under which
the Group pays fixed contributions to a separate entity. The
Deposits and debt securities issued are initially measured at rate of contribution by the Bank and its employee is 10% and
fair value plus transaction costs, and subsequently measured 8% respectively of basic salary, housing and transport allow-
at their amortised cost using the effective interest method, ance. The Group has no legal or constructive obligations to
except where the Group chooses to carry the liabilities at fair pay further contributions if the fund does not hold sufficient
value through profit or loss. assets to pay all employees the benefits relating to employee
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
117
ACCOUNTING POLICIES
service in the current and prior periods. compensation scheme managed by a Special Purpose Vehi-
cle (SPV) - Guaranty Trust Bank Staff Investment Trust. The
For defined contribution plans, the Group pays contributions scheme was introduced as a compensation plan for the
to publicly or privately administered Pension Fund Adminis- bank’s management personnel to enhance employee reten-
trators (PFA) on a mandatory, contractual or voluntary basis. tion, by offering the shares acquired by the SPV by way of
The Group has no further payment obligations once the con- Share Appreciation Rights (SARs) and Stock Options (hybrid
tributions have been paid. The contributions are recognised plan) to qualifying members of staff at prevailing net book
as employee benefit expense in the Statements of Compre- value.
hensive Income when they are due. Prepaid contributions are
recognised as an asset to the extent that a cash refund or a Acquisition of the bank’s shares by the SPV was by means of
reduction in the future payments is available. an overdraft facility extended to the scheme. The hybrid na-
ture (i.e. mix of SARs and Stock Options) entitles the scheme
(ii) Defined benefit plans to cash dividend which it uses to defray its obligations on the
facility, make dividend payments to members that furnished
A defined benefit plan is a pension plan that defines an
consideration and extinguish its liability to exiting members.
amount of pension benefit that an employee will receive on
Employees exiting the scheme are granted the right to re-
retirement, usually dependent on one or more factors, such
deem their holdings for cash at the prevailing market price
as age, years of service and compensation.
on fulfilment of specified vesting conditions.
The liability recognised in the Statements of financial posi-
At each reporting period, the fair value of the amount pay-
tion in respect of defined benefit pension plans is the present
able to employees in respect of share appreciation rights,
value of the defined benefit obligation at the date of the
which are settled in cash, is recognized as an expense, with a
Statements of financial position less the fair value of plan
corresponding increase in liabilities, over the period in which
assets. The defined benefit obligation is calculated annual-
the employees become unconditionally entitled to payment.
ly by independent actuaries using the projected unit credit
Any change in the fair value of the liability is recognized as
method. In determining the appropriate discount rate, the
personnel expense in the bank’s income statement.
Group considers the market yields on Government Bonds of
medium duration as compiled by the Debt Management Or- (w) Share capital and reseves
ganisation.
(i) Share issue costs
Remeasurements arising from experience adjustments and
changes in actuarial assumptions in excess of the plan assets Incremental costs directly attributable to the issue of an equi-
or of the defined benefit obligation are charged or credit- ty instrument are deducted from the initial measurement of
ed to Other Comprehensive Income in the financial year in the equity instrument.
which they arise. Past-service costs are recognised immedi-
ately in the Income statement. (ii) Dividend on the Bank’s ordinary shares
(iii) Termination Benefits Dividends on the Bank’s ordinary shares are recognised in eq-
uity when approved by the Bank’s shareholders.
Termination benefits are recognised as an expense when the
Group is demonstrably committed, without realistic possi- (iii) Treasury shares
bility of withdrawal, to a formal detailed plan to terminate
Where the Bank or any member of the Group purchases the
employment before the normal retirement date. Termination
Bank’s shares, the consideration paid is deducted from share-
benefits for voluntary redundancies are recognised if the
holders’ equity as treasury shares until they are cancelled.
Group has made an offer encouraging voluntary redundan-
Where such shares are subsequently sold or reissued, any
cy, it is probable that the offer will be accepted, and
consideration received is included in shareholders’ equity.
the number of acceptances can be estimated reliably.
(iv) Earnings per share
(iv) Short-term employee benefits
The Group presents Basic Earnings Per Share (EPS) for its or-
Short-term employee benefit obligations are measured on an
dinary shares. Basic EPS is calculated by dividing the profit
undiscounted basis and are expensed as the related service is
or loss attributable to ordinary shareholders of the Bank by
provided.
the weighted average number of ordinary shares outstanding
A liability is recognised for the amount expected to be paid during the period.
under short-term cash bonus or profit-sharing plans if the
Diluted EPS is determined by adjusting the profit or loss that
Group has a present legal or constructive obligation to pay
is attributable to ordinary shareholders and the weighted-av-
this amount as a result of past service provided by the em-
erage number of ordinary shares outstanding for effects of all
ployee and the obligation can be estimated reliably.
dilutive potential ordinary shares.
(v) Share-based payment transactions
FINANCIAL RISK
MANAGEMENT
(a) Introduction and overview identifying, measuring, controlling and reporting risks.
• The Group shall continually review its activities to deter-
Guaranty Trust Holding Company Plc has a robust risk culture and mine the level of inherent risks and deploy appropriate
embrace the best practice Enterprisewide Risk Management. The risk responses at all time.
risk management framework is designed to align people, strat-
egy, policies, processes, technology and business intelligence in
order to evaluate, manage and optimize the opportunities and Risk Appetite
threats it may face in maximising sustainable stakeholders’ value
within its defined risk appetite. The Group recognises that there are inherent risks associated with
the pursuit of growth opportunities in achieving its strategic objec-
To continually sustain this strong risk culture, the Group adopt- tives. While the risk philosophy articulates how inherent risks are
ed the COSO definition of Enterprise Risk Management which considered when making decisions, the Board and Management
depicts ERM as a process driven by an entity’s Board of Directors, of the Company determine the risks that are acceptable based on
Management and other personnel, applied in strategy setting and its capabilities in terms of people, capital and technology.
across the enterprise, to identify potential events that may af-
fect the entity, and manage risk to be within its risk appetite, to
provide reasonable assurance regarding the achievement of the Risk Appetite Statement
entity’s objectives.
“Guaranty Trust Bank Holding Company will maintain a moder-
This involves the application of risk management principles and ate risk appetite in pursuit of its core strategies to dominate its
processes in every business activity to determine potential threats, priority sectors, expand its franchise on Africa continent, contain
and adopt appropriate control measures, to curtail risks in achiev- its operating cost whilst leveraging on technology and remain the
ing the desired objectives. most profitable, without taking unnecessary risks.”
The Group has recognised its major risk areas to include Credit, The Group’s risk appetite statement expresses the attitude and
Operational, Information Technology, Cyber Security, Market and position of the Board and Management on the approach to risk
Liquidity Risks. Risk identification in these areas is carried out by adopted across all the businesses in relation to the set strategic
the relevant risk owners, in collaboration with the Enterprise Risk objectives. This statement is interpreted in quantitative and quali-
Management tative risk factors that measure the risk profile. The identified risk
factors include:
• Capital Adequacy
(b) Risk Management Philosophy • Earnings Growth (Profit Before Tax)
• Earnings Quality (Net Interest Margin)
The Group’s risk management philosophy describes its attitude to • Return on Asset
risk taking. It is the driving force behind all the decisions made in • Issuer Debt Rating
the conduct of business activities and operations from a risk per- • Return on Equity
spective. This is fittingly summarized in the following statement: • Cost-to-Income
• Asset quality (Non-Performing Loan) and Coverage,
“To enhance shareholders’ value by creating and maintaining a • Cost of Risk
culture of intelligent risk-taking” • Liquidity and Coverage Ratio
• Risk Asset Funding
This philosophy is further cascaded into working statements • Obligor and Sector Concentration
through the following risk principles: • Staff Attrition
• Stop Loss Limit
• The Group’s decisions will be based on careful analysis • Operational Risk Loss
of its operating environment as well as the implications
of the identified risks to the achievement of its strategic
goals. Risk Tolerance
• The Group will not take any action that will compromise
its integrity To achieve the desired impact of the risk appetite statement
• Risk control will serve to enhance the achievement of across all business divisions, the Group defined the risk tolerances
strategic objectives. applicable to the risk factors for measurement and monitoring
• The Group will always comply with all government regu- purposes to enhance decision making. The tolerances are mea-
lations and continually espouse global best practice. sured via a three-leg limit system which measures an extreme up-
• Risk management will form a key part of the Group’s per region signifying high risk or unacceptable risk level, a middle
strategy setting process range region known as trigger point and a lower region signifying
• The Group will only assume risks that fall within its risk a low risk or acceptable risk level. These classifications establish
appetite with appropriate returns. the acceptable levels of variation relative to the Group’s desired
• The Group shall adhere to the risk management cycle of objective.
The set risk tolerances levels are subject to the approval of the The Board of Directors has overall responsibility for the establish-
Board of Directors and can be changed when there are compel- ment of the Group’s Risk Management framework and exercises
ling regulatory and operating factors. its oversight function over all the Group’s prevalent risks via its
The risk tolerance limits are monitored periodically using a dash- various committees; Board Risk Committee, Board Credit Com-
board which estimates the status of each risk factor. The result of mittee, and Board Audit Committee. These committees are re-
the dashboard is made available to the Management and Board sponsible for developing and monitoring risk policies in their spe-
of Directors for informed decision(s). cific areas and report regularly to the Board of Directors. All Board
committees have both executive and non-executive members.
(c) Risk Management Framework The Board Committees are assisted by the various Management
Committees in identifying and assessing risks arising from day to
The Group’s Risk Management Framework is built on a well-de- day activities of the Group. These committees include:
fined organisational structure and established policies to guide in • The Management Credit Committee
the function of identifying, analysing, managing and monitoring • Criticized Assets Committee
the various risks inherent in the business as well as setting appro- • Asset and Liability Management Committee (ALMAC)
priate risk limits and controls to align the risks with the strategic • Management Risk Committee
objectives. • Information Technology (IT) Steering Committee
• Information Technology (IT) Risk Management Committee
The risk management policies are subject to review at least once • Other Ad-hoc Committees
a year. However more frequent reviews may be conducted at the
instance of the Board, when changes in laws, regulations, mar- These committees meet on a regular basis while others are set up
ket conditions or the Group’s activities are material enough to on an ad-hoc basis as dictated by situations.
impact on the continued adoption of the existing policies. The
Group, through its trainings and management standards and pro-
cedures, aims to develop a disciplined, engaging and controlled
environment, in which all employees understand their roles and
obligations.
Management committee
The three lines of defense model differentiated amongst the three for the management of credit risk to the Board Credit Com-
groups involved in effective risk management include: mittee. The Board Credit Committee considers and approves all
lending exposures, including treasury investment exposures, as
• Functions that own and manage risks. well as insider-related credits in excess of limits assigned to the
• Functions that oversee risks. Management Credit Committee by the Board. The committee
• Functions that provide independent assurance. also ensures that the Group’s internal control procedures in the
area of risk assets remain fool-proof to safeguard the quality of
the Group’s risk assets.
FIRST LINE OF DEFENSE: Owns and manage the risks. They are
responsible for implementing corrective actions to address pro- Management Risk Committee examines risk in its entirety by
cess and control deficiencies; maintaining effective internal con- reviewing and analysing environmental issues and policies im-
trols and executing risk and control procedures on a day-to-day pacting the Group, either directly or remotely, and makes recom-
basis. They also identify, assess, control and mitigate risks to en- mendations to the Board Risk Committee.
sure the achievement of set goals and objectives.
Management Credit Committee formulates credit policies in
SECOND LINE OF DEFENSE: Established to perform a policy-set- consultation with business units, covering credit assessment, risk
ting and monitoring role. It is a risk management function (and/ grading and reporting, collateral, regulatory and statutory re-
or committee) that facilitates and monitors the implementation quirements. The committee also assesses and approves all credit
of effective risk management practices and a compliance function exposures in excess of the Managing Director’s limit set by the
that monitors various specific risks such as non-compliance with Board.
applicable laws and regulations. Other functions include identi-
fying known and emerging issues, providing risk management The Asset & Liability Management Committee establishes the
framework, assisting management in developing processes and Group’s standards and policies covering the various components
controls to manage risks, monitoring the adequacy and effective- of Market Risk Management. These include Interest Rate Risk, Li-
ness of internal control, accuracy and completeness of reporting quidity Risk, Investment Risk and Trading Risk. It ensures that the
and timely remediation of deficiencies. authority delegated by the Board and Management Risk Commit-
tees with regard to Market Risk is exercised, and that Market Risk
THIRD LINE OF DEFENSE: Provides objective assurance on the exposures are monitored, reported and managed. Furthermore,
effectiveness of governance, risk management and internal con- the Committee limits and monitors the potential impact of specif-
trols. The scope of the assurance, which is reported to Senior ic pre-defined market movements on the comprehensive income
Management and Board, covers a broad range of objectives, in- of the Group through stress tests and simulations.
cluding efficiency and effectiveness of operations, safeguarding
of assets, reliability and integrity of reporting processes, and com- Criticised Assets Committee is responsible for the assessment
pliance with laws, regulations, policies, procedures and contracts. of the Group’s credit risk asset portfolio. It highlights the status
It also includes all elements of the risk management and internal of the risk assets in line with the internal and external regulatory
control framework. framework and ensures that triggers are sent in respect of delin-
quent credit risk assets. It also ensures adequate provisions are
The Board Risk Committee is responsible for reviewing and rec- taken in line with the regulatory and internal guidelines.
ommending risk management policies, procedures and profiles
including risk management philosophy, risk appetite and risk tol- The Credit Risk Management Group through Credit Risk Con-
erance of the Company. Its oversight functions cut across all risk trol is responsible for identifying, controlling, monitoring and
areas including credit risk, market and interest rate risk, liquidity reporting credit risk related issues while Credit Administration
risk, operational risk, reputation risk, technology risk and other serves as the secretariat for the Management Credit Committee
major risks that may arise from time to time. The committee mon- meetings and managing the credit exposures related to lending
itors the Group’s plans and progress in meeting regulatory and and investment activities as well as other unfunded credit expo-
risk-based supervision requirements including Basel II compliance sures that have default probabilities; such as contingent liabilities.
as well as the overall regulatory and economic capital adequacy. It
also reviews and approves the contingency plan for specific risks. Credit risk is the most critical risk for the Group as credit expo-
sures, arising from lending activities account for the major portion
The Company’s Board Audit Committee is responsible for mon- of the Group’s assets and source of its revenue. Thus, the Group
itoring compliance with the risk management policies and proce- ensures that credit risk related exposures are properly monitored,
dures, and for reviewing the adequacy of the risk management managed and controlled.
framework in relation to risks faced by the Group. The Audit
Committee is assisted by the Internal Audit Group, in carrying
out these functions. Internal Audit undertakes both regular and (d) Risk Management Methodology
ad-hoc reviews of risk management controls and procedures, the
results of which are reported to the Audit Committee. The Group recognizes that it is in the business of managing in-
herent risks to derive optimal value for all the stakeholders. It has
The Company’s Board of Directors has delegated responsibility therefore, over the years detailed its approach to risk manage-
ment through various policies and procedures, which include the Management Framework, are:
following: • Maintenance of an efficient loan portfolio
• ERM Policy • Institutionalization of sound credit culture
• Credit Policy Guide • Adoption of international best practices in credit risk man-
• Human Resources Policy Manual agement
• Quality Manual • Development of Credit Risk Management professionals.
• Standard Operating Procedures
• IT Policy Each business unit is required to implement the credit policies and
procedures in line with the the credit policy guide as approved
To ensure adherence to the policies and procedures, several ex- by the Board. Each business unit is responsible for the quality
ception reports on activities are generated by the various audit/ and performance of its credit portfolio and for monitoring and
control function units for management decision making. These controlling all credit risks in its portfolio, including those subject
include: to Management Credit Committee’s approval. The Internal Audit
• Monthly Performance Review (MPR) for the marketing and Credit Administration respectively undertake regular reviews
teams of business units and credit quality reviews.
• Monthly Operations Performance Reports (OPR) for the
support teams The Group continues to focus attention on intrinsic and concen-
• Quarterly Business Performance Review tration risks inherent in its businesses in order to effectively man-
• Annual Bank-wide performance appraisal systems age the portfolio risk. The credit portfolio concentration limits
• Monthly Expense Control Monitoring Report that are set and measured under concentration limits per obligor,
• Criticized Asset Committee Report business lines, sector, rating grade, geography and collateral.
The Group drives the credit risk management processes using ap-
(e) Risk Management Overview propriate scalable technology to achieve global best practices. To
comply with the CBN requirements on implementation of Basel
The Enterprise-wide Risk Management Division is responsible for II, especially with the computation of capital adequacy ratio and
optimising the risks and returns inherent in the business through market disclosure, the Group invested in two major softwares
the effective collaboration with the business facing units. The risk namely: Lead to Loan Credit Solution and OFSAA Basel II solution.
management infrastructure encompasses a comprehensive ap- These softwares are customised to suit the internal processes and
proach to identifying, managing, monitoring and reporting risks seamlessly interact with the bank’s core banking application.
with focus on the following:
(i) Inherent Risk Groups – Credit, Market, Operational, Li- To meet the Basel II (Pillar 2) requirements, the Group developed
quidity and Information Security. a comprehensive Internal Capital Adequacy Assessment Process
(ii) Other Risk Areas – Reputational and Strategic Risk (ICAAP) document, which detailed approaches and procedures on
how the Group measures and compute its various risks and capi-
In line with best global practices and to align with Basel II Capital tal requirements. The document also contain details of the capital
requirements, the Group incorporated a strategic framework for planning process and it is updated annually.
the efficient measurement and management of risks and capital.
The Group has implemented the Basel II recommended capital Lead to Loan is an integrated credit solution software which man-
measurement approaches for the estimate of economic capital ages credit customers’ profiles, rating scores, documents and col-
required to cope with unexpected losses using Oracle Financial lateral management, credit workflow processes, disbursement,
Services Analytical Applications. The Group has also put in place recoveries and collection.
other qualitative and quantitative measures that will assist with
enhancing risk management processes and creating a platform OFSAA Basel II solution is an Oracle Financial Services Analytical
for more risk-adjusted decision-making. Application which is capable of handling the complete range of
calculations covered in the Basel II Accord.
(f) Credit risk For capital adequacy computation under Basel ll Pillar l, the Group
has implemented the Standardized Approach for the three risk
Lending and other financial activities form the core business of areas – Credit, Market & Operational risk and the Advanced Inter-
the Group and in recognition of this, great emphasis is placed on nal Rating Based (AIRB) Approah using the OFSAA Basel II solu-
effective management of its exposure to credit risk. The Group tion software. The advanced measurement approach for credit
defines credit risk as the risk of failure by a counterparty to meet risk uses PD, LGD and EAD as the input parameters.
the terms of any lending contracts with the Group or otherwise to
perform as agreed. Credit risk arises anytime funds are extend-
ed, committed, invested or otherwise exposed through actual or (i) Management of Credit Risk
implied contractual agreements.
The Board of Directors has delegated responsibility for the
The specific credit risk objectives, as contained in the Credit Risk management of credit risk to its Board Credit Committee. The
• Formulating credit policies in consultation with business In line with IFRS 9, the Group has adopted Expected Credit Loss
units, covering collateral requirements, credit assessment, (ECL) approach effective January 1, 2018. IFRS 9 adopts dual
risk grading and reporting, documentation and legal measurement approach to determining expected credit loss. The
procedures, and compliance with regulatory and statu- 12 month ECL is applicable to credit exposure in Stage 1 where
tory requirements. there is no significant deterioration in credit quality. It is computed
• Establishing the authorisation structure for the approval as loss allowance. The lifetime ECL is the loss allowance comput-
and renewal of credit facilities. Authorisation limits are ed for credit exposures in Stage 2 and 3. As part of the envolving
allocated to business unit heads. Larger facilities require risk culture, the company developed internal rating models along
approval by the Deputy Managing Director, Managing the Group’s business segments (Corporate, Commercial, Retail
Director, Management Credit Committee, and the Board and Small and Medium Enterprises) consistent with international
Credit Committee/Board of Directors as appropriate. rating agencies with historical data of over five years. This has
• Reviewing and assessing credit risk. Management Credit enabled the Group to successfully implement the Internal Rating
Committee assesses all credit exposures in excess of des- Based Approach as well as the implementation of Expected Credit
ignated limits, prior to facilities being committed to Loss measurement.
customers by the business unit concerned. Renewals
and reviews of facilities are subject to the same review IFRS 9 Expected Credit Loss measurement approach is a proac-
process. tive way of determining the extent of future loss(es) associated
• Developing and maintaining the Group’s risk rating in or- with risk exposures in the Group’s portfolio. Key aspect of ECL
der to categorise exposures according to the degree of approach is the incorporation of the macroeconomic indicators
risk of financial loss faced and to attention management (forecast) into the computation of the future credit loss. The credit
on the attendant risks. The current risk rating framework impairment under IFRS 9 is determined using a forward looking
consists of ten grades reflecting varying degrees of risk of method of impairment evaluation by assuming that every risk ex-
default with rating “1” as the best and “10” as lost. The posures have inherent credit loss.
risk ratings are subject to regular reviews by Credit Risk
Management Group. The Group undertakes lending activities after careful analysis of
• Reviewing compliance of business units with agreed the borrowers’ character, capacity to repay, cash flow, credit his-
exposure limits. Regular review and reports are provided tory, industry conditions and other factors. In the analysis, the
by the Risk Management Group on the credit quality and applied parameters are determined by each business segment be-
appropriate corrective actions are taken. cause of the differences in the inherent risks.
• Providing advice, guidance and specialist skills to business
units to promote best practice throughout the Group in The Group’s rating grades reflect the range of parameters inter-
the management of credit risk. nally developed to predict the default probabilities of each rating
class in line with international best practices and in compliance
Business units are required to implement the Group’s credit poli- with BASEL II requirements. The grades reflect granularities and
cies and procedures, with credit approval authorised by the Board are handled by Account Officers and Relationship Managers with
Credit Committee. validation by Credit Risk Management Group.
Risk ratings models form the building blocks for the determina- unemployment rate etc.) and customer specific informa-
tion of default risk of counterparties. The models are backtested tion (e.g. changes in obligor’s rating and interest rate) are
to ascertain the predicitive capabilities relative to actual perfor- used as independent variables. The default status reflects
mance and make necessary amendments as necessary to enhance the credit ratings assigned to customers. These ratings are
their effectiveness. generated based on due consideration of obligor specific
quantitative (financial) and qualitative (non-financial) in-
Because significant increase in credit risk is the main factor that formation such as age, loan type, industry, management
determines movement of a financial asset from Stage 1 to Stage structure, business risk etc.
2, all obligors with downward movement of credit rating of more
than 3 notches or any movement into rating 7 are migrated to The core input used to determine PDs are the internal rat-
Stage 2. An obligor is moved into Stage 3 when there is rating ings generated by the Group’s Credit Analysis sub-system
migration to rating grade 8 to 10. (Lead to Loan). These ratings are assigned to customers
after careful review of quantitative and qualitative factors
A facility in Stage 3 can subsequently be deemed “cured”. A facil- specific to the obligor, macro indicators and industry infor-
ity is deemed to be “cured” when there is a significant reduction mation. The Group’s rating model currently considers past
in the credit risk of the financial instrument. “Cured” facilities and current economic information, however, the account-
within Stage 2 are monitored for a probationary period of 90 days ing standard requires that forward looking information is
to confirm if the credit risk has decreased sufficiently before they incorporated into the PD determination.
can be migrated from Stage 2 to Stage 1 while “Cured” facilities
within Stage 3 are monitored for a probationary period of 180 To achieve an IFRS 9 compliant PD, the Group adopted Lo-
days before migration from Stage 3 to Stage 1. The decrease in gistic Regression model which incorporates the macroeco-
risk of default is reflected in the obligor’s Risk Rating which is a nomic forecasts into the PD determination process. The
critical input for Staging. Normal scenario macroeconomic variables used for the
purpose of the forecast is obtained from credible sourc-
In computing the Expected Credit Loss (ECL), the Group considers es while the Upturn and Downturn scenarios are derived
four components listed below: based on historical trend analysis and management’s un-
1. Probability of Default (PD) – This is an estimate of the biased estimates of forward looking macroeconomic indi-
likelihood of default over a given time horizon (e.g. 12 cators.
months or lifetime). The Group assesses the probability of
default of individual counterparties using internal rating The Group uses Simplified approach in determining PDs
tools tailored to the various categories of counterparty. for other financial instruments below:
The tools have been developed internally using rigorous 1. Investments in securities issued by Sovereign
statistical analysis and the professional judgement of cred- 2. Investments in securities issued by State Government
it analysts. 3. Interbank Placements
The rating tool combines both qualitative and quantitative 2. Exposure at Default (EAD) – This is an estimate of the
factors comparable to internationally available standards. exposure at a future default date, taking into account ex-
The rating methods are subject to backtest to ensure that pected changes in the exposure after the reporting date,
they reflect the latest projection in the light of all actually including repayments of principal and interest , and ex-
observed defaults. pected drawdown on committed facilities.
The Group uses a statistical approach in estimating the PD EAD measures the utilised exposure at default. For on-bal-
considering macroeconomic indicators and obligor spe- ance sheet exposures, the gross value of the exposure is
cific data. The statistical model specifies the relationship taken into account, and off-balance sheet exposures a
between the inputs and the outcome - PD. The parame- credit conversion factor (CCF) is used to estimate future
ters determined depend on the data used to develop the utilisation. The off balance sheet exposures are considered
model. when performing staging and ECL calculations.
For the purpose of estimating an IFRS 9 complaint PD, The modelling approach for EAD reflects expected chang-
the Group adopts Logistic Regression method, one of the es in the balance outstanding over the lifetime of the loan
highly recommended statistical techniques. This is a statis- exposure that are permitted by the current contractual
tical method for analysing a dataset in which there are one terms. This expected changes includes:
or more independent variables (macro-economic/obligor
specific data) that determine an outcome (probability of • Contractual repayments/amortization schedule
default). • Prepayments (i.e. early repayment)
• Changes in utilization of an undrawn commitment
The default status of an obligor (a function of customer within agreed credit limits in advance of default.
rating) is used as dependent variable while macro-eco-
nomic variables (such as interest rate, GDP growth rate, This cash-flow model further reflects movements in the
EAD in the months before default. Interest payments re- sures to counterparties and related parties.
ceivable on the account as at the reporting date is includ-
ed in the EAD to reflect an expectation that these interest In addition to the regulatory limit, other parameters are applied
payments could be missed in the eventuality/occurrence internally to determine the suitable limits that an individual bor-
of a default. rower should have. These include: obligor rating, position in the
industry and perceived requirements of key players (e.g. import
The inputs into the EAD model are reviewed to assess finance limit may be determined by the customer’s import cycle
their suitability for IFRS 9 and adjusted, where required, to and volume during each cycle), financial analysis, etc.
ensure an unbiased, probability-weighted ECL calculation
reflecting current expectations and forward-looking infor- Economic sector limits are imposed to guide against concentra-
mation. tion risk as a result of exposures to set of counterparties operat-
ing in a particular industry. The industry limits are arrived at after
3. Loss Given Default (LGD) – This is an estimate of the rigorous analysis of the risks inherent in the industries/economic
loss arising on default. It is based on the difference be- sectors.
tween the contractual cash flows due and those that the
lender would expect to receive, including from any collat- These limits are usually recommended by Credit Risk Manage-
eral. It is usually expressed as a percentage of the EAD. It ment Group and approved by the Board. The limits set for each
typically varies by type of counterparty, type of exposure industry or economic sector depend on the historical performance
and seniority of claim and availability of collateral or other of the sector as well as the intelligence report on the outlook of
credit support. the sector.
The Group uses the Workout and Recovery Approach in During a review period, limits can be realigned (by way of outright
determining its LGD. This approach models LGD based on removal, reduction or increase) to meet the exigencies of the pre-
the actual cash flows that can be recovered from a firm vailing macroeconomic events.
by the workout process, once default has occurred. The
methodology involves prediction of the future cash flows Approval decisions are guided by strategic focus as well as the
that can be recovered from an obligor, after it has default- stated risk appetite and other limits established by the Board of
ed on its payments. It takes into account all cash flows Directors or Regulatory authorities such as Aggregate Large Expo-
from the distressed asset linked to the recovery. sure Limits, Single Obligor Limits, Geographical Limits, Industry/
Economic sector limits etc. Internal credit approval limits are set
The forecasted cash flows are discounted using the EIR. for various levels of officers in the credit approval process to en-
These discounted cash flows are summed up to provide hance turnaround time.
the expected recovery amount. The total exposure of the
firm at the time of default minus the expected recovery The lending authority in the Group flows through the manage-
amount gives the loss given default in absolute terms. The ment hierarchy with the final authority residing with the Board of
ratio of loss given default in absolute value to exposure at Directors as indicated below:
default gives the LGD in percentage terms. Designation Limit
Board of Directors Up to the single obligor limit
The Group incorporates FLI into the LGD model through
as advised by the regulatory
adjustments to the collateral values to reflect their fair val- authorities from time to time but
ue and the EAD to reflect prepayment rates and foreign currently put at 20% of share-
currency adjustments (on foreign currency denominated holders’ funds (total equity)
facilities). Management Credit Up to N2 Billion
Committee
4. Discount Rate – This is used to discount an expected loss
Managing Director Up to N500 Million
to a present value at the reporting date using the effective
interest rate (EIR) (or where applicable, other rate permit- Deputy Managing Up to N300 Million
Director
ted by IFRS 9) determined at initial recognition.
Other Approving Officers as delegated by the Managing
Director
(iii) Risk Limit Control and Mitigation Policies
The above limits are subject to the following overriding approvals:
The Group applies limits to control credit risk concentration and • The deposit required for all cash collateralized facilities
diversification of its risk assets portfolio. Limits are maintained for (with the exception of bonds, guarantees and indemnities)
individual borrowers and groups of related borrowers, business must be 125% of the facility amount to provide a cushion
lines, sectors, rating grade, collateral type and geographical area. for interest and other charges.
• All new facilities, up till the Deputy Managing Director
The obligor limit as set by the regulators and it is currently at 20% approval limit, require one-up approval i.e. approval at a
of the Bank’s shareholders’ funds is adopted and it covers expo- level higher than that of the person that would ordinarily
approve it.
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
128
FINANCIAL RISK MANAGEMENT
Master Netting Arrangements antees, which will only issue where it has full cash collateral or a
counter guarantee from a first class bank, or any other acceptable
Master netting arrangements are entered into to manage its ex- security.
posure to credit losses, where applicable, with counterparties with
which it undertakes a significant volume of transactions. The right
to set off is triggered at default. By so doing, the credit risk asso- Contingencies
ciated with favourable contracts is reduced by a master netting
arrangement to the extent that if a default occurs, all amounts Contingent assets/liabilities which include transaction related to
with the counterparty are terminated and settled on a net basis. bonds and guarantees, letters of credit and short term foreign
currency related transactions, are not recognized in the annual
The overall exposure to credit risk on derivative instruments sub- financial statements but are disclosed.
ject to master netting arrangements can change substantially
within a short period, as it is affected by each transaction subject
to the arrangement. Placements
IFRS 7 requires the Group to disclose the amounts that best represents its maximum exposure to credit risk at the end of the reporting
period without taking account of any collateral held or other credit enhancements (eg netting agreements that do not qualify for offset
in accordance with IAS 32). This disclosure is presented below for the Company and Group as at 31 December 2023 and 31 December
2022.
Investment securities:
- Debt securities 2,463,235,069 1,219,105,931 - -
As shown above, 27% (Company: 0% ) of the total maximum exposures is derived from loans and advances to banks and customers
(2022: 31% ; Company: 0% ); while 27% (Company: 0% ) represents exposure to investments in debt securities (2022: 24% ; Com-
pany: 0%). The Directors are confident in their ability to continue to control exposure to credit risk within a specified risk appetite
which can result from both its Loans and Advances portfolio and Debt securities.
1
Further classification of Loans to Customers along product lines are provided on the next page.
2
Balances included in Restricted deposits and other assets above are those subject to credit risks. Items not subjectto credit risk,
which include Recognised assets for defined benefit obligations,Prepayment and Stock have been excluded.
Loans and advances have been classified into Overdraft, Loans and Others throughout the Financials Statements.
- Overdraft are lines of credit which allow customers to write cheques for more than the actual balance on their accounts usually to
finance working capital.
- Loans include non-revolving facilities given to finance specific transactions, capital projects or a customer’s expansion Programme.
IFRS 7 requires information about the credit quality of financial assets.This information is provided below for balances held with coun-
terparty, money market placements, Financial assets at fair value through profit or loss and investment securities.
Unrestricted balances with central banks, Balances held with other banks, Money Market placements, financial assets at
fair value through profit or loss and Investment Securities
The credit quality of Unrestricted balances with central banks are assessed by reference to external credit ratings information about
counterparty default rates.
Restricted and Unrestricted balances with Central Bank of Nigeria are assigned Sovereign rating of B- from S&P.
A significant portion of the Group’s unrated financial assets relates to cash balances held with central banks as well as sovereign
debt securities for which no external ratings are available. For such assets, the Group considers the credit quality of the counterparty,
taking into account its financial position, past experience and other factors.
Exposure limits are set and compliance is monitored by management.
Group Company
In thousands of Nigerian naira Dec-2023 Dec-2022 Dec-2023 Dec-2022
Soverign Ratings
Nigeria (B) S&P 23,416,735 121,100,236 - -
Other Sovereign (B) S&P 4,649,878 7,682,139 - -
28,066,613 128,782,374 - -
Investment Securities
The credit quality of investment securities are assessed by reference to external credit ratings information about counterparty default
rates.
2,463,235,069 1,219,105,931 - -
Of the Group’s Investment Securities of N2,463,235,069,000 (Dec 2022: N1,219,105,931,000) the sum of N1,077,530,238,000
(2022: N789,220,835,000 ) relates to investment in treasury bills and bond issued by the Federal Government of Nigeria and bears
the sovereign risk of the Federal Government of Nigeria. The Federal Republic of Nigeria currently has a foreign long term issuer credit
rating of B- (S&P).
Rating Legend:
External credit rating (S&P) External credit rating (S&P) External credit rating (Agusto):
AA+:Very Strong Capacity to Repay BB+:Moderate Capacity to Repay A- : Strong capacity to meet obligations
AA:Very Strong Capacity to Repay BB: Speculative credit rating B: Weak Financial condition but obligations
AA-:Very Strong Capacity to Repay B+: Highly Speculative Credit Rating are still being met as and when they fall due
A+: Strong Capacity to Repay B: Highly Speculative Credit Rating External credit rating (Fitch)
A: Strong Capacity to Repay B-: Highly Speculative Credit Rating AA-: High grade
A-: Strong Capacity to Repay C: Speculative Credit Rating A: High grade
A-1+ : Prime Rating External credit rating (Moody's) A-: Upper medium grade
A-1 : Upper Medium Credit Rating P-3: Moderate Capacity to Repay BBB+: Lower medium grade
A-2 : Upper Medium Credit Rating F1+:Strong capacity to repay BBB-: Lower medium grade
A-3 : Lower Medium Credit Rating F1:Strong capacity to repay BB: Non investment grade speculative
BBB+:Adequate Capacity to Repay External credit rating (Agusto): BB-: Non investment grade speculative
BBB:Adequate Capacity to Repay Aa- : Very strong capacity to repay B: Speculative credit rating
BBB-:Adequate Capacity to Repay A : Strong capacity to repay B+: Speculative credit rating
Credit Concentration
IFRS 7 requires disclosures on credit risk concentration. Concentration of risk arise from financial instruments that have similar char-
acteristics and are affected similarly by changes in economic or other conditions. This information has been provided along geo-
graphical areas and economic sectors.
Group
Dec-2023
In thousands of Nigerian naira
Classification Nigeria Rest of Africa Outside Africa Total
Cash and bank balances:
- Unrestricted balances with central banks 20,281,786 218,096,404 - 238,378,190
- Balances held with other banks 17,438,828 105,244,427 371,051,410 493,734,665
- Money market placements 67,348,837 77,395,412 1,224,250,781 1,368,995,030
Investment securities:
- Debt securities 1,174,225,597 1,086,335,246 202,674,226 2,463,235,069
Of the Group’s Credit risk exposure outside Africa relating to On-balance sheet, 24% relates to exposures in United States of America,
75% relates to exposures in United Kingdom and 1% relates to exposures in other countries.
1
Further classification of Loans & Advances to Customers along product lines is provided on the next page.
2
Balances included in Restricted deposits and other assets above are those subject to credit risks. Items not subject to credit risk, which
include Recognised assets for defined benefit obligations, Prepayment and Stock have been excluded.
Group
Dec-2023
In thousands of Nigerian naira
Classification Nigeria Rest of Africa Outside Africa Total
Financial guarantees 380,682,902 65,807,351 177,446,830 623,937,083
Other contingents 2,633,613 18,796,256 14,927,443 36,357,312
383,316,515 84,603,607 192,374,273 660,294,395
The maximum credit exposure of Loans & advances across geographical region and product lines is shown below:
Group
Dec-2023
In thousands of Nigerian naira
Classification Nigeria Rest of Africa Outside Africa Total
Loans to individuals:
Overdraft 38,913,443 7,605,313 44,486 46,563,242
Loans 174,952,167 60,320,562 66,528,691 301,801,420
Others - - 145,499 145,499
213,865,610 67,925,875 66,718,676 348,510,161
Loans to non-individuals:
Overdraft 99,191,797 61,867,334 - 161,059,131
Loans 1,691,090,800 249,157,653 - 1,940,248,453
Others #
30,365,623 - - 30,365,623
1,820,648,220 311,024,987 - 2,131,673,207
#
Others include Usances and Usance Settlement.
