Guaranty Trust Holding Company Plc.
Audited Consolidated and Separate Financial Statements Together with Directors' and Auditor's Reports
December 2021
Introduction
Introduction
Guaranty Trust Holding Company and Subsidiary Companies
Guaranty Trust Holding Co pany Plc ( the Parent or the Co pany and its Su sidiaries (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 2021. 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.
i
Introduction | Guaranty Trust Holding Company and Subsidiary Companies |
Table of contents | Page |
Corporate governance | 1-19 |
Subsidiary governance | 20-23 |
Sustainability report | 24-33 |
Complaints and feedback | 34-36 |
Anti-money laundering and combating terrorist financing framework | 37-41 |
Internal control and risk management systems | 41-44 |
Directors' report | 45-53 |
Statement of directors' responsibilities | 54 |
Report of the audit committee | 55 |
Corporate responsibility for financial statements | 56 |
Independent Auditor's report | 57-62 |
Financial statements | 63 |
Consolidated and separate statements of financial position | 64-65 |
Consolidated and separate income statements | 66 |
Consolidated and separate statements of other comprehensive income | 67 |
Consolidated statement of changes in equity | 68-69 |
Statement of changes in equity company | 70 |
Consolidated and separate statements of cash flows | 71-72 |
Notes to the consolidated and separate financial statements: | |
Reporting entity | 73 |
Basis of preparation | 73 |
Significant accounting policies | 73-105 |
Financial risk management | 106-192 |
Capital management and other risks | 193-198 |
Use of estimates and judgements | 198-208 |
Operating segments | 209-216 |
Financial assets and liabilities | 217-219 |
Other notes to the financial statements | 220-284 |
ii
Introduction | Guaranty Trust Holding Company and Subsidiary Companies |
Contingencies | 284-285 |
Group entities | 286-287 |
Unconsolidated interests in structured entities | 288 |
Related parties | 289-294 |
Contraventions | 294 |
Subsequent events | 294 |
Other national disclosures/other information: | 295 |
Regulatory requirements under the IFRS regime | 296-301 |
Statement of prudential adjustment | 302-303 |
Operational risk management | 304-308 |
Agents and agent's location | 309-323 |
Activities of cards operations | 324-327 |
Other notes | 328 |
Value-added statements | 329 |
Five-year financial summary | 330-331 |
Share capitalisation and dividend history | 332-333 |
Corporate social responsibility | 334-337 |
iii
Corporate Governance
Corporate Governance
Introduction
Guaranty Trust Holding Company and Subsidiary Companies
Aiming to strengthen its long-term competitiveness, earnings base, growth prospects, deliver greater
shareholder value and to take advantage of new business opportunities in the emerging competitive landscape, Guaranty Trust Bank plc ( the Bank/GTBank adjusted its operating model and was restructured
by way of a scheme of arrangement between the Bank and its shareholders pursuant to the Companies and Allied Matters Act 2020, into a holding company structure. Under the terms of the re-organisation, a financial holding company structure was established with the corporate name, Guaranty Trust Holding Company Plc (GTCO/the Company). Guaranty Trust Bank plc thereafter re-registered as a private limited liability company named Guaranty Trust Bank Limited and became the flagship subsidiary of GTCO.
The Board of Directors of the Bank made the decision to embark on the Restructuring following a comprehensive strategic evaluation of the operating and competitive environment of the Nigerian banking sector in the near term. The Board of the Bank believed that a Holding Company Structure would allow the Bank take advantage of new business opportunities in the emerging competitive landscape and strengthen earnings base. The Holding Company is expected to drive growth by making end-to-end financial services easily accessible by leveraging Technology and Strategic Partnerships in order to meet every customer's need in this new world of digital technologies and unprecedented possibilities.
The following are expected to be the benefits of the Holding Company Structure: (i) Greater strategic flexibility and opportunity for diversification of the Group's revenues; (ii Better positioning to deal with emerging
competition, for example, fintechs and payment service banks; (iii) More focused regulatory oversight of the various arms of the Group; (iv) More efficient management structure with the Holdco having the responsibility of assessing strategic initiatives for the overall benefit of the Group; (v) Preservation of senior management team, culture and business model; and (vi) Preservation of shareholder value.
GTCO just like its ancestor GTBank remains committed to its founding values which endeared the brand to millions of people across Africa and beyond, and which continues to drive financial success. As a Proudly African and Truly International brand, the Company will continue to live by these values-of excellence, hard work and integrity, even as we create faster, cheaper, safer and more diverse products for people and businesses of varied types and sizes.
As a Company, we will continue to subject our operations to the highest standards of corporate governance, which is an essential foundation for sustainable corporate success. In view of globalization, digitalization and increased penetration of artificial intelligence in the World and specifically in the financial industry, the resolve to maintain good corporate governance principles is important to us. We are committed to upholding the creed and principles of good Corporate Governance in all our operations and implementing initiatives that will improve corporate governance for the benefit of all stakeholders.
The Company is publicly quoted on The Nigerian Exchange Limited with Global Depositary Receipts (GDRs) listed on the London Stock Exchange and we remain dedicated to our duties and pledge to safeguard and increase investor value through transparent corporate governance practices. Our Code of Corporate Governance provides a robust framework for the governance of the Board and the Company. The Company ensures compliance with the Code of Corporate Governance for Public Companies issued by the Securities and
Exchange Co | ission ( the SEC Code , the revised Code of Corporate Governance for Banks and Discount |
Houses in Nigeria issued y the Central Bank of Nigeria ( the CBN Code | in May 0 , the Financial Reporting |
Council's National Code of Corporate Governance, 0 8 ( the FRC Code | , as well as disclosure re uire ents |
under the Disclosure and Transparency Rules of the Financial Conduct Authority (FCA), United Kingdom, which are applicable to non-United Kingdom companies with Global Depositary Receipts (GDRs) listed on the London Stock Exchange.
1
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Guaranty Trust Holding Company plc published this content on 04 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2022 14:25:02 UTC.