GTCO reports its HabariPay subsidiary reported a profit before tax of N688.9 million in the first 9 months of 2022. Operating income for the period was stated at N907 million.
This was contained in the notes to the accounts of the bank where it broke down the performance of all the bank’s operating entities.
Nairametrics reported in August that HabariPay, the fintech subsidiary of Guaranty Trust Holding Co Plc, recorded N447.8 million in operating income and pre-tax profits of N377 million in the first six months of 2022.
Third Quarter Boost: On a quarterly basis, Habari’s operating income was N460 million in the third quarter, N447.8 million in the second, and zero in the first quarter of the year.
- However, it has gone from reporting a loss of N175.4 million in the first quarter to N552.4 million in the second and N311.9 in the third quarter of the year.
Stunted growth? The operating income and pre-tax profits numbers suggest the subsidiary is not growing topline aggressively, especially when compared with what is expected of FinTechs who play in this space.
- However, being able to post strong profits in just 6 months of operations suggest this subsidiary will grow to become one of the bank’s profit contributors.
- In terms of margins, Habiri Pay appears to be reporting 75% as a profit margin.
History: Habari Pay commenced operations as a wholly owned subsidiary of GTCO after obtaining approval from the central bank. Habari started as a platform mobile app for digital music, shopping, lifestyle content, and others until it pivoted.
