GUARANTY TRUST : QUARTER 5 - FINANCIAL STATEMENT FOR 2022

Guaranty Trust Holding Company Plc.

Audited Consolidated and Separate Financial Statements Together with Directors' and Auditor's Reports

December 2022

Introduction

Introduction

Guaranty Trust Holding Company and Subsidiary Companies

Guaranty 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 Decemeber 2022. 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.

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Introduction

Guaranty Trust Holding Company and Subsidiary Companies

Table of contents	Page
Corporate governance	1-14
Subsidiary governance	15-18
Sustainability report	19-30
Complaints and feedback	30-32
Anti-money laundering and combating terrorist financing framework	33-37
Internal control and risk management systems	38-39
Directors' report	40-46
Statement of directors' responsibilities	47
Report of the audit committee	48
Corporate responsibility for financial statements	49
Independent Auditor's Opinion	50-55
Financial Statements	56
Consolidated and separate statements of Financial Position	57-58
Consolidated and separate income statements	59
Consolidated and separate statements of other comprehensive income	60
Consolidated statement of changes in equity	61-62
Statement of changes in equity company	63-64
Consolidated and separate statements of cash flows	65-66
Notes to the consolidated and separate financial statements:
Reporting entity	67
Basis of preparation	67
Significant accounting policies	68-101
Financial risk management	102-191
Capital management and other risks	192-196
Use of estimates and judgements	196-207
Operating segments	208-216
Financial assets and liabilities	217-221
Other notes to the financial statements	221-291

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Introduction

Guaranty Trust Holding Company and Subsidiary Companies

Contingencies	291-292
Group entities	293-294
Unconsolidated interests in structured entities	295
Related parties	296-301
Contraventions	301
Subsequent events	301
Other national disclosures/other information:	302
Regulatory requirements under the IFRS regime	303-308
Statement of prudential adjustment	309-310
Operational risk management	311-315
Agents and Agent's Location	316-329
Activities of cards operations	330-332
Other information	333-335
Value-added statements	336-337
Five-year financial summary	338-339
Share capitalisation and dividend history	340-341
Corporate social responsibility	342-344

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Corporate Governance

Corporate Governance

Introduction

Guaranty Trust Holding Company and Subsidiary Companies

2022 was a significant year for us as it marks the first anniversary of the corporate restructuring, which birthed a financial holding company, Guaranty Trust Holding Company Plc ("GTCO"/"the Company"). The Board of Directors, reflecting on the last one year believe that the Holding Company structure has strengthened the Guaranty Trust brand through long-term competitiveness, diversified earnings base and growth prospects, delivery of greater shareholder value which would enable the Group take advantage of new business opportunities in the emerging competitive landscape.

In the course of the year, GTCO completed the acquisition of 100% shares in Investment One Funds Management Limited now Guaranty Trust Fund Managers Limited (GTFM) and Investment One Pension Managers Limited now Guaranty Trust Pension Managers Limited (GTPM). GTCO also received the final approval of the Central Bank of Nigeria (the CBN) for its wholly owned Payment Subsidiary, HabariPay Limited, which also commenced operations during the year.

GTFM is the Company's foray into the wealth management space, as it provides us with the opportunity of becoming a one-stop shop for financial services and products that will empower our customers. We are focused on replicating our digital-firstcustomer-centric retail strategy to create distribution channels for wealth solutions that GTFM will offer, to both institutional and retail clients.

GTPM is the Group's response to the pension and retirement challenges faced by Nigerians. Seeking to secure the future of individuals upon retirement, GTPM has adopted cutting-edge technology and financial analysis methodologies to improve post-retirement quality of life. Also, our bias for the good standard in corporate governance will ensure transparency in how we manage the funds under management, which will ultimately make us the preferred Pension Fund Administrator in the Nigerian market.

HabariPay Limited is the Company's Subsidiary charged with empowering Africans with tools required to thrive in a digital economy through the provision of a secure payment gateway that allows businesses receive local and international online payments from customers.

The new subsidiaries are in line with the evolution of the Guaranty Trust's vision to becoming a fully-fledged financial services company, with the capabilities and drive to deliver end-to-end financial services to every African and African business.

The Group is governed under interrelated corporate governance frameworks that enables the Board of the Company to discharge its oversight functions, provide strategic direction to the Group, take decisions and ensure regulatory compliance. The Subsidiaries continue to comply with the statutory and regulatory requirements of their regulators.

GTCO 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 recognize that adherence to the best corporate governance standard ensures and contributes to the long-term success of a company. In the light of this recognition, we continuously ensure our operations create and deliver sustainable value to shareholders and achieve continuous corporate success. We believe good corporate governance practices enhance the confidence placed in the Company by our shareholders, customers, business partners, employees, the financial markets in which we operate and all stakeholders.

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