GTCO Plc Reports N221.5bn PBT, To Pay N2.70 Dividend

The Board and Management of Guaranty Trust Holding Company (GTCO) Plc, announced that it posted Profit Before Tax (PBT) of N221.5 billion, representing a dip of 7.0 per cent from N238.1billion recorded in December 2020.

This is even as the company further proposed to it’s shareholders a final dividend per share of N2.70 per share, which would be subject to withholding tax. 

According to the company’s 2021 full-year financial result filed at the Nigerian Exchange Limited (NGX) at the weekend, the Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing FY 2021 at N5.44 trillion and N883.2 billion, respectively.

In the period under review, the Group’s loan book (net) increased by 8.4 per cent from N1.66 trillion while deposit liabilities grew by 14.4 per cent from N3.61 trillion to N4.13 trillion. 

However, while post-tax profit came to N174.8 billion, 13.2 per cent below what it posted a year earlier while the group’s earnings per share fell by 13.64 per cent from N7.11 to N6.14 recorded in 2021.

Also, interest income fell by 12.77 per cent from N288.28 billion to N251.47 billion in the current period while post-tax profit came to N174.8 billion, 13.2 per cent below what it posted a year earlier.

Speaking on the performance, the Group Chief Executive Officer of Guaranty Trust Holding Company, Segun Agbaje, said that the performance of the group reflects the strength of its franchise and underscores it’s 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 said.

He added, “2021 presented a crucial opportunity as we took strategic steps to reorganise 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.”

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, Full Impact Capital Adequacy Ratio (CAR) of 23.8 per cent, and Cost to Income Ratio (CIR) of 42.3 per cent.