Guaranty Trust Holding Company Plc (NGX: GTCO) reported a 15.09% growth in gross earnings for the first half of the year ended June, 30, 2022 and a 2.34% decrease in profit after tax for the period.
Income statement
- Gross earnings rose to N239.29 billion in June 2022 from N207.91 billion in June 2021.
- Net interest income rose to N120.85 billion in June 2022 from N107.055 billion in June 2021.
- Net fee and commission income rose to N39.77 billion in June 2022 from N36.86 billion in June 2022
- Net trading gains increased to N23.60 billion in June 2022 from N17.69 billion in June 2021.
- Personnel and other operating expenses amounted to N18.60 billion and N63.60 billion respectively in June 2022. In June 2021, personnel and operating expenses stood at N17.76 billion and N54.34 billion respectively.
- Profit before tax increased to N103.25 billion in June 2022 from N93.06 billion in June 2021.
- Guaranty Trust Holding Company reported an income tax expense of N25.69 billion in June 2022, up from N13.64 billion recorded in June 2022.
- Profit for the period after tax declined to N77.56 billion in June 2022, from N79.41 billion in June 2021.
- Earnings per share rose slightly to N2.70 in June 2022 from N2.79 in June 2021.
GTCO also saw its profit after tax decline by 15.8% to N79.41 billion in H1 2021, compared to the H1 2020 figures.
During the period under review, Directors proposed the payment of an interim dividend in the sum of 30 Kobo per ordinary share on the issued capital of 29,431,179,224 Ordinary Shares of 50 Kobo each payable to Withholding tax will be deducted at the time of payment.
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Balance sheet
Guaranty Trust Holding Company Plc’s total assets rose to N5.69 trillion as at June 30, 2022 from N5.44 trillion as at December 31, 2021.
Major components of the assets:
- Loans and advances to customers: N1.83 trillion (N1.80 trillion in 2021)
- Restricted deposits and other assets: N1.14 trillion (N1.14 trillion in 2021)
- Cash and balances: N1.04 trillion (N933.59 billion in 2021).
Total liabilities rose to N4.84 trillion as at June 30, 2022 from N4.55 trillion as at December 31, 2021.
The major component of the company’s liability is
- Deposits from customers: N4.26 trillion (N4.01 trillion in 2021)
Total shareholders’ equity slightly decreased to N845.69 trillion as at June 30, 2022 from N883.23 trillion in 2021, due to decrease in retained earnings to N164.07 billion from N198.36 billion in 2021.
Cash flow:
- Net cash flows generated from operating activities dipped to N320.24 billion in June 2022 from N364.30 billion in June 2021.
- Net cash of N3.42 billion was generated from investing activities in June 2022 compared to N216.12 billion used in June 2021.
- Net cash used in financing activities jumped to N134.63 billion in June 2022 from N85.57 billion in June 2021.
During the first half of 2021, Guaranty Trust Bank Plc restructured and converted into Guaranty Trust Holding Company Plc, which would hold the Bank, the Banking Subsidiaries and other permissible non-banking entities.
The benefits of the conversion were listed to include: greater strategic flexibility and opportunity for diversification of the Group’s revenues; Better positioning to deal with emerging competition, for example, fintechs and payment service banks; More focused regulatory oversight of the various arms of the Group among others.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.