GTCO Slightly Boosts Pre-Tax Profit by 1.12% in Q1 2022

Image

By Dipo Olowookere

Guaranty Trust Holding Company (GTCO) Plc improved its pre-tax profit by 1.12 per cent year-on-year in the first quarter of 2022 to N54.3 billion from N53.7 billion.

However, because of the higher tax expense in the period under review (N11.1 billion versus N8.1 billion in Q1 of 2021 mostly due to a deferred tax payment), the post-tax profit fell to N43.2 billion from N45.6 billion.

Consequently, the earnings per share (EPS) in the first three months of this year depreciated to N1.51 from the N1.60 achieved in the first three months of last year when the market was recovering from the COVID-19 pandemic.

But the financial institution increased its interest income by 15.60 per cent to N63.9 billion from N55.1 billion, though its interest expense rose to N6.7 billion from N5.2 billion, leaving the net interest income at N57.2 billion as against the N52.4 billion reported in the corresponding period of 2021.

With loan impairment charges of N1.2 billion versus N1.9 billion in Q1’21, the lender closed on March 31, 2022, with net interest income after loan impairment charges of N56.0 billion in contrast to N50.6 billion as of March 31, 2021.

In the period under review, GTCO said it generated N21.3 billion from fee and commission income against the N17.6 billion achieved in the same time of last year, driven by an increase in account maintenance charges, corporate finance fees, e-business income, commission on foreign exchange deals and others.

However, lower bank charges moderated the fee and commission expense in the first quarter of this year to N2.6 billion from N3.0 billion despite an increase in loan recovery expenses.

In the financial statements released by the company and analysed by Business Post, it was observed that the other income was relatively flat as it stood at N12.3 billion compared with N12.2 billion a year ago as the personnel costs slightly dropped to N9.8 billion from N10.0 billion due to a reduction in wages and salaries and contributions to defined contribution plans.

However, other operating expenses significantly moved up by 33.18 per cent to N29.3 billion from N22.0 billion as a result of a rise in AMCON charges, occupancy costs, human capital-related expenses, administrative, communications and sponsorship-related costs; advert, promotion and corporate gifts, among others.

Within three months, GTCO improved its deposits from customers to N4.1 trillion from N4.0 trillion as of December 31, 2021, while the loans and advances to customers reduced year-to-date to N1.7 trillion from N1.8 trillion, with non-performing loans at N106.9 billion versus N113.9 billion.

Share
Related Stories
Image
30-November-2023

FIRS Wants EFCC Backing to Track, Prosecute Tax Evaders, Others

By Modupe Gbadeyanka The chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji, has asked his counterpart in the Economic and Financial Crimes Commission (EFCC), Mr Ola Olukoyede, to support his agency to achieve the Renewed Hope Agenda of President Bola Tinubu, who appointed both of them. Speaking during a courtesy visit to the headquarters of the anti-money laundering firm, Mr Adedeji said the EFCC has a role in ensuring that taxpayers’ funds are “judiciously utilised in line with the social contract with the people.” He assured that the FIRS would continue to strive to raise the revenue

Image
02-December-2023

Newrest, FrieslandCampina, Acorn Drive 0.14% Gain at Unlisted Stock Market

By Adedapo Adesanya The trio of Newrest Asl Plc, FrieslandCampina Wamco Nigeria Plc, and Acorn Petroleum Plc made the NASD Over-the-Counter (OTC) Securities Exchange appreciate by 0.14 per cent on Friday, December 1. The three gainers pressed down the 8 Kobo loss reported by UBN Property Plc, which closed the trading session at N1.52 per unit compared with the preceding day’s value of N1.60 per unit. During the trading day, Newrest Plc gained N1.46 to close at N16.10 per share compared with Thursday’s closing price of N14.64 per share, FrieslandCampina Wamco Plc moved up by 60 Kobo to end the

Image
01-December-2023

Nigeria Accepts OPEC 1.5mbpd 2024 Oil Output Quota

By Adedapo Adesanya Nigeria will accept and work with a production quota of 1.5 million barrels of crude oil per day in 2024 as the country aims to grow on the back of its oil resources, following a revision done by the Organisation of the Petroleum Exporting Countries and its allies, OPEC+. According to a statement issued by the Press and Public Relations unit of the Ministry of Petroleum Resources, Thursday’s meeting of the 23-man group addressed crucial aspects, including the completion of assessments by independent sources (IHS, Wood Mackenzie, and Rystad Energy) on the projected production levels for Angola,

