- Similar to already observed trend, GUARANTY grew loans (+15.4%) for the first time in three years in FY’19
- Notwithstanding the slowdown in interest income (-3.5% YoY), net interest income (NII) grew by 4.0% YoY, uplifted by the decline in funding cost during the period. We link the moderation in funding cost to the 8.7% decrease in borrowed funds and the 100 bps reduction inexpensive term deposits amidst falling deposit rates during the review period
- Non-interest revenue (NIR) improved by 8.8% YoY, supported by growth in net fee and commission (+17.8% YoY) and other income (+9.9% YoY). Notably, fee income was boosted by the 63.4% YoY increase in e-business income. In contrast, trading income slumped 15.0% YoY weighed by weaker FX trading gains (-38.8% YoY)
- Operating expenses rose by 3.0%, lower than the average inflation rate of 11.3% in 2019. As a result, the cost to income ratio contracted by 94bps to 35.6%.
- Return on average equity came in at 31.2% compared to 30.8% in FY’18. Return on average assets was relatively flat at 5.6%.
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