Guaranty Trust Holding Co (GTCO) Plc has released its first Full-year financial result as a group which revealed a profit of N175 billion in 2021. This reflects a 13.21% decrease year on year.
GTCO also reported earnings per share of N6.14, a 13.64% decline from the N7.11 reported a year earlier. The group has reported a steady decline in the performance of topline income since 2017, depreciating by 30% in 4 years.
The statement revealed that in FY 2021, interest income fell by 12.77% from N288.28 billion to N251.47 billion in the current period. GTCO’s profit performance is on the back of all margin decline as income from interest and trading income all depreciated year on year.
Key highlights of its results
- Net Interest income which it earns from its lending business declined 13% to N220.61 billion.
- Despite a 56% drop in loan losses, net interest after impairments still suffered a 9% decline at just N212.08 billion.
- GTCO, however, grew its income from commission and fees rising 40% to N65.65 billion year on year. It also raked in N22.39 billion in net trading income representing a 8.56% decrease year on year.
- The group’s e-business income alone raked in N21.08 billion, representing a 79% spike from N11.77 billion in 2020, suggesting an improvement in the utilization of the group’s e-banking channels in delivering services to its customers.
- In addition, the group also grew its deposits from customers by a whopping 14.30% to N4.01 trillion while its total assets is now N5.44 trillion. Net assets rose 8.45% to N883 billion.
Guaranty Trust Holding Co Plc last traded at N26.00 per share and its market capitalization stands at N765.21 billion as at Friday, March 4, 2022. Year-to-date performance shows that the share price of the company has remained unchanged at N26.00.
The Directors of the group have recommended a final dividend per share of N2.70 per share, which would be subject to withholding tax. The company had earlier paid an interim dividend of N0.30 kobo in May 2021, hence bringing the total dividend for the financial year to N3.00kobo, same as what was paid in 2020 but a 7% increase from the total dividend paid in 2019.
Based on its current share price, GTCO’s dividend yield is about 11.5%.
