Guaranty Trust reports N169.17bn profit after tax for 2022 FY

Guaranty Trust Holding Company Plc (NGX: GTCO) reported a 20.42% growth in gross earnings for the year ended December 31, 2022. However, the profit after tax for the period declined by 3.2%.

Income statement

Gross earnings rose to N539.23 billion in 2022 from N447.81 billion in 2021.
Net interest income rose to N259.30 billion in 2022 from N220.61 billion in 2021.
Net income on fees and commission rose to N77.46 billion in 2022 from N65.65 billion in 2022
Trading gains increased to N40.28 billion in 2022 from N29.65 billion in 2021.
Personnel and other operating expenses amounted to N36.08 billion and N126.35 billion respectively in 2022. In 2021, personnel and operating expenses stood at N35.30 billion and N93.54 billion respectively.
Profit before tax decreased to N214.15 billion in 2022 from N221.50 billion in 2021.
GTCO reported an income tax expense of N44.98 billion in 2022, down from N46.66 billion recorded in 2022.
Profit for the period after tax declined to N169.17 billion in 2022, from N174.84 billion in 2021.
Earnings per share dropped slightly to N5.95 in 2022 from N6.14 in 2021.

The Directors recommend the payment of a final dividend of N2.80k (Two naira and Eighty Kobo only) per ordinary share of 50 Kobo (bringing the total dividend for the financial year ended December 31, 2022 to N3.10k.

Payment of dividends is subject to withholding tax rate of 10% that will be deducted at the point of payment.

Balance sheet

Guaranty Trust Holding Company Plc’s total assets rose to N6.45 trillion as at December 31, 22 from N5.44 trillion as at December 31, 2021.

Major components of the assets:

Loans and advances to customers: N1.89 trillion (N1.80 trillion in 2021)
Cash and balances: N1.62 trillion (N9333.59 billion in 2021)
Restricted deposits and other assets: N1.23 trillion (N1.14 trillion).

Total liabilities rose to N5.52 trillion as at December 31, 2022 from N4.55 trillion as at December 31, 2021, mainly due to increases in customers’ deposit for foreign trade to N232.78 billion in 2022 from N87.34 billion; customers’ escrow balances to N351.41 billion from N30.35 billion; deposit from customers to N4.48 trillion in 2022 from N4.01 trillion.

Customers’ deposit for foreign trade represents the Naira value of foreign currencies held on behalf of customers in various foreign accounts to cover letters of credit transactions

Total shareholders’ equity increased to N931.15 trillion as at December 31, 2022 from N883.23 trillion in 2021.

Cash flow:

Net cash flows generated from operations rose to N1.04 billion in 2022 from N464.30 billion in 2021.
Net cash used in investing activities rose to N229.20 billion in 2022 from N223.85 billion used in 2021.
Net cash used in financing activities increased to N121.02 billion in 2022 from N54.22 billion used in 2021.
Cash and cash equivalents at end of the year rose to N1.60 trillion in 2022 from N905.66 billion in 2021.

About Guaranty Trust Holding Company Plc

Guaranty Trust Holding Company Plc was incorporated as a public limited company on July 24, 2020. The company was licensed as a non-operating financial holding company on April 14, 2021, with the listing of its shares on the Nigerian Exchange Limited on June 24, 2021.

The Company commenced operations on August 1, 2021.
The Company is a non-operating financial holding company and its subsidiaries handle Banking, Payments, Pension Fund Administration and Asset Management.