Group
Dec-2022
In thousands of Nigerian naira
Classification Nigeria Rest of Africa Outside Africa Total
Cash and bank balances:
- Unrestricted balances with central banks 356,117,039 112,961,893 - 469,078,932
- Balances held with other banks 5,267,340 32,911,748 426,955,004 465,134,092
- Money market placements 137,347,735 23,937,617 417,605,306 578,890,658
Investment securities:
- Debt securities 790,742,583 368,427,814 59,935,534 1,219,105,931
Of the Group’s Credit risk exposure outside Africa relating to On-balance sheet, 18% relates to exposures in United States of America,
81% relates to exposures in United Kingdom and 1% relates to exposures in other countries.
1
Further classification of Loans & Advances to Customers along product lines is provided on the next page.
2
Balances included in Restricted deposits and other assets above are those subject to credit risks. Items not subject to credit risk, which
include Recognised assets for defined benefit obligations have been excluded.
Group
Dec-2022
In thousands of Nigerian naira
Classification Nigeria Rest of Africa Outside Africa Total
Financial guarantees 238,687,534 28,324,552 66,988,412 334,000,498
Other contingents 14,627,891 32,913,110 13,010,046 60,551,047
253,315,425 61,237,662 79,998,458 394,551,545
The maximum credit exposure of loans and advances across geographical regions and product lines is shown below
Group
Dec-2022
In thousands of Nigerian naira
Classification Nigeria Rest of Africa Outside Africa Total
Loans to individuals:
Overdraft 19,323,306 3,137,949 21,427 22,482,682
Loans 153,819,879 38,828,442 34,422,104 227,070,425
Others 49,755 - 70,081 119,836
173,192,940 41,966,391 34,513,612 249,672,943
Loans to non-individuals:
Overdraft 126,803,775 44,622,485 - 171,426,260
Loans 1,229,680,643 187,504,459 - 1,417,185,102
Others1 47,514,334 - - 47,514,334
1,403,998,752 232,126,944 - 1,636,125,696
1
Others include Usances and Usance Settlement.
Group
Dec-2023
In thousands of Nigerian naira
Classification Agriculture Capital Construc- Education General Government Manufac- Oil & gas Info.Tele- Individual Others 1 Total
market tion/ Commerce turing coms
& Financial Real estate & Transport.2
institution
Cash and bank balances:
- Unrestricted balances with central banks - - - - - 238,378,190 - - - - - 238,378,190
- Loans to non-individuals 187,471,015 14,638,155 20,820,372 17,150,827 168,044,322 17,012,134 308,866,944 1,043,550,457 196,814,945 1,593,903 155,710,133 2,131,673,207
Investment securities:
- Debt securities - - - - - 2,462,132,704 - - - - 1,102,365 2,463,235,069
187,471,015 1,906,395,928 20,820,372 17,150,827 168,044,322 4,533,640,118 308,866,944 1,043,550,457 196,814,945 350,104,064 375,476,884 9,108,335,876
1
Includes Engineering Services, Hospitality, Clubs, Cooperative Societies etc.
2
Includes Telecoms, Logistics, Maritime and Haulage.
139
PAGE
Credit Risk Exposure to off-balance sheet items
140
PAGE
Group
Dec-2023
In thousands of Nigerian naira
Classification Agriculture Capital Construc- Educa- General Government Manufac- Oil & gas Info.Tele- Individual Others 1 Total
market tion/ tion Commerce turing coms
& Financial Real estate & Transport2
institution
Financial guarantees 2,170,291 179,354,580 163,415,921 - 20,552,885 - 948,542 200,551,648 3,876,970 189,195 52,877,051 623,937,083
Other contingents 97,478 15,960,278 191,372 - 663,695 2,465,362 3,532,804 170,129 2,103,540 4,643,259 6,529,395 36,357,312
Total 2,267,769 195,314,858 163,607,293 - 21,216,580 2,465,362 4,481,346 200,721,777 5,980,510 4,832,454 59,406,446 660,294,395
1
Includes Engineering Services, Hospitality, Clubs, Cooperative Societies etc.
2
Includes Telecoms, Logistics, Maritime and Haulage.
Group
Dec-2023
Classification Agriculture Capital Construc- Education General Government Manufactur- Oil & gas Info.Tele- Individual Others 1 Total
market tion/ Commerce ing coms
Loans to individuals:
Overdraft 6,427,984 2,498,159 2,352,080 349,619 29,854,121 586,164 23,168,174 62,673,549 4,737,827 1,593,903 26,817,551 161,059,131
Loans 180,657,699 12,139,996 18,468,292 16,801,208 137,080,641 16,425,970 284,780,437 980,730,497 192,067,948 - 101,095,765 1,940,248,453
Others 385,332 - - - 1,109,560 - 918,333 146,411 9,170 - 27,796,817 30,365,623
187,471,015 14,638,155 20,820,372 17,150,827 168,044,322 17,012,134 308,866,944 1,043,550,457 196,814,945 1,593,903 155,710,133 2,131,673,207
1
Includes Engineering Services, Hospitality, Clubs, Cooperative Societies etc.
2
Includes Telecoms, Logistics, Maritime and Haulage.
FINANCIAL RISK MANAGEMENT
Credit Risk Exposure to on-balance sheet items
Group
Dec-2022
In thousands of Nigerian naira
Classification Agriculture Capital Construc- Educa- General Government Manufac- Oil & gas Info.Tele- Individual Others 1 Total
market tion/ tion Commerce turing coms
& Financial Real estate & Transport2
institution
Cash and bank balances:
- Unrestricted balances with central banks - - - - - 469,078,932 - - - - - 469,078,932
- Balances held with other banks - 465,134,092 - - - - - - - - - 465,134,092
- Money market placements - 578,890,658 - - - - - - - - - 578,890,658
Investment securities:
- Debt securities - 2,508,636 - - - 1,216,119,994 - - - - 477,301 1,219,105,931
142
PAGE
Group
Dec-2022
In thousands of Nigerian naira
Classification Agriculture Capital Construc- Educa- General Government Manufac- Oil & gas Info.Tele- Individual Others 1 Total
market tion/ tion Commerce turing coms
& Financial Real estate & Transport2
institution
Financial guarantees 1,104,604 68,290,862 161,960,371 282 12,439,132 1,543 17,035,300 53,718,584 3,853,680 16,670 15,579,470 334,000,498
Other contingents 67,517 16,517,654 571,152 - 8,177,747 3,970,356 20,645,073 3,822,337 1,276,535 1,966,568 3,536,108 60,551,047
Total 1,172,121 84,808,516 162,531,523 282 20,616,879 3,971,899 37,680,373 57,540,921 5,130,215 1,983,238 19,115,578 394,551,545
1
Includes Engineering Services, Hospitality, Clubs, Cooperative Societies etc.
2
Includes Telecoms, Logistics, Maritime and Haulage.
Loans to individuals:
Overdraft - - - - - - - - - 22,482,682 - 22,482,682
- - - - - - - - - 249,672,943 - 249,672,943
Loans to non-individuals:
Overdraft 3,291,997 2,189,792 3,620,191 638,990 1,792,947 34,976,032 54,079,734 8,970,795 392,677 37,464,532 171,426,260
24,008,573
Loans 138,308,377 47,373,607 27,685,844 4,930,717 71,348,715 60,983,802 219,252,074 622,900,257 122,771,362 346,958 101,283,389 1,417,185,102
144,660,476 49,563,399 31,334,986 5,569,707 98,912,087 62,776,749 273,935,355 697,891,623 131,817,340 739,635 138,924,339 1,636,125,696
1
Includes Engineering Services, Hospitality, Clubs, Cooperative Societies etc.
2
Includes Telecoms, Logistics, Maritime and Haulage.
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT
The following tables show the analysis of the credit risk exposure of financial instruments for which an ECL allowance is recognised.
The gross carrying amount of financial assets below also represents the Group’s maximum exposure to credit risk on these assets:
Group
Dec-2022
Group
Dec-2023
Group
Dec-2022
Group
Dec-2023
Group
Dec-2022
Group
Dec-2023
Group
Dec-2022
Group
Dec-2023
Group
Dec-2022
Disclosures of various factors that impact the ECL Model as at 31 December 2023.
The following macro-economic forecasts under the different scenarios were adopted for individual customers:
Macro-Economic variable assumptions:
Scenario 2024 2025 2026
Exchange rate (N/USD) Upturn 963.70 933.42 1014.00
Normal 1087.08 1081.22 1173.77
Downturn 1210.46 1229.02 1333.54
The following macro-economic forecasts under the different scenarios were adopted for corporate customers:
Macro-Economic variable assumptions:
Scenario 2024 2025 2026
Exchange rate (N/USD) Upturn 963.70 933.42 1014.00
Normal 1087.08 1081.22 1173.77
Downturn 1210.46 1229.02 1333.54
146
PAGE
The following macro-economic forecasts under the different scenarios were adopted in the stated jurisdictions:
Scenario Macroeconomic Variable United Kingdom Ghana Kenya Serria-Leone Rwanda Gambia
Normal Exchange rate (Per US$) 1.204 8.58 166.00 23.10 1,400.00 66.04
inflation rate 3.90% 54.10% 6.60% 29.75% 6.00% 17.30%
unemployment rate 3.70% 4.50% 4.90% 4.98% 17.00% 8.60%
Residential Property Prices n/a n/a n/a n/a 120,000.00 n/a
GDP 0.50% 0.90% 5.00% 4.74% 6.60% 5.60%
Upturn Exchange rate (Per US$) 1.071 8.05 147.74 24.10 1,470.00 65.00
inflation rate 4.53% 35.20% 5.87% 22.87% 7.20% 17.00%
unemployment rate 3.29% 4.00% 4.36% 3.70% 18.40% 8.00%
Residential Property Prices n/a n/a n/a n/a 400,000.00 n/a
Downturn Exchange rate (Per US$) 1.449 12.00 188.41 24.50 1,484.70 67.00
inflation rate 6.14% 65.00% 7.33% 26.87% 8.00% 18.00%
unemployment rate 4.45% 4.70% 5.44% 4.47% 19.30% 9.80%
Residential Property Prices n/a n/a n/a n/a 50,000.00 n/a
GDP 1.39% 0.50% 4.45% 3.60% 7.20% 5.20%
FINANCIAL RISK MANAGEMENT
Macro-Economic variable assumptions for corporate customers:
Scenario Macroeconomic Variable United Kingdom Ghana Kenya Serria-Leone Rwanda Gambia
Normal Exchange rate (Per US$) 1.20 8.58 166.00 23.10 1,400.00 66.04
inflation rate 5.10% 54.10% 6.60% 29.75% 6.00% 17.30%
GDP 1.75% 0.90% 5.00% 4.74% 6.60% 5.60%
Crude($/pbl) n/a 81.30 n/a n/a n/a n/a
Upturn Exchange rate (Per US$) 1.07 8.05 147.74 24.10 1,470.00 65.00
inflation rate 4.53% 35.20% 5.87% 22.87% 7.20% 17.00%
GDP 1.94% 2.50% 5.55% 4.00% 8.00% 6.20%
FINANCIAL RISK MANAGEMENT
Downturn Exchange rate (Per US$) 1.45 12.00 188.41 24.50 1,484.70 67.00
inflation 6.14% 65.00% 7.33% 26.87% 8.00% 18.00%
GDP 1.39% 0.50% 4.45% 3.60% 7.20% 5.20%
Crude($/pbl) n/a 80.00 n/a n/a n/a n/a
(vii) Impairment and provisioning policies Stage 2 - This is where credit risk has increased significantly since
initial recognition (stage 1). When a loan is transferred to stage 2,
The following policies guide the Group’s provisioning and impair- the Group recognises lifetime ECL but interest income will contin-
ment: ue to be recognised on a gross basis.
(1) Loan Categorization Stage 3 – At stage 3, the loan is credit impaired. This is effec-
tively the point at which there has been an incurred loss event.
All loans and advances are categorized as follows during the cur- For loans in stage 3, the Group continues to recognise lifetime
rent year: ECL but interest income is recognised on a net basis. This means
that interest income will be calculated based on the gross carrying
• Stage 1 Loans and Advances: amount of the loan less ECL.
These are loans and advances that have not deteriorated signifi- Realizable collaterals are important component of cash flows.
cantly in credit quality since initial recognition or that have low
credit risk (where the optional simplification is applied) at the re-
porting date. The credit quality of the Stage 1 loans and advances (3) Loans with renegotiated terms
are assessed by reference to the internal rating system adopted by
the Group (see Note 4(f)(ii) Credit Risk Measurement). These are Loans with renegotiated terms are loans that have been restruc-
assigned ratings 1-6. tured due to deterioration in the borrower’s financial position
and where the Group has made concessions that it would not
In addition to the above, Stage 1 loans and advances are loans otherwise consider. Once the loan is restructured, it remains in
that have experienced movement of credit rating of less than 3 this category independent of satisfactory performance after re-
notches migration from origination and are not in default structuring.
• Stage 3 Loans and Advances: i) Chief Risk Officer: The Chief Risk Officer (CRO) works
with the divisional heads and relationship managers to monitor
These are loans and advances that have objective evidence of a and provide feedback on the performance of the facilities less
credit loss event. Stage 3 allocation is driven by either the iden- than or equal to ₦100 million. This gives him insight into what the
tification of credit impairment or an exposure being classified as appropriate rating migration for each facility in this band should
defaulted. The credit quality of the Stage 3 loans and advances be.
are assessed by reference to the internal rating system adopted by
the Group (see Note 4(f)(ii) Credit Risk Measurement). These are ii) An Executive Director (ED) who is a member of the
assigned ratings 8-10. Board Risk Management Committee (BRMC): An ED who is a
member of the BRMC has been assigned responsibility for the fa-
cilities above ₦100 million but less than ₦500 million. The ED works
(2) Allowances for impairment with the CRO, divisional heads and the relationship managers to
monitor the facilities in this category. He ensures that adequate
The Group establishes an allowance for impairment losses that information as to the level of performance of these facilities is
represents its estimate of expected credit losses in its loan port- promptly retrieved and the counterparties are correctly rated.
folio. In accordance with IFRS 9 which requires the recognition of
12 month expected credit losses (the portion of lifetime expect- iii) The Managing Director (MD): The Managing Direc-
ed credit losses from default events that are expected within 12 tor presides over the review of facilities over ₦500 million. The
months of the reporting date) if credit risk has not significantly Managing Director may also decide to retain the oversight on the
increased since initial recognition (stage 1), and lifetime expected performance of all facilities irrespective of the amount.
credit losses for financial instruments for which the credit risk has
increased significantly since initial recognition (stage 2) or which Every decision made with respect to the performance of these
are credit impaired (stage 3). facilities must be approved by the MD.
Stage 1 – This is where credit risk has not increased significantly All the above approving authorities in respect of credit ratings
since initial recognition. For loans in stage 1, the Group recognises consider number of days past due as one of the quantitative vari-
12-month ECL and interest income is recognised on a gross basis ables in the determination of the credit ratings to be assigned to
– this means that interest will be calculated on the gross carrying credit facilities. Facilities that are 30 days past due are assigned
amount of the loan before adjusting for ECL. a credit rating of 7 except appropriate rebuttals are in place to
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
148
FINANCIAL RISK MANAGEMENT
justify a better credit rating while Facilities that are 90 days past it risk management team will review the evidence provided
due are assigned a rating of 8 except appropriate rebuttals are in by the relationship manager and provide feedback to the
place to justify a better credit rating. relationship manager as regards the acceptability of the evi-
dence.
(5) Policy around rebuttal: iii) For accounts that are moved to stage 3, the CRO and credit
risk management team will review the evidence provided by
When backstop is used and an account that has breached the the relationship manager. The account is then scheduled to
30 days past due criteria for SICR and 90 days past due criteria be presented to the Criticised Asset Committee (CAC).
for default is transferred to stage 2 or stage 3 respectively, the
presumption can be rebutted only on the basis of the following: iv) CAC takes decision with respect to the acceptability of the
evidence presented to it.
i) The relationship manager and divisional head must provide
reasonable and supportable evidence for the rebuttal. In do- v) Where the evidence is deemed acceptable as stated in (ii)
ing this, the evidence must be provided to the CRO and cred- and (iv) above, the account is immediately transferred back
it risk management team within 10 working days failure of to the previous stage. Where the evidence is not acceptable,
which the transfer will be made. the account is left in the new stage except the relationship
manager is able to provide fresh evidence which will follow
ii) For accounts that are moved to stage 2, the CRO and cred- the same step above.
The credit quality of the portfolio of Stage 1 loans and advances can be assessed by reference to the internal rating system adopted
by the Group.
Group
Dec-2023
In thousands of Loans and advances to customers Loans and advances to
Nigerian Naira banks
Individuals Non-individuals
Rating Overdraft Loans Others Overdraft Loans Others Overdraft Loans Total
Group
Dec-2022
In thousands of Loans and advances to customers Loans and advances to
Nigerian Naira banks
Individuals Non-individuals
Rating Overdraft Loans Others Overdraft Loans Others Overdraft Loans Total
Group
Dec-2023
In thousands of Loans to Individual Loans to Non-individual Loans to Banks Total
Nigerian Naira
Gross Loans:
Loans 20,557,599 389,243,027 - 409,800,626
Overdraft 958,466 13,951,690 - 14,910,156
Others - 427,149 - 427,149
21,516,065 403,621,866 - 425,137,931
Impairment:
Loans 145,553 49,316,062 - 49,461,615
Overdraft 119,274 1,272,182 - 1,391,456
Others - - - -
264,827 50,588,244 - 50,853,071
Net Amount:
Loans 20,412,046 339,926,965 - 360,339,011
Overdraft 839,192 12,679,508 - 13,518,700
Others - 427,149 - 427,149
21,251,238 353,033,622 - 374,284,860
FV of collateral1:
Loans 314,530,450 6,125,533,838 - 6,440,064,288
Overdraft 14,664,492 49,286,633 - 63,951,125
Others - 578,087 - 578,087
329,194,942 6,175,398,558 - 6,504,593,500
Amount of undercollateral-
isation:
Others - - - -
- - - -
-
Net Loans 21,251,238 353,033,622 - 374,284,860
Amount of undercollateralisa- - - -
tion on net loans
1
The nature of fair value of collateral are set out in the summary of collaterals pledged against loans and advances.
Group
Dec-2022
In thousands of Loans to Individual Loans to Non-individual Loans to Banks Total
Nigerian Naira
Gross Loans:
Loans 2,105,873 232,902,155 - 235,008,028
Overdraft 1,962,987 62,373,175 - 64,336,162
Others - - - -
4,068,860 295,275,330 - 299,344,190
Impairment:
Loans 71,925 18,430,610 - 18,502,535
Overdraft 93,364 4,021,154 - 4,114,518
Others - - - -
165,289 22,451,764 - 22,617,053
Net Amount:
Loans 2,033,948 214,471,545 - 216,505,493
Overdraft 1,869,623 58,352,021 - 60,221,644
Others - - - -
3,903,571 272,823,566 - 276,727,137
FV of collateral1:
Loans 45,880,734 6,242,840,205 - 6,288,720,939
Overdraft 42,767,672 190,089,799 - 232,857,471
Others - 244,696 - 244,696
88,648,406 6,433,174,700 - 6,521,823,106
Amount of undercollateral-
isation:
Overdraft - - - -
- - - -
-
Net Loans 3,903,571 272,823,566 - 276,727,137
Amount of undercollateralisa- - - -
tion on net loans
1
The nature of fair value of collateral are set out in the summary of collaterals pledged against loans and advances.
The breakdown of gross amount of Stage 3 Loans, along with the fair value of related collateral held by the Group
as security, are as follows:
Group
Dec-2023
In thousands of Loans to Individual Loans to Non-individual Loans to Banks Total
Nigerian Naira
Gross Loans:
Loans 12,928,221 71,880,915 153,681 84,962,817
Overdraft 2,204,866 22,410,891 - 24,615,757
Others - 3,239 - 3,239
15,133,087 94,295,045 153,681 109,581,813
Impairment:
Loans 2,819,650 41,599,307 88,000 44,506,957
Overdraft 424,567 18,552,777 - 18,977,344
Others - - - -
3,244,217 60,152,084 88,000 63,484,301
Net Amount:
Loans 10,108,571 30,281,608 65,681 40,455,860
Overdraft 1,780,299 3,858,114 - 5,638,413
Others - 3,239 - 3,239
11,888,870 34,142,961 65,681 46,097,512
FV of collateral1:
Loans 16,232,783 117,546,098 105,081 133,883,962
Overdraft 2,768,448 44,001,730 - 46,770,178
Others - 998,947 - 998,947
19,001,231 162,546,775 105,081 181,653,087
Amount of undercollateralisa-
tion:
Loans - - 48,600 -
Overdraft - - - -
Others - - - -
- - 48,600 -
1
The nature of fair value of collateral are set out in the summary of collaterals pledged against loans and advances.
Group
Dec-2022
In thousands of Loans to Individual Loans to Non-individual Loans to Banks Total
Nigerian Naira
Gross Loans:
Loans 21,597,385 57,455,486 24,042 79,076,913
Overdraft 11,384,657 11,796,603 105,395 23,286,655
Others - 1,460 - 1,460
32,982,042 69,253,549 129,437 102,365,028
Impairment:
Loans 13,071,548 24,439,836 1,605 37,512,989
Overdraft 10,330,965 6,961,881 73,067 17,365,913
Others - 1,267 - 1,267
23,402,513 31,402,984 74,672 54,880,169
Net Amount:
Loans 8,525,837 33,015,650 22,437 41,563,924
Overdraft 1,053,692 4,834,722 32,328 5,920,742
Others - 193 - 193
9,579,529 37,850,565 54,765 47,484,859
FV of collateral1:
Loans 15,655,387 97,064,369 45,295 112,765,051
Overdraft 3,345,844 24,289,849 63,081 27,698,774
Others - 335,317 - 335,317
19,001,231 121,689,535 108,376 140,799,142
Amount of undercollateralisa-
tion:
Loans 5,941,998 - - -
Overdraft 8,038,813 - 42,314 -
Others - - - -
13,980,811 - 21,061 -
1
The nature of fair value of collateral are set out in the summary of collaterals pledged against loans and advances.
Upon initial recognition of loans and advances, the fair value of collateral is based on valuation techniques commonly used for the corresponding
assets. In subsequent periods, the fair value is assessed by reference to market price or indexes of similar assets.
The table below analyses the Group’s Loans and advances based on the categorization by Performance of the Loans and the allow-
ances taken on them.
Dec-2023
Group Company
Dec-2023 Dec-2023
Loans to Loans to Loans to Total Loans to Loans to Loans to Total
In thousands of Nigerian Naira Individual non- Individual Banks Individual non- Individual Banks
Group Company
Dec-2022 Dec-2022
Loans to Loans to Loans to Total Loans to Loans to Loans to Total
In thousands of Nigerian Naira Individual non- Individual Banks Individual non- Individual Banks
Dec-2023
Group Company
Dec-2023 Dec-2023
Loans to Loans to Loans to Total Loans to Loans to Loans to Total
In thousands of Nigerian Naira Individual non- Individual Banks Individual non- Individual Banks
Group Company
Dec-2023 Dec-2023
Loans to Loans to Loans to Total Loans to Loans to Loans to Total
In thousands of Nigerian Naira Individual non- Individual Banks Individual non- Individual Banks
Dec-2022
Group Company
Dec-2022 Dec-2022
Loans to Loans to Loans to Total Loans to Loans to Loans to Total
In thousands of Nigerian Naira Individual non- Individual Banks Individual non- Individual Banks
Group Company
Dec-2022 Dec-2022
Loans to Loans to Loans to Total Loans to Loans to Loans to Total
In thousands of Nigerian Naira Individual non- Individual Banks Individual non- Individual Banks
(v) Credit collateral i.e. only 80% of the deposit or cash collateral may be availed to
an obligor.
The Group ensures that each credit is reviewed and granted based
on the strength of the borrowers’ cash flow. However, the Group The main collateral types acceptable to the Group for loans and
also ensures its credit facilities are well secured as a second way advances include:
out. The policies that guide collateral for facilities are embedded • Mortgages over residential properties.
within the Group’s credit policy guide. These include the follow- • Charges over business premises, fixed and floating assets
ing policy statements amongst others: as well as inventory.
• Charges over financial instruments such as equities, trea-
Loans to individuals and non-individuals are to be secured by tan- sury bills etc.
gible, marketable collateral that has a market value that is sup-
ported by a valuation report from a registered estate valuer who is The fair values of collaterals are based upon last annual valua-
acceptable to the Group. The collateral must also be easy to check tion undertaken by independent valuers on behalf of the Group.
and easy to dispose of. This collateral must be in the possession The valuation techniques adopted for properties are based upon
of, or pledged to, the Group. Client’s account balances must be fair values of similar properties in the neighbourhood taking into
within the scope of cover provided by its collateral. cognizance the advantages and disadvantages of the compara-
tives over the subject property and any other factor which can
All collateral offered must have the following attributes: have effect on the valuation e.g. subsequent movements in house
• There must be good legal title prices, after making allowance for dilapidations. The fair values
• The title must be easy to transfer of non-property collaterals (such as equities, bond, treasury bills,
• It should be easy and relatively cheap to value etc.) are determined with reference to market quoted prices or
• The value should be appreciating or at least stable market values of similar instrument.
• The security must be easy to sell.
The same Fair value approach is used in determining the collater-
All collateral must be protected by insurance. Exceptions include als value in the course of sale or realisation. The Group uses ex-
cash collateral, securities in safe keeping, indemnity or guaran- ternal agents to realize the value as soon as practicable, generally
tees, or where our interest is general (for instance in a negative at auction, to settle indebtedness. Any surplus funds are returned
pledge). The insurance policy has to be issued by an insurer ac- to the borrower.
ceptable to the Group. All cash collateralized facilities shall have
a 20% margin to provide cushion for interest and other charges
An estimate of the fair value of any collateral and other security enhancements held against loans and advances to customers and
banks is shown below:
Group
Dec-2023
Loans and advances Loans and advances
to customers to Banks
In thousands of Gross Loans Collateral Gross Loans Collateral
Nigerian Naira
Against Stage 1 Loans and Advances 2,079,903,731 16,001,252,689 1,346 169
Against Stage 2 Loans and Advances 425,137,931 6,504,593,500 - -
Against Stage 3 Loans and Advances 109,428,132 181,548,006 153,681 105,081
Total 2,614,469,794 22,687,394,195 155,027 105,250
Group
Dec-2022
Loans and advances Loans and advances
to customers to Banks
In thousands of Gross Loans Collateral Gross Loans Collateral
Nigerian Naira
Against Stage 1 Loans and Advances 1,570,732,979 27,602,283,628 - -
Against Stage 2 Loans and Advances 299,344,190 6,521,823,106 - -
Against Stage 3 Loans and Advances 102,235,591 140,690,766 129,437 108,376
Total 1,972,312,760 34,264,797,500 129,437 108,376
The type of Collaterals and Other Security enhancement held against the various loan classifications are disclosed in the table below:
Group
Dec-2023
Loans and advances Loans and advances
to customers to Banks
In thousands of Dec-2023 Dec-2023
Nigerian Naira
Against Stage 1 Loans and Advances:
Property 15,282,926,439 -
Equities 165,836,209 -
Treasury bills 5,280,336 -
Cash 135,123,203 -
Guarantees 173,602,834 -
Negative pledge 3,573,167 -
ATC*, stock hypothecation and ISPO* 17,522,896
Others # 217,387,605 169
Total 16,001,252,689 169
The type of Collaterals and Other Security enhancement held against the various loan classifications are disclosed in the table below:
Group
Dec-2022
Loans and advances Loans and advances
to customers to Banks
In thousands of Dec-2022 Dec-2022
Nigerian Naira
Against Stage 1 Loans and Advances:
Property 15,603,631,125 -
Equities 115,665 -
Treasury bills 3,522,947 -
Cash 160,014,871 -
Guarantees 16,833,448 -
Negative pledge 3,119,403 -
Others # 11,815,046,169 -
Total 27,602,283,628 -
Group
Dec-2023
In thousands of Loans and advances to customers Loans and advances to banks
Nigerian Naira
Term Loans Overdrafts Others Total Term Over- Others Total
Loans drafts
Group
Dec-2022
In thousands of Loans and advances to customers Loans and advances to banks
Nigerian Naira
Term Loans Overdrafts Others Total Term Over- Others Total
Loans drafts
Debt securities
The table below shows analysis of debt securities into the different classifications:
Group
Dec-2023
In thousands of Nigerian Naira Financial assets at fair value Investment Assets pledged as Total
through profit or loss securities collateral
Federal government bonds 16,648,838 613,457,466 - 630,106,304
State government bonds - 1,719,519 - 1,719,519
Treasury bills 7,791,115 1,219,626,082 86,552,701 1,313,969,898
Special Bills - 534,842,582 - 534,842,582
Corporate bonds - - -
Euro bond 3,622,871 64,953,018 - 68,575,889
Commercial Paper - 27,532,674 - 27,532,674
Promissory Notes 3,789 1,362 - 5,151
28,066,613 2,462,132,703 86,552,701 2,576,752,017
The Group’s investment in risk-free Government securities constitutes 98.8% of debt instruments portfolio (December 2022: 99.1%). Investment in
Corporate and State Government bonds accounts for the outstanding 1.2% (December 2022: 0.9%).
Group
Dec-2022
In thousands of Nigerian Naira Financial assets at fair value Investment Assets pledged as Total
through profit or loss securities collateral
Federal government bonds 17,080,629 209,922,359 8,536,228 235,539,216
State government bonds - 2,079,702 - 2,079,702
Corporate bonds - 1,448,117 - 1,448,117
Promissory Notes - 1,906,881 - 1,906,881
Euro Bond 3,212,506 31,614,254 - 34,826,760
Treasury bills 108,489,239 411,481,113 72,372,834 592,343,186
Special Bills - 560,653,505 - 560,653,505
128,782,374 1,219,105,931 80,909,062 1,428,797,367
(g) Liquidity Risk 3. Strategic financial position planning from both risk and return
perspective.
Liquidity risk is the risk that the Group, though having a solvent 4. Strategically coordinate the management of the Bank’s finan-
balance sheet, might not be able to generate sufficient cash re- cial position in consideration of changing economic condi-
sources to meet its obligations as they fall due, or is only able to tions.
do so at an excessive cost. The risk typically arises from mismatch-
es in the timing of cash inflows and cash outflows. (i) Funding approach
The objective of the Group’s liquidity risk management system is The Group’s overall approach to funding is as follows:
to ensure that all foreseeable funding commitments can be met
when due, and that access to wholesale markets is controlled 1. Consistently grow customer deposits from diverse sources
and cost effective. To this end the Group maintains a diversified particularly along geographical and sectorial categories. The
funding base comprising of retail, small business, commercial and objective is to eliminate depositor concentration or undue re-
institutional customer deposits. The Group continues to develop liance on individual depositors.
and improve its liquidity risk management system with the aim 2. Generate funding at the most appropriate pricing
of effectively identifying, measuring, monitoring and controlling in light of market realities.
liquidity risk across its network. Seeking at all times to balance
safety, liquidity, profitability and regulatory requirements. 3. Maintain an appropriate funding structure that enables the
Group to operate under a variety of adverse circumstance, in-
A brief overview of the Group’s liquidity management processes cluding potential firm-specific and/or market liquidity events.
during the year includes the following: 4. Maintain appropriate capital to support the Group’s risk level
1. Control of liquidity risk by the setting of dynamic limits on and strategic intent.
metrics such as liquidity ratio, reserve ratio, asset and liabili-
ty gap measures, amongst others. Internal limits are typically The Group was able to meet all its financial commitments and
more stringent than regulatory limits across all jurisdictions of obligations without any liquidity risk exposure during the year un-
the Group’s operation. der review.
2. The limits are monitored regularly with exceptions reported to
the Management Risk Committee (MRC) and the Board. (ii) Exposure to Liquidity Risk
3. Based on its judgement of financial market trends, the Group
actively adjusts its business strategies to manage liquidity risk. One of the key measures used by the Group for managing liquid-
4. Periodic cash flow projections considering its impact on inter- ity risk is the ratio of liquid assets to short term liabilities. For this
nal and regulatory limits. purpose, liquid assets include but is not limited to cash and its
5. Control of non-earning assets proportion to manage its im- equivalents and investment grade debt securities for which there
pact on the Group’s overall financial position. is an active and liquid market. Short term liabilities include local
6. Conduct regular liquidity stress tests including testing of con- currency deposits from banks and customers. A similar calcula-
tingency plans. tion is used to measure the Group’s compliance with the liquidity
7. Monitor diversification of funding sources in order to control limit established by the Bank’s lead regulator (The Central Bank
concentration risk and ensure a satisfactorily funding mix. of Nigeria).
8. Monitoring the level of undrawn commitments.
9. Maintain an updated liquidity and contingency funding plan. Dec-23 Dec-22
These plans will identify stress indicators and prescribe actions
to be taken in event of firm specific or market-based crises.
10. Regular conduct of the Asset and Liability Management Com- At end of year 31.08% 49.93%
mittee (ALMAC) meetings.
Average for the year 36.14% 39.91%
The Group’s Asset and Liability Management Committee (AL- Maximum for the year 38.03% 49.93%
MAC) is charged with the following responsibilities. Minimum for the year 31.08% 34.93%
1. Establishing policies and tolerance levels, from both risk and
return perspectives, for liquidity, interest rate and balance Regulatory requirement 30.00% 30.00%
sheet valuation management.
2. Manage the intra-day liquidity position to ensure that pay- Liquidity ratio which is a measure of liquidity risk is calculated as
ment and settlement obligations are met on a timely basis. a ratio of local currency liquid assets expressed as a percentage of
its local currency customer deposits.
The following tables show the undiscounted cash flows on the Group’s financial assets and liabilities and on the basis of their earliest possible contractual maturity.
The Gross nominal inflow / (outflow) disclosed in the table is the contractual, undiscounted cash flow on the financial assets and liabilities.
(iii) Gross nominal (undiscounted) maturities of financial assets and liabilities
Group
Dec-2023
Carrying Gross nominal Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount inflow/outflow 3 months1 months months years 5 years
Financial assets
Cash and bank balances 22 2,309,618,698 2,322,807,626 2,011,006,481 168,188,678 143,612,467 - -
Financial assets at fair value through profit or loss 23 28,066,613 53,051,140 9,199,112 480,250 3,727,462 2,972,313 36,672,003
FINANCIAL RISK MANAGEMENT
1
Includes balances with no specific contractual maturities
167
PAGE
Management of this liquidity gap is as disclosed in Note 4(g)
Restricted deposits have been bucketed within “less than 3 months” to match the underlying deposit liabilities
168
PAGE
Gross nominal (undiscounted) maturities of financial assets and liabilities
Group
Dec-2022
Carrying Gross nominal Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount inflow/outflow 3 months1 months months years 5 years
Financial assets
Cash and bank balances 22 1,621,101,169 1,622,870,408 1,596,954,415 5,535,302 20,380,691 - -
Financial assets at fair value through profit or loss 23 128,782,374 151,584,014 31,313,348 143,705 87,322,001 - 32,804,960
Derivative financial assets 24 33,913,351 35,262,544 13,466,017 861,365 20,935,162 - -
Investment securities: -
– Fair Value through other comprehensive Income2 25 357,350,211 390,915,240 106,549,473 32,851,376 199,361,060 24,855,174 27,298,157
– Held at amortised cost 25 863,421,525 866,156,762 385,053,642 252,175,598 65,259,732 127,555,863 36,111,927
Assets pledged as collateral 26 80,909,062 81,545,740 72,009,512 - 9,536,228 - -
Loans and advances to banks 27 54,765 54,765 54,765 - - - -
Loans and advances to customers 28 1,885,798,639 2,352,633,520 782,139,018 217,689,896 254,446,533 837,963,741 260,394,332
1
Includes balances with no specific contractual maturities
2
Equity securities have been excluded under Gross Nominal consideration.
3
Excludes Prepayments and Stock
4
Excludes deferred Income, impairment on contingents, provision for restoration and provision for litigations
Management of this liquidity gap is as disclosed in Note 4(g)
Restricted deposits have been bucketed within “less than 3 months” to match the underlying deposit liabilities
FINANCIAL RISK MANAGEMENT
Gross nominal (undiscounted) maturities of financial assets and liabilities
Company
Dec-2023
Carrying Gross nominal Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount inflow/outflow 3 months1 months months years 5 years
Financial assets
Cash and bank balances 23 60,169 60,169 60,169 - - - -
60,169 60,169 60,169 - - - -
Financial liabilities
Other liabilities4 37 16,483,941 16,483,941 - - 16,483,941 - -
Other borrowed funds 39 - - - - - - -
FINANCIAL RISK MANAGEMENT
1
Includes balances with no specific contractual maturities
2
Equity securities have been excluded under Gross Nominal consideration.