Image
01-December-2023

Angola May Exit OPEC Amid Quota Rift

By Adedapo Adesanya  Angola, one of Africa’s top crude oil producers and a key member of the Organisation of the Petroleum Exporting Countries (OPEC), has officially rejected the proposed production quota for the year 2024 and may even exit the group. This was signalled by Mr Diamantino Pedro Azevedo, Angola’s Minister of Energy and Mineral Resources, confirming the nation’s decision and indicating a divergence from OPEC’s suggested allocations for both member and non-member countries. The announcement was made during the 26th OPEC+ Meeting on Thursday, where the organisation proposed 1.11 million barrels of crude oil per day production quota for

More Stories
Image
23-November-2018

Agusto & Co Affirms ‘Bbb’ Rating to C&I Leasing N600m Bond

By Dipo Olowookere The N600 million fixed rate unsecured bond of C&I Leasing maturing in 2020 has been assigned ‘Bbb’ rating by Nigeria-based rating agency, Agusto & Co. The N600 million bond unsecured bond is the second tranche under C&I leasing Plc’s N10 billion debt issuance programme. According to a statement from the rating firm, the ‘Bbb’ rating on C&I Leasing N600 million fixed rate unsecured bond reflects the company’s relatively long operating history, good market position in key leasing business segments and good asset quality – upheld by good capacity utilisation. “The rating is however constrained by rising leverage,

Image
21-December-2016

Customs Harassing Igbo Travellers—Obi

By Dipo Olowookere Officials of the Nigeria Customs Service (NCS) have been accused of subjecting Igbo travellers to hardship by seizing rice meant for household consumption at its numerous checkpoints in the region. This allegation was made by former Governor of Anambra State, Mr Peter Obi, at the end-of-the-year meeting of Diamond Brothers Club held yesterday at Oriental Hotel, Lagos. Mr Obi noted that some people visited him at his Onitsha home to complain about the hardship on people because of countless Customs checkpoints on roads, especially in the South-East. He stated that to have first-hand information about the complaint,

Image
22-February-2017

Tears as FEC Holds Valedictory Session for Amina Mohammed

By Modupe Gbadeyanka A valedictory session was on Wednesday, February 22, 2017, held for the out-going Minister of Environment, Mrs Amina Mohammed, at the weekly Federal Executive Council (FEC) meeting in Abuja. Colleagues of Mrs Mohammed could not fight back tears as they bid her goodbye and wish her well in her new role as the Deputy Secretary General of the United Nations. She is expected to resume office on Tuesday, March 7, 2017. At the meeting, which took place at the council chambers of the Presidential Villa, the outgoing Minister was described as a role model to Nigerian women

Image
22-August-2023

FrieslandCampina, Others Buoy OTC Stock Exchange by 0.76%

By Adedapo Adesanya A 0.76 per cent growth was recorded by the NASD Over-the-Counter (OTC) Securities Exchange on Monday, reversing the loss reported in the preceding trading session. This improvement was buoyed by the rise in the share prices of FrieslandCampina Wamco Plc, Food Concepts Plc, and Industrial and General Insurance (IGI) Plc. FrieslandCampina Wamco Plc appreciated during the session by N2.69 to close at N76.20 per unit versus last Friday’s N73.51 per unit, Food Concepts Plc improved by 9 Kobo to quote at N1.05 per unit compared with 96 Kobo per unit, and IGI Plc boosted its value by

Image
17-February-2023

Police Move to Quell Civil Unrest in Ojota, Ketu, Mile 12 in Lagos

By Aduragbemi Omiyale The Lagos Command of the Nigeria Police Force (NPF) has deployed its men to the Ojota, Ketu, and Mile 12 areas of Lagos State following reports of unrest in the areas. On Friday morning, residents of the area scampered to safety after some hoodlums took the law into their hands, with gunshots heard. Some motorists coming from Ikorodu had to make a quick turn to avoid being trapped in the melee. “It is true. Our men are there. Reinforcement units have been deployed. “Stay safe out there as we closely monitor and manage the situation,” the spokesman

