Banking
GTBank Grows Deposits from Customers to N4.0trn in One Year
By Dipo Olowookere
Tier-one banking institution in Nigeria, Guaranty Trust Holding Company (GTCO) Plc, has continued to grow stronger, maintaining its position as one of the most formidable financial organisations in the country.
Over the week, the company released its audited financial statements for the year 2021 and from the analysis, most people rely on the firm for their financial transactions.
Business Post observed that GTCO increased its deposits from customers by 14.3 per cent in the period under review to N4.0 trillion from N3.5 trillion in the 2020 fiscal year, while the loan book jumped to N1.8 trillion from N1.7 trillion.
However, the bottom-line of the results was not impressive as the profit before tax dipped by 7.0 per cent to N221.5 billion from N238.1 billion, while the profit after tax went down by 13.2 per cent to N174.8 billion from N201.4 billion.
As for the top-line, it was a similar situation as the interest income dropped to N251.5 billion from N288.3 billion achieved a year earlier and with an interest expense of N46.3 billion versus N47.1 billion in 2020, GTCO closed December 31, 2021, with a net interest income of N220.6 billion as against N253.7 billion it posted in the corresponding year.
It was observed that with the support of account maintenance charges, e-business income and others, the lender was able to raise revenue from fee and commission to N74.1 billion from N53.2 billion in the same period of 2020, while the fee and commission expenses rose to N8.5 billion from N6.3 billion mainly due to bank charges and loan recovery costs.
Personnel costs, however, were pruned to N33.4 billion from N37.6 billion, while other operating expenses increased to N93.5 billion from N78.7 billion.
In the results filed to the Nigerian Exchange (NGX) Limited and the London Stock Exchange (LSE), the Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 23.8 per cent while asset quality was sustained with a non-performing loan (NPL) ratio of 6.0 per cent based on IFRS (6.92 per cent based on CBN Prudential Guidelines), representing a marginal improvement over IFRS 6.4 per cent impaired ratio and a slight increase over FY 2020 6.86 per cent CBN Prudential Guideline NPL ratio, with the Cost of Risk improving to 0.5 per cent from 1.2 per cent during the same period.
In terms of significant performance metrics, the group maintained a decent showing with post-tax Return on Equity (ROAE) of 20.6 per cent, post-tax Return on Assets (ROAA) of 3.4 per cent and Cost to Income Ratio (CIR) of 42.3 per cent.
Speaking on the results, the Group Chief Executive Officer of GTCO, Mr Segun Agbaje, said: “Our performance reflects the strength of our franchise and underscores our ability to deliver long-term value for our stakeholders in spite of the challenges in the business environment and shifting economic conditions. As a Group, we have continued to explore newer ways to connect with our customers and better our communities by offering greater and more rewarding experiences.”
He further added, “2021 presented a crucial opportunity as we took strategic steps to reorganize our business and advance our position as a leading financial services company.
“With the recent addition of Pension Fund and Wealth Management businesses to the Group, we are well on our way to rapidly scale our operations and strengthen our foothold in these key industry segments.
“Our goal is to consolidate our place at the top of Africa’s financial services value chain by leveraging technology to provide end-to-end financial solutions to more people and businesses across Africa.”
GTCO Plc is a fully-fledged financial services group with banking operations across West and East Africa and the United Kingdom as well as non-banking businesses in several key industry segments including Payment, Funds Management and Pension Fund Management.
With over 25 million customers and more than 10,000 employees, the Group remains one of the most profitable and best managed financial services companies out of Nigeria.
Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years including Africa’s Best Bank and the Best Bank in Nigeria at the 2021 Euromoney Awards for Excellence. It also retained its position as Africa’s Most Admired Financial Services Brand in the 2021 ranking of The Brand Africa 100: Africa’s Best Brands.
By Aduragbemi Omiyale
The N6.2 billion series 2 fixed rate senior unsecured bonds issued by LAPO Microfinance Bank Limited in 2020 have been redeemed by the company.
The small lender repaid bondholders on the maturity of the corporate debt instrument, Business Post gathered.
The thick of the COVID-19 lockdown and economic meltdown, LAPO Microfinance Bank approached the capital market to source funds from investors at 13 per cent.
Due to the confidence investors have in the organisation as one of the top microfinance banks in Nigeria, the bond issuance was oversubscribed by N200 million.
The bank attributed this investor confidence to its “strong corporate governance and fundamentals.”
The financial institution did not disappoint as it fully paid the bond subscribers at maturity, further solidifying the trust investors have in the company.
When it sold the papers five years ago, the Managing Director said the N6.2 billion was to be used to “enhance our capacity to meet the needs of micro and small enterprises, especially actors in the rural economy.”