3
Excludes Prepayments and Stock
4
Excludes deferred Income, impairment on contingents, provision for restoration and provision for litigations
Management of this liquidity gap is as disclosed in Note 4(g)
Restricted deposits have been bucketed within “less than 3 months” to match the underlying deposit liabilities
170
PAGE
Company
Dec-2022
Carrying Gross nominal Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount inflow/outflow 3 months1 months months years 5 years
Financial liabilities
Derivative financial liabilities 25 - - - - - - -
4
Other liabilities 38 26,043,503 26,043,503 - - 26,043,503 - -
Other borrowed funds 40 - - - - - - -
26,043,503 26,043,503 - - 26,043,503 - -
Gap (asset - liabilities) - - (26,043,503) - -
Cumulative liquidity gap - - (26,043,503) (26,043,503) (26,043,503)
1
Includes balances with no specific contractual maturities
2
Equity securities have been excluded under Gross Nominal consideration.
3
Excludes Prepayments and Stock
4
Excludes deferred Income, impairment on contingents, provision for restoration and provision for litigations
Management of this liquidity gap is as disclosed in Note 4(g)
Details of contractual maturities for assets and liabilities form an important source of information for the management of liquidity risk which is managed through a series of measures,
tests and reports that are largely based on contractual maturity. The following table shows the contractual maturities at year end of the Group’s financial assets and liabilities and rep-
resents actual and in some cases assumed obligation expected for the assets or liability to be recovered or settled. These figures do not include elements of future incomes or costs.
Group
Dec-2023
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
Financial assets
Cash and bank balances 22 2,309,618,698 2,005,936,198 165,661,126 138,021,374 - -
Financial assets at fair value through profit or loss 23 28,066,613 9,196,810 463,191 3,460,104 2,043,317 12,903,191
FINANCIAL RISK MANAGEMENT
1
Includes balances with no specific contractual maturities
2
Equity securities have been excluded under liquidity consideration.
3
Excludes prepayments and Stock
171
PAGE
Residual contractual maturities of contingencies
172
PAGE
The table below shows the contractual expiry by maturity of the Group’s contingent liabilities and commitments. The maximum amount of the contingencies is allocated to the earliest
period in which the contingencies could be called.
Group
Dec-2023
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
Transaction related bonds and guarantees 42 623,937,083 231,332,230 36,614,302 54,931,037 65,696,974 235,362,540
Clean line facilities and letters of credit 42 19,416,461 13,806,112 1,174,549 3,017,820 1,417,980 -
Other commitments 42 16,940,851 16,940,851 - - - -
660,294,395 262,079,193 37,788,851 57,948,857 67,114,954 235,362,540
1
Includes balances with no specific contractual maturities
Group
Dec-2022
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
Financial assets
Cash and bank balances 22 1,621,101,169 1,596,078,639 5,535,302 19,487,228 - -
Financial assets at fair value through profit or loss 23 128,782,374 31,125,582 140,608 83,525,764 - 13,990,420
Derivative financial assets 24 33,913,351 13,369,099 845,743 19,698,509 - -
Investment securities:
– Fair Value through other comprehensive Income2 25 355,684,406 106,363,847 32,479,299 186,163,039 19,668,530 11,009,691
– Held at amortised cost 25 863,421,525 384,617,638 251,741,222 65,200,208 127,555,680 34,306,777
FINANCIAL RISK MANAGEMENT
1
Includes balances with no specific contractual maturities
2
Equity securities have been excluded under liquidity consideration.
3
Excludes prepayments and Stock
4
Excludes deferred income, provision for litigations ,provision for restoration cost, impairment on contingents
Management of this liquidity gap is as disclosed in Note 4(g)
Restricted deposits have been bucketed within “less than 3 months” to match the underlying deposit liabilities
174
PAGE
The table below shows the contractual expiry by maturity of the Group’s contingent liabilities and commitments. The maximum amount of the contingencies is allocated to the earliest
period in which the contingencies could be called.
Group
Dec-2022
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
Transaction related bonds and guarantees 42 334,000,498 103,148,669 26,729,863 33,574,950 47,077,953 123,469,063
Clean line facilities and letters of credit 42 50,669,259 31,041,684 6,599,380 12,114,195 914,000 -
Other commitments 42 9,881,788 9,881,788 - - - -
394,551,545 144,072,141 33,329,243 45,689,145 47,991,953 123,469,063
1
Includes balances with no specific contractual maturities
Details of contractual maturities for assets and liabilities form an important source of information for the management of liquidity risk which is managed through a series of measures,
tests and reports that are largely based on contractual maturity. The following table shows the contractual maturities at period end of the Group’s financial assets and liabilities and
represents actual and in some cases assumed obligation expected for the assets or liability to be recovered or settled. These figures do not include elements of future incomes or costs.
Company
Dec-2023
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
Financial assets
FINANCIAL RISK MANAGEMENT
176
PAGE
Company
Dec-2022
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
1
Includes balances with no specific contractual maturities
2
Equity securities have been excluded under liquidity consideration.
Repricing maturities take into account the fact that the terms of the underlying financial assets or liabilities of the Group can be varied, which in turn affects its liquidity risk exposure.
The table below indicates the earliest time the Group can vary the terms of the underlying financial asset or liabilities and analyses the Group’s interest rate risk exposure on assets and
liabilities included at carrying amount and categorised by the earlier of contractual re–pricing or maturity dates.
Group
Dec-2023
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
Financial assets
Cash and bank balances 22 2,309,618,698 2,005,936,198 165,661,126 138,021,374 - -
FINANCIAL RISK MANAGEMENT
Financial assets at fair value through profit or loss 23 28,066,613 9,196,810 463,191 3,460,104 2,043,317 12,903,191
Derivative financial assets 24 28,961,143 21,033,029 - 7,928,114 - -
Investment securities:
–
Fair Value through other comprehensive Income1 25 891,917,591 441,126,511 60,598,796 327,443,972 52,604,009 10,144,303
– Held at amortised cost 25 1,571,317,478 723,995,646 256,934,216 243,186,188 269,758,430 77,442,998
Assets pledged as collateral 26 86,552,701 13,151,718 - 73,400,983 - -
Loans and advances to banks 27 66,935 66,935 - - - -
Loans and advances to customers 28 2,480,183,368 1,125,784,410 269,327,283 272,026,795 747,206,870 65,838,010
2
Restricted deposits and other assets 33 1,944,380,766 1,905,549,778 9,072,410 5,539,974 24,218,604 -
9,341,065,293 6,245,841,035 762,057,022 1,071,007,504 1,095,831,230 166,328,502
Financial liabilities
Deposits from banks 34 136,053,409 127,022,101 4,105,140 4,926,168 - -
Deposits from customers 35 7,410,834,190 7,213,944,537 65,076,876 119,916,336 11,773,746 122,695
Financial liabilities at fair value through profit or
36 809,342 - - 220,220 - 589,122
loss
Derivative financial liabilities 24 - - - - - -
3
Other liabilities 37 417,433,890 262,181,685 101,763,270 25,195,421 22,293,514 6,000,000
Other borrowed funds 39 72,119,485 46,003,234 1,430,596 3,254,947 12,330,669 9,100,039
8,037,250,316 7,649,151,557 172,375,882 153,513,092 46,397,929 15,811,856
1,303,814,977 (1,403,310,522) 589,681,140 917,494,412 1,049,433,301 150,516,646
177
PAGE
(ii) Repricing period of financial assets and liabilities
178
PAGE
Repricing maturities take into account the fact that the terms of the underlying financial assets or liabilities of the Group can be varied, which in turn affects its liquidity risk exposure.
The table below indicates the earliest time the Group can vary the terms of the underlying financial asset or liabilities and analyses the Group’s interest rate risk exposure on assets and
liabilities included at carrying amount and categorised by the earlier of contractual re–pricing or maturity dates.
Group
Dec-2022
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
Financial assets
Cash and bank balances 22 1,621,101,169 1,596,078,640 5,535,301 19,487,228 - -
Financial assets at fair value through profit or loss 23 128,782,374 31,125,582 140,608 83,525,764 - 13,990,420
Derivative financial assets 24 33,913,351 13,369,099 845,743 19,698,509 - -
Investment securities:
– Fair Value through other comprehensive Income1 25 355,684,406 106,363,847 32,479,299 186,163,039 19,668,530 11,009,691
– Held at amortised cost 25 863,421,525 384,617,637 251,741,223 65,200,208 127,555,680 34,306,777
Financial liabilities
Deposits from banks 34 125,229,187 121,311,872 2,427,812 1,489,503 - -
Deposits from customers 35 4,485,113,979 4,242,672,728 51,761,414 100,292,309 71,190,986 19,196,542
Derivative financial liabilities 24 4,367,494 3,623,522 743,972 - - -
3
Other liabilities 37 721,189,275 300,722,942 368,387,121 33,935,108 6,579,325 11,564,779
Other borrowed funds 39 126,528,105 14,213,925 77,353,118 4,592,311 19,584,232 10,784,519
5,464,258,268 4,682,544,989 502,448,975 140,363,921 97,354,543 41,545,840
717,213,641 55,412,844 44,702,127 321,807,172 218,917,194 76,374,304
1
Excludes equity securities.
2
Excludes prepayments and Stocks
3
Excludes deferred income, provison for restoration cost, provision for litigations & impairment on contingents
FINANCIAL RISK MANAGEMENT
Repricing period of financial assets and liabilities
Repricing maturities take into account the fact that the terms of the underlying financial assets or liabilities of the Parent can be varied, which in turn affects its liquidity risk exposure.
The table below indicates the earliest time the Parent can vary the terms of the underlying financial asset or liabilities and analyses the Parent’s interest rate risk exposure on assets and
liabilities included at carrying amount and categorised by the earlier of contractual re–pricing or maturity dates.
Company
Dec-2023
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
Financial assets
Cash and bank balances 23 60,169 60,169 - - - -
60,169 60,169 - - - -
FINANCIAL RISK MANAGEMENT
Financial liabilities
Other liabilities3 37 16,483,941 - - 16,483,941 - -
Other borrowed funds 39 - - - - - -
16,483,941 - - 16,483,941 - -
(16,423,772) 60,169 - (16,483,941) - -
1
Excludes equity securities.
2
Excludes prepayments, Stocks
3
Excludes deferred income, provision for litigations & impairment on contingents
180
PAGE
Repricing maturities take into account the fact that the terms of the underlying financial assets or liabilities of the Parent can be varied, which in turn affects its liquidity risk exposure.
The table below indicates the earliest time the Parent can vary the terms of the underlying financial asset or liabilities and analyses the Parent’s interest rate risk exposure on assets and
liabilities included at carrying amount and categorised by the earlier of contractual re–pricing or maturity dates.
Company
Dec-2022
Carrying Less than 3 to 6 6 to 12 1 to 5 More than
In thousands of Nigerian Naira Note amount 3 months1 months months years 5 years
Financial assets
Restricted deposits and other assets2 34 - - - - - -
- - - - - -
Financial liabilities
Other liabilities3 38 26,043,503 - - 26,043,503 - -
Other borrowed funds 40 - - - - - -
26,043,503 - - 26,043,503 - -
(i) Market Risk The Group makes use of limit monitoring, earnings-at-risk and
gap analyses to measure and control the market risk exposures
Market risk is the risk of loss in On- or Off-balance sheet posi- within its banking book.
tions, as a result of adverse movement in foreign exchange rate,
interest rate, and equity or commodity prices. Whilst the Group The Group also performs regular stress tests on its banking and
may be faced with myriads of market risks, the Market & Liquidity trading books. In performing this, the Group ensures there are
Risk Management Group ensures these risks are managed and quantitative criteria in building the scenarios. The Group deter-
controlled within the Group’s acceptable parameters, while opti- mines the effect of changes in interest rates on interest income;
mising returns on risk. volatility in prices on trading income; and changes in funding
sources and uses on the Group’s liquidity.
(i) Management of Market Risk During the period, the foreign exchange risk, interest rate risk and
price risk, were the key risks the Group was exposed to. However,
The Market & Liquidity Risk Management Group separates its all potential risk exposures in the course of the year were success-
market risk exposures into the trading and banking books. Due fully mitigated as mentioned above.
to the various macro-economic indices and unanticipated mar-
ket happenings, it has become more imperative for the Group to
engage in continuous but proactive monitoring of market risks
inherent in both trading and non-trading activities.
The trading portfolio resides with the Treasury & Sales Division
of the Group, and they maintain positions arising from market
making and proprietary trading activities. With the exception of
translation risk arising from the Group’s net investment in foreign
currency, the Market & Liquidity Risk Group monitors the foreign
exchange position in the trading and banking books.
1. Treasury Bills
2. Bonds
Guaranty Trust Holding Company Plc // 2023 Annual Report PAGE
181
FINANCIAL RISK MANAGEMENT
Value-at-Risk (VaR)
The Group applies VaR, a statistical risk measure, to estimate the maximum potential loss the Group can incur on trading positions at
a given confidence level under normal market condition. VaR is the Group’s primary market risk management measure for assets and
liabilities classified as trading positions. However, the Group does not only base its risk estimates on VaR models, it uses sensitivity,
scenario analysis and stress testing to further complement it.
The Group uses the analytical variance-covariance method to estimate VaR, which takes cognizance of factor sensitivities of the trad-
ing portfolio, the volatilities and correlations of market risk factor. The model is employed across the Group and applies observable
historical rates, yields and prices for the previous 12months to its current positions. It assumes that historical changes in market values
are representative of the distribution of potential outcome in the immediate future. The Group’s VaR is calculated assuming a one-day
holding period and an expected tail loss methodology which approximates a 99% confidence level.
VaR statistics can be materially different across firms due to differences in portfolio composition, differences in VaR methodologies,
and differences in model parameters. As a result, the Group believes VaR statistics can be used more effectively as indicators of trends
in risk-taking within a firm, rather than as a basis for inferring differences in risk-taking across firms.
The Group trades on foreign currencies, Bonds and Treasury bills instruments, while its subsidiaries trade mainly in bills and bonds and
an insignificant amount of foreign currencies. The resultant risk exposures are interest and foreign exchange risks.
The table below presents, risk by category, average VaR and end of period-end VaR as well as the high and low VaR for the year.
(iv) Other market risks: Sensitivity analysis of non-trading portfolios to various scenarios
The management of interest rate risk against interest rate gap limits is supplemented with monitoring the sensitivity of the Group’s
financial assets and liabilities to various scenarios. Credit spread risk (not relating to changes in the obligor / issuer’s credit standing) on
debt securities held by the Group and equity price risk is subject to regular monitoring by Group Management Risk committee but is
not currently significant in relation to the overall results and financial position of the Group.
Interest rate movement have both cash flow and fair value effect depending on whether interest rate is fixed or floating. The impact
resulting from adverse or favourable movement flows from either retained earnings or OCI and ultimately ends in equity in the follow-
ing manner:
• Retained earnings arising from increase or decrease in net interest income and the fair value changes reported in profit or loss.
• Fair value reserves arising from increases or decreases in fair value of financial instruments FVOCI reported directly in other compre-
hensive income.
At 31 December 2023, the group’s interest rate risk arises principally from risk assets and borrowings i.e. (deposit liabilities and long-
term borrowings). Borrowings issued at variable rates expose the group to cash flow interest rate risk which is partially offset by cash
held at variable rates. Borrowings issued at fixed rates expose the group to fair value interest rate risk.
The Group therefore analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into consideration
refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios, the group calculates the impact
on profit and loss of a defined interest rate shift. For each simulation, the same interest rate shift is used for all currencies. The scenarios
are run only for assets and liabilities that represent the major interest-earning and bearing positions. Major assumptions underlying the
sensitivity are as follows:
• 100 basis point changes in floating interest rate on assets held at amortized cost; assets accounted at fair value through profit
or loss as well as other comprehensive income (Dec 2023 – 100 basis points) with all other variables held constant, resulted in
the impact on profit or loss as set out in the table below.
• 100 basis point changes in floating interest rate for Borrowed funds, financial liabilities held for trading, Term deposits; 30 basis
point changes for Savings deposits; and 15 basis point changes for Current deposits.
In arriving at the basis points used for the sensitivity analysis of interest rates and their impacts on the Group’s major assets and liabil-
ities, the followings were considered:
• The range of the prime lending rate on loans and advances has been maintained within 100-basis point during the reporting
period.
• A 100-basis point proportional change in the cost of fund was also assumed because costs of funds seldom vary beyond
100-basis point.
The table below shows the changes that would impact the income statement after carrying out interest rate sensitivity:
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
The aggregated figures presented above are further segregated into their various components as shown in the following tables:
Components of Statement of financial position Interest Rate sensitivity (Fair Value and Cash Flow Interest Rate Risk)
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Decrease
Assets
Cash and bank balances (9,426,895) (7,359,577) (3,941,098) (3,076,815)
Loans and advances to banks (1,610,844) (1,257,586) (1,244,986) (971,960)
Loans and advances to customers (22,978,852) (17,939,590) (18,433,642) (14,391,144)
Financial assets held for trading (1,071,038) (836,159) (2,310,543) (1,803,841)
Investment securities (22,060,645) (17,222,746) (11,293,583) (8,816,900)
Assets pledged as collateral (856,809) (668,911) (755,830) (590,077)
(58,005,083) (45,284,568) (37,979,682) (29,650,738)
Liabilities
Deposits from banks 66,016 51,539 65,143 50,857
Deposits from customers 13,545,935 10,575,311 11,388,155 8,890,733
Financial liabilities held for trading 112,822 88,080 41,718 32,569
Debt Securities - - - -
Other borrowed funds 1,060,803 828,169 1,267,472 989,515
14,785,576 11,543,099 12,762,488 9,963,674
Total (43,219,508) (33,741,470) (25,217,194) (19,687,063)
Increase
Assets
Cash and bank balances 9,426,895 7,359,577 3,941,098 3,076,815
Loans and advances to banks 1,610,844 1,257,586 1,244,986 971,960
Loans and advances to customers 22,978,852 17,939,590 18,433,642 14,391,144
Financial assets held for trading 1,071,038 836,159 2,310,543 1,803,841
Investment securities 22,060,645 17,222,746 11,293,583 8,816,900
Assets pledged as collateral 856,809 668,911 755,830 590,077
58,005,083 45,284,568 37,979,682 29,650,738
Liabilities
Deposits from banks (66,016) (51,539) (65,143) (50,857)
Deposits from customers (13,545,935) (10,575,311) (11,388,155) (8,890,733)
Financial liabilities held for trading (112,822) (88,080) (41,718) (32,569)
Debt securities - - - -
Other borrowed funds (1,060,803) (828,169) (1,267,472) (989,515)
(14,785,576) (11,543,099) (12,762,488) (9,963,674)
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Decrease
Assets
Cash and bank balances (8,568,308) (6,822,087) (3,649,068) (2,905,388)
Loans and advances to Banks (1,610,844) (1,282,554) (1,244,986) (991,258)
Loans and advances to Customers (18,516,829) (14,743,100) (15,344,373) (12,217,190)
Financial assets held for trading (1,024,539) (815,738) (2,233,721) (1,778,489)
Investment securities (9,246,665) (7,362,195) (6,814,558) (5,425,751)
Assets pledged as collateral (725,292) (577,477) (748,675) (596,095)
(39,692,477) (31,603,150) (30,035,381) (23,914,170)
Liabilities
Deposits from banks 1,828 1,455 2,769 2,205
Deposits from customers 10,202,307 8,123,077 9,844,786 7,838,418
Financial liabilities held for trading 112,822 89,829 41,718 33,216
Other borrowed funds 1,051,402 837,126 1,264,447 1,006,753
11,368,358 9,051,487 11,153,720 8,880,591
Total (28,324,119) (22,551,664) (18,881,661) (15,033,579)
Increase
Assets
Cash and bank balances 8,568,308 6,822,087 3,649,068 2,905,388
Loans and advances to Banks 1,610,844 1,282,554 1,244,986 991,258
Loans and advances to Customers 18,516,829 14,743,100 15,344,373 12,217,190
Financial assets held for trading 1,024,539 815,738 2,233,721 1,778,489
Investment securities 9,246,665 7,362,195 6,814,558 5,425,751
Assets pledged as collateral 725,292 577,477 748,675 596,095
39,692,477 31,603,150 30,035,381 23,914,170
Liabilities
Deposits from banks (1,828) (1,455) (2,769) (2,205)
Deposits from customers (10,202,307) (8,123,077) (9,844,786) (7,838,418)
Financial liabilities held for trading (112,822) (89,829) (41,718) (33,216)
Other borrowed funds (1,051,402) (837,126) (1,264,447) (1,006,753)
(11,368,358) (9,051,487) (11,153,720) (8,880,591)
Total 28,324,119 22,551,664 18,881,661 15,033,579
As for Cash flow interest rate risk, this risk arises from long-term borrowings. Borrowings issued at variable rates expose the group to
cash flow interest rate risk which is partially offset by cash held at variable rates.
At 31 December 2023, if interest rates on borrowed funds at amortised cost increased or reduced by 100 basis points with all other
variables held constant, the effect on cash flow would have been as set out below:
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
(v) Sensitivity Analysis of Fair Value Through Other Comprehensive Income Portfolio to Price
The result of the price sensitivity i.e. impact on other comprehensive income as at 31 December 2023, when price of bonds designated
as FVOCI increased or decreased by one Naira with all other variables held constant, would have been as set out in the tables below:
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
The Group carried out the following in determining sensitivity of the Group’s profit to fluctuations in market prices of treasury bills:
• Daily market discount rates were obtained and trended for the different maturities of treasury bills in issue as at the reporting
date.
• A reasonably possible change of (+7.66/-4.53) was determined based on the distribution of one year daily change in discount
rates on treasury bills. A large proportion of changes in discount rates falls in the range of (+7.66/-4.53).
• The chosen reasonable change in market discount rates was then applied to the Bank’s holding of Fair value through other
comprehensive income treasury bills at end of the year.
The result of the price sensitivity i.e. impacts on other comprehensive income as at 31 December 2023, if discount rates of treasury
bills designated as FVOCI, converted to prices, increased or reduced by (+7.66/-4.53) with all other variables held constant, would have
been as set out in the tables below:
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
(vi) Sensitivity analysis of level 3 equity Instruments and its impact on OCI
The estimated fair value per share of each of the unquoted equity instruments has been determined using the relevant valuation mod-
els (where applicable/suitable). IFRS 13 outlines three approaches to fair value measurements. We have adopted the income approach
in determining the fair values of these investments. Among the significant inputs into the models are the following:
The inputs were used to determine appropriate weighted cost of capital which subsequently was used to discount the free cash flow
of the company before arriving at the appropriate fair value of the share of the unquoted equity.
In determining the sensitivity of the fair value of the share of the unquoted equity to changes to the various inputs, we have assumed a
100 basis points increase or decrease to the risk free rate, the resultant impact to pre-tax and post-tax results arising from the sensitivity
analysis are as shown in the table below:
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures primarily with
respect to the US dollar, UK pound and Euro. Foreign exchange risk represents exposures to changes in the values of current holdings
and future cash flows denominated in other currencies. The types of instruments exposed to this risk include investments in foreign
subsidiaries, foreign currency-denominated loans and securities, future cash flows in foreign currencies arising from foreign exchange
transactions, foreign currency denominated debt amongst others. The value of these instruments fluctuates with changes in the level
or volatility of currency exchange rates or foreign interest rates. The Group deploys foreign derivative instruments whose values hedges
currency debts to foreign currency loans and advances to eliminate exchange exposures on such borrowings.
The Group carried out the following in determining sensitivity of the Group’s profit to fluctuations in exchange rate of dollars:
• Daily dollar exchange rates were obtained for one year and trended
• A reasonably possible change of -216.91/237.52 (Dec 2022 – 6.67/5.71) was determined based on the distribution of 12-month
daily change in exchange rates.
• The change in exchange rates was then applied to the bank’s dollar position at the end of the period.
As at 31 December 2023, if the Naira had strengthened/weakened by -216.91/237.52 against the Dollar with all other variables held
constant, the pre-tax and post-tax profit for the period ended would have (decreased)/increased as set out in the table below mainly
as a result of foreign exchange gains or losses on the translation.
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
The Group carried out the following in determining sensitivity of the Group’s profit to fluctuations in exchange rate of pounds:
As at 31 December 2023, if the Naira had strengthened/weakened by -270.80/309.15 against the Pounds with all other variables held
constant the pre-tax and post-tax profit for the period ended would have (decreased)/increased as set out in the table below mainly as
a result of foreign exchange gains or losses on the translation.
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
The Group carried out the following in determining sensitivity of the Group’s profit to fluctuations in exchange rate of Euro:
As at 31 December 2023, if the Naira had strengthened/weakened by -235.12/265.26 against the Euro with all other variables held
constant, the pre-tax and post-tax profit for the period ended would have (decreased)/increased as set out in the table below mainly
as a result of foreign exchange gains or losses on the translation.
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
As at 31 December 2023, if Naira had strengthened/weakened by -240.94/270.64 (Dec 2022: -18.64/19.76) against the other curren-
cies with all other variables held constant the pre-tax and post-tax profit for the period, the impact of possible fluctuations in exchange
rates on the overall foreign exchange revaluation profit of the bank is as shown below:
Group
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
Parent
Dec-23 Dec-23 Dec-22 Dec-22
In thousands of Naira Pre-tax Post-tax Pre-tax Post-tax
The fair value of foreign exchange contracts varies largely due to changes in foreign currency exchange rates. For the purpose of as-
sessing specific risks, the Bank carried out a sensitivity analysis to determine the effects that market risk exposures may have on the
fair value of the Bank’s derivative financial instruments and results of operations. To perform the sensitivity analysis, daily U.S. Dollar
exchange rates were obtained from the Investors & Exporters FX Window (I & E FX Window) and trended with all other variables kept
constant. A proportional foreign exchange rate movement of ±₦0.5 (Dec 2023: ±₦0.5) depreciation of the Nigerian Naira and ±₦0.5
(Dec 2023: ±₦0.5) appreciation of the Nigerian Naira against the U.S. Dollar have been considered to be reasonably possible based on
the distribution of one-year daily change in exchange rates of the U.S. Dollar.
The following table summarizes our derivatives financial instruments as at 31 Dec 2023 and analyzes the sensitivity of their fair values
to an immediate change in foreign currency rates. Fair values represent the present value of forecasted future cash flows at market
foreign currency exchange rates. A favourable change indicates a weakening of the Nigerian Naira against the U.S. Dollar and an
unfavourable change indicates a strengthening of the Nigerian Naira against the U.S. Dollar. The selection of ± ₦0.5 (Dec 2022: ±₦0.5)
favourable or unfavourable change in foreign currency exchange rates should not be construed as a prediction by the Bank of future
market events, but rather, to illustrate the potential impact of such an event. The modeling technique used to calculate the exposure
does not take into account correlation among foreign currency exchange rates, or correlation among various markets such as the for-
eign exchange, equity and fixed-income markets. Actual experience may differ from the results in the table below due to the correla-
tion assumptions utilized, or if events occur that were not included in the methodology, such as significant liquidity or market events.
The net impact of sensitivity for both favorable and unfavorable exchange rate of ±₦0.5 will be ₦34,415,810.43 and (₦34,415,810.43)
respectively.
The following are the most significant assumption affecting the ECL allowance:
Corporate Portfolios
I. Crude Oil Prices, given the significant impact on the performance of companies in the oil and gas sector.
II. Exchange rate, given the significant impact on companies’ ability to meet contractual payments denominated in foreign cur-
rency.
III. Inflation, given its significant impact on collateral valuations.
IV. GDP, given its impact on companies’ performance and collateral valuations.
V. Interest rate, given its impact on the ability of companies to meet contractual cashflows on both local and foreign currency
denominated obligations.
Retail Portfolios
I. Inflation, given its significant impact on purchasing power of individual borrowers and ultimately, the capacity to repay obli-
gations.
II. Interest rate, given its impact on the ability of individual borrowers to meet contractual cashflows on both local and foreign
currency denominated obligations.
In sensitising the variables above to determine their impact on Expected Credit Losses (ECL), the Group adjusted its Forward-Looking
Information forecast as follows
• 100 basis points Increase / decrease in GDP growth rate over forecasted GDP growth rate.
• 200 basis points Decrease / Increase in inflation rate over Inflation rate forecast.
• 100 basis points Decrease / 100 basis points Increase in interest rate over Interest rate forecast
• Decrease / Increase in USD/NGN exchange rate by N100 over forecasted exchange rate.
• Increase / Decrease in Crude Oil Price by $12pbl over forecasted Crude Oil Price
Set out below are the changes to the ECL as at 31 December 2023 and 31 December 2022 that would result from the possible
changes in these parameters from the actual assumptions used in the Group’s economic variables assumption.
Group
Dec-2023
In thousands of Nigerian Naira Improvement Worsening
Pre-Tax Post Tax Pre-Tax Post Tax
COMMERCIAL (2,124,370) (1,487,059) 7,961,657 5,573,160
CORPORATE (24,485,684) (17,139,979) (3,907,484) (2,735,239)
PUBLIC SECTOR (800,383) (560,268) 10,951,174 7,665,822
RETAIL (5,658,232) (3,960,762) 37,584,494 26,309,145
SME (1,846,035) (1,292,225) 11,882,831 8,317,982
Parent
Group
Dec-2022
In thousands of Nigerian Naira Improvement Worsening
Pre-Tax Post Tax Pre-Tax Post Tax
COMMERCIAL (2,619,180) (1,833,426) 12,670,757 8,869,530
CORPORATE (6,616,972) (4,631,880) 2,389,460 1,672,622
PUBLIC SECTOR (523,717) (366,602) 359,929 251,950
RETAIL (2,905,863) (2,034,104) 11,489,082 8,042,357
SME (934,715) (654,300) 3,713,155 2,599,208
Parent
196
PAGE
Group
Dec-2023
Financial instruments by currency
– Fair Value through other comprehensive Income 25 891,917,591 531,255,946 192,895,379 32,113,625 - 135,652,641
– Held at amortised cost 25 1,571,317,478 584,421,792 296,375,303 - - 690,520,383
Assets pledged as collateral 26 86,552,701 73,400,983 - - - 13,151,718
Loans and advances to banks 27 66,935 66,904 31 - - -
Loans and advances to customers 28 2,480,183,368 1,098,705,445 1,054,686,650 67,119,541 2,743,195 256,928,537
Restricted deposits and other assets1 33 1,944,380,766 1,830,725,505 66,961,863 19,605 7,490,043 39,183,750
The above table does not give representation of the On-Balance sheet gap of the Group in terms of currency (foreign and local currencies) because non-monetary items in NFI are not
taken into consideration as it falls outside the IFRS 7 disclosure requirement. On the Asset side Property, Plant & Equipment, Intangible Assets and Prepayment are not included while
on the Liability side, Deferred income, Tax payable and Deferred tax and Positions have also been excluded.
FINANCIAL RISK MANAGEMENT
The table below summaries the Group’s financial instruments at carrying amount, categorised by currency:
Group
Dec-2022
Financial instruments by currency
– Fair Value through other comprehensive Income 25 355,684,406 214,324,490 72,469,633 10,009,372 - 58,880,911
– Held at amortised cost 25 863,421,525 564,639,436 96,394,803 - - 202,387,286
Assets pledged as collateral 26 80,909,062 71,657,323 - - - 9,251,739
Loans and advances to banks 27 54,765 54,765 - - - -
Loans and advances to customers 28 1,885,798,639 803,988,794 858,219,421 34,629,135 3,823,222 185,138,067
Restricted deposits and other assets1 33 1,211,806,618 1,080,265,275 72,136,321 22 16,224,602 43,180,398
6,181,471,909 3,328,798,623 2,083,769,223 116,846,622 68,252,673 583,804,768
The above table does not give representation of the On-Balance sheet gap of the Group in terms of currency (foreign and local currencies) because non-monetary items in NFI are not
197
PAGE
198
PAGE
Company
Dec-23
Financial instruments by currency
1
Excludes Deferred Income and impact of non-monetary items in Non-Financial Instruments (NFI)
26,043,503 26,043,503 - - - -
Financial Instrument Gap (26,043,503) (26,043,503) - - - -
1
Excludes prepayments and Stocks
2
Excludes Deferred Income and impact of non-monetary items in Non-Financial Instruments (NFI)
The above table does not give representation of the On-Balance sheet gap of the Group in terms of currency (foreign and local currencies) because non-monetary items in NFI are not
taken into consideration as it falls outside the IFRS 7 disclosure requirement. On the Asset side Property, Plant & Equipment, Intangible Assets and Prepayment are not included while
on the Liability side, Deferred income, Tax payable and Deferred tax and Positions have also been excluded.
OTHER NOTES TO
THE FINANCIAL
STATEMENTS
Guaranty Trust Holding Company manages its capital base to achieve a prudent balance between maintaining capital ratios to support
business growth and depositor confidence and providing competitive returns to shareholders. The Company’s objectives when manag-
ing capital are (i) to comply with the capital requirements set by the regulators (Central Bank of Nigeria and the respective regulatory
authorities in the countries in which the subsidiary banking operations are domiciled) (ii) to safeguard the Group’s ability to continue as
a going concern and (iii) to maintain a sufficient capital base to achieve the current regulatory capital requirement of the Company and
its subsidiaries. The regulatory capital requirement for entities within the Group, as well as the internal target for capital management
are as follows:
The regulatory capital requirement for the holding company according to the issued guideline for licensing and regulation
of Financial Holding Companies in Nigeria:
*The Capital Requirement of Guaranty Trust Holding Company represents the sum of the minimum paid up capital of all its subsidiaries.
The Central Bank of Nigeria (CBN) on 29th August 2014 issued Guidelines for Licensing and Regulation of Financial Holding Compa-
nies in Nigeria (“Guidelines”). According to the Guidelines, a financial holding company shall have a minimum paid up capital which
shall exceed the sum of the minimum paid up capital of all its subsidiaries, as may be prescribed from time to time by the sector regula-
tors. A review of the capital level as at 31 December 2023 shows that Guaranty Trust Holding Company complies with paragraphs 7.1
and 7.3 of the regulation, which stipulates that a financial holding company should maintain a minimum paid up capital which equals/
exceeds the aggregate of the minimum paid up capital of all its subsidiaries having set aside capital in the sum of N23.59bn comprising
of Equity (N14.715mm) and Equity Reserves (N8.87mm) as represented in the table above. Please refer to page 93 for breakdown.
The International Convergence of Capital Measurement and Capital Standards: A Revised Framework, popularly known as the Basel II
Framework was introduced in 2004 as a new set of international standards and best practices that define the minimum capital require-
ments for internationally active banks. The Basel II framework stipulates a minimum level of capital that banks must maintain to ensure
that they can meet their obligations, cover unexpected losses; and can, very importantly, promote public confidence.
Basel II is a three-pronged approach relying on three Pillars -Minimum Capital Requirements (Pillar 1), Supervisory Review Process (Pillar
2) and Market Discipline (Pillar 3).
Pillar 1 Minimum Capital Requirements: It prescribes the capital allocation methodology against the core traditional credit, market
and operational risks to ensure these are adequately measured and that banks have adequate capital to mitigate these risks.
Pillar 2 Supervisory Review: It requires banks to establish a risk management framework to identify, assess and manage major risks
inherent in the institution and allocate adequate capital against those risks. It emphasizes that supervisors should be able to
evaluate the soundness of these assessments.
Pillar 3 Market Discipline: It sets out to encourage market discipline by requiring a number of disclosure requirements in respect of
a bank’s risk exposures, risk assessment process and capital adequacy.
The CBN specifies approaches for quantifying the risk weighted assets for credit, market and operational risk for the purpose of
determining regulatory capital. Although the computations are consistent with the requirements of Pillar 1 Basel II Accord, certain
sections have been adjusted to reflect the peculiarities of the Nigerian environment. In compliance with CBN, the Bank adopted the
Standardized Approach (SA) in determining capital charge for Credit Risk and Market Risk while capital charge for Operational Risk
was determined using the Basic Indicator Approach (BIA).
Pillar 1 focuses mainly on CAR, also known as Capital to Risk (Weighted) Assets Ratio (CRAR). This is the ratio of a bank’s capital to its
risk. CBN requires the minimum requirement of 10% or 15% of Capital to risk weighted assets be maintained by Nigerian banks or
banking groups with regional/national license and international banking license respectively.
Total Capital
-------------------------------------------------------------------------------------------------------------------
(Credit Risk Weighted Assets + Market Risk Weighted Assets + Operational Risk Weighted Assets)
Tier 1 capital includes ordinary share capital, share premium, retained earnings, statutory reserves, and other reserves excluding regu-
latory reserves. Intangible assets and investments in subsidiaries were also deducted from Tier I capital for capital adequacy purposes.
The Bank and its individually regulated operations have complied with all externally imposed capital requirements throughout the year.
There have been no material changes in the Bank’s management of capital during the year.
A fundamental part of the Group’s overall business strategy is its sound capital management practices. It adopts a capital planning
process that ensures that regulatory capital remains within approved ranges or above target levels across economic and business cycles.
The Group is appropriately capitalized under normal and severe scenarios as well as a range of stress events.
Stress-testing models are used to gauge vulnerability of the Group to exceptional yet possible events. The result of stress-testing reveals
the minimum capital requirements of the Group in the event that unforeseen negative events crystallize. The critical objective underpin-
ning the stress-testing exercise is to identify as early as possible, any shortfall in capital requirements of the Group and take corrective
actions which may be direct or indirect.
