By Dipo Olowookere
The audited financial statements of Guaranty Trust Holding Company (GTCO) Plc for the 2022 accounting year have been released to the Nigerian Exchange (NGX) Limited, and from the analysis, the firm net profit moderated by 3.20 per cent to N169.2 billion from N174.8 billion.
This was after a N35.6 billion impairment recognised on Ghanaian sovereign securities weakened the pre-tax profit by 3.30 per cent to N214.2 billion from N221.5 billion.
However, this did not deter the board from maintaining its dividend payout as it recommended the payment of a cash reward of N2.80 to shareholders, bringing the total dividend for the year to N3.10 after it paid an interim dividend of 30 Kobo in the second quarter of the year under review.
A further look into the books of GTCO showed that its gross earnings improved in the year under consideration to N539.2 billion from N447.8 billion a year earlier, while its net loan book increased by 4.6 per cent from N1.80 trillion as at December 2021 to N1.89 trillion in December 2022, with deposit liabilities growing by 11.6 per cent from N4.13 trillion to N4.61 trillion during the same period.
Also, its balance sheet remained well-structured and resilient, with total assets and shareholders’ funds closing at N6.45 trillion and N931.1 billion, respectively.
Further, Capital Adequacy Ratio (CAR) remained very strong at 24.1 per cent, with asset quality sustained as IFRS 9 Stage 3 Loans ratio (NPLs) improved to 5.2 per cent in December 2022 from 6.0 per cent in December 2021.
However, the Cost of Risk (COR) inched up marginally to 0.6 per cent in FY 2022 from 0.5 per cent in FY 2021 due to the impact of worsened macros on PDs.
“Our ability to successfully navigate the peculiar challenges in the different markets where we operate underscores our 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,” the group chief executive of GTCO, Mr Segun Agbaje, commented on the results.
“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,” he stated.
“We will continue to prioritise innovation, service excellence, and execute seamlessly towards achieving our vision of leading financial services in Africa,” Mr Agbaje assured.
Overall, GTCO continues to post one of the best metrics in the Nigerian financial services industry in terms of key financial ratios, with Pre-Tax Return on Equity (ROAE) of 23.6 per cent, Pre-Tax Return on Assets (ROAA) of 3.6 per cent, Full Impact Capital Adequacy Ratio (CAR) of 24.1 per cent and Cost to Income ratio of 48.0 per cent.
The firm is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, and the United Kingdom, alongside new businesses in payment, funds management and pension fund administration.
Its leadership in the banking industry and efforts at empowering people and communities have earned it many prestigious awards over the years.
Recently, the bank was recognized as 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.
