Guaranty Trust Holding Plc Co reports a profit of N175 billion in 2022

Guaranty Trust Holding Co (GTCO) Plc reported a profit of N175 billion in its first full-year financial results as a group in 2021. This represents a reduction of 13.21% over the previous year.

In addition, GTCO reported earnings per share of N6.14, down 13.64 percent from N7.11 a year ago. Since 2017, the company's topline income has been steadily declining, depreciating by 30% in just four years.

Interest income declined by 12.77 percent in FY 2021, from N288.28 billion to N251.47 billion in the present period, according to the statement. GTCO's profit performance has been hampered by a year-over-year fall in all margins, as interest and trading income have all depreciated.

The company's net interest revenue from its lending division fell 13% to N220.61 billion.

Despite a 56 percent decrease in loan losses, net interest after impairments fell by 9 percent to N212.08 billion.

GTCO, on the other hand, increased its commission and charge income by 40% year on year to N65.65 billion. It also made N22.39 billion in net trading income, down 8.56 percent from the previous year.

The group's e-business income alone amounted to N21.08 billion, up 79 percent from N11.77 billion in 2020, indicating that the group's e-banking channels are being better utilized in delivering services to its clients.

In addition, the group increased its client deposits by 14.30 percent to N4.01 trillion, bringing its total assets to N5.44 trillion. Net assets increased by 8.45% to N883 billion.

Guaranty Trust Holding Co Plc last traded at N26.00 a share on Friday, March 4, 2022, with a market capitalization of N765.21 billion. The company's share price has remained steady at N26.00 for the year.

The group's Board of Directors has recommended a final dividend per share of N2.70 per share, subject to withholding tax. In May 2021, the firm issued an interim dividend of N0.30 kobo, bringing the total payout for the financial year to N3.00 kobo, the same as in 2020 but a 7% increase over the total dividend given in 2019.

GTCO's dividend yield is around 11.5 percent based on its current share price.