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Sunday, September 24, 2023

GTCO Full Year Profit Down 13% as HoldCo Dream Falters

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Guaranty Trust Bank Holdings (GTCO) Plc, net Income dipped by 13.20 percent to N174.84 billion in December 2021 from N201.44 billion the previous year.

Interest income on loans and advances reduced by 32.95 percent to N266.89 billion in the period under review from N266.89 billion the previous year.

Nigerian banks treaded rocky terrain in 2021, with RoE declining, largely due to tighter margins and muted trading/revaluation gains.

Banks have been struggling to turn shareholder equity to profit, which laid bare the punitive regulatory environment they operate in.

GTCO has lost top spot on many financial metrics to peer rival Zenith Bank, and the results could stoke sell off of the lender’s shares.

For the year ended December 2021, GTCO’s return on average equity (ROAE) reduced to 20.60 percent from 26.83 percent the previous year, according to MoneyCentral calculations.

GTBank became GTCO in 2021 with the following subsidiaries: 1) Nigeria, 2) West Africa, 3) East Africa, 4) the UK, 5) Habari Pay and 6) PFA/Asset Management.

GTCO’s payment subsidiary is awaiting a final approval from the CBN.

The bank is targeting a contribution of 30% to group PBT from its non-banking subsidiaries in the medium-to-long term.

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