GTCO will achieve profit before tax of N280bn in 2023 — Agbaje

Group Managing Director of Guaranty Trust Holding Company Plc (GTCO), Mr. Segun Agbaje, has disclosed the institution’s ambitious projections to achieve a profit before tax growth of 30 per cent for the year ended December 2023.

The holding company’s ambitious target is to rake in Profit Before Tax of N280billion as against N214 billion actual it achieved in 2022.

Speaking at a media parley with editors, Wednesday, in Lagos, Agbaje said the holding company was optimistic of realizing its projections for the New Year.

Agbaje explained that the organisation seeks to ensure that it achieves a deposit growth of 25 per cent; Cost of risk is expected to stand low at 1.0 per cent; Non-performing loans to remain lower at 4.9 per cent against 5.20 per cent of 2022; Return on average assets at 4.0 per cent; Return on average equity at 25 per cent.

According to Agbaje the holding company has also set its eyes on realizing loan to deposit of 50 per cent and liquidity ratio of 40.00 per cent.

Among the holding company’s forecasts are: capital adequacy ratio at 23.00 per cent; cost to income ratio at 40.00 per cent; Net interest margin at 6.68 per cent, while banking (Nigeria) contribution to PBT and banking (Non-Nigeria) contribution to PBT are 65.0 per cent and 33.0 per cent respectively.

GTCO, GMD believes that the macro-economic challenges cannot stop the holdco from achieving its short and long term goals and objectives.

He said that all the subsidiaries of the holdco are independent and doing very well.

Meanwhile, (GTCO) published its first quarter report for the period ended 31 March 2023, showing year on year growth in the company’s top line and bottom line figures.

The Financial Institution achieved Gross Earnings of N158.093 billion, up by 32.19 per cent from N119.593 achieved the previous year.

Profit After Tax grew year on year by 34.62 per cent to N58.167 billion from N43.208 reported in Q1 2022. Earnings per share of GTCO for the period under review stands at N1.98.

At the share price of N24.85, the P/E ratio of GTCO stands at 12.57x with the earnings yield of 7.95 per cent.

A few weeks ago, Shareholders of GTCO Plc, endorsed the payment of a total dividend of N91.236 billion, representing N3.10 per share for the financial year ended December 31, 2022.

This endorsement was made at the holding company’s second annual general meeting held on Thursday, virtually.

The Group proposed a final dividend of N2.80 per unit of ordinary share held by shareholders in addition to the interim dividend of 30 kobo interim dividend paid in June, bringing the total dividend for the 2022 financial year to N3.10 per unit of ordinary share.

Shareholders commended the board for the financial performance achieved during the period under review despite the operating environment.

Speaking on behalf of shareholders, the immediate past President of Nigeria Shareholders Solidarity Association, Chief Timothy Adesiyan commended the management of GTCO for the impressive 2022 financial performance achieved and the consistent dividend policy of the Group.

He also noted that the Group has contributed to the growth of the economy in its lending to Agriculture, SMEs, Real Sector, among others as seen in the Award obtained by the Group in the year.

Speaking to shareholders, the Chairman of GTCO, Mr Hezekiah Oyinlola said “as I reflect on 2022, I recall the challenges we faced at every turn and the prospects that became significant milestones in our journey towards creating a robust yet agile institution.

“As we look across our burgeoning GTCO Universe, we take pride in the concrete outcomes of our diligent efforts and unyielding dedication towards expanding our influence and strengthening our position as a leading provider of financial services in Africa.”

He said, “In 2022, our ambition was crystal clear, and we set out to achieve it with unwavering focus. We completed the setup of our holding company and acquired full ownership of Investment One Pension Managers and Investment One Fund Managers, now named Guaranty Trust Pension Managers and Guaranty Trust Fund Managers, respectively. Our payment subsidiary, HabariPay Limited, also launched in 2022 and almost immediately introduced its flagship product Squad to the market with outstanding reviews.

“The highlight for me is that these newly created businesses – in payments, fund managers, and pensions ran successfully and were profit before tax positive by the end of the year.”

On outlook, Oyinlola stated, “the momentum we have built-up in recent years means that we are now in a position to leverage every opportunity to grow and sustain our superior financial performance.

“Our diversified business model and agile systems will enable us to adapt quickly to changing market conditions and turn economic tides in our favour. Our customer, centricity and focus on innovation and long-term value-creation, and will continue to be key drivers of our success in the years ahead.”