The Guaranty Trust Holding Co (GTCO) Plc. has released its first full-year financial report as a group and it showed that it made a profit of N175 billion in 2021. This was a decrease of 13.21% compared to the previous year.
CTCO also reported that its earnings per share was N6.14, a 13.64% decline from the N7.11 reported in the previous year. The group has reported a steady decline in the performance of topline income since 2017, which depreciated by 30% in 4 years.
The statement showed that in 2021, interest income dropped by 12.77% from N288.28 billion to N251.47 billion in the current period. GTCO’s profit performance is on the back of all margin declines as income from interest and trading income all depreciated year on year.
The results proper
The Net Interest income which it earns from its lending business declined 13% to N220.61 billion and despite the 56% drop in loan losses, the net interest after impairments still fell by 9% at just N212.08 billion.
GTCO also grew its income from commission and fees rising 40% to N65.65 billion year on year. There were also earnings of N22.39 billion in net trading income which showed a decrease of 8.56% year on year.
The group’s e-business income alone earned about N21.08 billion which shows a 79% increase from N11.77 billion in 2020 and this have made the group start planning on improving the use of its e-banking channels to deliver services to its customers.
Also, the group grew it deposits from customers by 14.30% to N4.01 trillion while its total assets is now N5.44 trillion. Net assets also rose by 8.45% to N833 billion.
The group last traded at N26.00 per share and its market capitalization stands at N765.21 billion as at Friday, March 4, 2022. So the share price still remains unchanged at N26.00.
The Directors of the group have recommended a final dividend per share of N2.70 per share, which would be subject to withholding tax. The group earlier paid an interim dividend of N0.30K in May 2021 which brought the total dividend for the financial year to N3.00K which was same as what was paid in 2020 but there was a 7% increase from that total dividend in 2019.
So based on the current share price, GTCO’s dividend yield is about 11.5%.