The Group throughout the review period, operated above its targeted capitalization range and well over the CBN-mandated regulatory
minimum of 16% for Domestic Systemically Important. As at December 31, 2023, the Group’s capital adequacy ratio was 21.94%
(December 31, 2022- 24.08%).
The following table shows the composition of regulatory capital and risk weighted assets for the Group:
Holdco Group
(b) Critical accounting judgements in applying the The present value of the retirement benefit obligations depends
Group’s accounting policies on a number of factors that are determined on an actuarial basis
using a number of assumptions. Any changes in these assump-
Critical accounting judgements made in applying the Group’s tions will impact the carrying amount of pension obligations.
accounting policies include: The assumptions used in determining the net cost (income) for
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
204
OTHER NOTES TO THE FINANCIAL STATEMENTS
pensions include the discount rate. The Group determines the ap- lifetime expected credit losses in accordance with IFRS 9.
propriate discount rate at the end of each year. This is the interest
rate that should be used to determine the present value of esti- This treatment does not give rise to any deductible temporary
mated future cash outflows expected to be required to settle the difference. If the Group had not treated the stage 2 impairment
pension obligations. In determining the appropriate discount rate, as being a collective provision within the context of deferred tax
the Group considers the market yields on Government Bonds of assessment, a deferred tax asset of N4.9bn would not have been
medium duration as compiled by the Debt Management Organi- recognised.
sation that are denominated in the currency in which the benefits
will be paid and that have terms to maturity approximating the
terms of the related pension liability. Other key assumptions for Valuation of equity financial instruments
pension obligations are based in part on current market condi-
tions. The Group’s accounting policy on fair value measurements is dis-
cussed under note 3b (j)(iid).
Impairment of Goodwill The Group measures fair values using the following hierarchy of
methods.
The Group tests annually whether goodwill has suffered any im-
pairment in accordance with the accounting policy in note 3(q). Level 2: Valuation techniques based on observable inputs. This
The recoverable amounts of cash generating units have been de- category includes instruments valued using: quoted market pric-
termined based on value in use calculations. These calculations es in active markets for similar instruments; quoted prices for sim-
require the use of estimates. Goodwill and Goodwill Impairment ilar instruments in markets that are considered less than active; or
testing are shown in note 32(c) below. other valuation techniques where all significant inputs are directly
or indirectly observable from market data.
IFRIC 23 - Uncertain Tax Position Level 3: This includes financial instruments, the valuation of which
incorporate significant inputs for the asset or liability that is not
The tax legislation in relation to the treatment of expected credit based on observable market data (unobservable inputs). Unob-
loss on stage 2 loans is unclear with respect to whether the stage servable inputs are those not readily available in an active market
2 impairment should be treated as specific or collective in the due to market illiquidity or complexity of the product. These in-
assessment of deferred tax. puts are generally determined based on inputs of a similar nature,
historic observations on the level of the input or analytical tech-
The Group has opted to treat these stage 2 expected credit loss niques.
balances as collective in the determination and computation of
deferred taxes because they are assessed as having a less signif-
icant increase in credit risk and their computation was based on
The table below analyses financial instruments measured at fair value at the end of the reporting year, by the level in the fair value
hierarchy into which the fair value measurement is categorised:
All fair values are on a recurring basis. The sensitivity of investments and derivatives to fluctuation in market prices and yields
are disclosed in note 4(i) under market risk above.
Group
Dec-2023
In thousands of Nigerian Naira
Assets Note Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss:
-Debt securities 23 28,066,613 - - 28,066,613
Investment securities:
-Debt securities at FVOCI 25 889,918,578 1,999,013 - 891,917,591
-Equity securities at FVOCI 25 - - 1,694,521 1,694,521
-Equity securities FVTPL 25 - - 3,947,850 3,947,850
Liabilities
Group
Dec-2022
In thousands of Nigerian Naira
Investment securities:
-Debt securities at FVOCI 25 355,684,406 - - 355,684,406
-Equity securities at FVOCI 25 - - 1,665,805 1,665,805
-Investment securities - FVPL Notes 25 - - - -
-Equity securities FVTPL 25 - - 3,904,458 3,904,458
Liabilities
5,642,371 5,570,263 - -
The key elements of the control framework for the valuation of financial instruments include model validation, product implementation
review and independent price verification. These functions are carried out by an appropriately skilled finance team, independent of the
business area responsible for the products.
Model validation covers both qualitative and quantitative elements relating to new models. In respect of new products, model vali-
dation examines the explanatory power of the implemented model, actively monitoring model parameters and comparing in-house
pricing to external sources.
Independent price verification procedures cover financial instruments carried at fair value. The frequency of the review is matched to
the availability of independent data, monthly being the minimum. Valuation differences in breach of established thresholds are escalat-
ed to senior management. The results from independent pricing and valuation reserves are reviewed monthly by senior management.
Where there is limited trading activity in financial instruments, the Group uses valuation models, consensus pricing information from
third party pricing services and quotes to determine an appropriate valuation.
The Group adopted discounted cash flow technique in determining the fair value of the derivative, using observable market data
(Forward rate, discount rate etc.)
Valuation Technique:
The investment valuation policy (IVP) of the Group provides the framework for accounting for the Group’s investment in unquoted
equity securities while also providing a broad valuation guideline to be adopted in valuing them. Furthermore, the IVP details how the
group decides its valuation policies and procedures and analyses changes in fair value measurements from period to period.
IFRS 13 - Fair Value Measurement outlines three approaches for valuing unquoted equity instruments; market approach, the income
approach and the cost approach. The Group estimated the fair value of its investment in each of the unquoted equity securities at the
end of the financial year using the income approach.
The Discounted Cash flow (DCF) technique of the income approach was adopted in valuing each of these equity investments taken
into cognizance the suitability of the model to each equity investment and the available financial information.
The fair value of the other unquoted equity securities was derived using the Discounted Cash Flow technique. The steps involved in
estimating the fair value of the Group’s investment in each of the investees (i.e. unquoted equity securities) are as follows:
Step 1: A five-year forecast of the Free Cash Flow to the Firm (FCFF) for each of the equity investments was made (see (a) below for
the definition, explanation and derivation of FCFF).
Step 2: The yearly FCFF forecasts were discounted to present value using the company’s WACC. (See (b) below for the definition,
explanation and derivation of WACC).
Step 3: The terminal value at year five was estimated by dividing the compounded (with ‘g’) year five FCFF by the capitalization rate
(please see (c) below).
Step 4: The terminal value was discounted to present value using the company’s WACC.
Step 5: The firm value was obtained by adding the present value of the five-year FCFF obtained in step (2) above to the present value
of terminal value obtained in step (4) above.
Step 6: The equity value of the firm was obtained by deducting the value of the debt of the company from the firm value obtained
in step (5) above (i.e. Firm value minus market value of debt = Equity value).
Step 7: The equity value per share was obtained by dividing the Equity value obtained in step (6) above by the number of shares
outstanding in the company.
Step 8: The fair value of the group’s investment in each of the relevant unquoted equity securities was derived by multiplying the
number of the Groups’ shares in the investee by the value per share obtained in step (7) above.
A measure of financial performance that expresses the net amount of cash that is generated for the firm, consisting of expenses, taxes
and changes in net working capital and investments. Free cash flow to the firm is the cash available to all investors, both equity and
debt holders.
This is the average cost of both equity and debt capital used in financing a business.
Where:
D = Value of Debt
E = Equity value
Ke = Cost of equity
Kd = Cost of debt
T = Tax rate
1. The Bank applies Capital Asset Pricing Model in determining the cost of equities for its various unquoted equities which were fair
valued at the reporting period.
2. The risk-free rate was determined using the yield on the 10-year Nigerian Government bond (for unquoted securities denominated
in Naira) of 13.7% and the yield on the 10-year US Government bond (for unquoted securities denominated in US $) of 3.82%.
3. Market premium of 5.94% was adopted based on trend analysis and research of market premiums across the globe by Aswath
Damodaran.
4. Beta = 1
5. Growth rate used is growth rate in earnings between the latest period and prior period.
The movement in equity securities at fair value through OCI during the year is as follows:
The movement in equity securities fair value through profit and loss during the year is as follows:
The Group is eligible to present net on the balance sheet, certain financial assets and liabilities according to criteria described in Note 3
on Offsetting Financial Instruments. For the financial assets and liabilities subject to enforceable master netting arrangements or similar
arrangements above, each agreement between the Group and the counterparty allows for net settlement of the relevant financial
assets and liabilities.
The following financial assets and liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements.
Group
Dec-2023 Gross Gross Net Related Cash Net amount
amounts of amounts amounts amount collateral
Financial set off on presented not set off
Assets/ the on in the SOFP
liabilities SOFP the SOFP
Financial assets
Cash and bank balances (a) 21,175,103 (54,206,215) (33,031,112) - - (33,031,112)
Other Assets (b) 61,921,974 - 61,921,974 - 61,921,974 -
83,097,077 (54,206,215) 28,890,862 - 61,921,974 (33,031,112)
Financial liabilities
Other Liabilities (b) 61,921,974 - 61,921,974 61,921,974 - -
61,921,974 - 61,921,974 61,921,974 - -
Group
Dec-2022
Gross Gross Net Related Cash Net amount
amounts of amounts amounts amount collateral
In thousands of Nigerian Naira Financial set off on presented not set off
Assets/ the on in the SOFP
liabilities SOFP the SOFP
Financial assets
Cash and bank balances (a) 24,413,124 (47,678,227) (23,265,103) - - (23,265,103)
Other Assets (b) 85,334,382 - 85,334,382 - 85,334,382 -
109,747,506 (47,678,227) 62,069,279 - 85,334,382 (23,265,103)
Financial liabilities
Other Liabilities (b) 85,334,382 - 85,334,382 85,334,382 - -
7. Operating segments
The Group has six reportable segments, as described below, which are the Group’s strategic business units. The strategic business units
offer varied products and services and are managed separately based on the Group’s management and internal reporting structure.
For each of the strategic business units, the Executive Management Committee reviews internal management reports on at least a
quarterly basis.
The following summary describes the operations in each of the Group’s reportable segments:
• Corporate banking – Incorporates current accounts, deposits, overdrafts, loans and other credit facilities, foreign cur-
rency and derivative products offered to very large corporate customers and blue chips.
• Commercial banking – Incorporates current accounts, deposits, overdrafts, loans and other credit facilities, foreign currency
and derivative products for mid-size and fledgling corporate customers.
• Business banking – Incorporates current accounts, deposits, overdrafts, loans and other credit facilities, foreign currency and
derivative products for mid-size commercial customers.
• Retail banking – Incorporates private banking services, private customer current accounts, savings deposits, investment sav-
ings products, custody, credit and debit cards, consumer loans and mortgages.
• SME banking – Incorporates current accounts, deposits, overdrafts, loans and other credit facilities, foreign currency and de-
rivative products for small and medium-size enterprises and ventures.
• Public Sector – Incorporates current accounts, deposits, overdrafts, loans and other credit facilities, foreign currency and de-
rivative products for Government Ministries, Departments and Agencies.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit
before income tax, as included in the internal management reports that are reviewed by the Executive Management Committee.
Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the
results of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an
arm’s length basis.
No single external customer accounts for 10% or more of the Group’s revenue.
The measurement policies the Group uses for segment reporting are the same as those used in its financial statements, except that
activities of Staff Investment Trust have not been consolidated in arriving at the operating profit, assets and liabilities of the operating
segment (see note 30(b)). There have been no changes from prior periods in the measurement methods used to determine reported
segment profit or loss.
212
PAGE
Information about operating segments
Group
Dec-2023
In thousands of Nigerian Naira Corporate Retail Business Commercial SME Banking Public Sector Total Continuing Total
Banking Banking Banking Banking Banking Operations
Revenue:
Derived from external customers 720,562,564 302,074,385 14,833,826 64,410,457 62,632,267 21,460,371 1,185,973,868 1,185,973,868
Derived from other business segments (24,938,977) 15,773,585 1,021,060 2,161,314 4,167,417 1,815,602 - -
Total revenue 695,623,587 317,847,970 15,854,886 66,571,771 66,799,684 23,275,973 1,185,973,868 1,185,973,868
Interest expenses (81,890,108) (18,791,745) (876,162) (4,643,851) (3,670,288) (4,186,390) (114,058,543) (114,058,543)
Fee and commission expenses (6,303,152) (4,119,892) (575,104) (1,799,231) (1,783,707) (152,679) (14,733,765) (14,733,765)
Net operating income 607,430,327 294,936,333 14,403,620 60,128,689 61,345,689 18,936,904 1,057,181,560 1,057,181,560
Expense:
Operating expenses (64,737,061) (80,406,305) (7,602,803) (23,544,658) (29,088,947) (5,943,799) (211,323,573) (211,323,573)
Net impairment loss on financial assets (99,041,229) (79,166,817) (1,020,985) (3,510,071) (16,382,005) 1,175,447 (197,945,659) (197,945,659)
Depreciation and amortisation (9,336,061) (15,316,196) (2,091,747) (4,916,774) (6,593,024) (841,642) (39,095,443) (39,095,443)
Total cost (173,114,351) (174,889,318) (10,715,535) (31,971,503) (52,063,976) (5,609,994) (448,364,675) (448,364,675)
Profit after income tax from reportable segments 384,090,914 106,681,136 3,277,458 25,022,201 8,248,299 11,843,109 539,163,117 539,163,117
Total assets 6,510,933,815 2,006,075,843 78,694,479 424,854,379 367,660,633 303,035,529 9,691,254,678 9,691,254,678
Total liabilities (2,182,938,380) (3,914,668,327) (211,139,791) (554,466,474) (903,205,033) (438,306,729) (8,204,724,733) (8,204,724,733)
Net assets/ (liabilities) 4,327,995,435 (1,908,592,484) (132,445,312) (129,612,095) (535,544,400) (135,271,200) 1,486,529,945 1,486,529,945
Additions to Non-Current Assets 12,720,963 20,524,068 2,802,990 6,588,594 8,834,810 1,127,820 52,599,246 52,599,246
Assets:
Loans and advances to customers 2,146,072,930 188,041,365 308,374 68,385,981 25,192,220 52,182,498 2,480,183,368 2,480,183,368
Liabilities:
Deposits from customers 1,483,966,595 3,849,977,171 202,880,420 545,631,907 894,869,484 433,508,614 7,410,834,190 7,410,834,190
Group
Dec-2022
In thousands of Nigerian Naira Corporate Retail Business Commercial SME Banking Public Sector Total Continuing Total
Banking Banking Banking Banking Banking Operations
Revenue:
Derived from external customers 296,246,967 147,009,493 7,298,440 37,535,485 36,949,502 10,501,025 535,540,910 535,540,910
Derived from other business segments (23,901,496) 16,121,606 937,053 2,178,855 4,274,133 389,850 - -
Total revenue 272,345,470 163,131,098 8,235,493 39,714,339 41,223,634 10,890,874 535,540,910 535,540,910
Interest expenses (46,048,001) (10,913,668) (765,667) (3,680,993) (2,363,257) (2,324,950) (66,096,535) (66,096,535)
Fee and commission expenses (3,838,432) (6,627,552) (232,115) (1,211,369) (1,145,612) (100,480) (13,155,560) (13,155,560)
Net operating income 222,459,038 145,589,879 7,237,712 34,821,978 37,714,766 8,465,445 456,288,815 456,288,815
Expense:
Operating expenses (49,400,487) (62,626,846) (5,219,282) (18,774,341) (21,351,729) (5,057,745) (162,430,430) (162,430,430)
Net impairment loss on financial assets (18,821,350) (22,044,640) 571,807 2,120,179 (7,918,923) (1,838,183) (47,931,110) (47,931,110)
Depreciation and amortisation (10,074,483) (11,873,186) (1,542,813) (4,915,802) (6,340,101) (720,784) (35,467,168) (35,467,168)
Total cost (78,296,320) (96,544,672) (6,190,288) (21,569,964) (35,610,753) (7,616,712) (245,828,708) (245,828,708)
Profit before income tax from reportable 144,162,718 49,045,207 1,047,424 13,252,014 2,104,013 848,733 210,460,107 210,460,107
OTHER NOTES TO THE FINANCIAL STATEMENTS
segments
Profit after income tax from reportable 113,476,320 38,470,660 821,591 10,394,771 1,650,370 665,740 165,479,450 165,479,450
segments
Total assets 4,084,038,207 1,360,455,837 64,259,527 421,526,636 346,307,342 169,868,879 6,446,456,429 6,446,456,429
Total liabilities (1,856,983,296) (2,522,004,873) (131,760,361) (401,496,801) (570,309,983) (26,429,800) (5,508,985,114) (5,508,985,114)
Net assets/ (liabilities) 2,227,054,911 (1,161,549,036) (67,500,834) 20,029,835 (224,002,641) 143,439,079 937,471,315 937,471,315
Additions to Non-Current Assets 8,813,907 10,593,556 1,376,537 4,386,002 5,656,797 643,102 31,469,901 31,469,901
Assets:
Loans and advances to customers 1,455,589,672 190,143,704 11,143,191 99,941,742 55,038,484 73,941,846 1,885,798,639 1,885,798,639
Liabilities:
Deposits from customers 807,633,820 2,570,560,016 132,242,567 378,215,775 573,040,055 23,421,747 4,485,113,979 4,485,113,979
213
PAGE
Others 924,120,289 (48,555,143) (482,205) 23,281,028 (2,730,072) 3,008,051 898,641,948 898,641,948
Revenue
Group Group
Dec-2023 Dec-2022
Group Group
Dec-2023 Dec-2022
Public SME
SME Sector Public Sector
Commercial Commercial 1.0% 0.4%
1.9% 2.2%
3.3% 6.3%
Business Business
0.6% 0.5%
Retail Retail
24.1% 23.3%
Corporate
68.5%
Corporate
69.4%
Assets
Group Group
Dec-2023 Dec-2022
Retail Corporate
21.1% 63.4%
Corporate
67.2%
Liabilities
Group Group
Dec-2023 Dec-2022
Retail
47.7% Retail
45.8%
Reconciliation of reportable segment revenues, operating expenses, profit or loss and assets and liabilities
Reconciliation of revenues
Continuing Operations:
Continuing Operations:
Total operating expense from reportable segments 211,323,573 162,430,430 1,656,071 1,692,737
Operating expense from continuing operations 211,323,573 162,430,430 1,656,071 1,692,737
Total profit or loss for reportable segments 608,816,884 210,460,107 107,983,548 88,605,108
Consolidation and adjustments:
- Other operating income 491,558 3,693,987 - -
Profit before income tax from continuing 609,308,442 214,154,094 107,983,548 88,605,108
operations
Reconciliation of assets
Group Group Company Company
In thousands of Nigerian Naira Dec-2023 Dec-2022 Dec-2023 Dec-2022
Continuing Operations:
Reconciliation of liabilities
Group Group Company Company
In thousands of Nigerian Naira Dec-2023 Dec-2022 Dec-2023 Dec-2022
Continuing Operations:
218
PAGE
The Group operates in four geographic regions, being:
· Nigeria
· Rest of West Africa (comprising Ghana, Gambia, Sierra Leone, Liberia, Cote D'Ivoire)
· East Africa (comprising Kenya, Uganda, Rwanda and Tanzania)
· Europe (UK )
Dec-2023
Rest of West East Total Continuing
In thousands of Nigerian Naira Nigeria Africa Africa Europe Operations Total
Derived from external customers 936,134,277 187,968,742 35,526,642 26,835,764 1,186,465,425 1,186,465,425
Derived from other segments - - - - - -
Total Revenue 936,134,277 187,968,742 35,526,642 26,835,764 1,186,465,425 1,186,465,425
Interest expense (79,895,544) (24,678,594) (5,733,128) (3,751,277) (114,058,543) (114,058,543)
Fee and commission expenses (6,266,951) (6,516,338) (1,950,476) - (14,733,765) (14,733,765)
Net interest margin 849,971,782 156,773,810 27,843,038 23,084,487 1,057,673,117 1,057,673,117
Derived from external customers 401,951,870 102,139,685 24,808,639 10,334,703 539,234,897 539,234,897
Derived from other segments - - - - - -
Total Revenue 401,951,870 102,139,685 24,808,639 10,334,703 539,234,897 539,234,897
Interest expense (48,258,519) (12,370,306) (4,600,098) (867,612) (66,096,535) (66,096,535)
Fee and commission expenses (8,286,686) (3,520,409) (1,348,465) - (13,155,560) (13,155,560)
Net interest margin 345,406,665 86,248,970 18,860,076 9,467,091 459,982,802 459,982,802
Profit before income tax 182,248,420 26,269,306 7,220,661 (1,584,293) 214,154,094 214,154,094
Dec-2022
220
PAGE
Accounting classification measurement basis and fair values
The table below sets out the Group’s classification of each class of financial assets and liabilities and their fair values.
Group
Dec-2023
1
Excludes prepayments and stocks
2
Excludes Deferred Income and Provision for Litigations
1,2&3
it is assumed that fair value approximates the carrying amount
Group
Dec-2022
Note Fair value Held at Fair value Other financial Total Level 1 Level 2 Level 3 Total
through ammortised through other assets / carrying amount Fair value
profit cost comprehensive liabilities
or loss income at amortised
cost
221
PAGE
Company
222
PAGE
Dec-2023
Note Held at Fair value Other financial Total Level 1 Level 2 Level 3 Total
Fair value ammortised through assets / liabil- carrying amount Fair value
through cost other ities
profit comprehen- at amortised
or loss sive cost
income
In thousands of Nigerian Naira
Note Held at Fair value Other financial Total Level 1 Level 2 Level 3 Total
Fair value ammortised through assets / liabil- carrying Fair value
through cost other ities amount
profit comprehen- at amortised
or loss sive cost
income
In thousands of Nigerian Naira
Financial instruments at fair value (including those FVTPL and FVOCI) are either priced with reference to a quoted market price for that
instrument or by using a valuation model. Where the fair value is calculated using a valuation model, the methodology is to calculate
the expected cash flows under the terms of each specific contract and then discount these values back to present value. The expected
cash flows for each contract are determined either directly by reference to actual cash flows implicit in observable market prices or
through modelling cash flows using appropriate financial markets pricing models. Wherever possible these models use as their basis
observable market prices and rates including, for example, interest rate yield curves and prices.
9. Interest income
Geographical location
10 Interest expense
Geographical location
102,953,282 11,986,545 - -
Credit related fees and commissions are loans and advances related fees that are not integral part of effective interest.
1
15 Other income
1
This relates to unrealised gain
2
This relates to dividend received from GTBank Nigeria for onward distribution to equity holders subject to appropriate deduction
of withholding tax. The withholding tax is deemed to be the final tax payment, the income being franked investment income in the
hands of the Holding Company. As such the Profit before tax of the company would be adjusted for this dividend and for the pur-
pose of CIT Computation.
17 Personnel expenses
This relates to estimated gains at the point of exit of employees from the share based scheme, it is calculated as the difference between the
Cost and expected Market price of the underlying shares purchased by employee at the point of exit discounted to present value. This is in line
with IFRS 2 as these estimated gains are deemed to be directly attributable to the fact that employee within the Scheme provides services to the
Bank. The estimated gain resulted from the operation of cash settled payment by the Group. The Group operates a cash-settled share based
compensation plan (share appreciation rights (SARs)) and profit-sharing scheme (PSS) for its management personnel from the Administrative
fee which the Scheme receives for the management of the employee shares held by SIT. The management personnel are entitled to share ap-
preciation rights after spending ten years in the Bank while PSS is paid on a deferred basis. Qualified employees must have been in the scheme
for five years and must have held the shares for at least three years. The amount of cash payment is determined based on the fair value of the
shares of the Bank. The details of SARs granted at the reporting date are provided below:
In thousands Number of shares
SARs granted to senior management employees at 31 December 2023 343,649
SARs granted to senior management employees at 31 December 2022 282,874
Group Group
In thousands of Nigerian Naira Note Dec-2023 Dec-2022
Total carrying amount of liabilities for cash-settled 37 9,401,874 6,322,112
arrangements
(i) The average number of persons employed during the year was as follows:
(ii) The average number of persons in employment during the year is shown below:
(iii) Average number of employees other than directors, earning more than N720,000 per annum, received emoluments (excluding
pension contributions and certain benefits) in the following ranges:
Group Group Company Company
Dec-2023 Dec-2022 Dec-2023 Dec-2022
Number Number Number Number
N720,001 - N1,400,000 847 774 - -
N1,400,001 - N2,050,000 386 340 - -
N2,190,001 - N2,330,000 105 108 - -
N2,330,001 - N2,840,000 13 577 - -
N2,840,001 - N3,000,000 56 56 - -
N3,001,001 - N3,830,000 460 134 - -
N3,830,001 - N4,530,000 97 1,458 - -
N4,530,001 - N5,930,000 1,889 126 8 16
N6,000,001 - N6,800,000 99 424 - -
N6,800,001 - N7,300,000 19 11 1 -
N7,300,001 - N7,800,000 191 197 - 10
N7,800,001 - N8,600,000 366 279 - -
N8,600,001 - N11,800,000 316 471 18 18
Above N11,800,000 641 235 17 15
5,485 5,190 44 59
1
Auditor’s remuneration represents fees for the interim and full year audits of the Group and Company for the year ended 31 December
2023.The Company also paid the auditors professional fees for non-audit services. These services, in the Company’s opinion, did not
impair the independence and objectivity of the external auditor. Non- audit services provided during the year are stated below:
Name of Signer FRC Number Name of Firm Services Rendered Amount
Anthony Oputa FRC/2013/ICAN/00000000980 EY RRP Validation N6,500,000
Anthony Oputa FRC/2013/ICAN/00000000980 EY ICFR Certification N35,000,000
2
This relates to diesel, fuel, and electricity cost as well as ground rates and water cost
3
Outsourcing services relates to salaries paid to outsourced contract staff
4
Inclusive of Administrative fee due to SIT for management of the shares held by the Scheme.
1
Non-deductible expense include depreciation, stage 1 impairment, non-allowable donations ,etc
2
Tax exempt income include FX translation gains, Dividends, Interest earned on FGN bonds etc
3
This relates to tax impact of aligning National Information Technology Development Levy (NITDEF) as a deductible expense for tax
computation purpose.
Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the company by the weighted average
number of ordinary shares in issue during the year, excluding the average number of ordinary shares purchased by the company and
held as treasury shares.
The calculation of basic earnings per share for the reporting period was based on the profit atttributable to ordinary shareholders of
N534,425,317,000 (Company: N106,401,876,000) and a weighted average number of ordinary shares outstanding of 28,022,000,000
(after adjusting for Treasury shares) for the Group and 29,431,179,000 for the Company.
Net profit attributable to equity holders of the 534,425,317 166,736,803 106,401,876 88,605,108
Company
Net profit used to determine diluted earnings 534,425,317 166,736,803 106,401,876 88,605,108
per share
Weighted average number of ordinary shares in issue 28,022,000 28,022,000 29,431,179 29,431,179
Basic earnings per share (expressed in naira per share) 19.07 5.95 3.62 3.01
The Group does not have any dilutive potential ordinary shares. Therefore, Basic EPS and Diluted EPS are the same for the Group.
Expected credit losses on Balances held with other banks and Unrestricted balances with Central banks are assessed as immaterial
and classified in Stage 1.
25-April-2024 1,184 - - -
23-May-2024 7,459 - - -
06-June-2024 19,384 - - -
13-June-2024 4,689 - - -
27-June-2024 423,284 - - -
11-July-2024 5,569 - - -
25-July-2024 4,248 - - -
06-August-2024 481 - - -
22-August-2024 64,584 - - -
05-September-2024 15,701 - - -
12-September-2024 1,055,956 - - -
26-September-2024 22,292 - - -
10-October-2024 3,247,376 - - -
24-October-2024 17,288 - - -
07-November-2024 861,223 - - -
21-November-2024 1,792,827 - - -
05-December-2024 6,384 - - -
12-December-2024 3,881 - - -
Non-Nigerian treasury bills - 3,011,969 - -
7,791,115 108,489,239 - -
(a) Group
Dec-2023
In thousands of Nigerian Naira Notional Contract Fair Value Fair Value
Amount Assets Liability
Group
Dec-2022
In thousands of Nigerian Naira Notional Contract Fair Value Fair Value
Amount Assets Liability
Additionally the Group offers its customers derivatives in connection with their risk management objectives to transfer or reduce
market risk (commodity price) for their own trading purpose. The hedge transaction with the customer is backed by visible trade
transaction. The foreign currency forward and option contracts are subject to the same risk management policies. The Group’s foreign
exchange derivatives do not qualify for hedge accounting; therefore all gains and losses from changes in their fair values are recognised
immediately in the income statement and are reported in ‘Net gains/(losses) on financial instruments at fair value through profit or loss’.
.
25 Investment securities
(a) (i)
Group Group Company Company
In thousands of Nigerian Naira Dec-2023 Dec-2022 Dec-2023 Dec-2022
5,642,371 5,570,263 - -
1
Unified Payment Services Limited was formerly known as Valucard Nigeria Plc
Except for African Finance Corporation (AFC) designated as FVPL, all other equity investments are designated at FVOCI.
The Group received dividend income of N157,508,000 (Dec 2022: N192,400,000) from the equity investments designated at FVOCI
during the year.
Kindly refer to Note 6e for the movement in the value of equity securities at fair value during the year.
.
(b) Assets pledged as collateral for both periods relate to assets pledged to Federal Inland Revenue Service (FIRS), Nigerian Interbank
Settlement System (NIBSS), Interswitch Nigeria Limited, Unified payment Services Ltd and Bank of Industries Limited for collections
and other transactions. The Group is required to pledge the funds in order to have continuous access to the collection and set-
tlement platforms, as well as the underlying transactions. There are no readily determinable associated liabilities to these pledged
assets.
.
Dec-2023
Group
Impairment Impairment on Impairment Total allowance
on Stage 1 Stage2 - Life on Stage 3 - for impairment
- 12 Months Time ECL Not Non Perform-
In thousands of Nigerian Naira ECL Credit Impaired ing Loans
92 - 88,000 88,092
Dec-2022
Group
Impairment Impairment on Impairment Total allowance
on Stage 1 Stage2 - Life on Stage 3 - for impairment
- 12 Months Time ECL Not Non Perform-
In thousands of Nigerian Naira ECL Credit Impaired ing Loans
- - 74,672 74,672
242
PAGE
Group
Dec-2023 Loans Overdrafts Others Total
Impair- Impair- Impair- Total Impair- Impair- Impair- Total Impair- Impairment Impairment Total Impairment Impairment Impair- Total
ment on ment on ment on allowance ment on ment on ment on allowance ment on on Stage on Stage allowance on Stage 1 on Stage ment on allowance
Stage Stage Stage for im- Stage 1 - Stage Stage 3 for impair- Stage 1 - 2 - Life 3 - Non for impair- - 12 Months 2 - Life Stage for im-
1 - 12 2 - Life 3 - Non pairment 12 Months 2 - Life - Non Per- ment 12 Months Time ECL Performing ment ECL Time ECL 3 - Non pairment
Months Time ECL Performing ECL Time ECL forming ECL Not Credit Loans Not Credit Performing
In thousands of ECL Not Credit Loans Not Credit Loans Impaired Impaired Loans
Nigerian Naira Impaired Impaired
Group
Loans to individuals:
Loans 307,512,525 241,389,561 - -
Overdrafts 48,079,050 33,160,066 - -
Others1 145,499 119,836 - -
Gross loans 355,737,074 274,669,463 - -
Loans (2,745,902) (1,175,663) - -
Overdrafts (971,967) (253,055) - -
Others1 - - - -
Impairment on Stage 1 - 12 Months ECL (3,717,869) (1,428,718) - -
Loans (145,553) (71,925) - -
Overdrafts (119,274) (93,364) - -
Others1 - - - -
Impairment on Stage 2 - Life Time ECL Not Credit (264,827) (165,289) - -
Impaired
Loans (2,819,650) (13,071,548) - -
Overdrafts (424,567) (10,330,965) - -
Others1 - - - -
Impairment on Stage 3 - Non Performing Loans (3,244,217) (23,402,513) - -
Loans (5,711,105) (14,319,136) - -
Overdrafts (1,515,808) (10,677,384) - -
Others1 - - - -
Total impairment (7,226,913) (24,996,520) - -
Loans 301,801,420 227,070,425 - -
Overdrafts 46,563,242 22,482,682 - -
Others1 145,499 119,836 - -
Carrying amount 348,510,161 249,672,943 - -
Loans to Non-individuals:
Loans 2,041,901,031 1,464,020,686 - -
Overdrafts 186,127,413 184,933,409 - -
Others1 30,704,276 48,689,202 - -
Gross loans 2,258,732,720 1,697,643,297 - -
Loans (10,737,209) (3,965,138) - -
Overdrafts (5,243,323) (2,524,114) - -
Others 1
(338,653) (1,173,601) - -
Impairment on Stage 1 - 12 Months ECL (16,319,185) (7,662,853) - -
Loans (49,316,062) (18,430,610) - -
Overdrafts (1,272,182) (4,021,154) - -
Others 1
- - - -
Impairment on Stage 2 - Life Time ECL Not Credit (50,588,244) (22,451,764) - -
Impaired
Loans (41,599,307) (24,439,836) - -
Overdrafts (18,552,777) (6,961,881) - -
Others1 - (1,267) - -
Impairment on Stage 3 - Non Performing Loans (60,152,084) (31,402,984) - -
1
Others include Usances and Usances Settlement
Dec-2023
Group
Impairment Impairment on Impairment
on Stage 1 Stage2 - Life on Stage 3 -
- 12 Months Time ECL Not Non Perform- Total allowance
In thousands of Nigerian Naira ECL Credit Impaired ing Loans for impairment
Dec-2022
Group
Impairment Impairment on Impairment Total allowance
on Stage 1 Stage2 - Life on Stage 3 - for impairment
- 12 Months Time ECL Not Non Perform-
In thousands of Nigerian Naira ECL Credit Impaired ing Loans
246
PAGE
Group
Dec-2023 Loans Overdrafts Others Total
Impair- Impairment Impairment Total Impair- Impair- Impairment Total Impair- Impairment Impairment Total Impair- Impairment Impairment Total al-
ment on on Stage on Stage allowance for ment on ment on on Stage allowance ment on on Stage on Stage allowance ment on on Stage on Stage lowance for
Stage 1 - 2 - Life 3 - Non impairment Stage 1 - Stage 3 - Non for impair- Stage 2 - Life 3 - Non for im- Stage 1 - 2 - Life 3 - Non impairment
12 Months Time ECL Performing 12 Months 2 - Life Performing ment 1 - 12 Time ECL Performing pairment 12 Months Time ECL Performing
In thousands ECL Not Credit Loans ECL Time ECL Loans Months Not Credit Loans ECL Not Credit Loans
of Nigerian Impaired Not Credit ECL Impaired Impaired
Naira Impaired
Balance at 1 1,175,663 71,925 13,071,548 14,319,135 253,055 93,364 10,330,965 10,677,384 - - - - 1,428,718 165,289 23,402,513 24,996,520
January
Foreign cur- 208,861 64,885 755,542 1,029,288 73,931 53,171 113,765 240,867 - - - - 282,792 118,056 869,307 1,270,155
rency transla-
tion and other
adjustments
Impairment 1,361,378 8,743 (11,007,440) (9,637,319) 644,981 (27,261) (10,020,163) (9,402,443) - - - - 2,006,359 (18,518) (21,027,603) (19,039,762)
allowances for
the year
Balance, end 2,745,902 145,553 2,819,650 5,711,104 971,967 119,274 424,567 1,515,808 - - - - 3,717,869 264,827 3,244,217 7,226,913
of year
Impair- Impair- Impair- Total Impair- Impair- Impair- Total Impair- Impairment Impairment Total Impairment Impairment Impair- Total
ment on ment on ment on allowance ment on ment on ment on allowance ment on on Stage on Stage allow- on Stage 1 on Stage ment on allowance
Stage Stage Stage for impair- Stage 1 - Stage Stage for impair- Stage 1 - 2 - Life 3 - Non ance for - 12 Months 2 - Life Stage for impair-
1 - 12 2 - Life 3 - Non ment 12 Months 2 - Life 3 - Non ment 12 Months Time ECL Performing impair- ECL Time ECL 3 - Non ment
Months Time ECL Performing ECL Time ECL Performing ECL Not Credit Loans ment Not Credit Performing
In thousands of ECL Not Credit Loans Not Credit Loans Impaired Impaired Loans
Nigerian Naira Impaired Impaired
Balance at 1 741,327 14,645 5,541,566 6,297,537 466,263 216,199 9,023,896 9,706,359 - - - - 1,207,590 230,844 14,565,462 16,003,896
January
Foreign currency 46,384 (10,080) 6,995 43,299 9,984 (13,085) 5,529 2,428 - - - - 56,368 (23,165) 12,524 45,727
translation and
other adjust-
ments
Impairment 875,648 23,197 7,601,752 8,500,597 (710,888) (65,587) 1,616,915 840,440 - - - - 164,760 (42,390) 9,218,667 9,341,037
allowances for
the year
Recovery (487,696) 44,163 (44,627) (488,160) 487,696 (44,163) (288,395) 155,138 - - - - - - (333,022) (333,022)
Balance, end 1,175,663 71,925 13,071,548 14,319,136 253,055 93,364 10,330,965 10,677,384 - - - - 1,428,718 165,289 23,402,513 24,996,520
of year
OTHER NOTES TO THE FINANCIAL STATEMENTS
248
PAGE
Group
Dec-2023 Loans Overdrafts Others Total
Impair- Impairment Impairment Total Impair- Impair- Impair- Total Impair- Impairment Impairment Total Impair- Impairment Impairment Total al-
ment on on Stage on Stage allowance for ment on ment on ment on allowance ment on on Stage on Stage allowance ment on on Stage on Stage lowance for
Stage 1 - 2 - Life 3 - Non impairment Stage 1 - Stage Stage for impair- Stage 2 - Life 3 - Non for im- Stage 1 - 2 - Life 3 - Non impairment
12 Months Time ECL Performing 12 Months 2 - Life 3 - Non ment 1 - 12 Time ECL Performing pairment 12 Months Time ECL Performing
In thousands ECL Not Credit Loans ECL Time ECL Perform- Months Not Credit Loans ECL Not Credit Loans
of Nigerian Impaired Not Credit ing Loans ECL Impaired Impaired
Naira Impaired
Balance at 1 3,965,138 18,430,610 24,439,836 46,835,584 2,524,114 4,021,154 6,961,881 1,173,601 - 1,267 1,174,868 7,662,853 22,451,764 31,402,984 61,517,601
January 13,507,149
Foreign curren- 497,300 (650,202) 71,344,043 71,191,141 242,847 (16,773) 1,244,182 1,470,256 15,685 - - 15,685 755,832 (666,975) 72,588,225 72,677,082
cy translation
and other
adjustments
Impairment 6,274,771 66,954,487 32,862,382 106,091,640 2,476,362 (2,732,199) 16,995,721 16,739,884 (850,633) - (1,267) (851,900) 7,900,500 64,222,288 49,856,836 121,979,624
allowances for
the year
Balance, end 10,737,209 49,316,062 41,599,307 101,652,578 5,243,323 1,272,182 18,552,777 25,068,282 338,653 - - 338,653 16,319,185 50,588,244 60,152,084 127,059,513
of year
Impair- Impair- Impair- Total Impair- Impair- Impair- Total Impair- Impairment Impairment Total Impairment Impairment Impair- Total
ment on ment on ment on allowance ment on ment on ment on allowance ment on on Stage on Stage allow- on Stage 1 on Stage ment on allowance
Stage Stage Stage for impair- Stage 1 - Stage Stage for impair- Stage 1 - 2 - Life 3 - Non ance for - 12 Months 2 - Life Stage for impair-
1 - 12 2 - Life 3 - Non ment 12 Months 2 - Life 3 - Non ment 12 Months Time ECL Performing impair- ECL Time ECL 3 - Non ment
Months Time ECL Performing ECL Time ECL Performing ECL Not Credit Loans ment Not Credit Performing
In thousands of ECL Not Credit Loans Not Credit Loans Impaired Impaired Loans
Nigerian Naira Impaired Impaired
Balance at 1 3,755,380 17,327,334 35,008,540 56,091,254 2,755,291 853,508 7,917,498 11,526,297 83,024 104 - 83,128 6,593,695 18,180,946 42,926,038 67,700,679
January
Foreign currency (319,110) (514,810) (499,305) (1,333,225) (203,142) (112,320) (259,210) (574,672) (94,452) - (47) (94,499) (616,704) (627,130) (758,562) (2,002,396)
translation and
other adjust-
ments
Impairment 528,868 1,618,086 (4,788,817) (2,641,863) (28,035) 3,279,966 776,737 4,028,668 1,185,029 (104) 1,582 1,186,507 1,685,862 4,897,948 (4,010,498) 2,573,312
allowances for
the year
Financial assets - - (5,171,506) (5,171,506) - - (1,473,144) (1,473,144) - - (268) (268) - - (6,644,918) (6,644,918)
derecognised
Balance, end 3,965,138 18,430,610 24,439,836 46,835,584 2,524,114 4,021,154 6,961,881 13,507,149 1,173,601 - 1,267 1,174,868 7,662,853 22,451,764 31,402,984 61,517,601
of year
OTHER NOTES TO THE FINANCIAL STATEMENTS
29 Investment in subsidiaries
Dec-2023 Dec-2022
% ownership % ownership
GTB Gambia 77.81 77.81
GTB Sierra Leone 83.74 83.74
GTB Ghana 98.32 98.32
GTB UK Limited 100.00 100.00
GTB Liberia Limited 99.43 99.43
GTB Cote D'Ivoire Limited 100.00 100.00
GTB Kenya Limited 76.90 71.01
GTB Tanzania 76.20 76.20
(a) (ii) The movement in investment in subsidiaries during the year is as follows:
Company Company
In thousands of Nigerian Naira Dec-2023 Dec-2022
(a) (iii) We have taken cognisance of the inflationary environment in Ghana and Sierra Leone which was also alluded to by Inter-
national Monetary Fund (IMF). In line with IAS 29, we would have been required to account for the HyperInflation in these countries.
