GTBank Customers Deposit Rises to N4 Trillion in One Year

Tier-one banking institution in Nigeria, Guaranty Trust Holding Company (GTCO) Plc, has continued to grow stronger, maintaining its position as one of the most formidable financial organisations in the country as its customers deposit rises by 14.3 percent.

Over the week, the company released its audited financial statements for the year 2021 and from the analysis, most people rely on the firm for their financial transactions.

It was observed that GTCO increased its deposits from customers by 14.3 per cent in the period under review to N4.0 trillion from N3.5 trillion in the 2020 fiscal year, while the loan book jumped to N1.8 trillion from N1.7 trillion.

However, the bottom-line of the results was not impressive as the profit before tax dipped by 7.0 per cent to N221.5 billion from N238.1 billion, while the profit after tax went down by 13.2 per cent to N174.8 billion from N201.4 billion.

As for the top-line, it was a similar situation as the interest income dropped to N251.5 billion from N288.3 billion achieved a year earlier and with an interest expense of N46.3 billion versus N47.1 billion in 2020, GTCO closed December 31, 2021, with a net interest income of N220.6 billion as against N253.7 billion it posted in the corresponding year.

It was observed that with the support of account maintenance charges, e-business income and others, the lender was able to raise revenue from fee and commission to N74.1 billion from N53.2 billion in the same period of 2020, while the fee and commission expenses rose to N8.5 billion from N6.3 billion mainly due to bank charges and loan recovery costs.

Personnel costs, however, were pruned to N33.4 billion from N37.6 billion, while other operating expenses increased to N93.5 billion from N78.7 billion.

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In the results filed to the Nigerian Exchange (NGX) Limited and the London Stock Exchange (LSE), the Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 23.8 per cent while asset quality was sustained with a non-performing loan (NPL) ratio of 6.0 per cent based on IFRS (6.92 per cent based on CBN Prudential Guidelines), representing a marginal improvement over IFRS 6.4 per cent impaired ratio and a slight increase over FY 2020 6.86 per cent CBN Prudential Guideline NPL ratio, with the Cost of Risk improving to 0.5 per cent from 1.2 per cent during the same period.

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 and Cost to Income Ratio (CIR) of 42.3 per cent.

Speaking on the results, the Group Chief Executive Officer of GTCO, 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 reorganize 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.”

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.