GTCO Plc releases 2021 full year audited results, posts PBT of N221bn

… proposes N2.70 kobo as final dividend to shareholders

Guaranty Trust Holding Company (GTCO) Plc has released its Audited Consolidated and Separate Financial Statements for the year ended December 31, 2021, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).

The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing FY 2021 at ₦5.44trillion and ₦883.2billion, respectively.

Full Impact Capital Adequacy Ratio (CAR) remained very strong closing at 23.8% while asset quality was sustained with NPL ratio of 6.0% based on IFRS (6.92% based on CBN Prudential Guidelines) representing a marginal improvement over IFRS 6.4% impaired ratio and a slight increase over FY 2020 6.86% CBN Prudential Guideline NPL ratio. Also, Cost of Risk improved to 0.5% from 1.2% during the same period.

The Group posted Profit Before Tax of ₦221.5billion, representing a dip of 7.0% from ₦238.1billion recorded in December 2020. In the same period, the Group’s loan book (net) increased by 8.4% from ₦1.66trillion while deposit liabilities grew by 14.4% from ₦3.61trillion to ₦4.13trillion.

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Speaking on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company, Mr. Segun Agbaje, said: “Our performance reflects the strength of our franchise and underscores our 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 further 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%, post-tax Return on Assets (ROAA) of 3.4%, Full Impact Capital Adequacy Ratio (CAR) of 23.8%, and Cost to Income Ratio (CIR) of 42.3%.

GTCO Plc is a fully-fledged financial services group with banking operations across West and East Africa and the United Kingdom as well as non-banking businesses in several key industry segments including Payment, Funds Management and Pension Fund Management.

With over 25 million customers and more than 10,000 employees, the Group remains one of the most profitable and best managed financial services companies out of Nigeria. Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years including 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.

Meanwhile, the Group has disclosed a final dividend payment of N2.70 kobo for every 50 kobo ordinary share for the financial year ended December 2021.

This takes the total dividend for the financial year to N3.00 kobo, made up of the interim dividend of N0.30 per share which was paid in October 2021, and a final dividend of N2.70 per ordinary share, yet to be approved by shareholders and will be subject to appropriate withholding tax, with a qualification date of Wednesday, March 23rd, 2022.

According to the disclosure filed with the Nigerian Stock Exchange , shareholders are to ensure their names are registered in the Register of Members by the qualification date of Wednesday, March 23rd, 2022.

On Friday, April 8, 2022, the dividend which amounts to N79.46 billion will be disbursed electronically to ordinary shareholders whose names appear on the Register of Members as at March 23rd 2022, and those who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

The company’s registrar is Datamax Registrars Limited and the e-dividend mandate form can be downloaded or filled online on the registrar’s website.

GTCO  has 29,431,179,224 outstanding shares and a market capitalization of N765.21 billion at the time of filing this report. The company’s shares last closed at N26 per share.