Image
09-July-2019

German, French, UK Shares Depreciate on Tuesday

By Investors Hub European stocks haven fallen on Tuesday after a drop by Apple shares pressured the broader tech sector on Wall Street overnight and chemicals major BASF warned profits would nearly halve in the second quarter. Meanwhile, caution prevailed ahead of Fed Chairman Jay Powell’s two-day testimony to Congress on Wednesday and Thursday, with markets waiting to see whether the language will be dovish enough after the release of a stronger than expected jobs report. While the German DAX Index has slumped by 1 percent, the French CAC 40 Index is down by 0.4 percent and the U.K.?s FTSE

Image
12-December-2019

Ecobankmobile *326# Brings Back Fela to Terra Kulture

Ecobankmobile *326# and Terra Kulture are reliving “Fela’s Republic and the Kalakuta Queens’ making this a December to remember. While ‘Fela and the Kalakuta Queens’ was majorly an exploration of the life of Fela Kuti and his wives, Fela’s Republic and the Kalakuta Queens has infused the celebration of the unapologetic and prophetic messages enshrined in his music into the original storyline. Following the success of ‘Fela and the Kalakuta Queens’ in Lagos, Abuja, Cairo and Pretoria, Bolanle Austen-Peters Productions partnering Ecobankmobile *326# is reliving the sequel, ‘Fela’s Republic and the Kalakuta Queens’ to Terra Kulture audiences through the yuletide

Image
23-February-2023

Local Stocks Recover 0.23% as Geregu Enjoy Investors’ Patronage

By Dipo Olowookere The Nigerian Exchange (NGX) Limited rebounded by 0.23 per cent on Wednesday following renewed buying interests in some stocks, especially Geregu Power Plc, which completed a deal with a new investor. The stock enjoyed investors’ patronage at the bourse during the midweek session as a result of the fresh equity investment, giving retail investors the confidence that something big may happen in the nearest future. At the close of transactions, its share price rose by 10.00 per cent to N246.40, finishing as the best-performing stock. John Holt rose by 9.59 per cent to N1.60, Living Trust Mortgage

Ad
Ad
Recent Stories
Image
02-December-2023

Strong Inflationary Pressures Keep Nigeria’s Private Sector PMI Down

By Modupe Gbadeyanka Strong inflationary pressures in November further negatively impacted companies in Nigeria, with new orders and output both falling as customers were either reluctant or unable to pay higher charges. Purchase prices rose at the fastest pace in almost two years amid exchange rate weakness and higher costs for fuel and materials. According to the latest Purchasing Managers’ Index (PMI) from Stanbic IBTC, business conditions remained under pressure, scoring 48.0 points last month compared with the 49.1 points it garnered in October 2023. Readings above 50.0 signal an improvement in business conditions, while readings below 50.0 show deterioration.

Image
02-December-2023

Coker-Odusote: 100 Days at the Helm of NIMC

By Walter Duru, Ph.D It was Albert Einstein who once said that “setting an example is not the main means of influencing another, it is the only means.” That sentiment expressed by Einstein is the primary essence behind the theory of transformational leadership, which requires passion, charisma, and the ability to motivate others. Transformational leaders are usually very authentic, emotionally intelligent, great listeners, results-focused, visionary, and self-aware. In just 100 days at the helm of the National Identity Management Commission (NIMC), Engr. Abisoye Coker-Odusote has ushered in a new era of transformational leadership, leaving an indelible mark on the organization. Her eventual confirmation

Image
02-December-2023

Partnerships for Progress: Collaboration Between Banks and Fintechs is the Future of Banking in Africa

By Ike.S Anison Historically, the formal banking sector’s penetration in Africa has been relatively low. And, while there has been significant improvement in this area in recent years, there is still a significant portion of the population on the continent who are unbanked or lack access to financial services. According to the World Bank, approximately 350 million adults in sub-Saharan Africa are still unbanked, accounting for 17% of the 2 billion global unbanked population. This has largely been due to a struggle to tap into the continent’s low-income segment, the widest proportion of the population. Consumers within this market feel