However, based on our impact assessement on the 2 Subsidiaries, we have not adjusted for the impact of IAS 29 as it does not mate-
rially affect the Consolidated Financial Statements of the Group.
Operating income 753,095,390 84,418,632 11,638,682 20,344,184 13,930,671 20,334,756 25,769,903 1,792,212 22,993,072 4,765,918 2,984,801 2,083,609 491,553
Operating expenses
(183,990,845) (17,210,050) (5,046,045) (7,170,429) (4,890,521) (4,990,489) (11,474,637) (1,702,367) (11,612,591) (2,423,420) (857,381) (1,081,544) -
Loan impairment
charges (96,492,914) (1,338,180) (838,429) (2,998,900) (76,036) (536,913) (556,276) (115,633) - - - - -
Profit before tax 472,611,631 65,870,402 5,754,208 10,174,855 8,964,114 14,807,354 13,738,990 (25,788) 11,380,481 2,342,498 2,127,420 1,002,065 491,553
Taxation (34,279,504) (23,127,442) (1,515,445) (867,595) (2,422,939) (705,749) (3,675,573) (9,070) (346,165) (169,731) (391,346) (561,541) -
Profit after tax 438,332,127 42,742,960 4,238,763 9,307,260 6,541,175 14,101,605 10,063,417 (34,858) 11,034,316 2,172,767 1,736,074 440,524 491,553
Condensed financial
OTHER NOTES TO THE FINANCIAL STATEMENTS
position
Dec-2023 West Africa Subsidiaries East Africa Subsidiaries United Non-Banking Subsidiaries
Kingdom
GT Bank GT Bank GT Bank Si- GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank UK Habari Pay Asset Man- Pension Staff In-
In thousands of Nigerian Nigeria Ghana erra Leone Liberia Gambia Cote D'Ivo- Kenya Tanzania Ltd agement Fund vestment
Naira ire Group Trust
Assets
Cash and bank balances 1,600,954,303 236,302,190 29,686,366 72,118,873 41,460,013 22,091,058 102,692,150 12,999,125 284,347,233 3,969,845 66,559,485 7,859,424 5,975,293
Loans and advances to 66,935 - - - - - - - - - - - -
banks
Loans and advances to 2,034,513,828 136,709,553 8,676,788 84,952,666 23,135,992 35,730,243 83,516,626 6,228,477 66,719,196 - - - -
customers
Financial assets at fair val- 19,103,705 4,649,878 - - - - - - - - - 4,313,031 -
ue through profit or loss
252
PAGE
– Fair Value through 586,454,091 - - - 69,722,888 22,984 65,930,055 - 175,429,944 - 451,890 - 57,071,751
other comprehensive
Income
– Held at amortised cost 534,564,450 421,185,148 67,095,059 70,709,225 44,290,809 208,971,330 87,179,637 2,902,841 - - 134,418,979 - -
Derivative financial 28,961,143 - - - - - - - - - - - -
assets
Investment in subsid- 62,538,955 - - - - - - - - - - - -
iaries
Assets pledged as 73,400,983 11,974,997 - - - - 1,176,721 - - - - - -
collateral
Restricted deposits and 1,822,886,075 22,069,352 4,229,803 13,615,721 841,913 10,433,433 8,807,455 905,432 13,792,765 2,507,614 351,785 -
other assets 128,923,314
Property and equipment 172,453,464 11,076,484 2,326,487 8,890,535 5,702,243 8,336,300 7,490,793 2,971,752 3,691,623 84,767 367 475,687 -
Intangible assets 12,006,377 320,034 136,679 385,522 182,208 66,635 457,027 224,588 - 165,999 - 42,708 -
Deferred tax assets - 12,726,265 989,965 - - - 3,410,870 - 1,097,013 - 61,742 - -
Total assets 6,947,904,309 857,013,901 113,141,147 250,672,542 185,336,066 285,651,983 360,661,334 26,232,215 545,077,774 6,728,226 330,415,777 13,042,635 63,047,044
Financed by:
Deposits from banks 7,645,080 - - - - 49,091,378 139,711 - 250,544,386 - - - -
6,947,904,309 857,013,901 113,141,147 250,672,542 185,336,066 285,651,983 360,661,334 26,232,215 545,077,774 6,728,226 330,469,965 13,042,635 63,047,044
OTHER NOTES TO THE FINANCIAL STATEMENTS
Condensed cash flow
Dec-2023 West Africa Subsidiaries East Africa Subsidiaries United Non-Banking Subsidiaries
Kingdom
GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank UK Habari Asset Man- Pension Staff
In thousands of Nigerian Nigeria Ghana Sierra Leone Liberia Gambia Cote D'Ivoire Kenya Tanzania Pay Ltd agement Fund Investment
Naira Group Trust
Net cash flow:
- from operating activities 225,872,523 337,907,489 26,477,463 39,356,388 26,291,733 60,928,374 74,936,950 3,224,942 641,508 132,914,743 (3,000,014) 27,686,026
(177,118,970)
- from investing activities (358,345,419) (257,328,054) (24,287,507) (12,941,471) (18,159,684) (57,522,110) (47,708,158) 353,949 (52,217,482) (10,446) (16,251) (134,917,754) (24,169,080)
- from financing activities (159,964,009) - - - - - (1,645,474) - - - - - -
Increase in cash and cash (292,436,905) 80,579,435 2,189,956 26,414,917 8,132,049 3,406,264 25,583,318 3,578,891 (229,336,452 631,062 132,898,492 (137,917,768) 3,516,946
equivalents
Cash balance, beginning 1,140,424,271 95,748,106 16,012,503 22,414,132 18,111,893 9,806,647 48,297,811 5,129,128 245,790,439 3,338,783 68,177,716 11,260,469 2,458,347
of year
Effect of exchange 506,144,967 41,580,365 11,550,016 24,052,124 15,225,567 8,878,147 28,807,032 4,291,105 267,893,245 - - - -
OTHER NOTES TO THE FINANCIAL STATEMENTS
difference
Cash balance, end of year 1,354,132,333 217,907,906 29,752,475 72,881,173 41,469,509 22,091,058 102,688,161 12,999,124 284,347,232 3,969,845 201,076,208 (126,657,299) 5,975,293
Condensed results of the consolidated entities of the GT Bank Kenya Group as at 31 Dec 2023, are as follows:
Assets
Cash and bank balances 28,194,132 16,686,170 57,811,848
Loans and advances to customers 37,998,415 13,870,404 31,647,807
Investment securities:
– Fair Value through other comprehensive 65,930,055 - -
Income
– Held at amortised cost 16,219,773 23,976,596 46,983,268
Assets pledged as collateral - 1,176,721 -
Restricted deposits and other assets 3,411,154 2,466,835 2,929,466
Investment in subsidiaries 19,619,414 - -
Property and equipment 2,542,436 1,537,096 3,411,261
Intangible assets 120,036 130,330 192,245
Deferred tax assets 1,044,456 1,656,612 709,802
Total assets 175,079,871 61,500,764 143,685,697
Financed by:
Deposits from banks 107,913 31,798 -
Deposits from customers 108,812,937 45,892,233 106,359,976
Other liabilities 7,296,385 1,832,243 6,416,045
Current income tax liabilities - - 2,525,032
Other borrowed funds - - 416,877
Deferred tax liabilities - - -
Total liabilities 116,217,235 47,756,274 115,717,930
Equity and reserve 58,862,636 13,744,490 27,967,767
Dec-2022 West Africa Subsidiaries East Africa Subsidiaries United Non-Banking Subsidiaries
Kingdom
GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank Habari Asset Pension Staff In-
Nigeria Ghana Sierra Leone Liberia Gambia Cote Kenya Tanzania UK Pay Manage- Fund vestment
In thousands of Nigerian Naira D'Ivoire Group ment Trust
Profit/(loss) before tax 180,628,262 10,234,511 2,676,237 2,946,786 4,417,100 5,994,671 7,352,172 (131,511) (1,611,553) 944,744 286,209 797,232 1,193,984
Taxation (35,332,051) (4,074,649) (680,204) (736,160) (1,192,618) (24,095) (2,826,320) (6,349) - (108,210) - - -
Profit/(loss) after tax 145,296,211 6,159,862 1,996,033 2,210,626 3,224,482 5,970,576 4,525,852 (137,860) (1,611,553) 836,534 286,209 797,232 1,193,984
OTHER NOTES TO THE FINANCIAL STATEMENTS
256
PAGE
Dec-2022 West Africa Subsidiaries East Africa Subsidiaries United Non-Banking Subsidiaries
Kingdom
GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank Ken- GT Bank GT Bank Habari Asset Pension Staff In-
Nigeria Ghana Sierra Liberia Gambia Cote D'Ivoire ya Group Tanzania UK Pay Manage- Fund vestment
In thousands of Nigerian Naira Leone ment Trust
Condensed financial position
Assets
Cash and bank balances 1,158,889,194 95,748,106 16,012,503 22,414,132 18,111,893 9,806,647 48,297,811 5,129,128 245,790,439 3,338,783 68,177,716 11,260,469 2,458,347
Loans and advances to banks 54,765 - - - - - - - - - - - -
Loans and advances to customers 1,577,191,692 109,043,588 8,718,469 50,411,953 11,060,033 14,317,420 76,128,396 4,413,493 34,513,596 - - - -
Derivative financial assets 33,913,351 - - - - - - - - - - - -
Financial assets at fair value 121,100,236 7,682,139 - - - - - - - - - - -
through profit or loss
Investment securities:
– Fair Value through other com- 242,427,005 119,400 - - 11,256 31,686,945 - 59,935,442 - 354,144 -
prehensive Income 27,074,621 32,411,118
– Held at amortised cost 564,639,326 114,738,004 24,647,911 27,429,714 18,381,700 73,975,626 37,759,960 1,849,279 - - 2 - -
Investment in subsidiaries 57,595,367 - - - - - - - - - - - -
Dec-2022 West Africa Subsidiaries East Africa Subsidiaries United Non-Banking Subsidiaries
Kingdom
GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank Habari Asset Man- Pension Staff In-
Nigeria Ghana Sierra Leone Liberia Gambia Cote D'Ivo- Kenya Tanzania UK Pay agement Fund vestment
In thousands of Nigerian Naira ire Group Trust
Increase in cash and cash 531,608,222 72,727,195 2,730,974 3,076,519 (3,610,398) 4,155,773 5,318,975 1,075,798 52,813,787 238,783 68,531,862 10,906,323 (646,128)
equivalents
Cash balance, beginning of year 567,906,781 71,032,403 24,340,450 19,690,275 23,661,006 5,614,176 45,036,392 3,892,604 203,573,820 - - - 3,104,475
Effect of exchange difference 40,909,268 (16,116,231) (8,453,672) 946,039 (1,938,715) 36,698 (890,587) 160,727 (10,597,168) - - - -
Cash balance, end of year 1,140,424,271 127,643,367 18,617,752 23,712,833 18,111,893 9,806,647 49,464,780 5,129,129 245,790,439 238,783 68,531,862 10,906,323 2,458,347
Condensed results of the consolidated entities of the GT Bank Kenya Group as at 31 December 2022, are as follows:
Assets
Cash and cash equivalents 17,692,309 9,204,398 21,401,104
Loans and advances to customers 49,348,205 9,299,333 17,480,858
Investment securities:
– Fair Value through other comprehensive Income 31,686,945 - -
– Held at amortised cost 8,895,495 10,589,544 18,274,921
Assets pledged as collateral - 715,512 -
Other assets 1,698,206 764,777 1,437,112
Investment in subsidiaries 12,646,261 - -
Property and equipment 819,879 630,688 1,909,556
Intangible assets 189,657 133,745 160,067
Deferred tax assets 660,106 862,309 266,540
Total assets 123,637,063 32,200,306 60,930,158
Financed by:
Deposits from banks 8,633 11,196 -
Deposits from customers 83,763,924 24,792,250 46,418,694
Current income tax liabilities 553,114 - 972,060
Other liabilities 1,274,571 714,279 1,597,078
Deferred tax liabilities - - -
Other borrowed funds - - 302,451
Total liabilities 85,600,242 25,517,725 49,290,283
Equity and reserve 38,036,821 6,682,581 11,639,875
Cost
Leasehold Capital
improvement Furniture & work-in
In thousands of Nigerian Naira and buildings1 ROU Assets3 equipment Motor vehicle - progress2 Total
1
Of this amount as at December 2023, Leasehold improvement accounts for N39,020,140,000 (23.11%) while Buildings accounts for N129,825,122,000 (76.89%).
2
Capital work in progess refers to capital expenditure incurred on items of Property and Equipment which are however not ready for use and as such are not being depreciated.
3
Aircraft is now reported as part of ROU Assets, Other items reported as part of ROU Assets include Land and Prepaid Rent on Land and Building.
260
PAGE
Group
Accumulated Depreciation
Leasehold Capital
improvement Furniture & work-in
In thousands of Nigerian Naira and buildings ROU Assets equipment Motor vehicle - progress Total
Carrying amounts:
Balance at 31 December 2023 125,662,076 37,385,669 43,461,934 6,716,375 11,072,598 224,298,652
Balance at 31 December 2022 110,605,458 36,044,823 36,429,643 4,222,485 10,558,075 197,860,484
OTHER NOTES TO THE FINANCIAL STATEMENTS
Property and equipment and Right of use assets (continued)
(b) Company
Cost
Leasehold Capital
improvement Furniture & work-in
In thousands of Nigerian Naira and buildings ROU Assets equipment Motor vehicle - progress1 Total
1
Capital work in progess refers to capital expenditure incurred on items of Property and Equipment which are however not ready for use and as such are not being depreciated.
Carrying amounts:
Balance at 31 December 2023 143,290 435,383 219,597 - - 798,270
Balance at 31 December 2022 147,756 442,116 304,052 - - 893,924
31 Intangible assets
(a) Group
Carrying amounts:
For the purpose of impairment testing, goodwill acquired through business combinations is allocated to each of the cash-generating
units or groups of cash-generating units that is expected to benefit from the synergies of the combination.
No impairment loss on goodwill was recognised for the period ended 31 Dec 2023 (31 December 2022: nil).
The recoverable amounts for the CGUs have been determined based on value-in-use calculations, using cash flow projections covering
a five-year period and appropriate discount rates.
The cash flow projections are based on future cash flows and the 5-year business plan appropriately approved by senior management.
Cash flows to perpetuity were estimated using a 10-year average growth of GDP in the countries where the subsidiaries operate; 2.56
per cent in West Africa and 5.51 in East Africa and 2.03 in Nigeria. The constant growth rates are based on the long- term forecast of
GTBank’s growth in the countries in which the CGU’s operate centred on past performance, current industry trend and management’s
expectations of market development. The forecast period is based on the Group’s medium to long term perspective with respect to
the operations of these units.
For each of the CGUs to which the goodwill was allocated, the key assumptions used in Value-in-use calculations are as follows:
In the East Africa Region, the recoverable amount was determined based on value-in-use calculations which was determined by mak-
ing cash flow projections to be generated by the segments in the region and then discounting these cashflows to present value using
a weighted discount rate of 32.56% derived using the CAPM approach. It would require over ₦112million reduction in the recoverable
amount of the most vulnerable CGU (East Africa – Commercial) before goodwill allocated to the identified CGU can be assumed im-
paired. In other words, a 44 basis point increase in the discount factor will make the recoverable amount of the Commercial segment
in the East African region equal to its carrying amount.
Long Term Growth Rate (%) 15%- 20% 15%- 20% 15%- 20%
Discount Rate (%) 46.97% 46.97% 46.97%
Long Term Growth Rate (%) 5%- 10% 5%- 10% 5%- 10% 20%-25% 35%- 40%
Discount Rate (%) 32.56% 32.56% 32.56% 23.76% 29.90%
Long Term Growth Rate (%) 15%- 20% 15%- 20% 15%- 20%
Discount Rate (%) 32.83% 32.83% 32.83%
Long Term Growth Rate (%) 5%- 10% 5%- 10% 5%- 10% 20%-25% 35%- 40%
Discount Rate (%) 24.01% 24.01% 24.01% 23.50% 23.50%
The key assumptions described above may change as economic and market conditions change. The Group estimates that reasonably
possible changes in these assumptions are not expected to cause the recoverable amount of the subsidiaries (from which the good-
will arose) to decline below their carrying amount.
Group
Deferred tax assets
Dec-2023
Assets Liabilities Net Income OCI
statement
In thousands of Nigerian Naira
(i) Restricted deposits with central banks comprises of restricted deposits with central banks not available for use in the Group’s
day-to-day operations. The GTBank Nigeria had restricted balances of N1,646,348,063,000 with the Central Bank of Nigeria
(CBN) as at 31 December 2023 (December 2022: N1,014,245,226,000). This balance is CBN cash reserve requirement. The cash
reserve ratio represents a mandatory total Naira deposits which should be held with the Central Bank of Nigeria as a regulatory
requirement.
(ii) This represents contribution to Agri-Business/Small and Medium Enterprises Investment Scheme aimed at supporting the Fed-
eral Government’s effort at promoting agricultural businesses as well as Small and Medium Enterprises. It is an initiative of the
Bankers’ Committee in which Banks are required to set aside 5% of their Profit After Tax for investment in qualified players.
The fund is domiciled with the Central Bank of Nigeria..
(iii) This relates to Prepaid fixed asset and other prepaid expenses
(iv) Movement in impairment of other financial assets:
Retail customers:
Term deposits 517,940,937 252,157,525 - -
Current deposits 1,280,221,534 721,052,622 - -
Savings 2,120,455,235 1,437,056,768 - -
Corporate customers:
Term deposits 328,145,811 327,038,228 - -
Current deposits 3,164,070,673 1,747,808,836 - -
7,410,834,190 4,485,113,979 - -
37 Other liabilities
Cash settled share based payment liability (Note 37(c)) 9,401,874 6,322,112 - -
Lease liabilities (Note 37(f)) 11,417,411 3,947,540 - -
Liability for defined contribution obligations (Note 37(a)) 1,240,914 561,312 - -
Deferred income on financial guarantee contracts 543,253 154,017 - -
Litigation claims provision (Note 37(d)) 9,333,463 233,111 - -
Certified cheques 11,248,125 8,946,161 - -
Provision for restoration cost 306,396 283,371 - -
Customers' deposit for foreign trade (Note 37(b)) 118,438,562 232,781,567 - -
Customers' escrow balances 79,863,107 351,415,347 - -
Account payables 102,152,375 48,144,197 16,433,941 25,993,503
Creditors and agency services 82,405,798 68,106,556 50,000 50,000
Customers deposit for shares of other Corporates 959,328 964,483 - -
Impairment on contingents (Note 37(e)) 66,015,319 3,042,428 - -
493,325,925 724,902,202 16,483,941 26,043,503
(a) The Group and its employees each contribute a minimum of 10% and 8% respectively of basic salary, housing and transport
allowance to each employee’s retirement savings account maintained with their nominated pension fund administrators.
(b) This represents the Naira value of foreign currencies held on behalf of customers in various foreign accounts to cover letters
of credit transactions. Of the sum of N118,438,562,000 reported, the sum of N62,556,044,000 represents customers cash
collateral balances with the corresponding balance included in Foreign Banks - Cash Collateral in other assets. The balance of
N55,882,518,000 represents customer’s FEM balances.
(c) Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
Dec-2023 Dec-2022
Average Average
Exercise Price Share Rights Exercise Price Share Rights
Per Share (thousands) Per Share (thousands)
At 1 January 22.54 282,874 27.94 328,036
Granted 41.64 80,261 18.30 20,217
Exercised 25.54 (19,487) 24.38 (65,379)
The total unit of shares of the scheme stood at 1,409,179,046 as at December 2023 (Dec 2022: 1,409,179,046), out of which
343,648,725 (Dec 2022: 282,874,315) have been granted. Out of the 343,648,725 Share Appreciation Right (SARs) granted as at
December 2023 (Dec 2022: 282,874,315 SARs ), 223,416,981.88 SARs (Dec 2022: 224,415,600.75) have met the vesting criteria.
SARs exercised in 2023 resulted in 19,486,705 shares (Dec 2022: 65,379,127) being granted at a weighted average price of N25.54
each (Dec 2022: N24.38 each)
The fair value of SAR was determined using a multi-factor model which entails using average share price for vested shares and multiple
combination of 18.18% probability of exits, number of employees years in the scheme and in the organization for non-vested shares.
As at 31st December 2023, the impact of the SAR on the statement of financial position of the Group stood at N9,401,873,740 (Dec
2022: N6,322,111,652). .
The Share Appreciation Right is a cash settled share based compensation scheme managed by a Special Purpose Vehicle (SPV) - Guaran-
ty Trust Bank Staff Investment Trust. The scheme was introduced as a compensation plan for the bank’s qualifying personnel to enhance
employee retention, by offering the shares acquired by the SPV to qualifying members of staff at the prevailing net book value of the
bank. Under the terms of the plan, the shares vest only if a member has spent 10 years in the bank, 5 years in the scheme and the
purchased shares are up to 3 years old from the date of purchase. Upon exit if a member meets vesting conditions, the shares would
be repurchased from the staff by the scheme.
The liability for the SARs is measured, initially and at the end of each reporting period until settled, at the fair value of the SARs, by
applying an option pricing model, taking into account the terms and conditions on which the SARs were granted, and the extent to
which the employees have rendered services to date. The expected life used in the model has been adjusted based on management’s
best estimate for the effects of exercise restrictions (including the probability of meeting market conditions attached to the option),
and behavioural considerations. Expected volatility is based on the historical share price volatility over the past 3 years.
As at 31st December 2022, the impact of the SAR on the statement of financial position of the Group stood at N9,401,873,740 (Dec
2022:N6,322,111,652). Of this amount, the liability on vested but unexercised SARs was N6,153,715,005 (Dec 2022:N5,119,902,768)
Share options outstanding at the end of the period have the following expiry date and exercise prices:
Exercise price Share options (thousands of Naira)
Grant-Vest Dec-2023 Dec-2022 Dec-2023 Dec-2022
2004-2009 27.43 23.00 3,403,631 2,278,513
2004-2017 27.25 23.00 506,519 197,503
2005-2010 27.51 22.91 156,559 126,962
2020-2025 - 22.87 - 236,890
2006-2011 27.44 22.82 296,607 209,071
2006-2014 27.39 22.47 127,542 91,224
2007-2012 27.54 22.87 73,578 61,080
2007-2013 27.36 22.89 178,456 103,536
2007-2014 27.46 22.64 167,459 138,033
2007-2015 27.34 22.68 119,533 66,981
2007-2016 27.51 22.73 97,875 80,863
2008-2013 27.48 22.73 75,470 60,219
2008-2014 27.54 23.00 15,484 12,929
2008-2015 27.34 22.08 36,280 24,882
2008-2017 27.20 22.09 91,194 44,331
2009-2014 27.54 23.00 27,933 23,325
2009-2015 27.46 22.62 75,070 57,308
2019-2024 - 23.00 - 51,546
2010-2015 27.39 22.58 546,487 367,103
2010-2016 27.37 22.52 81,477 56,300
2010-2017 27.29 22.15 70,084 34,330
2010-2018 27.22 22.18 155,151 70,961
2010-2019 27.47 22.70 75,816 54,040
2011-2016 22.58 24.66 367,103 484,903
2011-2018 22.52 24.59 56,300 61,471
2011-2019 22.15 24.52 34,330 99,424
2011-2020 22.18 24.01 70,961 72,028
2012-2017 22.70 24.42 54,040 58,144
2012-2018 27.37 22.27 473,358 357,214
Movement in provision for litigation claims during the year ended is as follows:
Group Group Company Company
In thousands of Nigerian Naira Dec-2023 Dec-2022 Dec-2023 Dec-2022
Opening Balance 233,111 267,621 - -
Increase/(reversal) during the year ended 9,100,352 (34,510) - -
Write off 9,333,463 233,111 - -
Closing Balance 233,111 267,621 - -
This relates to provision on pending cases that the Company is currently involved in. Please refer to Note 42 for more information.
Timing of resulting outflows of economic resources with respect to the provision can not readily be determined.
(f) The Group leases a number of properties to serve as its branch outlets.
The Group and Company has applied 13.72% as the weighted average incremental borrowing rate to lease liability on transition date.
The present value of finance lease liabilities is as follows:
In thousands of Nigerian Naira Group Group Company Company
Dec-2023 Dec-2022 Dec-2023 Dec-2022
Less than 3 months 28,768 8,205 - -
3-6 months 34,320 80,240 - -
6-12 months 156,656 162,250 - -
1-5years 1,194,073 257,452 - -
More than 5 years 10,003,594 3,439,393 - -
11,417,411 3,947,540 - -
The period of future economic outflows of the lease liabilities is analysed below:
In thousands of Nigerian Naira Group Group Company Company
Dec-2023 Dec-2022 Dec-2023 Dec-2022
Less than 3 months 29,078 8,267 - -
3-6 months 34,851 81,444 - -
6-12 months 161,503 167,118 - -
1-5years 1,389,206 296,070 - -
More than 5 years 13,273,128 4,471,211 - -
14,887,766 5,024,110 - -
The Group operates a non-contributory, funded lump sum defined benefit gratuity scheme. Employees are automatically admitted
into the scheme after completing 10 consecutive years of service with the Bank. Employees’ terminal benefits are calculated based
on number of years of continuous service, limited to a maximum of 10 years. The defined benefit obligation valuation was carried
out by Alexander Forbes Consulting Actuaries with FRC Number: FRC/2012/0000000000504.
The report was sign by Management Partner Wayne van Jaarsveld with FRC Number: FRC/2021/002/00000024507.
.
(a) The amounts recognised in the statement of financial position are as follows:
In thousands of Nigerian Naira Group Group Company Company
Dec-2023 Dec-2022 Dec-2023 Dec-2022
The Company has a right to the surplus on its plan assets. The defined benefit scheme is not open to asset ceiling, therefore, there is
no need to determine any difference between net defined benefit asset and asset ceiling.
Recognised asset for defined benefit obligations is included within Restricted deposits and other assets in note 33.
1
Net (Expense) / Income recognised in Profit and Loss is analysed below:
In thousands of Nigerian Naira Group Group Company Company
Dec-2023 Dec-2022 Dec-2023 Dec-2022
Interest income on Net defined benefit obligationa
2,441,679 2,163,674 - -
Current service costs (49,363) (33,368) - -
2,392,316 2,130,306 - -
2
Remeasurements recognised in Other Comprehensive income is analysed below:
In thousands of Nigerian Naira Group Group Company Company
Dec-2023 Dec-2022 Dec-2023 Dec-2022
Return on plan assets, excluding amounts 5,787,657 (1,022,641) - -
included in interest expense/income
Loss due to experience variance (60,028) (324,768) - -
Gain due to economic assumptions 351,303 84,717 - -
Loss from change in demographic assumptions (456,361) (139,529) - -
5,622,571 (1,402,221) - -
Group
In thousands of Nigerian Naira Dec-2023 Dec-2022
The defined benefit plan assets are under the management of Pension Fund Custodians - Crusader Sterling Pension Limited
The N4,099,185,000 equity investments of the scheme includes the Group’s ordinary shares with a fair value of N3,679,893,950
(Dec 2022: N1,817,231,580 ). Additionally, out of the cash and bank balances of N20,860,127,000 an amount with a fair value of
Zero balance (Dec 2022:N4,779,945,000) represents deposit with the Group.
Expected contributions to post-employment benefit plans for the year ending 31 December 2023 are N187,085,000 (December
2022: N95,070,000) while gratuity payments are estimated to be N187,085,000 (December 2022: N95,070,000)
(d) Defined benefit cost for the year ended Dec 2024 is expected to be as follows:
Company Company
Dec-2024 Dec-2023
Net Interest on Net benefit assets 4,343,461 2,559,324
Current service cost (46,998) (29,739)
Income/(Expense) recognised in profit or loss 4,296,463 2,529,585
Components of net interest on defined benefit liability for the year ended December 2024 is estimated to be as follows:
Company Company
Dec-2024 Dec-2023
Interest income on assets 4,655,078 2,682,923
Interest cost on defined benefit obligation (311,617) (123,599)
Total net interest income 4,343,461 2,559,324
Plan assets are valued at current market value. The expected return on plan assets is determined by considering the expected returns
available on the assets underlying the current investment policy. Expected yields on fixed interest investments are based on gross
redemption yields as at the date of the consolidated statement of financial position. Expected returns on equity reflect long-term real
rates of return experienced in the respective markets.
Actual return on plan asset is made up of expected return on plan assets and actuarial gains / losses.
1
The actuarial loss on obligation arose from the following:
In thousands of Nigerian Naira Group Group Company Company
Dec-2023 Dec-2022 Dec-2023 Dec-2022
Experience variance 60,028 324,768 - -
Change in economic assumptions (351,303) (84,717) - -
Change in demographic assumptions 456,361 139,529 - -
165,086 379,580 - -
2023 2022
Assumptions regarding future mortality before retirement are based on A1967/70 ultimate table published by the Institute of Actuaries
of United Kingdom.
The overall expected long-term rate of return on assets is 17.9%. The expected long-term rate of return is based on the portfolio as a
wholeand not on the sum of the returns on individual asset categories. The return is based entirely on current market yields on Nigerian
Government Bonds. The component of the rate of remuneration increase based on seniority and promotion is an average of 4.2% p.a.
The inflation component has been worked out at 17.2% per annum.
For members in active service as at the valuation date, the projected unit credit method of valuation as required under the IFRS has
been adopted.
(h) Reasonably possible changes at the reporting date of discount rate, salary increase rate and mortality rate would have affected
the defined benefit obligation by the amounts shown below:
Group
Dec-2022
In thousands of Nigerian Naira Impact on defined benefit obligation
Change in Defined benefit obligation
Assumption Increase Decrease
Discount rate 1.00% (1,677,763) 880,452
Salary increase rate 1.00% 1,926,613 (770,982)
Mortality rate 1 year 1,792,078 (823,459)
Group
Dec-2022
In thousands of Nigerian Naira Impact on defined benefit obligation
Change in Defined benefit obligation
Assumption Increase Decrease
Discount rate 1.00% (779,685) 927,617
Salary increase rate 1.00% 886,422 (803,888)
Mortality rate 1 year 828,056 (862,992)
In practice, changing an actuarial assumption while holding other assumptions constant is unlikely to occur as changes in some of
the assumptions may be correlated.
Present value of the defined benefit obligation 16,619 13,011 98,850 29,823,167 29,951,647
16,619 13,011 98,850 29,823,167 29,951,647
Asset volatility
Post employment benefit obligations are calculated using a discount rate determined with reference to market yields on high quality
bonds. The Group ensures that the plan assets do not underperform this yield. This is achieved through maintaining an efficient port-
folio of investments in plan assets significantly made up of high quality equities and government securities. Consequently, the yield
on the Group’s plan assets has consistently outperformed interest cost on plan obligations. The Group also ensures that as tenured
investments in plan assets mature, they are replaced with top quality investments which better match the liabilities.
Overall, the Group’s defined benefit investment strategy aims at reducing investment risks while maintaining the right mix of invest-
ments in high quality equities, debt and near cash instruments void of impairment threats. The choice of investment in equities stems
from the long term nature of the Group’s defined benefit plan and expected maturity of the plan’s liabilities.
