GTCO Financial Results
Balance Sheet Composition
The Group closed FY 2021 with Total Assets of N5.44tn representing a growth of 9.9% from FY 2020 N4.95tn
position. Across all its Banking jurisdictions in West Africa, East Africa and United Kingdom, the Group
continues to maintain a well-structured and diversified Balance Sheet with Earning Assets constituting
63.2% of Total Assets whilst Loans and Advances, Fixed Income Securities and Money Market Placements
accounted for 33%, 24% and 6% of Total Assets respectively.
Earning Assets increased by 17% to N3.437tn in FY 2021 from N2.939tn in FY 2020. This strong growth is
underpinned by the Group's well diversified and improved Funding base which comprises Customer
Deposits, Customers' Escrow Balances and Equity.
The improved funding was deployed across all the key Earning Asset Lines resulting in a growth in Loans
and Advances by 8.4% (N139.9bn) and growth in Fixed Income Securities (FIS) by 18.1% (N199.9bn). The
reduction in Non-earning Assets to N1.999tn in FY 2021 from N2.006tn in FY 2020 was due to an increase in
the Special T-Bills position credited by the CBN from the Bank's CRR position leading to a net decrease of
N56.5bn in the sterilized Naira deposits. Consequently, CRR closed at N952.3bn in FY 2021 from N1.009tn in
FY 2020, resulting in effective CRR ratio of 37.6% from 44.33% in FY 2020 (with Special Bills, CRR closed
59.7%).
Special Bills priced at 0.5% closed at N560.8bn in FY 2021 from N411.08bn in FY 2020, representing 43% and
61% of the Group's and Bank's Fixed Income Securities Portfolio respectively. The N149.7bn increase did not
have any material impact on the Interest income line owing to its sub-optimal pricing; whereas the cost
of funds of the underlying deposits far outweighs the yield on this Special Instrument issued to boost the
Bank's Liquidity position.
The Group's net Loans of N1.803Trn benefited from the depreciation of the naira, however, the growth in
the Naira Loan book (with a gross increase of N113.1bn) exceeded the N26.7bn increase recorded on the
FCY Loan Book. The increase in the LCY loan book was principally driven by increased credit flows to the
Corporate (Manufacturing, Telecoms & Oil & Gas) and Retail Sectors. The LCY Loan growth and the impact
of Management's decision to de-risk the FCY component of its Loan book (in view of the difficulty
experienced by one key Obligor in meeting its repayment obligation) was significant to improve the
LCY/FCY Loan mix to 51%:49% from 45%:55% recorded in FY 2020.
Customer Deposit Liabilities grew by 14.3% (N503.0bn) from N3.509tn in FY 2020 to N4.012tn in FY 2021. Low
cost funds increased by 10.2% (N318.2bn) from N3.120tn in FY 2020 to N3.438tn in FY 2021 resulting in Low
cost deposit mix of 86% from 89% in FY 2020. The growth was underpinned by the articulate execution of
the Group's Retail strategy in the face of a challenging operating environment and increased competition
from Fintechs and Tier 2 Banks who offered higher interest rates. In response to the intense competition,
the Group grew its Time Deposit Portfolio moving its contribution to 14.3% from 11.1% in FY 2020 (Bank - 13.3%
from 9.5% in FY 2020).
In spite of the challenges and head winds presented by the operating and regulatory environments in FY
2021 which affected businesses and households, the Group was able to navigate efficiently, deploying
appropriate strategies to deliver Post-tax Return on Average Assets of 3.37% and Post-tax Return on
Average Equity of 20.60%.
Loans, Deposits & Total Assets (N'Bn)
1,449
4,945
3,759
3,351
3,287
3,611
2,147
2,357
2,640
1,262
1,502
1,663
Dec-17
Dec-18
■Total Loans and Advances
Funding Mix ('Bn)
2,147.48
5,436
4,130
1,803
Dec-19
Dec-20
Dec-21
■Total Deposits
Total Assets
4,130.33
3,610.83
2,640.06
2,356.71
814.40
883.23
619.40
224.12 312.62
576.28
140.45 178.57
Dec-18
687.34
233.43 163.00
Dec-19
356.22 113.89
Dec-20
231.52 153.90
Dec-21
Other Liabilities
■ Equity
■Total Deposits
Dec-17
■Debt Securities & Other Borrowed Funds
Components of Asset Base (N'Bn)
1,502.09
1,206.14
1,802.70
1,662.83
1,042.43
1,449.28
1,262.01
67.54
104.40
672.94
592.86
745.56
933.59
73.49
23.95
11.31
641.97
676.99
593.55
1,426.30
562.96
642.93
767.72
Dec-17
Dec-18
Dec-19
Dec-20
1,389.20
Dec-21
Other Assets Cash & Equivalents Financial assets held for trading Investment Securities Net LoansView entire presentation