GT H1 2021 Call

Guaranty Trust Bank held an analyst call last week. Here are key points from the call.

The bank expects that it would meet its FY 2021 targets despite a 15% decline in profit after tax for the 6 months ended June 2021.

The key challenge is the fact that 60% of the bank’s Naira deposits are in special bills. These are securities issued by the CBN which have a really low interest rate. This the bank expects to gradually turn around in the coming quarters.

As for the “incoming” businesses, it has also made sufficient progress. It has gotten to the no objection stage from regulators regarding the acquisition of a PFA and asset management company. It is awaiting a payment licence from the Central Bank of Nigeria

The medium to long term goal is to have these 3 new businesses contribute 30% to group profit. The bank (Nigeria and African subsidiaries) will contribute about 70%.