Image
02-December-2023

Naira Plunges 11.4% to N927/$1 at Official Market as FX Demand Rises

By Adedapo Adesanya The Naira started the first trading session in the last month of 2023 on a negative note after it depreciated against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM), which is the official FX window, by 11.4 per cent or N94.87 on Friday, December 1, closing at N927.19/$1, in contrast to Thursday’s exchange rate of N832.32/$1. The December rush for forex contributed to the weakening of the domestic currency in the spot market yesterday, as the supply of foreign currency could not meet what customers needed. Data showed that the value of FX transactions recorded

Image
02-December-2023

Newrest, FrieslandCampina, Acorn Drive 0.14% Gain at Unlisted Stock Market

By Adedapo Adesanya The trio of Newrest Asl Plc, FrieslandCampina Wamco Nigeria Plc, and Acorn Petroleum Plc made the NASD Over-the-Counter (OTC) Securities Exchange appreciate by 0.14 per cent on Friday, December 1. The three gainers pressed down the 8 Kobo loss reported by UBN Property Plc, which closed the trading session at N1.52 per unit compared with the preceding day’s value of N1.60 per unit. During the trading day, Newrest Plc gained N1.46 to close at N16.10 per share compared with Thursday’s closing price of N14.64 per share, FrieslandCampina Wamco Plc moved up by 60 Kobo to end the

Image
02-December-2023

Oil Falls on Worries About Voluntary Supply Cuts

By Adedapo Adesanya Oil slumped by more than 2 per cent on Friday as traders showed scepticism about the depth of supply cuts by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) as well as concerns about sluggish global manufacturing activity. Brent crude went down by $1.98 or 2.45 per cent to close at $78.88 a barrel as the US West Texas Intermediate (WTI) crude dropped $1.89 or 2.49 per cent to sell for $74.07 a barrel. For the week, Brent posted a decline of about 2.1 per cent, while WTI lost more than 1.9 per cent.

Image
02-December-2023

Sanwo-Olu Assures Businesses More Incentives, Commissions New Godrej Factory

By Modupe Gbadeyanka Business owners in Lagos have been assured of more incentives by the state governor, Mr Babajide Sanwo-Olu, who added that this is part of his administration’s commitment to reforms aimed at improving the ease of doing business and enhancing investment opportunities. Speaking at the commissioning of the newly-built wet hair production factory of Godrej Nigeria Limited, the Governor said his government would continue to pursue actions that would eliminate red tapes and regulatory impediments hindering the growth of businesses in the state, thereby demonstrating his willingness for continued collaboration with the private sector to improve the livelihood

Image
02-December-2023

Nigerian Exchange Begins December With 0.08% Growth

By Dipo Olowookere The Nigerian Exchange (NGX) Limited commenced the first trading session in December 2023 on a bullish note, with a marginal growth of 0.08 per cent. Sustained buying pressure kept Nigerian stocks in the positive territory, extending the dominance of the bulls on Customs Street, though the turnover waned. Business Post observed that investors cherry-picked equities in the banking and the energy sectors during the session, leaving them rising by 1.14 per cent and 0.05 per cent, respectively. However, the insurance counter lost 1.10 per cent, the consumer goods index depreciated by 0.08 per cent, and the industrial

Image
01-December-2023

CBN Orders Banks to Place PND on Accounts Without BVN, NIN

By Adedapo Adesanya All bank accounts without Bank Verification Number (BVN) and National Identification Number (NIN) will from April 2024 have “Post No Debit (PND)” placed on them. This is the latest directive of the Central Bank of Nigeria (CBN) to financial institutions operating in the country. In a circular issued by the apex bank and sent to all deposit money banks (DMBs) on Friday evening, the CBN said all the BVN or NIN attached to and/or associated with AL accounts/wallets must be electronically revalidated by January 31, 2024. In the circular seen by Business Post, the central bank said

Image
01-December-2023

LCCI Demands Transparency in CBN Recapitalisation Plan

By Adedapo Adesanya The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to strengthen its banking supervision to prevent some crucial Nigerian banks from failing due to its planned recapitalisation. Last Friday, the Governor of CBN, Mr Olayemi Cardoso, said the CBN would be directing banks to increase their capital base to serve a $1 trillion economy to be achieved by 2030. In a statement signed by Mrs Chinyere Almona, the director general of LCCI, the chamber said, “On recapitalisation of banks, we commend the plan of the apex bank to review the