GTCO Plc reports Profit Before Tax of N214.2 billion, FY dividend of N3.10

Key Highlights

• GTCO reported a profit before tax of N214.2 billion, representing a 3.3% dip from N221.5 billion posted in the corresponding year ended December 2021.
• The Group reported a net interest income of 30 billion for the year 2022 as against N220.61 billion posted in 2021 representing a growth of 17.54%
• The Directors recommend the payment of a final dividend of N2.80k per ordinary share of 50 Kobo, bringing the total dividend for the financial year ended December 31, 2022, to N3.10k.

Guaranty Trust Holding Company Plc has released its audited consolidated and separate financial Statements for the year ended December 31, 2022, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).

The Group reported profit before tax of N214.2 billion, representing a 3.3% dip from N221.5 billion posted in the corresponding year ended December 2021 on the back of N35.6 billion impairment recognised on Ghanaian sovereign securities.

The Directors recommend the payment of a final dividend of N2.80k per ordinary share of 50 Kobo, bringing the total dividend for the financial year ended December 31, 2022, to N3.10k.

The Group had during the 2022 financial year, declared and paid an interim dividend of 30 Kobo per ordinary share on the share capital of 29,431,179,224 Ordinary Shares of 50 Kobo each, for the half-year period ended June 30, 2022.

This is on the back of increasing inflation which the economy continues to struggle with. The headline inflation rate rose to 21.91% in February 2023 compared to 21.82% recorded in the preceding month of January.

The National Bureau of Statistics (NBS), said looking at the trend, the February 2023 inflation rate showed an increase of 0.09% points when compared to January 2023 headline inflation rate.

The Group’s loan book (net) increased by 4.6% from N1.80 trillion as of December 2021 to N1.89 trillion in December 2022, while deposit liabilities grew by 11.6% from N4.13 trillion to N4.61 trillion during the same period.

The Group’s balance sheet remains resilient with total assets and shareholders’ funds closing at N6.45 trillion and N931.1 billion, respectively. Capital Adequacy Ratio (CAR) remained very strong, closing at 24.1%. Similarly, asset quality was sustained as IFRS 9 Stage 3 Loans ratio (NPLs) improved to 5.2% in December 2022 from 6.0% in December 2021, however, Cost of Risk (COR) inched up marginally to 0.6% in FY-2022 from 0.5% in December 2021 due to impact of worsened macros on PDs.

Gross earnings  

•  2022 FY: N539.23 billion
•  2021 FY: N447.81 billion
• Change: +20.41%

Net interest income  

•  2022 FY: N259.30 billion
• 2021 FY: N220.61 billion
• Change: +17.54%

Interest expenses 

• 2022 FY:  N66.09 billion
• 2021 FY: N46.28 billion
• Change: +42.80%

Pre-tax profit 

• 2022 FY: N214.2 billion
• 2021 FY: N221.5 billion
• Change: -3.3%

Net Profit after tax

• 2022 FY: N169.17 billion
• 2021 FY: N174.84 billion
• Change: -3.2%

What the Group said: Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said that the Group’s ability to navigate the peculiar challenges in the different markets where it operates underscores its strong business fundamentals and unwavering commitment to sound business strategies.

• “Despite the varying challenges and headwinds that weighed on growth in 2022, we were determined to deliver a decent performance and scale effectively to strengthen our competitive edge and drive long-term growth.”
• He further stated; “As an organisation, 2022 was quite significant for us being the first year after our corporate restructuring into a financial holding company in August 2021. Today, across our Banking, Payment, Funds Management, and Pension businesses, we have successfully built a robust ecosystem with immense potential to deepen our addressable market and create more value for all our stakeholders. We will continue to prioritise innovation, service excellence, and execute seamlessly towards achieving our vision of leading financial services in Africa.”