Inflation risk
We believe this is less a material risk given the accretion to the Group’s plan assets arising from continuous contribution to the plan
and improved yield. Growth in inflation, all other things being equal, should lead to increased basic salaries (which is an important
determinant of the Group’s defined benefit liability) and consequently higher plan liabilities. This growth in liabilities should be offset
with increased plan assets.
i). The amount of N4,624,108,000 (December 2022: N11,120,233,000) represents the outstanding balance on the wholesale fund-
ing granted to the Company for the refinancing/restructuring of SME/Manufacturing loan portfolio under the Small and Medium
Enterprise Refinancing and Restructuring Fund and to fastrack the development of power projects and aviation sector so as to
improve power supply, under the Power and Airline Intervention Fund ( PAIF). The SMERRF and PAIF are administered at an all-in
interest rate /charge of 7% per annum payable on a quarterly basis. The BOI is entitled to 1% management fee payable quarterly
by the Company. The Loans have a maximum life of 15 years and/or working capital facility of one year with the provision for roll
over subject to a maximum tenor of 5 years. The tenor of the facilities as at the end of the period range between 5 years to 13
years. The facility was repriced from 2% to 1% while the loan was repriced from maximum rate of 9% to 5% due to forbearance
granted by the CBN as aresult of COVID 19 Pandemic..
ii). The amount of N2,159,052,000 (December 2022: N5,052,263,000) represents the outstanding balance on the on-lending fa-
cilities granted to the Company by the Central Bank of Nigeria in collaboration with the Federal Government of Nigeria (FGN)
under the Commercial Agriculture Credit Scheme (CACS). The FGN is represented by the Federal Ministry of Agriculture and
Rural Development‘(FMARD) who has the aim of providing concessionary funding for agriculture so as to promote commercial
agricultural enterprises in Nigeria. The Facility is for a period of 7 years at 2% p.a cost to the Company. The maximum interest
rate to the borrowers under the Scheme is 9% p.a inclusive of all charges. The facility was repriced from 2% to 1% while the
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
278
OTHER NOTES TO THE FINANCIAL STATEMENTS
loan was repriced from maximum rate of 9% to 5% due to forbearance granted by the CBN as aresult of COVID 19 Pandemic.
iii). The amount of N846,000 (December 2022: N1,743,000) represents the outstanding balance on the on lending facility granted
by the Central Bank of Nigeria targeted at the growth and development of the Micro, Small and Medium Scale sub sector of the
economy by providing single digit low interest rate funds. The facility is granted at an interest rate of 2% to the Company. The
maximum rate, inclusive of all charges, to the eligible MSMEs is 9% p.a. and the tenor of the facility ranges from 1 to 3 years
depending on the type of enterprise. The facility was repriced from 2% to 1% while the loan was repriced from maximum rate
of 9% to 5% due to forbearance granted by the CBN as aresult of COVID 19 Pandemic.
.
iv). The amount of N12,526,250,000 (December 2022: N12,928,726,000) represents the outstanding balance on the concessionary
loans granted by the Central Bank of Nigeria to State Governments for the execution of developmental and infrastructure proj-
ects. The facility is secured by the balance due to State Governments from the Excess Crude Account. The facility is priced at 2%
p.a payable on a monthly basis. The loan is granted to the States at 9% p.a inclusive of all charges. The principal is repayable
monthly from the Federal Account Allocation Committee(FAAC) allocation of those States as a first line charge upon the issuance
of an Irrevocable Standing Payment Order(ISPO) by those States. The tenor of ‘the facility is 20 years. The facility was repriced
from 2% to 1% while the loan was repriced from maximum rate of 9% to 5% due to forbearance granted by the CBN as aresult
of COVID 19 Pandemic.
v). The amount of N10,017,685,000 (December 2022: N15,471,274,000) represents the outstanding balance on the Real Sector
Support Facility (RSSF). The Facility is given by the Central Bank of Nigeria to support large enterprises for startups and expansion
financing needs. The real sector activities targeted by the facility are manufacturing, agricultural value chain and selected service
sub-sectors. The Facility is administered at an all-in Interest rate/charge of 9% per annum payable on quarterly basis. The facility
was repriced from 2% to 1% while the loan was repriced from maximum rate of 9% to 5% due to forbearance granted by the
CBN as aresult of COVID 19 Pandemic.
vi). The Shared Agent Network Facility (SANEF) is an intervention fund under the MSME Development Fund to provide ten (10) year
loans to CBN Licensed and pre-qualified Mobile Money and Super- Agent operators for the purposes of rolling out of a Shared
Agent Network. The objective of the Shared Agent Network is to deepen financial inclusion in the country with the offering of
basic financial services such as Cash-in, Cash-out, Funds, Bills Payments, Airtime Purchase, Government disbursements as well
as remote enrollment on BMS infrastructure (BVN). The facility is for 10 years inclusive of a 2-year moratorium on principal and
1- year moratorium on Interest. The facility is disbursed at a single digit, all-inclusive interest rate of 5% per annum.The facility
was repriced from 2% to 1% while the loan was repriced from maximum rate of 9% to 5% due to forbearance granted by the
CBN as aresult of COVID 19 Pandemic..
vii). The Non Oil Export Stimulation Facility (NESF) was introduced by the Central Bank of Nigeria (CBN) to diversify the revenue base
of the economy and promote growth of the non-oil export sector. The facility is granted at an all-inclusive interest rate of 9%
p.a. payable on a quarterly basis. NESF can have a tenor of up to 10 years not exceeding 31st December, 2027 and the principal
amount is repayable quarterly over the tenure of the facility. The facility was repriced from 2% to 1% while the loan was repriced
from maximum rate of 9% to 5% due to forbearance granted by the CBN as aresult of COVID 19 Pandemic..
viii). Due to Anchor Borrowers’ fund is an initiative of the Central Bank of Nigeria broadly aimed to create economic linkages between
small holder farmers and reputable anchor companies involved in the production and processing of key agricultural commodities
with a view to increase agricultural output, reduce food import bills and create jobs. The tenor of the facility depends on the
gestation period of the targeted commodity but not exceeding 2 years. The facility is disbursed at an all-inclusive interest rate of
9%. The facility was repriced from 2% to 1% while the loan was repriced from maximum rate of 9% to 5% due to forbearance
granted by the CBN as aresult of COVID 19 Pandemic..
ix). The Economic Recovery Fund (ERF) was introduced by the Government of Rwanda with the objective of supporting the recovery
of businesses adversely affected by COVID-19 so that the businesses can survive, resume operations, safeguard employment and
expand domestic production of essential goods..
x). The amount of N971,551 (December 2022: N1,720,834) represents the outstanding balance on the on-lending facility granted
by the Central Bank of Nigeria relative to Private sector led accelerated agriculture development scheme(P-AADS). This is a CBN
initiative aimed at empowering 370,000 youths in the agricultural sector.. This was introduced to complement AADS, which was
implemented initially to address food security and youth unemployment. The maximum amount per obligor has been affixed
at N2billion. The facility will berepaid from economics of production for cultivating on the cleared farm land. Collateral to be
pledged will be the cleared farm land and any other acceptable type of collateral under the scheme. Based on the underlying
forbearance given by the Apex bank on all intervention funds, Interest rate on the facility will run at 5% from 1st March 2021
until 28th February 2022 and thereafter, the interest rate will revert to 9%. Interest payment to CBN will be at 1%, this will revert
to 2% in 2022. The tenor of the facility will range within 5 years.
39b Reconciliation of Financial Liabilities
Group
Dec-2023
In thousands of Nigerian Naira Long term borrowings
Opening Balance 126,528,105
Cash inflow - Principal 416,877
Cash outflow - Principal (54,480,987)
Cash outflow - Interest (3,040,194)
Effect of exchange rate fluctuation 166,772
Other non-cash1 2,528,912
Closing Balance 72,119,485
Group
Dec-2022
In thousands of Nigerian Naira Long term borrowings
Opening Balance 153,897,499
Cash inflow - Principal 80,936,133
Cash outflow - Principal (110,254,797)
Cash outflow - Interest 890,405
Effect of exchange rate fluctuation 673,771
Other non-cash1 385,094
Closing Balance 126,528,105
Income tax relating to Net change in fair value of available for 3,054,132 (3,327,810) - -
sale financial assets
Fair value adjustment 7,410,176 (7,764,889) - -
Pre acquisition Investment Securities - 1,520,662 - -
Impairment charges on investment securities (4,570,063) (36,232,780) - -
purchase of investment securities 3,867,163,867 2,956,849,807 - -
Recognised in cash flow statement 2,948,382,151 2,776,379,502 - -
Share capital
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at meetings of the
Group. All ordinary shares and GDR shares rank pari-passu with the same rights and benefits at meetings of the Group.
28,076,330,837 ordinary shares (Non-GDR) of 50k each (31 14,038,166 14,036,428 14,038,166 14,036,428
December 2022: 28,072,885,687 )
1,354,848,387 ordinary shares (GDR) of 50k each (31 De- 677,424 679,162 677,424 679,162
cember 2022: 1,358,323,537)
14,715,590 14,715,590 14,715,590 14,715,590
The movement on the value of issued and fully paid-up share capital (Non GDR and GDR) account during the year ended was as fol-
lows:
Share capital
Movement in the components of share capital for the Group is as shown below:
Share premium
Share premium is the excess paid by shareholders over the nominal value for their shares.
The other regulatory reserve includes movements in the statutory reserves, the small and medium enterprises equity investment reserve
and Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS).
(i) Statutory Reserves: Nigerian banking regulations require the Bank to make an annual appropriation to a statutory reserve. As
stipulated by S.16(1) of the Banks and Other Financial Institution Act of 1991 (amended), an appropriation of 30% of profit after
tax is made if the statutory reserve is less than paid-up share capital and 15% of profit after tax if the statutory reserve is greater
than the paid up share capital. In the current year, the Company appropriated N83,756,951,000 representing 15% of its profit
after tax to statutory reserves. Total statutory reserves was N487,807,671,000 at the end of the year.
(ii) Small and medium enterprises equity investment reserve (SMEEIS): The SMEEIS reserve is maintained to comply with the
Central Bank of Nigeria (CBN) requirement that all licensed banks set aside a portion of the profit after tax in a fund to be used to
finance equity investment in qualifying small and medium scale enterprises. Under the terms of the guideline (amended by CBN
letter dated 11 July 2006), the contributions will be 10% of profit after tax and shall continue after the first 5 years but banks’
contributions shall thereafter reduce to 5% of profit after tax. However, this requirement is no longer mandatory. The small and
medium scale industries equityinvestment scheme reserves are non-distributable. Total SMEEIS reserves was N4,232,478,000 at
the end of the year..
(iii) Treasury shares: Treasury shares in the sum of N8,125,998,000 (31 December 2022:N8,125,998,000) represents the Compa-
ny’s shares held by the Staff Investment Trust as at 31 December 2023
(iv) Fair value reserve: The fair value reserve includes the net cumulative change in the fair value of fair value through other com-
prehensive income investments until the investment is derecognised or impaired.
(v) Equity reserve: The Equity reserve was created during the year to comply with Section 7.1 of BOFIA which stipulates that Finan-
cial Holding Company should maintain a minimum paid up capital which equals/exceeds the aggregate of the minimum paid up
capital of all its subsidiaries.
(vi) Regulatory risk reserve: The regulatory risk reserves warehouses the difference between the impairment balance on loans and
advances as determined in accordance with the provisions of Prudential guidelines of Central Bank of Nigeria when compared
with the assessment in line with the requirement of IFRS 9 Expected credit loss model. The key component of CBN Prudential
Guidelines (PG) is the setting aside of additional 2% provision on all performing loans assessed under the PG. This 2% provision
is not required under IFRS 9. Therefore it has been recognised in Regulatory Risk Reserve. The Group’s total balance in Regulatory
Risk Reserve is N75,085,447,000.
(vii) Retained earnings: Retained earnings are the carried forward recognised income net of expenses plus current year profit attrib-
utable to shareholders.
29,486,321 19,145,075
(ix) Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS): The AGSMEIS is maintained to support the
Federal Government’s effort at promoting Agricultural businesses and Small and Medium Enterprises. Effective 2017 all Deposit
Money Banks (DMBs) are required to set aside 5% of their Profit After Tax for equity investment in permissible activities as stip-
ulated in the scheme guidelines. The fund is domiciled with CBN.
Group
Dec-2023
In thousands of Nigerian Naira Statutory SMEEIS Re- AGSMEIS Total
Reserves serves Reserves
Group
Dec-2022
In thousands of Nigerian Naira Statutory SMEEIS Re- AGSMEIS Total
Reserves serves Reserves
41. Dividends
The following dividends were declared and paid by the Group during the year :
1
This relates to the dividend declared for 2023 and 2022 financial year.
Subsequent to the balance sheet date, the Board of directors proposed a Final dividend of 270k per share (Dec 2022: 280k per share)
on the issued ordinary shares of 29,431,179,224 of 50k each. .
The following dividend per share were declared by the group during the year :
Group Group Company Company
In thousands of Nigerian Naira Dec-2023 Dec-2022 Dec-2023 Dec-2022
42 Contingencies
The Group, in its ordinary course of business, is presently involved in 1060 cases as a defendant (31 December 2022: 943) and 486 as
a plaintiff (31 December 2022: 483). The total amount claimed in the 1064 cases against the Bank is estimated at N599.2 Billion and
$92.07 Million (31 December 2022: N609.5 Billion and $103.16 Million) while the total amount claimed in the 486 cases instituted
by the Group is N236.58 Billion (31 December 2022: N109.73 Billion). However, the solicitors of the Group are of the view that the
probable liability which may arise from the cases pending against the Group is not likely to exceed N9.33Billion (31 December 2022:
N205.38 Million). This probable liability has been fully provided for by the Group (please refer to Note37d)..
In common with other banks, the Group conducts business involving transaction related bonds and indemnities. Contingent liabilities
and Commitments comprise guarantees and letters of credit.
Nature of instruments
Guarantees and letters of credit are given as security to support the performance of a customer to third parties. As the Group will only
be required to meet these obligations in the event of the customer’s default, the cash requirements of these instruments are expected
to be considerably below their nominal amounts.
Other contingent liabilities include transaction related customs and performances bond and are, generally, commitments to third par-
ties which are not directly dependent on the customer’s creditworthiness Documentary credits commit the Group to make payments
to third parties on production of documents, which is usually reimbursed immediately by customers. The following tables summarise
the nominal amount of contingent liabilities and commitments with off-financial position risk.
Acceptances, bonds, guarantees and other obligations for the account of customers:
a. These comprise:
Contingent liabilities:
Transaction related bonds and guarantees 623,937,083 334,000,498 - -
623,937,083 334,000,498 - -
Commitments:
Clean line facilities and letters of credit 19,416,461 50,669,259 - -
Other commitments 16,940,851 9,881,788 - -
36,357,312 60,551,047 - -
Loan commitments are irrevocable commitments to provide credits under pre-specified terms and conditions. At the reporting date,
the Gtbank Nigeria had loan commitments amounting to N499.8 billion (December 2022: N475 billion) in respect of various loan
contracts.
The Group is controlled by Guaranty Trust Holding Company Plc “the ultimate Parent” (incorporated in Nigeria). The controlling inter-
est of Guaranty Trust Holding Company Plc in the Group entities is disclosed in the table below:
1 Guaranty Trust Bank Gambia Limited Gambia 77.81% 22.19% 77.81% 22.19%
2 Guaranty Trust Bank Sierra Leone Limited Sierra Leone 83.74% 16.26% 83.74% 16.26%
3 Guaranty Trust Bank Ghana Limited Ghana 98.32% 1.68% 98.32% 1.68%
4 Guaranty Trust Bank UK Limited United Kingdom 100.00% 0.00% 100.00% 0.00%
5 Guaranty Trust Bank Liberia Limited Liberia 99.43% 0.57% 99.43% 0.57%
6 Guaranty Trust Bank Cote D’Ivoire S.A Cote D’Ivoire 100.00% 0.00% 100.00% 0.00%
7 Guaranty Trust Bank Kenya Limited Kenya 76.90% 23.10% 71.01% 28.99%
8 Guaranty Trust Bank Tanzania Limited Tanzania 76.20% 23.80% 76.20% 23.80%
The subsidiaries and sub-subsidiaries of GTBank Nigeria Limited are all involved in banking business only.
(a) GTB Gambia was incorporated in April 2001 and commenced operations in March 2002.
(b) GTB Sierra Leone was incorporated in September 2001 and commenced operations in January 2002.
(c) Guaranty Trust Bank (Ghana) was incorporated in October 2004 and commenced operations in March 2006.
(d) Guaranty Trust Bank (UK) Limited was incorporated in February 2007 and commenced operations in January 2008.
(e) Guaranty Trust Bank (Liberia) Limited was incorporated in September 2008 and commenced operations in March 2009.
(f) Guaranty Trust Bank (Cote D’Ivoire) is Guaranty Trust Bank Plc’s first subsidiary in Francophone West Africa. The Bank was li-
censed by the Central Bank of Cote D’Ivoire to offer banking services to the Ivorian public and commenced operations on April
16, 2012.
(g) The Bank extended its regional presence in Africa in December 2013 by acquiring 70% stake in Fina Bank Limited, a commercial
bank incorporated in Kenya with subsidiaries in Uganda and Rwanda. The bank has been re-branded as Guaranty Trust Bank
Kenya Limited.
(h) Guaranty Trust Bank (Tanzania) was incorporated in July 14th 2016 and commenced operations in December 2017 to spread its
delivery of superior financial services to its East African customers.
(i) Staff Investment Trust (SIT) is the Special Purpose Vehicle (SPV) set up to operate the Share-Based Payment compensation scheme
of the Bank.
The following relates to the Company’s accumulated non-controlling interest and profit or loss allocated to non-controlling interest for
significant subsidiaries for the period ended 31 Dec 2022:
1 Guaranty Trust Bank Gambia Limited Gambia 5,370,793 2,171,605 1,451,613 715,575
2 Guaranty Trust Bank Sierra Leone Ltd Sierra Leone 3,570,193 2,066,556 689,197 324,542
3 Guaranty Trust Bank Ghana Limited Ghana 2,433,527 1,322,109 719,295 103,661
4 Guaranty Trust Bank Liberia Limited Liberia 116,746 62,267 52,741 12,527
5 Guaranty Trust Bank Kenya Limited Kenya 16,634,784 12,690,129 2,170,622 1,312,147
6 Guaranty Trust Bank Tanzania Limited Tanzania 1,314,097 832,411 (8,045) (31,818)
** Maximum exposure comprises the cost of investment and total facilities granted at arm’s length to the entity.
***Fair Value through Other Comprehensive Income.
The Group does not provide financial support to the unconsolidated structured entity and has no plans to provide financial support to
the entity in the future. However, the Group extended loans to the entity in the normal course of business at arm’s length.
The Group does not have the rights to direct the entity to enter into or veto any changes to transactions for the benefit of the Group.
In addition, the group does not exercise decision-making rights that gives it the ability to direct the relevant activities of the entity.
Furthermore, there is no inter-change of personnel between the Group and the entity. Likewise, the Group does not have any form of
control or influence on decision making apparatus of the entity. Accordingly, the account of the entity is not consolidated.
Parties are considered to be related if one party has the ability to control the other party or exercise influence over the other party
in making financial and operational decisions, or another party controls both. The definition includes subsidiaries, associates, joint
ventures and the Group’s pension schemes, as well as key management personnel.
(b) Subsidiaries
Transactions between the Company and its subsidiaries also meet the definition of related party transactions. These transactions
are eliminated on consolidation; hence, they are not disclosed in the consolidated financial statements.
As at 31 December 2023, GTBank Limited had receivables from its subsidiaries, which is shown below;
GTBank Limited also received interest of N91,416,000 on its placement with GTBank UK (Dec 2022: N27,260,000).
The Group’s key management personnel, and persons connected with them, are also considered to be related parties.
The definition of key management include the close family members of key personnel and any entity over which they
exercise control. The key management personnel have been identified as the Assistant General Managers, Deputy General
Managers, General Managers, Executive and Non-Executive directors of the Group. Close family members are those fam-
ily members who may be expected to influence, or be influenced by that individual in their dealings with Guaranty Trust
Holding Company Plc and its subsidiaries.
During the year the Group granted various credit facilities to companies whose directors are also directors of Company (Director
Related) ‘or related to a Key Management Personnel (Insider Related) at rates and terms comparable to other facilities in the Bank’s
portfolio. An aggregate of N253,375,000 (31 December 2022:N76,549,000 ) was outstanding on these facilities at the end of the year.
253,375 76,549
(g) Key management personnel and their immediate relatives engaged in the following transactions with the
Group during the year:
Secured loans
Interest rates charged on balances outstanding are at rates that would be charged in the normal course of business. The secured loans
granted are secured over real estate, equity and other assets of the respective borrowers. No impairment losses have been recorded
against balances outstanding during the year with key management personnel, and no specific allowance has been made for impair-
ment losses on balances with key management personnel and their immediate relatives at the end of the year.
(iii) The emoluments of all other directors fell within the following ranges:
Company Company
In thousands of Nigerian Naira Dec-2023 Dec-2022
N6,500,001 - N11,000,000 - 2
N13,000,001 - N13,500,000 1 -
N13,500,001 - N22,500,000 2 2
Above N22,500,001 3 2
6 6
46 Contraventions
INFRACTION AMOUNT
NIGERIA
Penalty paid in respect of 2020 Risk Assets Examination on the Bank N12,000,000
Penalty paid in respect of 2023 Consumer Protection Exercise on the Bank N2,000,000
Penalty paid in respect of 2023 Bank Returns Rendition N11,000,000
Penalty paid in respect of 2021-2022 AML/CFT Examination on the Bank N30,000,000
GT GAMBIA
Late submission of Fit and Proper Person’s Test N919,384
GT RWANDA
Breach on AML reporting, EDWH reporting, and appraisal of Head of Syscon N3,911,195
Penalty on treasury delayed FX transactions report N111,748
GT PENSION MANAGER
Resumption of a Top Management staff without PenCom’s approval N250,000
GT FUND MANAGER
Non compliance with the custody rules for Vantage Investment Note N1,380,000
Underpaying its Regulatory Fees on Vantage Investment Note N9,404,764
Publication of advertisement material without SEC’s approval N1,000,000
COMPANY
Infraction related to the inadequacy of its minimum paid up capital N2,000,000
47 Subsequent events
There were no other events subsequent, to the financial position date which require adjustments to, or disclosure in, these financial
statements.
OTHER NATIONAL
DISCLOSURES/
OTHER
INFORMATION
In addressing the challenges faced by the Nigerian Banking indus- v. Facilities granted to Federal, State and Local governments and
try which was at the brink of a crisis as a result of spiral effects of their parastatals.
the global financial meltdown, the CBN undertook a review of the
prudential guidelines. In the revised guidelines, which became ef- vi. Facilities not specifically classified as specialized loans by the
fective 1st of July, 2010, the CBN provided for the adaptation of CBN.
the prudential guidelines to IFRS after it has been adopted in Nige-
The Group’s provisioning benchmark for loans other than special-
ria. Paragraph 12.4 of the revised Prudential Guidelines for Deposit
ized loans is highlighted in the table below:
Money Banks in Nigeria stipulates that Banks would be required to
make provisions for loans as prescribed in the relevant IFRS Stan-
No of Days Overdrawn Classification % Provision
dards when IFRS is adopted. However, Banks would be required to taken
comply with the following:
90 – 180 Substandard 10
(a) Provisions for loans recognized in the profit and loss account 180 – 360 Doubtful 50
should be determined based on the requirements of IFRS. Over 360 Lost 100
However, the IFRS provisions should be compared with pro-
visions determined under prudential guidelines and the ex- As soon as an account is classified as non-performing, the interest is
pected impact/changes in general reserve should be treated accounted for on non-accrual basis i.e. interest is not recognized as
as follows: income but suspended.
i. Prudential Provisions is greater than IFRS provisions; Furthermore, if the occurrence of a loss event is certain, appropriate
transfer the difference from the general reserve to a provisions will be made regardless of the fact that such loans does
non-distributable regulatory reserve. not fall in any of the above categories.
Loan provisioning is segregated along two (2) categories as detailed vii. Real Estate Loan (Commercial and Residential)
below:
The Group’s provisioning benchmarks are spelt out below under
1. Loans other than Specialized Loans each of the specialized loan types:
The provisioning policy for ‘loans other than specialized loans’ cov-
ers the following:
i. Commercial Loans
i. Agriculture Finance
a. Agriculture Finance - short term facilities (purchase of seeds, fertilizers, WC, and other Inputs)
b. Agriculture Finance – long term facilities (Farm development finance, purchase of machinery, livestock financing)
The shares backing margin facilities shall be marked to market on a daily basis in order to determine the potential loss in the portfolio.
Provisions shall be made periodically for the excess of loan balance over the market value of the underlining shares. Any increase in the
mark to market value from the previous valuation shall be recognized to the extent of the previous charge-off made.
3 Very Doubtful Repayment below 60% of amount due or As above 75% of total outstanding
installment overdue by 3 to 4 years balance
4 Lost Repayment below 60% of amount due or As above 100% of total outstanding
installment overdue by more than 4 years balance
v. Object Finance
b. SME Loan - SME Long term facilities (Maturities of more than 1 year)
STATEMENT OF
PRUDENTIAL
ADJUSTMENT
The GTBank Limited’s provision level adequately meets the recommended provision by the Regulators. The reassessed CBN recommend-
ed provision as at December 31, 2023 amounted to N182,722,148,000. Of the amount recommended by the Central Bank of Nigeria,
N104,616,462,000 largely relates to 2% General Loan Loss Provision on performing loans and contingents, while N21,630,071,000
relates to Other Known Losses. The Bank maintained a Regulatory Risk Reserve of N74,784,235,000 at the end of the year. Regulatory
risk reserve represents the difference between the Central Bank of Nigeria (CBN) recommended Provision for Loan Losses under the
Prudential Guideline and the Loan Impairment allowance determined in accordance with provisions of IFRS.
The Reconciliation between the CBN Recommended provisions and that under IFRS as at December 2023 is as shown in the table below:
OPERATIONAL RISK
MANAGEMENT
Operational Risk Management es, new and existing products, services, branches and vendors/
contractors.
Guaranty Trust Bank defines Operational Risk (OpRisk) as “the di-
rect or indirect risk of loss resulting from inadequate and/or failed
internal processes, people, and systems or from external events” Key Risk Indicators (KRI)
These risks originate from the actions of the Bank’s staff, its pro-
cesses and systems, activities of interested parties and events that These quantitative parameters are deployed for the purpose of
have direct or indirect impact on the Bank. monitoring operational risk trends across the Bank. A comprehen-
sive KRI Dashboard set with thresholds is in place, supported by
In GTBank, Operational Risk Management involves the review and specific KRIs for key departments in the Bank. Medium to High-
monitoring of all strategies and initiatives deployed in its people risk trends are reported in the Monthly and Quarterly Operation-
management, process engineering and re-engineering, technol- al Risk Status reports circulated to Board, Management and key
ogy investment and deployment, management of all regulatory stakeholders.
responsibilities, engagement of third-party services, and response
to major disruptions and external threats. Fraud Risk Management Initiatives – Root cause analysis of
key fraud and forgery incidents (over the counter or cybercrimes)
The Bank manages Operational risk by continually using up to identified in the Bank or predominant in local and global busi-
date qualitative and quantitative techniques while adopting var- ness environments are carried out and reported in the Operational
ious risk mitigating strategies in the day-to-day management Risk Status reports circulated to the Board, Management and key
of operational risk touch points. The following practices, tools, stakeholders. Likely and unlikely loss estimations are also deter-
methodologies and techniques have been deployed to further mined in the process as input in the OpRisk capital calculation
integrate the Operational Risk Management culture in the Bank. process. The objective of Fraud Risk Management is to ensure
that the processes for preventing, deterring and detecting fraud
and forgery incidents, and sanctioning offenders are efficient.
Loss Incident Reporting
Business Continuity Management (BCM) in line with ISO
Loss incidents are reported to the Operational Risk Management 22301:2019 Standard – In guaranteeing the resilience of the
Group by all business areas in the Bank to enable collection of Banks’ business to any disruptive incidence, the Bank has a robust
internal OpRisk losses and near misses. Additionally, all opera- Business Continuity Management System (BCMS). The system as-
tional issues which could negatively impact on the organisation’s sures timely resumption of critical business activities with minimal
process, people, systems and other incidents are required to be financial losses or reputational damage and continuity of excel-
reported by stakeholders (whether these risks crystallize into actu- lent service to the Bank’s customers, vendors, and regulators. GT-
al losses or not) making use of the available channels of commu- Bank has remained certified to international standard ISO 22301
nication. Owing to this, the Bank maintains a robust OpRisk loss compliant by the globally recognized Professional Evaluation and
database detailing the various categories of losses and relevant Certification Board (PECB) for over 10 years and has continued to
OpRisk loss data within a 13-year period. Information collated improve its BCM maturity, thereby signifying that the Bank has
is analyzed for identification of risk concentrations, appropriate instituted internationally accepted processes, structures and sys-
OpRisk risk profiling and capital estimation. tems that demonstrate its capacity to resume business within a
short timeframe in the event of any business disruption.
Risk and Control Self-Assessment (RCSA) Part of the BCMS is a Business Continuity Plan (BCP), which is
reviewed and updated periodically to ensure reliability and rele-
RCSA exercise assesses and examines operational risks at inherent vance of information contained.
and residual levels and the effectiveness of controls used to miti-
gate them. It is a qualitative risk identification tool deployed bank- Various BCP testing and training programs are conducted bank-
wide. A risk-based approach is in use for RCSAs to be conducted wide at predetermined and ad-hoc timelines to ensure that re-
by branches, departments, groups and divisions of the Bank. All covery coordinators are aware of their roles and responsibilities
branches and Head-Office teams are required to complete the and ultimately guarantee that the Bank remains a going concern.
Risk Self-Assessment process at least once a year. These assess-
ments enable risk profiling and risk mapping which provides a Occupational Health and Safety Procedure Initiatives – In
consolidated view of all identified operational risks emanating line with ISO 45001 and global best practices, the bank commits
from the business and functional units of the Bank and the effec- to ensuring the health, safety and welfare of all staff, customers
tiveness of controls adopted to mitigate the risks. and 3rd parties visiting the Bank’s premises. Branch Risk Assess-
ments and Fire Risk Assessments are conducted to identify health
All branches and head office teams in the Bank are assigned in- and safety hazards and recommend adequate control measures
dividual risk ratings upon completion of the exercise. A detailed for identified risks. Branches are mandated to conduct fire drills
risk register cataloguing key risks identified and controls for im- on a quarterly basis. For areas with high security risks, Table Talk
plementation is also developed and maintained from this process. Fire Drills have also been introduced to ensure staff are apprised
Risk Assessments are also carried out for the Bank’s key process- of their roles and responsibilities during emergency evacuations.
Health and Safety related incidents reported to Operational Risk Bank’s resources, minimize losses, and maximize opportunities.
Management are thoroughly investigated for identification of
causal factors and implementation of appropriate mitigants to This outlook entrenches OpRisk practices in the bank’s day-to-day
prevent reoccurrence. In addition, awareness on health and safety business activities.
issues are presented periodically on the intranet and other forums.
Safety audits are conducted on the Bank by the Federal and vari- The Bank adopts an Operational Risk Management framework
ous State Safety Commissions on the Bank’s occupational Health that fits into its culture but also reflects sound practices recom-
and safety management system and standards. The Bank has al- mended by various local and globally accepted regulatory agen-
ways been certified a safety compliant organization according to cies such as Basel II & III Accord’s “Sound Practices for the Man-
the standards. agement and Supervision of Operational Risk”, Committee of
Sponsoring Organizations (COSO) and International Organization
Operational Risk Champions & BCM Champions – Members for Standardization (ISO).
of staff from various teams’ bank-wide become Operational Risk
ambassadors after undergoing intensive Operational Risk man- Operational Risk Capital Calculation – In line with the directive
agement trainings. This further enshrines the OpRisk standards, of the CBN, the Bank maintains the Basic Indicator Approach (BIA)
practices and culture in their various departments/ Groups. This is under Basel II Pillar 1 for the calculation of its Operational Risk
the same process used in selecting Business continuity Champions Economic Capital for internal risk monitoring and decision-mak-
(BCM). ing. However, the Bank has the required OpRisk loss data to mi-
grate to other capital calculation methods i.e., the Standardized
Reputational and Strategic Risk Monitoring – To ensure a ho- Approach. The application of the BIA is in line with the Central
listic framework is implemented; Operational Risk Management Bank of Nigeria’s (CBN) recommendation for all banks in Nigeria.
also monitors Reputational and Strategic Risks from a broad per- The estimated OpRisk Capital Charge is reported to the Board
spective. and Management for guidance in Capital Planning and decision
making.
The Bank regards Reputational Risk as the current and prospective
adverse impact on earnings and capital arising from negative pub- Governance Structure – The Board through its Board Risk Com-
lic opinion. It measures the change in perception of the Bank by mittee (BRC) continues to oversee the operational risk function
its stakeholders. It is linked with customers’ expectations regard- in the Bank and reviews OpRisk reports on a quarterly basis. It
ing the Bank’s ability to conduct business securely and responsibly. ensures that the OpRisk policy is robust and provides an updated
A detailed template with internal and external factors that might framework for the Bank’s OpRisk profile and limits. It also deter-
impact the Bank adversely is used to monitor the Bank’s exposure mines the adequacy and completeness of the Bank’s risk detec-
to reputational risk. All adverse trends identified are reported to tion, measurement systems and mitigants whilst ensuring review
relevant stakeholders for timely redress. and approval of the bank’s contingency plans for Specific risks.
The Board lays down the principles on how operational risk in-
GTBank considers strategic risk as the risks that not only affect cidents are to be identified, assessed, controlled, monitored and
but are created by the Bank’s strategic decision. It is the possibil- measured.
ity that the Bank’s strategy may be inappropriate to support its
long-term corporate goals due to the inadequacy of its strategic The Management Risk Committee continues to monitor and en-
planning and/or decision-making process, inadequate implemen- sure the implementation of the guiding OpRisk framework bank-
tation of such strategies and strategy failure due to unexpected wide. It considers and approves key decisions relating to Oper-
circumstances. ational Risk before presentation to the Board. The Committee
ensures that all departments in the Bank are fully aware of the
The Bank aligns strategy and risk by identifying, assessing and risks embedded in respective process flows and business activities.
managing risks and uncertainties, affected by internal and ex- All process owners are responsible for the day-to-day man-
ternal events or factors, which could inhibit the Bank’s ability to agement of OpRisk prevalent in their respective Departments,
achieve its strategic objectives. This is done with the goal of creat- Groups, Divisions and Regions.
ing and protecting stakeholder value.
The Internal Audit function conducts independent reviews on the
There is a specialized template deployed for tracking key business implementation of OpRisk Policies and Procedures bank-wide.
activities designed or defined by the Bank to measure and mon-
itor performance in the achievement of its strategic intent in the
short, medium and long term. TREATMENT OF OPERATIONAL RISKS
Risk Sharing and Risk Avoidance. of contention. In a bid to avert the strike by the labour union,
the Federal Government through the Federal Ministry of Justice
Operational Risk Reporting – Weekly, Monthly, Quarterly and secured an order from the National Industrial Court restraining
ad-hoc reports are circulated to relevant stakeholders highlighting the NLC and the Trade Union Congress from embarking on any
key operational risks identified for awareness and timely imple- strike action. However, the union still embarked on the strike on
mentation of mitigation strategies. Reports are also generated August 2nd and 3rd, 2023.
and circulated on a need-basis.
The effect of the strike saw some of our Southwest branches shut
down during the period. Later in November 2023 (Nov. 14th and
MAJOR OPERATIONAL RISK INCIDENT IN H2 2023 15th), the NLC embarked on another strike which it claimed was
a protest against the emerging culture of state violence and impu-
1.) THE NIGERIAN LABOUR CONGRESS (NLC) NATION- nity, coming on the back of the alleged brutalization of the NLC
WIDE STRIKE president, Joe Ajaero. The strike action also resulted in business
disruption in our Northeast and some Southeast branches. The
In the second half of the year (Late July), the Nigerian Labour bank’s response to this was to:
Congress (NLC) called on Civil Society Organizations (CSOs) and i. Ensure the health and safety of all its staff in the affected
its councils across the states of the federation to join a planned branches. No incident was recorded during this period.
nationwide strike to protest the high cost of living in the coun- ii. Ensure alternative platforms for transactions were opti-
try. The union highlighted issues such as the hike in the price of mized during the period.
petrol, the immediate inauguration of the presidential steering
committee, an increase in public school fees, the release of the GTBank will continue to ensure that operational risk incidents are
eight-month withheld salary of university lecturers and workers, well managed in line with best international practice.
and an increase in value-added tax (VAT), among others as bone
AGENTS AND
LOCATIONS
ACTIVITIES OF
CARDS
OPERATIONS
Within Nigeria and all other countries where we have a foothold, the Company continues to abide by strict standards and require-
ments for the issuance and usage of payment cards. We carry out continuous upgrades of our card systems to ensure optimal security,
efficiency, cost effectiveness and best in class customer satisfaction. To reduce financial loss to both customers and the Company, we
have implemented stringent fraud control measures to achieve this.
With relentless focus on delivering exceptional service to our customers, we diversified our card portfolio and offered a range of new
products and services spanning various retail customer segments – from mass market to premium. Additionally, we increased opera-
tional efficiency via process automations and self-service enabled channels which created an improved customer experience.
We continually encourage the usage of our cards both locally and internationally by providing an enabling environment for smooth
operations in terms of provision of modern technology, one of which is the contactless payment technology.
Presented below are the highlights of our card transaction volumes for the period ended 31 December 2023. With less stringent re-
striction on travel, there has been a gradual increase in international spend on our foreign currency cards, when comparing the same
period last year. However, due to the volatile fluctuation in the exchange rate, we were compelled to disable our Naira denominated
card products from carrying out transactions outside Nigeria.
Foreign Currency
Denominated Cards:
MasterCard debit 86 121 2,547 2,197 - - - -
MasterCard credit 7 8 211 226 - - - -
Visa classic debit 35 32 790 764 - - - -
Visa classic credit 5 8 183 217 - - - -
World credit 0.4 0.6 13 13.9 - - - -
Total 133.4 169.6 3,744 7,408.9 52,623 115,998 775,498 515,084
Reduced monthly
international limits on the
Naira Cards
Insufficient funds
Restriction on
international ATM
withdrawals
Complaints on delayed debits & Delayed Debits & Double System glitch/ Technical Continuous engagement
double debits for Domestic POS & Web Debits error from Third party with Third party processors to
Transactions processors ensure adequate and effective
maintenance of their systems
to prevent such incidences.
