April 16, (THEWILL) – Guaranty Trust Holding Company (GTCO) recorded a drop in profit after tax of N169.2 billion in 2022 from N174.8 billion in the corresponding period, according to the lender’s audited earnings report issued on Friday.
This represents a marginal drop of 3.3 percent. Profit before tax also followed the same percentage decline trajectory to N214.2 billion. ,
But GTCO recorded its peak revenue ever in 2022 as surges in lending rates across the banking industry during the year impacted interest income.
Consequently, spikes were reported across all of the income sources of the financial services group..
The Group’s earnings jumped 20.4 per cent to N539.2 billion mainly on account of remarkable increase in interest income.
Net interest income grew to N259.3 billion, jumping 17.5 per cent from the figure reported a year earlier.
However, the rise in the top line did not lift profit as earnings suffered cost pressures amid surge in Nigeria’s inflation rates which hit 22.04 percent in March, 2022
The Group put N12 billion aside to cover potential defaults from borrowers, which was 40.5 per cent higher than the figure reported a year earlier.
Other income climbed to N82.9 billion from N77.1 billion, on account of higher foreign exchange revaluation gain.
Operating expenses advanced by more than one-third to N126.4 billion on the back of increased communications and technologically related expenses and administrative expenses.
The board has proposed a final dividend per share of N2.70, having paid an interim dividend of N0.30 during 2022.
That translates to a total dividend of N3.00 per share on a planned payout of N88.3 billion for the year.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
