Digital Banking and Financial Performance Review
Balance Sheet Composition
The Group closed FY-2022 with a Total Asset of N6.5tn representing a growth of 18.6% over #5.44tn posted in FY
2021; maintaining a well-structured and diversified Balance sheet across all its Banking and Non-Banking Entities
(Nigeria, Other West Africa, East Africa, United Kingdom, Payments, Pension and Asset Management).
It grew across all asset lines, benefiting from increased inflows from Deposit Liabilities on the back of an improved
funding base driven by the synergy created through the Holding Company structure and a 6.1% y-o-y exchange
rate movement in Nigeria (from FY-2021 closing of N435/$1 to FY-2022 closing of #461.5/$1).
The 12% increase in Deposit Liabilities was deployed to fund increase in Earning Assets which comprise Money
Market Placements, Investment Securities and Loans and, to fund the increase in CRR debits. Earning Assets
constitute 58% of Total Assets and grew by 9.6% to 3.77tn in FY-2022 from #3.44tn in FY 2021.
Across all jurisdictions of operations, Credit risk heightened as the macroeconomic condition worsened from the
impact of sustained pressure on exchange rates, rise in debt levels and elevated inflation; necessitating the
Group's cautious approach to loan growth to avoid NPLs. Net Loans grew by 5%, closing at N1.86tn in FY-2022 from
#1.803tn in FY-2021. This growth is essentially from Nigerian operations. The loan book remains well distributed with
LCY:FCY mix improving to 53%:47% from 51%:49%, positioning the Group against further depreciation.
The Group grew its Investment Securities Portfolio by 9.5% (#124.2bn) to #1.435trn from #1.311trn during the same
period but this did not translate to the desired revenue, owing to the sub-optimal yield environment that
pervaded Nigeria, Gambia, Kenya and Cote D'Ivoire, e.g. GTBank Ltd continued to suffer from huge holdings of the
CBN's Special Bills - #561.5bn, constituting 56.0% of its Fixed Income Securities portfolio which it held at an average
rate of 0.48% vs 1.24% cost of Funds as at FY-2022.
The funding base remains very strong, increasing by 15.8% to N6.019trn in FY-2022, comprising Customer Deposits
(77%) Equity (15%), Customer Escrow Balances (6%) and other Borrowed Funds (2% from 3% in FY-2021). The
reduction in Borrowed Funds reflects the Group's robust FCY liquidity position which was used to repay all matured
FCY obligations (IFC & Proparco) during the course of FY-2022. With improved funding from Naira Deposits, the
total Sterilised Deposit with the CBN as at FY-2022 closed N1.624trn with CRR accounting for 65% (-N1.014trn),
Special Bills -34.5% (N561bn) and SIR - 3% (N49.2bn).
Customer Deposit Liabilities grew by 11.8% (#472.8bn) from #4.012tn in FY 2021 to #4.49tn in FY-2022 as low-cost
funds grew by 14.5% (#503bn) from #3.438tn in FY 2021 to #3.941tn in FY-2022, resulting in low-cost deposit mix of
87.9% from 85.7% in FY 2021. The Group was able to pull through intense competition from FinTechs and Tier 2
Banks with strong execution of its Retail strategy, which led to reduced reliance on Tenored deposits which dipped
by 4.8% to 544.5bn.
In spite of the challenges in the operating environment and its attendant negative implication on the activities of
individuals, households and businesses, the Group posted a Pre-tax Return on Average Assets of 3.6% and a
Pre-tax Return on Average Equity of 23.6%.
Loans, Deposits & Total Assets (N'Bn)
5,436
1,252
3,287
2,640
2,357
1,502
3,759
3,611
4,945
4,130
1,803
1,886
1,663
4.610
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Total Loans and Advances
Total Deposits
Total Assets
Funding Mix ('Bn)
931
883
351
814
356
576
179
687
163
6,446
4,610
4,130
3.611
2,640
2.357
Dec-18
Total Deposits
Dec-19
Dec-20
Dec-21
Dec-22
Debt Securities & Other Borrowed Funds
Customer Escrow Balances
Equity
Components of Asset Base (N'Bn)
23%
1,505
26 %
2%
1,389
29%
1,426
1,306
2%
20%
768 20%
60 1%
1,206
22%
543
11
20%
0%
2%
1,042
21%
1.621
822
593
22%
25%
934
29%
746 15%
17%
594
16%
677
21%
29%
1,502
40%
1,663
34%
1,803
33%
1,886
1,252 40%
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Net Loans Cash & Equivalents Investment Securities Financial assets held for trading Other Assets
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