The table below describes the various investment funds which the Group does not consolidate but in which it holds interest.
The funds are not consolidated because they are held in other entities which are considered as legally separate from the Group.
The table below sets out an analysis of the Investment funds managed by the Group, their Assets Under Management, and the carrying
amounts of interest held by the Group in the investment funds. The maximum exposure to loss is the carrying amount of the interest
held by the Group.
In thousands of Nigerian Naira Asset under Management Interest Held by the Group
Investment funds Dec-23 Dec-22 Dec-23 Dec-22
Guaranty Trust Money Market Fund 20,355,812 11,220,260 168,704 155,124
Guaranty Trust Guaranteed Income Fund 11,164,911 10,214,224 122,794 116,888
Guaranty Trust Balanced Fund 2,776,814 2,162,505 - -
Guaranty Trust Dollar Fund 25,473,343 15,576,971 59,564 51,004
Guaranty Trust Equity Income Fund 585,902 335,399 40,914 31,023
Kedari Investment Fund - 180,428 - -
TOTAL 60,356,783 39,689,788 391,975 354,039
In compliance with Rule 17.15 Disclosure of Dealings in Issuers’ Shares, Rulebook of the Exchange 2015 (Issuers Rule) Guaranty
Trust Holding Company Plc maintains a Security Trading Policy which guides Directors, Audit Committee members, employees
and all individuals categorized as insiders as to their dealing in the Company’s shares. The Policy undergoes periodic reviews by
the Board and is updated accordingly. The Company has made specific inquiries of all its directors and other insiders and is not
aware of any infringement of the policy during the period.
VALUE
ADDED
STATEMENTS
Group
Dec-2023 Dec-2022
Continuing Discontinued Total Continuing Discontinued Total
operations operations operations operations
In thousands % %
Gross earnings 1,186,465,425 - 1,186,465,425 539,234,897 - 539,234,897
Interest expense:
-Local (79,804,129) - (79,804,129) (46,875,879) - (46,875,879)
- Foreign (34,254,414) - (34,254,414) (19,220,657) - (19,220,657)
1,072,406,882 - 1,072,406,882 473,138,362 - 473,138,362
Loan impairment charges / Net
impairment loss on financial as- (197,945,659) - (197,945,659) (47,931,110) - (47,931,110)
sets
874,461,223 - 874,461,223 425,207,252 - 425,207,252
Bought in materials and services
- Local (176,190,084) - (176,190,084) (134,411,055) - (134,411,055)
- Foreign (4,769,973) - (4,769,973) (5,098,308) - (5,098,308)
Distribution
Employees
- Wages, salaries, pensions, gra- 45,097,281 - 45,097,281 7 36,076,627 - 36,076,627 13
tuity and other employee benefits
Government
- Taxation 69,653,768 - 69,653,768 10 44,980,657 - 44,980,657 16
Company
Dec-2023 Dec-2022
Continuing Discontinued Total Continuing Discontinued Total
operations operations operations operations
In thousands of Nigerian Naira % %
Gross earnings 109,735,273 - 109,735,273 90,385,870 - 90,385,870
Interest expense:
-Local - - - - - -
- Foreign - - - - - -
109,735,273 - 109,735,273 90,385,870 - 90,385,870
Loan impairment charges / Net
impairment loss on financial as- - - - - - -
sets
109,735,273 - 109,735,273 90,385,870 - 90,385,870
Bought in materials and services
- Local (354,432) - (354,432) (409,425) - (409,425)
- Foreign - - - - - -
Distribution
Employees
- Wages, salaries, pensions, gra- 1,301,639 - 1,301,639 1 1,283,312 - 1,283,312 1
tuity and other employee benefits
Government
- Taxation 1,581,672 - 1,581,672 2 - - - -
FIVE YEAR
FINANCIAL
SUMMARY
Group
In thousands of Nigerian Naira Dec-2023 Dec-2022 Dec-2021 Dec-2020 Dec-2019
Assets
Cash and bank balances 2,309,618,698 1,621,101,169 933,591,069 745,557,370 593,551,117
Financial assets at fair value through prof- 28,066,613 128,782,374 104,397,651 - -
it or loss
Financial assets held for trading - - - 67,535,363 73,486,101
Derivative financial assets 28,961,143 33,913,351 24,913,435 26,448,550 26,011,823
Investment securities:
– Fair Value through profit or loss 3,947,850 3,904,458 3,904,458 3,273,771 33,084,367
– Fair Value through other comprehen- 894,064,002 357,704,355 276,041,190 693,371,711 585,392,248
sive Income
– Held at amortised cost 1,571,317,478 863,421,525 846,923,215 283,582,832 145,561,232
Assets pledged as collateral 86,552,701 80,909,062 79,273,911 62,200,326 58,036,855
Loans and advances to banks 66,935 54,765 115,014 99,043 1,513,310
Loans and advances to customers 2,480,183,368 1,885,798,639 1,802,587,381 1,662,731,699 1,500,572,046
Restricted deposits and other assets 2,012,815,346 1,232,611,251 1,137,554,208 1,226,481,116 577,433,006
Property and equipment 224,298,652 197,860,484 203,971,924 148,782,835 141,774,863
Intangible assets 33,076,038 29,411,898 19,573,604 19,872,523 20,245,232
Deferred tax assets 18,285,854 10,983,098 3,187,937 4,716,154 2,256,570
Total assets 9,691,254,678 6,446,456,429 5,436,034,997 4,944,653,293 3,758,918,770
Liabilities
Deposits from banks 136,053,409 125,229,187 118,027,576 101,509,550 107,518,398
Deposits from customers 7,410,834,190 4,485,113,979 4,012,305,554 3,509,319,237 2,532,540,384
Financial liabilities at fair value through 809,342 1,830,228 - - 1,615,735
profit or loss
Derivative financial liabilities - 4,367,494 1,580,971 2,758,698 2,315,541
Other liabilities 493,325,925 724,902,202 231,519,271 356,222,575 233,425,713
Current income tax liabilities 41,303,351 35,307,860 22,676,168 21,592,016 20,597,088
Debt securities issued - - - - -
Other borrowed funds 72,119,485 126,528,105 153,897,499 113,894,768 162,999,909
Deferred tax liabilities 59,680,905 12,028,172 12,800,866 24,960,772 10,568,534
Total liabilities 8,214,126,607 5,515,307,227 4,552,807,905 4,130,257,616 3,071,581,302
Group
In thousands of Nigerian Naira Dec-2023 Dec-2022 Dec-2021 Dec-2020 Dec-2019
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):
SHARE
CAPITALISATION
AND DIVIDEND
HISTORY
DIVIDEND HISTORY
Dividend No. Dividend Type Financial Year Total Dividend Dividend Per Net Dividend Percentage
Ended Amount Declared Share Amount Unclaimed Dividend Amount
as at 31/12/2023 Unclaimed
Payment 43 Final 4/14/2014 42,675,209,874.80 145 kobo 1,383,374,192.86 3.24%
Payment 44 Interim 9/18/2014 7,357,794,806.00 25 kobo 244,575,451.44 3.32%
Payment 45 Final 3/31/2015 44,146,768,836.00 150 kobo 1,321,782,488.37 2.99%
Payment 46 Interim 9/21/2015 7,357,794,806.00 25 kobo 226,928,258.31 3.08%
Payment 47 Final 4/5/2016 44,735,392,420.48 152 kobo 1,253,456,896.60 2.80%
Payment 48 Interim 9/9/2016 7,357,794,806.00 25 kobo 224,815,986.07 3.06%
Payment 49 Final 4/7/2017 51,504,563,642.00 175 kobo 1,499,493,957.24 2.91%
Payment 50 Interim 9/5/2017 8,829,353,767.20 30 kobo 289,529,652.10 3.28%
Payment 51 Final 4/10/2018 70,634,830,137.60 240 kobo 3,127,650,382.45 4.43%
Payment 52 Interim 8/29/2018 8,829,353,767.20 30 kobo 391,177,409.35 4.43%
Payment 53 Final 4/18/2019 72,106,389,098.80 245 kobo 3,157,179,546.44 4.38%
Payment 54 Interim 10/9/2019 8,829,353,767.20 30 kobo 396,254,322.16 4.49%
Payment 55 Final 3/30/2020 73,577,948,060.00 250 kobo 3,300,101,123.47 4.49%
Payment 56 Interim 9/21/2020 8,829,353,767.20 30 kobo 404,044,972.92 4.58%
Payment 57 Final 4/9/2021 79,464,183,904.80 270 kobo 3,609,949,332.34 4.54%
Payment 58 Interim 10/12/2021 8,829,353,767.20 30 kobo 401,775,255.65 4.55%
Payment 59 Final 4/8/2022 79,464,183,904.80 270 kobo 3,613,984,368.68 4.55%
Payment 60 Interim 9/30/2022 8,829,353,767.20 30 kobo 403,254,532.54 4.57%
Payment 61 Final 5/11/2023 82,407,301,827.20 280 kobo 3,748,540,591.96 4.55%
Payment 62 Interim 9/25/2023 14,715,589,612.00 50 kobo 741,337,795.29 5.04%
NOTE:
PAYMENTS 43 to 62 have included in their Balances, the Naira equivalent of their unclaimed GDR Dollar Dividend balances.
CORPORATE
INFORMATION
MANAGEMENT TEAM
GROUP
BANK NIGERIA
15 Enoo Ebruke Deputy General Manager Head South South Division Deputy General Manag-
er - Head, South South
Division
16 Muinat Kasim Deputy General Manager Head Systems and Control Deputy General Manag-
Division er - Head, Systems and
Control Division
17 Paul Ogwemoh Deputy General Manager Head Technology Division Deputy General Manag-
er - Head, Technology
Division
18 Sylvia Nwakwue Deputy General Manager Head Transaction Services Deputy General Manag-
(Lagos & S/West) er - Head, Transaction
Division Services (Lagos & South-
West) Division
19 Ronald Nwaezeapu Deputy General Manager Head Treasury/ALM Division Deputy General Manag-
er - Head, Treasury/ALM
Division
20 Olanrewaju Kola-Banjo Deputy General Manager Head International Settle- Deputy General Manag-
ment er - Head, International
Settlement
21 Maimuna Shonibare Assistant General Manager Head Corporate Bank Island Assistant General Manag-
er - Head, Corporate Bank
Island
22 Alice Anyim Assistant General Manager Head North West Division Assistant General Man-
ager - Head, North West
Division
23 Olayinka Odusote Assistant General Manager Head Digital Banking Assistant General Manag-
Division er - Head, Digital Banking
Division
24 Adekunle Adegbenro Assistant General Manager Head Financial Control, Assistant General Man-
Group Reporting & ager - Head, Financial
Strategy Division Control, Group Reporting
& Strategy Division
25 Ijeoma Esemudje Assistant General Manager Head Foods and Beverages Assistant General Man-
Division ager - Head, Foods and
Beverages Division
26 Bulama Laminu Assistant General Manager Head PSD Abuja Division Assistant General Man-
ager -Head, Public Sector
Division (Abuja)
27 Adewumi Ayodele Assistant General Manager Head SME Lagos Island 1 Assistant General Man-
Division ager - Head, SME Lagos
Island 1 Division
28 Akinwale Babafemi Assistant General Manager Head SME Lagos Mainland Assistant General Man-
2 Division ager - Head, SME Lagos
Mainland 2 Division
29 Chioma Mogbo Assistant General Manager Head Transaction Services Assistant General Man-
(S/South & S/East) ager - Head, Transaction
Services (South-South &
South-East)
30 Olawale Abdul Assistant General Manager Head Administration Assistant General Manag-
er - Head, Administration
31 Oso Adewumi Assistant General Manager Head Technology Division Assistant General
Manager - Head, Service
Management Group
BANK UK
S/N Name Role
1 Gbenga Alade Managing Director, Guaranty Trust Bank UK
2 Paul Gospage Executive Director, Guaranty Trust Bank UK
BANK LIBERIA
S/N Name Role
1 Ikenna Anekwe Managing Director, Guaranty Trust Bank Liberia
2 Prince Saye Executive Director, Guaranty Trust Bank Liberia
BANK GAMBIA
S/N Name Role
1 Abolaji Yusuff Managing Director, Guaranty Trust Bank Gambia
2 Daniel Attah Executive Director, Guaranty Trust Bank Gambia
BANK GHANA
S/N Name Role
1 John Thomas Managing Director, Guaranty Trust Bank Ghana
2 Ayokunle Yusuf Chief Operating Officer, Guaranty Trust Bank Ghana
BANK KENYA
S/N Name Role
1 Jubril Adeniji Managing Director, Guaranty Trust Bank Kenya
2 Ayodele Popoola Chief Operating Officer, Guaranty Trust Bank Kenya
BANK RWANDA
S/N Name Role
1 Emmanuel Ejizu Managing Director, Guaranty Trust Bank Rwanda
2 Irenosen Ohiwerei Chief Operating Officer, Guaranty Trust Bank Rwanda
BANK UGANDA
S/N Name Role
1 Oluwole Shodiyan Managing Director, Guaranty Trust Bank Uganda
BANK TANZANIA
S/N Name Role
1 Odunayo Akinyede Managing Director, Guaranty Trust Bank Tanzania
2 Folayinka Animashaun Chief Operating Officer, Guaranty Trust Bank Tanzania
SUBSIDIARY MANAGEMENT
5 Ade Adebiyi
Managing Director,
Guaranty Trust Bank Sierra Leone
PRODUCTS &
SERVICES
Quick Credit
Are you a salary earner with need for more cash upfront? Quick Credit is
for you. Cheap, easy and readily available, Quick Credit gives you funds
worth up to three months of your salary at an interest rate of 2.0% month-
ly and a maximum tenor of 12months.
This is a time loan product aimed at financing the working capital of small
businesses in various industries*. Quick Credit for Business offers small
enterprises up to 10 Million Naira at a low-interest rate of 1.85% monthly.
(*TERMS AND CONDITIONS APPLY)
GTCrea8 Account
Free Banking for Undergraduates Aged 16 - 25.
Some of the charges that GTCrea8 account holders do not have to pay
for include charges on bank transfers, even when the transfer is to other
banks. Undergraduates will also not be charged for transactions using the
Bank’s Internet Banking Platform, Mobile Banking Applications and 737
USSD service. They will also not be charged for transaction alerts and Card
Issuance.
GTCrea8 account holders will also enjoy special offers and discounts when
they make use of GTBank’s trendsetting digital platforms, such as Habari,
which offers access to music and video streaming, shopping, messaging,
and bills payment all in one place.
GTWORLD
It’s Banking, only Easier.
GTCONNECT
Nigeria’s first interactive contact centre
GTConnect is our interactive contact centre that provides you with instant
service via telephone. It is accessible from anywhere in the world and open
for business 24 hours a day, seven days a week; even on public holidays.
GTConnect allows you perform 90% of your transactions via the tele-
phone. Custom- ers can check account(s) balances, request electronic
cards, request cheque books, stop cheques, reactivate dormant accounts,
effect own and 3rd party transfers within GTBank and get up to date in-
formation on every aspect of the Bank’s operations using this medium.
Our GTConnect numbers are: 0700 482 666 328, 01 4480000, 080 2900
2900 or 080 3900 3900.
The Guaranty Trust Bank Internet Banking Service is a free, reliable and
flexible way of managing your bank account(s) conveniently 24/7 from
anywhere in the world. Our internet Banking Service is equipped to enable
you make 3rd party transfers to all bank accounts in Nigeria and foreign
exchange transfers to any account in the world. You can also perform
own account transfers, check account balances, print account statements,
apply for loans and stop/confirm cheques.
GeNS
Giving you realtime information on your transactions
Customers are automatically registered for the SMS service as well as the
free Electronic mail notifications
The GTBank Point of Sale (PoS) terminal is a portable device that allows
bank cus- tomers (irrespective of the financial institution they bank with)
make payments for goods and services with their debit cards. The device
provides a convenient, modern and efficient way of processing real time
payments and supports a variety of other financial transactions that in-
clude; printing mini statements, cash advances, balance enquires, loading
funds from a current/savings account unto a cash card and vending airtime
(recharge).
GTCollections
The card is linked to your Naira Denominated GTBank Current and/or Sav-
ings account and can be used for online transactions, to pay for goods and
services at Point of Sale (POS) terminals and also to withdraw cash from
ATMs (Local ATMs only), wherever the MasterCard logo is displayed.
Please visit any GTBank branch to get the GTBank Naira MasterCard in-
stantly.
GTWorld Mobile App: Download the GTWorld app from your app
store, open and select ‘Sign Up’. Select the
Cards tab and enter your account number,
card details and OTP sent to you registered
email/phone number.
The World Card is issued with a complimentary Priority Pass which grants
access to 600 VIP airport lounges worldwide.
There is no transaction spending limit on the card for POS terminals and
Online trans- actions. You can also withdraw up to $1,000 daily on the
Card.
Please visit any GTBank branch to request for the GTBank Dollar Credit
MasterCard.
The GTBank Prepaid Utility Card is an all-purpose card that can be used to
make a wide variety of payments. The card is designed to provide ultimate
convenience, flex- ibility and security, making casual purchases at super-
markets and shops, pur- chasing fuel at filling stations and so much more!
Unlike other GTBank Naira Cards, the GTBank Prepaid Utility Card is pre-
paid, which means you will have to load cash on the card prior to use.
Please visit any GTBank branch to request for the GTBank Prepaid Utility
Card.
The GTBank Visa Dollar Credit card is an international payment card issued
in partner- ship with Visa International. It is denominated in US Dollars and
can be used to settle payments in other major currencies.
There is no transaction spending limit on the card for POS terminals and
Online trans- actions. You can also withdraw up to $1,000 daily on the
Card.
Please visit any GTBank branch to request for the GTBank Visa Dollar Clas-
sic Credit Card.
BANK 737
737 Banking is our USSD-based Banking platform that allows you access
all the bank- ing services they need by simply dialling *737# on your mo-
bile phone. Some of the services available on the platform include:
Open Account
To open a GTBank Account instantly from anywhere in Nigeria, simply dial
*737*0# on your mobile phone and follow the prompts.
The GTBank Dollar Debit Visa Card is an international payment card issued
in part- nership with Visa International and accepted as a means of pay-
ment in over 200 countries and territories worldwide. It is denominated
in US Dollars and can be used to settle payments in other currencies. All
transactions with the GTBank Dollar Debit Visa Card are charged to your
Dollar Card account in real time.
There is no transaction spending limit on the card for POS terminals and
Online transactions. You can also withdraw up to $1,000 daily on the
Card.
You can apply for the GTBank Dollar Debit MasterCard via any of the fol-
lowing channels:
• GTWorld Mobile App: Download the GTWorld app from your app
store, open and select ‘Sign Up’. Select the Cards tab and enter your
account number, card details and OTP sent to you registered email/
phone number.
• Internet Banking: Visit www.gtbank.com, enter your NUBAN and
card details as prompted
• GTBank branch: Visit our customer information desk to fill out a Dol-
lar Card application form.
With the GTBank personalized Card Delivery Service, you can get your
Platinum Cards delivered to your home. You can request for this service via
any one of the following channels:
• 737: Dial *737*33*13*13#
• Internet Banking: Log on to Internet Banking and select “Card Deliv-
ery/Transfer” under the “Cards” menu.
*Please note that this service is currently available only within Lagos State.
The account accepts all clearing house instruments including cheques, div-
idend war- rants and allows you access your funds from all ATMs with the
MasterCard sign worldwide.
Having a Guaranty Trust Bank current account also gives you free access to
our in-ternet banking service 24/7, GTConnect and GeNs; thereby provid-
ing a convenient way of managing your day-to-day finances.
The current account opening form can be downloaded from our website,
www.gtbank.com, completed and submitted along with all required doc-
uments at any of our branches nationwide.
Domiciliary Account
The Guaranty Trust Bank Domiciliary account is a foreign currency based
current ac- count. The account is available in US Dollar, British Pounds
and Euro Currencies. We also provide dollar cheque books to aid third
party withdrawals and have a very effi- cient means of transferring funds
abroad.
The account comes with a Guaranty Trust Bank Naira MasterCard which
is accepted at 33 million merchant locations worldwide and all ATMs that
have the MasterCard logo worldwide.
The savings account opening form can be downloaded from our website,
www. gtbank.com, completed and submitted along with required docu-
ments at any of our branches or via GTWorld.
The Guaranty Trust Bank Smart Kids Save (SKS) and SKS Teens Card ac-
counts are unique products that enable parents to save for their children
whilst inculcating in their kids the value of saving. To open an SKS Account
for your child (aged 0-18), please visit any of our branches nationwide.
Children 13 and above get an SKS Teens Card account which, depending
on the pref- erence of the parent, can come with a debit MasterCard that
is acceptable worldwide for POS and Web transactions. Parents can now
also save for their kids in multiple currencies, including Dollars, Pounds,
and Euros.
GTMax
Something for everyone
The account is available in three variants; Platinum, Gold and Silver, with
each variant uniquely designed to ensure there is something for everyone.
Account holders also enjoy Zero Account Maintenance fees* and free cus-
tomized cheque book*
The Seniors Account is a current account which offers free banking ser-
vices to senior Nigerian citizens who are aged 65 years and above.
Seniors Account holders enjoy Zero Account Maintenance fee, free Debit
Naira MasterCards, cheque books, SMS notifications and access to Priority
service in our branches.
GT-TARGET
MaxAdvance
GTBusiness Account
GTBUSINESS PLATINUM:
Monthly turnover of N100M
GTBusiness Fixed charge of N10,000
Account Minimum balance of N50,000
GTBUSINESS GOLD:
Monthly turnover of N50M
Fixed charge of N5,000
Minimum balance of N20,000
GTBUSINESS SILVER:
Monthly turnover of N20M
Fixed charge of N2,000
Minimum balance of N10,000
MaxPlus
Salary Advance
Cash Guaranteed... anytime of the month
Customers can apply for this product on our Internet Banking platform,
GTworld App, or by downloading a Salary Advance application form at
www. gtbank. com or by dialing *737#. An Application form can also be
picked up from any of our branches nationwide.
GTMortgage
The GTBank School Fees Advance provides credit facility to our customers
who are parents in order to meet up with the school fees commitments
for their children and wards.
This product is available to customers working for public and private insti-
tutions and whose salary accounts are domiciled with the bank.
Customers can apply for this product by downloading an SME Invoice Dis-
counting application form at www.gtbank.com or at any of our branches
nationwide.
WhatsApp Banking
Chat with us on 09040002900
The GTBank WhatsApp Banking channel offers our customers a more per-
sonalized and easy-to-access customer service from anywhere in the world.
With WhatsApp Banking, customers can log complaints and dispense er-
rors, open new accounts, make enquiries, and resolve service complaints.
GTInstant
A Simplified Savings Account for anyone
GTInstant was introduced to enable the bank cater for the financial needs
of a large segment of the nation’s population that are presently financially
excluded. Account holders enjoy zero opening and minimum balances.
GTBank
SME
SME Term Loan for school: ‘Build or Buy’
GTPatriot Account
Spend
Spend 2 Save
2 save a savings percentage from 1%-5% on every debit transaction made via
ATM, POS or online. The value of the set percentage is transferred to the
Spend 2 Save account from the nominated account.
Spend 2 Save is available to individual and joint account customers and can
be set up on any GTBank Mobile Application, via internet banking or in any
of our branches nationwide. Convenient and quick liquidation process for
customers who have an urgent need for funds.
iReQuire
iRequire
Help Centre
www.gtbank.com/help-centre
CORPORATE
SOCIAL
RESPONSIBILITY
In 2023, we sponsored the 119th edition of the oldest polo tour- Empowering the Next Generation through Holistic Educa-
nament in Africa, which featured 36 teams competing for four tion
major trophies over a three-week period: The Silver Cup, The La-
gos Low Cup, The Open Cup, and the highly coveted Majeko- STEM Education and Life Coaching for Girls
dunmi Cup. The teams also vied for silverware in other secondary
cups including the Oba of Lagos, Governor’s Cup, Sani Dangote Equipping girls from less privileged backgrounds with basic life
Cup, Lagos Heritage Cup, Chief of Naval Cup, and the Indepen- skills and competencies to enhance their employability and enable
dence Cup. them to lead more impactful lives is a crucial step towards foster-
ing a brighter and more equitable future for all.
Our decade-long support of this premier sporting event demon-
strates our commitment to community development and under- Every year, we envision a society where the exceptional capabil-
scores the role of sports in fostering positive values in society. ities of girls are embraced as the new standard. That’s why, in
2023, we collaborated with The Seedtime Foundation’s Blossom
Initiative to empower disadvantaged girls aged 14 to 17, equip-
Rooting for Grassroot Talents Beyond the Classroom ping them with problem solving, collaborative, and entrepreneur-
ial skills.
As part of our contribution towards improving lives and livelihoods
in grassroot communities, we are committed to supporting sports Part of the Initiative also dedicates resources to championing
programs and other extracurricular activities in local community STEM education among girls in Nigeria, aiming to empower them
schools. Over 9,000 students benefited from our sponsorship of with the critical knowledge and skills needed to excel in fields
several schools’ inter-house athletic events and commencement traditionally underrepresented by women.
celebrations throughout the year. Our goal is to enable students
to reach their fullest potential by promoting holistic development
and supporting emerging talents outside the classroom. The YouRead Initiative
For International Women’s Day 2023 and in line with the glob-
Health and Wellness for Everyone al theme ‘DigitALL’, we hosted an event to celebrate pioneering
women in the Nigerian tech industry, highlighting the remarkable
Support for Nursing Mothers and Infants achievements of these women in breaking barriers in a tradition-
ally male-dominated field.
In a continent where healthcare disparities persist and vulnerable
populations often face immense challenges, our support of the We held a book reading initiative featuring Chioma C. Nwokwu,
Association of Reproductive and Family Health’s Les Amie Project author of “A Techies Guide into Big Tech Companies.” The book
aligns with its mission to assist women, orphans, and children offers a roadmap for landing tech jobs, along with a structured
across Africa. learning curriculum for preparing for interviews and an account
of the author’s inspiring tech journey. The session served to en- child mortality, better methods of recognizing and managing haz-
courage young women aspiring to pursue careers in tech and pro- ards, and the provision of safe water, sanitation, and enhanced
vided a rewarding experience for all attendees. hygiene, are expected to benefit an estimated 2.5 million people
in West Africa.
Championing Community Development Constantly innovating the space to create opportunities for more
businesses on our free business platform, the 2023 GTCO Food
GTCO Autism Conference and Drink Festival was expanded to increase the highly coveted
vendor stalls from 142 to 204, giving more small business own-
The Orange Ribbon Initiative is one of the ways we demonstrate ers the chance to not only showcase their businesses to the over
our support for persons with developmental disabilities, focus- 250,000 foodies in attendance, but also actively engage with
ing on those with autism spectrum disorders (ASD). As a primary their customer base and gain useful insights from a confluence of
component of this Initiative, the GTCO Autism Conference has accomplished food entrepreneurs from around the world.
grown to become a reference point for autism advocacy and
intervention in Africa, providing support and empowerment to The continuing success of our free business platforms reflect our
thousands of people with neurodevelopmental disorders. unchanging commitment to Promoting Enterprise and echoes our
brand promise of creating Great Experiences.
The 2023 Autism Conference was themed “Empowering Voices
for Autism” to promote inclusivity and self-advocacy for persons
on the Autism Spectrum. Working with specialists and partner GTCO Fashion Weekend
organisations within and outside Nigeria, the conference featured
lectures, panel discussions, and performances carefully prepared Over the years, the GTCO Fashion Weekend has grown to be-
to showcase the diverse talents that exist in the autism communi- come the biggest fashion event in Africa, bringing together some
ty whilst also creating a platform for persons with ASD and their of Africa’s leading fashion brands and fashion enthusiasts across
families to connect and share ideas with subject-matter experts the globe to interact with universally celebrated fashion icons and
on different aspects of autism spectrum. engaging style personalities.
Many persons affected by autism in both urban and rural commu-
nities across Nigeria and Ghana have continued to benefit from The 2023 GTCO Fashion Weekend featured insightful master-
our advocacy and intervention efforts. The conference for Nigeria classes by renowned stylists and fashion icons including Sir John,
took place at the Muson Centre in Lagos on July 24th and 25th, Julee Wilson, Jourdan Dunn, and Sergio Hudson, who shared
and a free one-on-one clinic was held at the Chapel of Light in their experiences as talented creatives as well as useful tips on the
Alausa, Ikeja, from July 26th to 29th. The events in Ghana includ- business of fashion as successful entrepreneurs. The presentation
ed a one-day workshop at the University of Professional Studies in stage and runway shows explored emerging trends in fashion,
Accra on August 1st, and individual consultations followed from with models showcasing a variety of creative designs to an en-
August 2nd to August 5th. tranced audience. For the first time, model casting for the GTCO
Fashion Weekend runway shows was virtual, opening up the
experience to thousands of young and emerging models across
Swiss Red Cross Africa.
Our longstanding partnership with The Swiss Red Cross has Beyond showcasing diverse talent and creativity that abound in
helped to provide support to the most vulnerable in society, our continent, the GTCO Fashion Weekend continues to serve as
demonstrating our unwavering commitment to championing im- a platform for promoting enterprise particularly for indigenous
pactful humanitarian causes across the globe. The funds raised at small businesses in the creative industry.
