Guaranty Trust Holding Company Plc (GTCO) Monday announced a Profit After Tax of N77.557 billion for 2022 half year from N79.41billion posted in 2021, representing a marginal drop of 2.34 percent.
However, it recorded profit before tax (PBT) of N103.2billion in its audited half year (H1) ended June 30, 2022 results, representing an increase of 11per cent over N93.1billion recorded in the corresponding period ended June 2021.
The increase in profit before tax, according to results posted on the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) can be attributable to 15.09 per cent increase in gross earnings to N239.3billion in H1 2022 from N207.91billion reported in H1 2021.
Earnings per share for the period under review was N2. 70 as against N2. 79 last year, indicating 3.23 percent reduction.
Amid the increase in PAT, the management of GTCO proposed the payment of an interim dividend of N0.30 kobo per ordinary share on the issued capital of 29,431,179,224 ordinary shares of 50 kobo each, same amount paid last year within same period under review.
Also, the company’s Cost to Income ratio (CIR) was 49.1 per cent.
The ratio gives a clear understanding of how organizations are being run, with most institutions striving for lower CIR, an indication that the organizations may be operating at higher rate of income, with lower costs.
This is so because, CIR is similar to operating profit margin, or ratio of their operating profits to the revenues that they make
This gives the stakeholders opportunity to determine how efficiently their companies are being run and how they earn their organic income.
According to some analysts, based on the Bank’s unaudited half-year financials, significant improvements have been made across key performance indicators.
This is because, the result is on the back of an inflationary year, where businesses and their consumers have had to deal with the rising cost of goods and services.
Other key financial highlights show Net interest income after loan impairment charges’ growth by 14.64% to N117.329 billion in 2022 from N102.340 billion in 2021;
Fee and commission income by 21.41% to N46.479 billion from N38.284 billion in 2021
Fee and commission expenses by 370% to N6.713 billion from N1.428 billion in 2021
Other income declined by 14.86% to N22.011 billion from N25.853 billion the previous year
GTCO Reactions:
Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Segun Agbaje, said; “Our results show an increase in key revenue lines and a strong performance in other financial metrics which reinforce our growth prospects as a leading financial services company.
Our priority at the start of the 2022 financial year was to bring the Group’s new businesses on-stream, starting strong with a focus on long-term viability.
At present, we have successfully expanded our financial services ecosystem to include HabariPay Ltd, Guaranty Trust Fund Managers Ltd, and Guaranty Trust Pension Managers Ltd, and all of them are P&L positive.”
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He further stated that “These newly created businesses will operate alongside our flagship banking franchise to offer increased value to our growing customer base as well as other stakeholders.
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He further stated that “These newly created businesses will operate alongside our flagship banking franchise to offer increased value to our growing customer base as well as other stakeholders.
We will continue to build on our core strengths of service excellence, innovation, and flawless execution to deliver our corporate objectives for the year and further our vision of being Africa’s leading financial services institution.
Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 23.9 per cent, Pre-Tax Return on Assets (ROAA) of 3.7 per cent, Full Impact Capital Adequacy Ratio (CAR) of 22 per cent and Cost to Income ratio of 49.1 per cent.“
Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 23.9 per cent, Pre-Tax Return on Assets (ROAA) of 3.7 per cent, Full Impact Capital Adequacy Ratio (CAR) of 22 per cent and Cost to Income ratio of 49.1 per cent.“