“The success of this journey is largely due to the support of African Local Currency Bond (ALCB) Fund (two-time anchor investor) and other parties to the Issue; FBN Quest Merchant Bank and Coronation Merchant Bank who served as Lead and Joint Issuing House/Book Runner.
“LAPO Microfinance Bank Limited is already standing by owners of micro and small enterprises who are determined to overcome the set-back of the COVID-19 pandemic. From January to July the microfinance bank delivered N59.4 billion to micro and small enterprises.”
After issuing the notes in 2020, LAPO Microfinance Bank took them for listing on the FMDQ Securities Exchange.
LAPO Microfinance is a leading microfinance bank in Nigeria, accounting for over 20 per cent of the market share.
The firm had wanted to raise N6 billion from the bond issuance under its N20 billion bond programme, but was oversubscribed by N200 million. A unit of the note was sold at N1,000 via book building, opening from Tuesday, February 10 and closing on Wednesday, February 19, 2020.
By Modupe Gbadeyanka
Seventy lucky winners have emerged in the Season 4 of the Reward4Saving Promo put together by Stanbic IBTC Bank to foster a sustainable savings culture in Nigeria.
The beneficiaries were chosen at the fourth monthly draw of the campaign conducted in Lagos with keen oversight from regulatory representatives to ensure transparency and fairness.
Notable attendees included representatives of the Federal Competition & Consumer Protection Commission (FCCPC); Advertising Regulatory Council of Nigeria (ARCON); and Lagos State Lotteries and Gaming Authority (LSLGA).
The 70 lucky winners were from the lender’s seven business zones; each winning N100,000 for maintaining a minimum savings balance of N10,000 in their Stanbic IBTC Savings Account or @ease Wallet. The balances were maintained for a minimum of 30 consecutive days.
Speaking during the draw, Oluwakemi Zollner, Head of Sales and Distribution, Lagos Mainland, stated, “Stanbic IBTC Bank is committed to rewarding loyal customers while enhancing the savings culture within society.
“The promo is open to both existing and new customers. By saving just N10,000 in your Stanbic IBTC Savings Account or @ease Wallet for 30 consecutive days, you qualify for the draw. More savings equal higher chances of winning.”
One of the recent winners, Ebinum Abosede, an entrepreneur, shared her emotional journey upon receiving her prize. “When I initially received the call, I was doubtful and thought it could be a scam. Even my daughter warned me against going. But now that I am here and have received my alert, I could not be happier. I just moved into a new house and was searching for funds to paint my apartment. Thank you to Stanbic IBTC Bank; I can finally give my new home a fresh coat of paint.”
The Reward4Saving Promo continues to create a buzz across Nigeria, inspiring individuals to practice financial discipline while being rewarded for their dedication. Through this initiative, Stanbic IBTC Bank celebrates the achievements of savers and strengthens its role in promoting financial inclusion and empowering local communities.
Since the commencement of the Reward4Saving Promo – Season 4, a total of 288 customers have shared in N37 million worth of cash rewards, with the total prize expected to reach N130 million by the conclusion of the initiative in April 2026.
With N93 million remaining in the prize pool, excitement continues to climb among customers of Stanbic IBTC Bank nationwide.
By Adedapo Adesanya
Guaranty Trust Holding Company Plc (GTCO) has strengthened the capital base of its banking subsidiary, Guaranty Trust Bank Limited (GTBank), with a fresh equity injection of N365.85 billion through a rights issue.
According to a statement on the Nigerian Exchange (NGX) Limited on Friday, the additional funding was raised under its two-phased equity capital programme approved by shareholders at its 2024 Annual General Meeting and implemented in line with approvals obtained from regulators.
As part of the transaction, it issued and allotted 6,994,050,290 ordinary shares of 50 Kobo each made by the bank to the company.
“The company continues to hold 100 per cent of the entire issued and paid-up share capital of the bank. None of the directors of the company have any interest, direct or indirect, in the bank,” the statement said.
With this capital injection, GTBank’s share capital has risen from N138.19 billion to N504.04 billion, positioning the lender in compliance with the Central Bank of Nigeria’s (CBN) new minimum capital requirement for banks with international authorisation.
Business Post reports that banks across various spreads have less around seven months to meet to the deadline set by the apex bank in late 2023.
According to the group, the fresh equity will be channelled into branch network expansion, growth of its loan and investment securities portfolio, and upgrades to its information technology infrastructure.
“The additional equity capital will be deployed by GTBank primarily for branch network expansion and asset growth (loans/advances and investment securities portfolio), fortification of its information technology infrastructure and to leverage emerging opportunities in Nigeria and the operating environments where it maintains banking presence,” the company said.
“The bank also plans to leverage the strengthened balance sheet to tap into emerging opportunities across Nigeria and the operating environments where it maintains banking presence,” the statement added.
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