the 2023 Swiss Ball, targeting practices that increase mother and
CORPORATE
DIRECTORY
1. Guaranty Trust Bank (Cote d’Ivoire) Limited. 6. Guaranty Trust Bank (Rwanda) Limited.
11, Avenue du Senateur Lagarosse, Ground and First Floor MIC Building
Abidjan-Plateau, KN 2 Avenue, 1370
01 BP 13141 Abidjan 01, Kigali – Rwanda
Cote dÍvoire. Tel: +250 2525 98600
Tel: +225 20 31 15 00 E-mail: [email protected]
Fax: +225 20 31 15 15 Web: www.gtbank.co.rw
Email: [email protected]
Web: www.gtbankci.com
BRANCH
NETWORK
BRANCHES
24 LAGOS 258 Bayo Kuku 19, Bayo Kuku Road, off Osborne Road, Ikoyi, Lagos State, LAGOS ISLAND
Nigeria
25 LAGOS 203 Broad Street 82/86, Broad Street, Lagos State, Nigeria LAGOS ISLAND
26 LAGOS 224 Catholic 22/24, Catholic Mission Street, Lagos Island, Lagos State, LAGOS ISLAND
Mission Nigeria
27 LAGOS 240 Chevron Drive Block LXXIV A, Ojomu land, Beside Chevron Roundabout, LAGOS ISLAND
Lekki/Epe Expressway, Lagos State, Nigeria
28 LAGOS 242 Idumota 134, Nnamdi Azikwe Street, Lagos Island, Lagos State, Nigeria LAGOS ISLAND
29 LAGOS 269 Ikota Block K7 - 11 & K18 - 22, Ikota Shopping Complex, Lekki-Epe LAGOS ISLAND
Expressway, Lagos State, Nigeria
30 LAGOS 208 Ikoyi- 178, Awolowo Road, Ikoyi, Lagos State, Nigeria LAGOS ISLAND
Awolowo
Road
31 LAGOS 215 Lekki Block 5, Plot 5, Victoria Island Annex, Lekki, Lagos State, LAGOS ISLAND
Nigeria
32 LAGOS 292 Lekki Block 31A, Admiralty way, Lekki Pennisular scheme, Lekki LAGOS ISLAND
Admiralty
Road
33 LAGOS 216 Marina 49A, Marina Street, Lagos State, Nigeria LAGOS ISLAND
34 LAGOS 246 Moloney 30, Moloney Street, Lagos Island, Lagos State, Nigeria LAGOS ISLAND
35 LAGOS 247 Oke Arin 40, John Street, Oke-Arin, Lagos Island, Lagos State, Nigeria LAGOS ISLAND
36 LAGOS 265 Plural House Plot 1669, Oyin Jolayemi Street, Victoria Island, Lagos State, LAGOS ISLAND
Nigeria
37 LAGOS 260 St Gregory No. 1 Obadeyi Close, off St. Gregory Road, Ikoyi, Lagos State, LAGOS ISLAND
Nigeria
38 LAGOS 228 Tiamiyu Plot 1400, Tiamiyu Savage Road, Victoria Island, Lagos State, LAGOS ISLAND
Savage Nigeria
39 LAGOS 295 Epe No. 1 Ayotunde Seriki Street Epe Express Road, Lagos State, LAGOS ISLAND
Nigeria
40 LAGOS 420 Awolowo 2 No. 180 Awolowo Road, Ikoyi Lagos LAGOS ISLAND
41 LAGOS 248 Abule Egba 402, Lagos-Abeokuta Expressway, Abule-Egba, Lagos State, LAGOS
Nigeria MAINLAND
42 LAGOS 266 Abule Egba 2 641 Lamgan Plaza Abule Tailor Lagos-Abeokuta Expressway, LAGOS
Abule-Egba, Lagos State, Nigeria MAINLAND
43 LAGOS 293 Abule Egba 3 Abule-Egba U-Turn, along Abeokuta Express way, Ifako-Ijaye LAGOS
(U-Turn) LGA, Lagos MAINLAND
44 LAGOS 243 Adeniyi Jones 31, Adeniyi Jones Avenue, Ikeja, Lagos State, Nigeria LAGOS
MAINLAND
45 LAGOS 236 Akowonjo 35, Shasha Road, Akowonjo, Lagos State, Nigeria LAGOS
MAINLAND
46 LAGOS 256 Alaba Market 13, Obosi Plaza, Alaba International Market, Lagos State, LAGOS
Nigeria MAINLAND
47 LAGOS 234 Alausa Technical Reference Centre, Lagos State Secretariat, Alausa, LAGOS
Ikeja, Lagos State, Nigeria MAINLAND
48 LAGOS 261 Alausa CBD Plot 11, Block A, IPM Road, Central Business District, Alausa, LAGOS
Lagos State, Nigeria MAINLAND
49 LAGOS 202 Allen Avenue 80/82, Allen Avenue, Ikeja, Lagos State, Nigeria LAGOS
MAINLAND
50 LAGOS 259 Amuwo Plot B16, Block 41B, Akin Mateola Close, Amuwo Odofin LAGOS
Odofin Residential Scheme, Amuwo Odofiin LGA. MAINLAND
51 LAGOS 229 Anthony 7, Anthony Village Road, Anthony Village, Lagos State, Nigeria LAGOS
MAINLAND
52 LAGOS 280 Apapa, Duolla 12, Dualla Road, Apapa, Lagos State. LAGOS
Road MAINLAND
53 LAGOS 204 Apapa1 - Doyin House, 4 Commercial Avenue Apapa, Lagos State, LAGOS
Commercial Nigeria MAINLAND
Road
54 LAGOS 218 Apapa2 Creek 35, Creek Road, Apapa, Lagos State, Nigeria LAGOS
Road MAINLAND
55 LAGOS 207 Aspamda Zone A, R1 Aspamda Plaza, International Trade Fair Complex, LAGOS
(Trade Fair) Ojo, Lagos State, Nigeria MAINLAND
56 LAGOS 262 Ayangberu 68, Ayangbure Road, Ikorodu LAGOS
Ikorodu MAINLAND
57 LAGOS 238 Berger Paints Plot 10, Oba Akran Avenue, Ikeja, Lagos State, Nigeria LAGOS
Oba-Akran MAINLAND
58 LAGOS 267 Bode Thomas 124, Bode Thomas Street, Surulere, Lagos State, Nigeria LAGOS
2 MAINLAND
59 LAGOS 251 Burma Road, Plot 17, Burma Road, Apapa, Lagos State, Nigeria LAGOS
Apapa MAINLAND
60 LAGOS 271 Cele Ijesha 44,Ajijedudun Street, Off Agulejika Bus -Stop Ijesha LAGOS
MAINLAND
61 LAGOS 257 Computer 5, Osintelu Street, off Oremeji Street, Computer Village, Ikeja, LAGOS
Village Ikeja Lagos State, Nigeria MAINLAND
62 LAGOS 252 Diya Gbagada 14, Diya Street, Ifako, Gbagada, Lagos State, Nigeria LAGOS
MAINLAND
63 LAGOS 284 Egbe 8, Egbe Road, Isolo, Lagos LAGOS
MAINLAND
64 LAGOS 245 Egbeda Idimu 26 - 28 Akowonjo Road, Egbeda, Lagos State, Nigeria LAGOS
MAINLAND
65 LAGOS 226 Festac House 11, 301 Road, 2nd Avenue, Festac Town, Lagos State, LAGOS
Nigeria MAINLAND
66 LAGOS 277 Festac 2 Plot 22o, 23 Road, Opposite J Close, Festc Town LAGOS
MAINLAND
67 LAGOS 220 Ibafo 1,Bakare Street, Ibafon, Apapa Expressway, Lagos State, LAGOS
Nigeria MAINLAND
68 LAGOS 241 Idi - Oro 110, Agege Motor Road, Idi-Oro, Mushin, Lagos State, Nigeria LAGOS
MAINLAND
69 LAGOS 289 Iju 90, Iju Fagba Road, Iju LAGOS
MAINLAND
70 LAGOS 232 Ikorodu 47, Lagos Road, Ikorodu Town, Lagos State, Nigeria LAGOS
MAINLAND
71 LAGOS 298 Ikorodu 3 No 218 Lagos Road, Owutu-Agric, Ikorodu, Lagos LAGOS
(Owutu-Agric) MAINLAND
72 LAGOS 223 Ikosi Plot A3C, Ikosi Road, Oregun, Ikeja, Lagos State, Nigeria LAGOS
MAINLAND
73 LAGOS 270 Ikotun No. 49, Idimu-Ikotun Road, Ikotun, Lagos State, Nigeria LAGOS
MAINLAND
74 LAGOS 294 Ikotun 2 155/157 Isolo-Ikotun Road, Opposite Tayese Towers, Egbe LAGOS
Town, Alimosho Local Government, Lagos State MAINLAND
75 LAGOS 210 Ilupeju 48, Town Planning Way, Ilupeju, Lagos State, Nigeria LAGOS
MAINLAND
76 LAGOS 272 Intl Airport 10, International Airport Road,Mafoluku Oshodi, Lagos State, LAGOS
Rd 2 Nigeria. MAINLAND
77 LAGOS 222 Intl Airport Rd 15, International Airport Road, Isolo, Lagos State, Nigeria LAGOS
Isolo MAINLAND
78 LAGOS 276 Ipaja 199, Ipaja Road, Ipaja LAGOS
MAINLAND
79 LAGOS 290 Isheri/Omole 792,Shomide Odujirin Avenue,Omole Phase 2,Lagos. LAGOS
MAINLAND
80 LAGOS 237 Isolo 1, Abimbola Way, Isolo, Lagos State, Nigeria LAGOS
MAINLAND
81 LAGOS 239 Ketu 570, Ikorodu Road, Ketu, Kosofe L.G.A, Lagos State, Nigeria LAGOS
MAINLAND
82 LAGOS 282 Laspotech Lagos State Polytechnic, KM 7, Sagamu Road, Odogunyan, LAGOS
Ikorodu MAINLAND
83 LAGOS 255 Lawanson Muniru Baruwa Shopping Complex By Olatilewa Junction Itire LAGOS
Road, Lawanson, Lagos State, Nigeria MAINLAND
84 LAGOS 230 Luth Route 1, Lagos University Teaching Hospital (LUTH) premises, LAGOS
Idi-Araba, Lagos State, Nigeria MAINLAND
85 LAGOS 263 Magodo 16 CMD Road, Magodo, Lagos LAGOS
MAINLAND
86 LAGOS 300 Masha 145, Ogunlana Drive by Masha Roundabout, Surulere LAGOS
MAINLAND
87 LAGOS 244 Matori 135, Ladipo Street, Matori, Lagos State, Nigeria LAGOS
MAINLAND
88 LAGOS 291 MM Way, 352, Murital Mohammed Way, Yaba Lagos LAGOS
Yaba MAINLAND
89 LAGOS 206 Mobolaji Bank 31, Mobolaji Bank-Anthony Way, Ikeja, Lagos State, Nigeria LAGOS
Anthony Way MAINLAND
90 LAGOS 225 Mushin 311, Agege Motor Road, Olorunsogo, Mushin, Lagos State, LAGOS
Nigeria MAINLAND
91 LAGOS 212 Oba Akran 33, Oba Akran Avenue, Ikeja, Lagos State, Nigeria LAGOS
MAINLAND
92 LAGOS 217 Ogba 4, Ogunnusi Road, Ogba, Lagos State, Nigeria LAGOS
MAINLAND
93 LAGOS 288 Ogba 2 19, Isheri Road, Opposite WAEC building, Ijaiye-Ogba, Ikeja LAGOS
MAINLAND
94 LAGOS 249 Ojodu 50, Isheri Road, Ojodu, Lagos State, Nigeria LAGOS
MAINLAND
95 LAGOS 231 Ojuelegba 74/76, Ojuelegba Road, Lagos State, Nigeria LAGOS
MAINLAND
96 LAGOS 233 Okota 115A, Okota Road, Okota, Lagos State, Nigeria LAGOS
MAINLAND
97 LAGOS 235 Onipanu 196, Ikorodu Road, Onipanu, Lagos State, Nigeria LAGOS
MAINLAND
98 LAGOS 221 Opebi 14, Opebi Road, Ikeja, Lagos State, Nigeria LAGOS
MAINLAND
99 LAGOS 211 Oregun 100, Kudirat Abiola Way, Oregun, Ikeja, Lagos State, Nigeria LAGOS
MAINLAND
100 LAGOS 274 Orile Coker Plot 3, Block C, Amuwo Odofin Industrial Scheme, Orile LAGOS
Coker, Lagos State, Nigeria MAINLAND
101 LAGOS 296 Sobo 26, Sobo Arobiodu Street off Bank Anthony Road, Ikeja GRA, LAGOS
Arobiodu Lagos State, Nigeria MAINLAND
102 LAGOS 213 Surulere- Bode 94, Bode Thomas Street, Surulere, Lagos State, Nigeria LAGOS
Thomas MAINLAND
103 LAGOS 275 Unilag University of Lagos, Akoka, Lagos State, Nigeria LAGOS
MAINLAND
104 LAGOS 268 Western 89, Western Avenue, Surulere, Lagos State, Nigeria LAGOS
Avenue MAINLAND
105 LAGOS 219 Yaba 216/218, Herbert Macaulay Way, Yaba, Lagos State, Nigeria LAGOS
MAINLAND
106 LAGOS 254 LASU/Iba Road LASU/Iba Road, Lagos State LAGOS
MAINLAND
107 NASARAWA 691 Karu Plot 13754, Abuja – Keffi, Expressway, Mararaba, Karu, LGA., NORTH
Nasarawa State, Nigeria CENTRAL
108 NASARAWA 692 Karu New GTBank, Along Keffi Express Way, Before Orange Market, NORTH
Market Mararaba, Nassarawa State. CENTRAL
109 NASARAWA 681 Lafia Jos Road, Lafia, Nasarawa State, Nigeria NORTH
CENTRAL
110 KOGI 641 Lokoja Plot 27, IBB Way, Lokoja, Kogi State, Nigeria NORTH
CENTRAL
111 BENUE 381 Makurdi 41 A/B, New Bridge Road, Makurdi, Benue State, Nigeria NORTH
CENTRAL
112 KOGI 831 Obajana Obajana Cement Factory Complex, Obajana, Kogi State, NORTH
Nigeria CENTRAL
113 KOGI 841 Okene Auchi-Abuja Expressway, Okene, Kogi State, Nigeria NORTH
CENTRAL
114 ADAMAWA 362 AUN Yola American University of Nigeria, Yola, Adamawa State, Nigeria NORTH EAST
115 BAUCHI 602 Azare (Closed) No 1, Jama’re Road, Azare, Bauchi State, Nigeria NORTH EAST
116 KANO 306 Bayero Bayero University, New site Campus, Gwarzo Rd, Kano NORTH EAST
University
Kano VI
117 YOBE 671 Damaturu Potiskum Road, Damaturu, Yobe State, Nigeria NORTH EAST
118 JIGAWA 651 Dutse Plot 727, Kiyawa Road, Dutse, Jigawa State, Nigeria NORTH EAST
119 GOMBE 621 Gombe Plot 45, New Commercial Layout, Gombe, Gombe State, NORTH EAST
Nigeria
120 TARABA 661 Jalingo Plot 106B, Hamman Ruwa Way, Jalingo, Taraba State, Nigeria NORTH EAST
121 KANO 301 Kano I 145 Muritala Mohammed Way, Kano, Kano State, Nigeria NORTH EAST
122 KANO 302 Kano II - Zaria Plot 22, Zaria Road, Gyadi-Gyadi, Kano Municipal District, NORTH EAST
Road Kano State, Nigeria
123 KANO 303 Kano III - Bello Plot12E, Bello Road, Kano, Kano State, Nigeria NORTH EAST
Road
124 KANO 304 Kano IV - 24, Bachirawa road, Along Katsina Road, Kano, Kano State, NORTH EAST
Bachiwara Nigeria
125 KANO 305 Kano V - 59, Murtala Muhammed Way, Wapa, Kano, Kano State, NORTH EAST
Wapa Nigeria
126 KANO 307 France Road 11A Galadima Street, By France Road Junction, Kano State NORTH EAST
127 BORNO 341 Maiduguri 59, Kashim Ibrahim Way, Maiduguri, Borno State, Nigeria NORTH EAST
128 BORNO 342 Maiduguri II 81, Ali Monguno Street, Monday Market, Maiduguri, Borno NORTH EAST
State, Nigeria
129 ADAMAWA 821 Mubi 60, Ahmadu Bello Way, Mubi, Adamawa State, Nigeria NORTH EAST
130 TARABA 851 Wukari No 3, Ibi Road, Wukari G.R A., Taraba State, Nigeria NORTH EAST
(Closed)
131 ADAMAWA 361 Yola No 43, Galadima Aminu Way, Jimeta-Yola, Adamawa State, NORTH EAST
Nigeria
132 KADUNA 813 ABU ZARIA Area BZ, ABU Samaru Zaria, Kaduna State NORTH WEST
133 KADUNA 316 Alkali Road 17B Alkali Road by Suleiman Crescent, Alkali Kaduna State NORTH WEST
134 BAUCHI 601 Bauchi No 6, Murtala Muhammed Way, Bauchi, Bauchi State, Nigeria NORTH WEST
135 KEBBI 611 Birnin Kebbi No 9, Sultan Abubakar Way, Birnin Kebbi, Kebbi State, Nigeria NORTH WEST
136 ZAMFARA 631 Gusau 5, Sani Abacha Way, Gusau, Zamfara State, Nigeria NORTH WEST
137 PLATEAU 331 Jos I - Jengre 13B, Commercial Layout, Jengre Road, Jos, Plateau State, NORTH WEST
Road Nigeria
138 PLATEAU 332 Jos II - Plot 1902, Ahmadu Bello Way, Jos, Plateau State, Nigeria NORTH WEST
Ahmadu Bello
Way
139 KADUNA 311 Kaduna 1 MM 7/10 Muritala Mohammed Square, Kaduna, Kaduna State, NORTH WEST
Square Nigeria
140 KADUNA 312 Kaduna 2 Plot 9-11, Nnamdi Azikiwe Expressway, Kaduna Bye pass, NORTH WEST
Nnamdi Kaduna, Kaduna State, Nigeria
Azikwe
141 KADUNA 313 Kaduna 3 PPMC, Kaduna, Kaduna State, Nigeria NORTH WEST
Kano Road
142 KADUNA 314 Kaduna 4 Plot 1A, Zaire Road, Barnawa Phase 1, Barnawa, Kaduna, NORTH WEST
(Barnawa) Kaduna State, Nigeria
143 KATSINA 391 Katsina No. 120, IBB Way, Katsina, Katsina State, Nigeria NORTH WEST
144 NIGER 801 Kontagora Plot 6C, KTF 139, Lagos - Kaduna Road, Kontagora, Niger NORTH WEST
State, Nigeria
145 NIGER 371 Minna Plot 4936, Paiko Road, Minna, Niger State, Nigeria NORTH WEST
146 KADUNA 315 NDA Kaduna N.D.A New site, Afarka, Mando, Kaduna State. NORTH WEST
147 SOKOTO 351 Sokoto 1 No.101, Ahmadu Bello Way, Sokoto, Sokoto State, Nigeria NORTH WEST
148 SOKOTO 352 Sokoto 2 No.41, Maiduguri Road, Sokoto, Sokoto State, Nigeria NORTH WEST
Maduguri Rd
149 SOKOTO 353 Usman Dan Usman Dan Fodiyo University, Sokoto, Nigeria NORTH WEST
Fodio
150 KADUNA 811 Zaria 13/15, Manchester Road, GRA, Zaria, Kaduna State, Nigeria NORTH WEST
151 RIVERS 502 Aba Road - Plot 279A, Tombia Street, off Aba Road, Port Harcourt, Rivers PORT
PH 2 State, Nigeria HARCOURT
152 RIVERS 600 Aba Road Happy Bite Plaza, Opposite Air force base, Aba Road, Port PORT
PH eBranch Harcourt HARCOURT
(Happy Bite)
153 RIVERS 505 East West Rd- 11, East West Road, Port Harcourt, Rivers State, Nigeria PORT
PH 5 HARCOURT
154 RIVERS 506 Ikwerre Rd- 225, Ikwerre Road Mile 4, Port Harcourt, Rivers State, Nigeria PORT
PH 6 HARCOURT
155 RIVERS 507 Industrial Plot 23, Trans-Amadi Layout, Port Harcourt, Rivers State, PORT
Layout - PH 7 Nigeria HARCOURT
156 RIVERS 509 NAOC/Agip - NAOC Agip New Base Station Rumueme, Port Harcourt, Rivers PORT
PH 9 HARCOURT
157 RIVERS 504 Nnamdi 5, Nnamdi Azikiwe Road, Port Harcourt, Rivers State, Nigeria PORT
Azikwe Road - HARCOURT
PH 4
158 RIVERS 508 NTA Rd, 110 NTA Road, Location junction, Mgbuoba, Port Harcourt PORT
Mgbuoba- Rivers State, Nigeria HARCOURT
PH 8
159 RIVERS 594 Rivers Ground Floor, Block A, RVSG Secretariat, Port Harcourt PORT
State Govt. HARCOURT
Secretariat -
PH 10
160 RIVERS 503 Shell RA - PH Plot 215, Aba – Port Harcourt Road, Shell Residential Area, PORT
3 Port Harcort, Rivers State, Nigeria HARCOURT
161 RIVERS 501 Trans Amadi - 44,Trans Amadi Industrial Layout, Port Harcourt, Rivers State, PORT
PH 1 Nigeria HARCOURT
162 RIVERS 510 Woji 44 Woji Road, Port Harcourt City, Rivers State PORT
HARCOURT
163 ABIA 521 Aba I 28, Aba - Owerri Road, Aba, Abia State, Nigeria SOUTH EAST
164 ABIA 522 Aba II 4/6, Port-Harcourt Road, Aba, Abia State, Nigeria SOUTH EAST
165 EBONYI 591 Abakaliki 35A, Ogoja Road, Abakaliki, Ebonyi State, Nigeria SOUTH EAST
166 ANAMBRA 711 Awka 96, Nnamdi Azikiwe Avenue, Awka, Anambra State, Nigeria SOUTH EAST
167 ENUGU 531 Enugu I - Ogui 1, Ogui Road, Enugu, Enugu State, Nigeria SOUTH EAST
Road
168 ENUGU 532 Enugu II Plot 381 Igboeze Street, Rangers Avenue, Independence SOUTH EAST
- Rangers Layout, Enugu, Enugu State, Nigeria
Avenue
169 ANAMBRA 712 Nnamdi Nnamdi Azikwe University, Awka Anambra State SOUTH EAST
Azikwe
University,
Awka
170 ANAMBRA 581 Nnewi No 7, Edo-Ezemewi Street, Nnewi, Anambra State, Nigeria SOUTH EAST
171 ENUGU 751 Nsukka No 16, University road, Nsukka Enugu State. SOUTH EAST
172 IMO 593 Okigwe Plot C/RH Government Layout Okigwe Township Owerri Road SOUTH EAST
(Closed) Imo State
173 ANAMBRA 512 Onitsha II - 15, New Market Road, Onitsha, Anambra State, Nigeria SOUTH EAST
New Market
174 ANAMBRA 513 Onitsha III - No 4, Port Harcourt Road, Niger bridge Onitsha SOUTH EAST
Bridge Head
175 IMO 592 Orlu (Closed) Plot 5 Asika Ilobi Street Orlu SOUTH EAST
176 IMO 571 Owerri Plot 265, Ikenegbu Layout, Aladinma Ikenga Road, Owerri, SOUTH EAST
Imo State, Nigeria
177 IMO 572 Owerri II Plot 17, Port Harcourt Road, Opp. Owerri Girls High School, SOUTH EAST
Owerri, Imo State, Nigeria
178 ABIA 701 Umuahia 34, Aba Road, (Opposite Federal Medical Centre) Umuahia, SOUTH EAST
Abia State, Nigeria
179 DELTA 415 Airport Road, 7B Airport Road, Warri, Delta State, Nigeria SOUTH SOUTH
Warri
180 DELTA 413 Asaba 457, Nnebisi Road Asaba, Delta State, Nigeria SOUTH SOUTH
181 DELTA 416 Asaba 2 Ezenel Avenue by Oni Edozien Road, Asaba Delta State SOUTH SOUTH
182 RIVERS 721 Bonny 34, King Perekule Road, Bonny Island, Rivers State, Nigeria SOUTH SOUTH
183 CROSS RIVER 561 Calabar 11, Calabar Road, Calabar, Cross River State, Nigeria SOUTH SOUTH
184 CROSS RIVER 562 Calabar 2 65, Marian Road, Calabar Municipality, Cross River State SOUTH SOUTH
185 DELTA 417 Delta State Delta State University, Abraka, Delta State SOUTH SOUTH
University,
Abraka
186 DELTA 411 Effurun Road, 85, Effurun-Warri, Effurun, Delta State, Nigeria SOUTH SOUTH
Warri
187 CROSS RIVER 741 Ikom 18, Ogoja Road, Ikom, Cross River State, Nigeria SOUTH SOUTH
188 DELTA 731 Sapele 80, Ajogodo, Sapele - Warri Road, Sapele, Delta State, Nigeria SOUTH SOUTH
189 AKWA-IBOM 551 Uyo 26, Aka Road, Uyo, Akwa Ibom State, Nigeria SOUTH SOUTH
190 AKWA-IBOM 552 Uyo 2 Plot 2, Block F, Salvation Army Road, Banking Layout, Uyo, SOUTH SOUTH
Akwa Ibom
191 BAYELSA 541 Yenagoa Barracuda Square, Ekeki-Ekpe Area, Yenogoa, Bayelsa State, SOUTH SOUTH
Nigeria
192 OGUN 421 Abeokuta IBB Boulevard Road, Abeokuta, Ogun State, Nigeria SOUTH WEST
193 EKITI 461 Ado-Ekiti 21/22, New Iyin/Secretariat Road, Ado Ekiti, Ekiti State, Nigeria SOUTH WEST
194 OGUN 908 Agbara Plot C 2/4, Ilaro Road, Agbara Industrial Estate, Agbara, Ogun SOUTH WEST
State, Nigeria
195 ONDO 431 Akure Plot 3, Alagbaka Quarters, Alagbaka, Akure, Ondo State, SOUTH WEST
Nigeria
196 OYO 404 Apata - Ibadan SW9/21A, Ibadan - Abeokuta Road, Apata, Ibadan, Oyo State, SOUTH WEST
Ngeria
197 OGUN 907 Asero - Block 7, Plot 17/20, Abeokuta/Ibadan Road, Asero, Abeokuta, SOUTH WEST
Abeokuta Ogun State, Nigeria
198 EDO 761 Auchi 31, Polytechnic Road, Auchi, Edo State, Nigeria SOUTH WEST
199 OGUN 482 Babcock Babcock University Campus, Ilisan-Remo, Ogun State, Nigeria SOUTH WEST
200 EDO 412 Benin I - 35B, Benin-Sapele Road, Benin City, Edo State, Nigeria SOUTH WEST
Sapele Road
201 EDO 422 Benin II - Uselu 158, New Lagos Road, Benin City, Edo State, Nigeria SOUTH WEST
202 EDO 423 Benin III- 43, Akpakpava Street, Benin City, Edo State, Nigeria SOUTH WEST
Akpakpava
203 EDO 424 Benin IV - No 90, Ekenwan Road, Oredo LGA, Benin City, Edo State, SOUTH WEST
Ekenwan Rd Nigeria
204 EDO 425 Benin V - 62, Agbor Road, Ikpoba Hills, Benin City, Edo State, Nigeria SOUTH WEST
Ikpoba Hill
205 OYO 402 Bodija - Plot 6A, U.I-Secretriat Road, Bodija, Ibadan, Oyo State, Nigeria SOUTH WEST
Ibadan
206 OYO 407 Bodija 2 - 30, Awolowo Road Old Bodija Ibadan SOUTH WEST
Ibadan
207 OYO 406 Challenge - Plot 14, JFK Osibodu Layout, Ijebu Road, Challenge, Ibadan, SOUTH WEST
Ibadan Oyo State, Nigeria
208 OYO 401 Dugbe, Ibadan 11B, Jimoh Odutola Road, Dugbe, Ibadan, Oyo State, Nigeria SOUTH WEST
209 OYO 408 Agbowo, N6/880B Oyo Road, Agbowo (opposite University of Ibadan), SOUTH WEST
Ibadan Oyo State.
210 EKITI 444 Ekiti Faculty of Education, Ekiti State University, Ado Ekiti SOUTH WEST
211 EDO 427 Ekpoma No 2 Ihumudumu Road, Ekpoma Edo State. SOUTH WEST
212 ONDO 432 FUTA Akure Federeal University of Technology, Akure, Ondo State, Nigeria SOUTH WEST
213 OGUN 904 Ijebu - Ode 183, Folagbade Street, Ijebu Ode L.G.A., Ijebu Ode, Ogun SOUTH WEST
State, Nigeria
214 OSUN 491 Ile-Ife 3, Lagere Road, Ile-Ife, Osun State, Nigeria SOUTH WEST
215 OSUN 901 Ilesa 196, Isokun Street, Along Ilesha-Osogbo Road, Ilesa, Osun SOUTH WEST
State, Nigeria
216 KWARA 441 Ilorin 1, Wahab Folawiyo Road, Ilorin, Kwara State, Nigeria SOUTH WEST
217 KWARA 442 Ilorin GRA 10, Umar Audi Road, GRA, Ilorin, Kwara State, Nigeria SOUTH WEST
218 KWARA 446 Kwara Poly Kwara Polytechnic Main Campus, Old Jebba Road, Ilorin, SOUTH WEST
Kwara
219 OYO 911 Lautech Ladoke Akintola University of Technology LAUTECH SOUTH WEST
220 OYO 405 Mokola 27, Majaro Street, Old Oyo Road, Cocacola Area, Mokola, SOUTH WEST
Ibadan Ibadan, Oyo State, Nigeria
221 OSUN 492 OAU Ile-Ife Road 1, Obafemi Awolowo University Campus, Ile- Ife, Osun SOUTH WEST
State, Nigeria
222 KWARA 471 Offa No 53, Olofa Way, Offa, Kwara State, Nigeria SOUTH WEST
223 OYO 902 Ogbomoso Ibapon Area, Ilorin-Ogbomoso Express Road, Ogbomoso, Oyo SOUTH WEST
State, Nigeria
224 ONDO 433 Ondo 48, Yaba, Ondo Town , Ondo State Nigeria SOUTH WEST
225 OGUN 414 OOU Ago- P.S. Olabisi Onabanjo University, Ago Iwoye, Ogun State, SOUTH WEST
Iwoye Nigeria
226 OSUN 451 Oshogbo No 67, Gbongan / Ibadan Road, Ogo Oluwa, Osogbo, Osun SOUTH WEST
State, Nigeria
227 OSUN 452 Oshogbo 2 68, Ikirun Road opposite Oshogbo Stadium, Oshogbo, Osun SOUTH WEST
State
228 OYO 905 Oyo Ibadan – Ogbomoso Express Road, Owode, Oyo Town, Oyo SOUTH WEST
State, Nigeria
229 OGUN 912 RCCG Redeem Christain Church Camp Ground, KM 46 Lagos Ibadan SOUTH WEST
Redemption Expressway, No 1 Salvation Way
Camp
230 OYO 403 Ring Road 106, Ring Road, Lister Bus Stop, Ibadan, Oyo State, Nigeria SOUTH WEST
Ibadan
231 OGUN 903 Sagamu 143, Akarigbo Street, Sabo, Sagamu, Ogun State, Nigeria SOUTH WEST
232 OGUN 481 Sango Otta 63, Abeokuta Expressway, Joju Junction, Sango Otta, Ogun SOUTH WEST
State, Nigeria
233 KWARA 443 Taiwo 147 Upper Taiwo Rd Ilorin Kwara State SOUTH WEST
Road,Ilorin
234 OGUN 906 Unaab University of Agriculture, off Alabata Road, Alabata, SOUTH WEST
Abeokuta, Ogun State, Nigeria
235 EDO 426 Uniben University of Benin, Benin City SOUTH WEST
236 KWARA 445 Unilorin University of Ilorin, Campus, Kwara State, Nigeria SOUTH WEST
237 OGUN 483 Sango Otta 2 54 Abeokuta Expressway, Sango Otta, Ogun State SOUTH WEST
238 OGUN 484 CBD Abeokuta Along Oba Gbadebo Road, Ibara Central Business District, Oke SOUTH WEST
Ilewo, Abeokuta, Ogun State
eBRANCHES
14 RIVERS Genesis Port Harcourt Plot 45 Genesis E-branch Trans Amadi PORT HARCOURT
eBranch
15 LAGOS Toyin Street eBranch 47,Toyin Street, Ikeja Lagos LAGOS MAINLAND
16 LAGOS Ilupeju eBranch No 3 Ilupeju Bye Pass, Ilupeju, Lagos Nigeria. LAGOS MAINLAND
CASH CENTRES
1 LAGOS Forte Oil Campus 1, Igbosere Road, Campos Lagos Island LAGOS ISLAND
Road
2 LAGOS Forte Oil, Awolowo 111 – 113 Awolowo Road, Ikoyi LAGOS ISLAND
Road
3 LAGOS Hubmart Plot 1263, Adeola Odeku Street, Victoria LAGOS ISLAND
Supermarket Island Lagos
4 LAGOS Forte Oil, Kingsway Kingsway Avenue Apapa, Lagos LAGOS MAINLAND
Road Apapa
5 LAGOS Forte Oil, Oshodi Berger Yard B/stop Oshodi-Apapa Expressway, LAGOS MAINLAND
Apapa (Mile 2) Mile 2, Lagos
6 LAGOS Forte Oil, Western 113/115, Funsho Williams Avenue, Surulere LAGOS MAINLAND
Avenue
7 LAGOS Forte Oil, Alimosho Egbeda-Ipaja Road, Ponle bustop, Alimosho LAGOS MAINLAND
8 NORTH Forte Oil, Club Road, Club road Kano NORTH EAST
EAST Kano
9 RIVERS Forte Oil, PH/Aba Expressway By Shell Gate, Port PORT HARCOURT
Rumubekwe S/S Harcourt
10 NORTH Forte Oil, Zaria Road, Zaria Road Kano NORTH EAST
EAST Kano
11 RIVERS Forte Oil ,Aggrey Rd Aggrey Road 2, Port Harcourt PORT HARCOURT
S/S II
12 LAGOS Forte Oil, Wharf Barracks Bus Stop, Wharf Road, Apapa, Lagos LAGOS MAINLAND
Road Apapa
PAGE Guaranty Trust Holding Company Plc // 2023 Annual Report
360
BRANCH NETWORK
13 LAGOS Forte Oil, Mushin 259, Agege Motor Road, Mushin, Lagos LAGOS MAINLAND
14 LAGOS Forte Oil, Ogba Oba Ogunji Road, Pen Cinema, Ogba Lagos LAGOS MAINLAND
15 LAGOS Forte Oil Idimu 2 215/217 Idimu Ikotun Road, Egbeda LAGOS MAINLAND
16 LAGOS Forte Oil, Egbe 71, Egbe Road, Powerline Bustop, Ejigbo road LAGOS MAINLAND
Egbe
17 LAGOS Forte Oil, Okota 51 Okota Road Opposite Police Barracks, LAGOS MAINLAND
Okota
18 LAGOS Hubmart, Ikeja Isaac Jone Street Ikeja GRA LAGOS MAINLAND
19 LAGOS Forte Oil, Cement Cement Bus-stop Ipaja-Lagos LAGOS MAINLAND
Ipaja
20 LAGOS Total Tincan Apapa Apapa Oshodi Expressway Berger Cement- By LAGOS MAINLAND
GTB Ibafon Branch
21 NORTH Total, Hotoro Road, Hotoro road Kano NORTH EAST
EAST Kano
22 RIVERS Forte Oil, Aba Road, Port Harcourt, Rivers State PORT HARCOURT
Rumuobikhani S/S
9 LAGOS Forte Oil, Bariga 6/ 8 Fetuga Street, Bariga LAGOS MAINLAND
12 LAGOS Total Igbobi Onipanu 136/138, Ikorodu Road Onipanu LAGOS MAINLAND
14 LAGOS Forte Oil, Iwaya Iwaya Road, Makoko-Yaba, Lagos LAGOS MAINLAND
22 OYO Total Sabo, Oyo Sabo Oyo, Oyo State SOUTH WEST
IMPLANTS
31 UMTH Maiduguri North East UMTH University Of Maiduguri Teaching Hospital, Bama
Road Maiduguri
32 Bridge Head, Onitsha South East Nigerian Breweries Plc. Sona Breweries Fegge, Onitsha, Anambra State.
III
33 Baranwa, Kaduna North West Nigerian Breweries Plc. No 1 - 4 Makera Road, Kakuri Industrial Layout,
Kaduna
34 Kaduna II- Nnamdi North West Nigerian Breweries Plc. 1 A Kudenda Industrial Area, Plot A4-C2,
Azikiwe Kaduna
35 Kaduna II- Nnamdi North West PZ Cusson Plc Nnamdi Azikiwe Western Bye Pass, Near Mando
Azikiwe Round About, Kaduna
36 Minna North West PZ Cusson Plc Behind Gwari Market, Minna, Niger State
37 Aba Rd PH Port Harcourt Lufthansa Lufthansa Office Presidential Hotel Ph
38 Trans Amadi PH Port Harcourt Lufthansa Int'L Airport Omagwa Ph
39 Trans Amadi PH Port Harcourt Dangote Cement Dangote Factory Fot Onne
40 Trans Amadi PH Port Harcourt TOTAL E & P Plot 27 Trans Amadi Inf Lay Out
41 Bonny South South NLNG Bonny Shopping Complex Nlng Residential Area
42 Uyo South South Aluminium Smelter Co Alscon Complex Ikot Abasi,Akwa Ibom State
(ALSCON)
43 Abeokuta South West Ogun State Government Ogun State Government Secretariat, Oke Mosan,
Abeokuta, Ogun State.
44 Akure South West PZ Cussons Nig. Plc. Plt 7 And 18 Ondo State Industrial Layout Akure,
Ondo State
45 Bodija South West IITA Old Oyo Road, Moniya, Ibadan
46 Dugbe South West PZ Cussons/Depot Services Nasfat Lagos Ibadan Expressway
47 Dugbe South West PZ Cussons/Retail Coolworld Oba Adebimpe Road , Dugbe
48 Ilorin GRA South West Kwara State Govt. Kwara State Bureau Of Lands And Housing, Gra,
Ilorin, Kwara State
49 Ilorin GRA South West Kwara State Inland Revenue Kwara State Inland Revenue Services
Services
50 Ilorin unity South West PZ Cussons Nig. Plc. 123 Murtala Muhammed Way, Ilorin , Kwara
State.
51 Oshogbo South West PZ Cussons Nig. Plc. Pz Cussons, Osogbo-Akoda Express Road,
Owode, Osogbo
65 Aminu Kano North East 2 Aminu Kano Teaching Hospital, Zaria Road Kano 10583021
Teaching Hospital
Kano
66 Etisalat Kano North East 1 Etisalat Office, Audu Bako Way, Kano 10583016
67 ABU Zaria North 3 Ahmadu Bello University , Samaru , Zaria, Kaduna State 10588120
West
68 ABUTH Shikka North 2 ABU Teaching Hospital, Funtua Road, Zaria, Kaduna State 10588117
Zaria Kaduna West
69 NDA Kaduna 1 North 2 NDA Old Site 2 Battalion, Kaduna 10583128
West
70 Nuhu Bamali 1 North 2 Gaskiya Road, Opposite Barewa College, Zaria, Kaduna State 10588118
Kaduna West
71 PPMC, Kaduna North 1 Kilometer 17, Kachia Road , Kaduna 10583121
West
72 Zungeru North 2 Sinohydro Power Plant, Off Zungeru Road 10588013
West
73 Godfrey Okoye South East 2 No 3 Jideofor Street, Thinkers Corner, Enugu 10585324
74 UNTH Enugu South East 1 University Of Nigeria Teaching Hospital Ituku Ozalla Enugu 10585311
State
75 Chevron Club Port 1 Chevron Club House Obagi Street Old Gra 10585025
house, Obagi St Harcourt
PH Rivers
76 Mansard Port Port 2 Mansard Ph Head Office Close To Mopol 19 Brarracks 10585026
Harcourt Harcourt
77 MTN Port Port 1 MTN Office , Near Intel Camp PH -Aba Road 10585039
Harcourt Harcourt
78 NLNG Heliconia Port 1 Heliconia Park Off Easter Bypass Amadi Creek 10585019
Park Port Harcort Harcourt
Rivers
79 NLNG Jetty Side Port 1 NLNG Jetty Eastern Bypass Port Harcourt 10585018
Port Harcourt Harcourt
81 Presidential Hotel Port 1 Lufthansa Office Presidential Hotel PH 10585022
PH, Rivers Harcourt
82 Rivers State Port 2 RVSG Secretariat Complex Block 8 10585043
Secreteriat Harcourt
83 Schlumberger PH Port 1 Schlumberger Office Artilery Off Aba Road 10585038
Rivers Harcourt
84 Azari Hotel & South 1 83,Muritala Muhammed Highway,Calabar 10585613
Suites, Cross- South
Rivers
85 Chevron South 1 Chevron Clinic New Port Expressway Warri 10584114
Recreational South
Centre Warri Delta
86 Chevron Warri, South 1 Km 4 New Port Expressway Chevron Dockyard Warri 10584111
Delta South
87 MTN Asaba South 1 MTN Office, Km 129 Benin /Asaba Expressway, Asaba 10584134
South
88 Al-hikmah South 2 Al-Hikmah University, Adewole Area, Ilorin, Kwara State 10584433
University West
89 Ekiti State South 2 Ekiti State Teaching Hospital, Adebayo Area, Ado-Ekiti 10584614
Teaching Hospital West
90 FCE Osiele, Ogun South 2 Federal College of Education, Osiele, Abeokuta, Ogun State 10589068
West
91 Federal South 1 Federal Polytechnic Ede, Ede, Osun State 10584511
Polytechnic Ede, West
Osogbo
92 Federal South 1 Federal Polytechnic Offa, Along Olofa Way, Offa, Kwara State 10584712
Polytechnic Offa, West
Kwara
93 Kwara state South 2 Kwara State University, Molete,Ilorin, Kwara State 10584427
University West
94 LAUTECH Teach, South 1 Lautech Teaching Hospital, Ajegunle, Osogbo 10584513
Oshogbo, Osun West
95 Lead City South 1 Lead City University, Challege, Ibadan 10584032
University, Oyo West
96 MTN Ibadan Oyo South 1 UI Secretariat Road, Bodija 10584027
West
97 Nigeria Breweries, South 1 Nbl Premises, Alakia, Ibadan-Ife Express Road 10584052
Ibadan, Oyo West
98 NPDC, Benin-City, South 1 1 High Court Road, Benin 10584121
Edo West
99 O.A.U Campus Ile- South 2 Oduduwa Hall, OAU Campus 10584911
Ife, Osun West
100 OAU Teaching South 1 OAUTHC Complex, Ile Ife 10584914
Hospital, Ile Ife, West
Osun
101 OOU Teaching South 1 OOU Teaching Hospital, Sagamu, Ogun State 10589032
Hospital Sagamu, West
Ogun
102 OSU, Oshogbo South 1 Osun State University, Ibokun, Osun State 10584514
Osun West
103 UNAAB, ICT South 1 UNAAB ICT, UNAAB, Abeokuta, Ogun State. 10589062
Abeokuta, Ogun West
104 Usman Dan South 1 Usman Dan Fodio Teaching Hospital, Gawonama Road, Sokoto 10583522
Fodio University West
Teaching Hospital
Sokoto
105 Wesley Hospital South 1 Wesley Hospital, Enu-Odi, Ilesha, Ilesha 10589011
Ilesha, Osun West
106 Zartech Oluyole, South 2 Zartech, Oluyole Estate, Off Ring Road 10584043
Ibadan Oyo West
FORMS
Affix
Current
Passport
Photoby bankers)
(To be stamped
I/ We hereby request that you forward until further notice, all future dividend/ interest to
which I/we become entitled for the company indicated, to the branch of the Bank
named below.
Bank Verification Number
Bank Name
* * The Bank stamp and signature of the authorised signatory of your bank is
AUTHORISED SIGNATORY AND STAMP OF BANKERS required to confirm that the Bank details and signature(s) is/are that of
the shareholder(s) or an authorised signatory, before returning to the
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** Surname / Company’s Name First Name Other Names
** Please ensure that the name on your Bank Account corresponds with
that in our records as any contrary Name(s) would void your request
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*** Signature(s)
*** The signature(s) must correspond with your specimen held in our
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would void your request.
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PROXY FORM
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ADMISSION CARD
The Third Annual General Meeting to be held on Thursday, May 9, 2024, at the Oriental Hotel, 3, Lekki Road, Victoria Island, Lagos, at 10
a.m.
Surname: ------------------------------------------------------------------
_____________________________________________________________________________________________________
1 N2.70K for every 50 Kobo Ordinary Share;
2 Mr. Suleiman Barau and Mrs. Catherine Echeozo being due for retirement by rotation and being eligible, have offered themselves for re-election
as Directors.
3 Ernst & Young are the External Auditors of the Company