Guaranty Trust Holding has reported a gross earnings of N1.187 trillion, representing 120.03% increase from the N539.235 billion reported the year prior.
A cursory review of the financial statements delineates the sources of the gross earnings. Interest income stands out as a substantial contributor, comprising 46.42% of the gross earnings.
The Group also reported a profit before tax of N609.308 billion for the year ended 31 December 2023 and proposed a final dividend of N2.70.
Additionally, foreign exchange (FX) revaluation gains of N449.347 billion played a pivotal role, contributing 37.24% to the gross earnings.
This represents a notable shift from the preceding year, where interest income accounted for 60.34% and FX revaluation gains contributed a modest 10.74%.
Key highlights (2023 FY vs 2022 FY):
- Gross earnings: N1.187 trillion +120.03% YoY
- Interest Income: N550.755 billion +69.25% YoY
- Interest Expense: N114.059 billion +72.56% YoY
- Net interest income: N436.697 billion +68.41% YoY
- Loan impairment charges: N102.953 billion +758.91% YoY
- Net interest income after loan impairment charges: N333.743 billion +34.95% YoY
- Net fees and commission income: N109.428 billion +18.95% YoY.
- FX revaluation gain: N441.791 billion +662.54% YoY
- Other operating expenses: N122.429 billion +31.56% YoY
- Profit for the period N539.655 billion +218.99% YoY.
- Earnings per share: N19.05 +220.17% YoY
- Loans and advances to customers: N2.480 trillion +31.52% YoY.
- Cash and bank balances: N2.310 trillion +42.47% YoY
- Total Assets N9.691 trillion +50.33% YoY.
- Customers’ deposits N7.411 trillion +65.23% YoY.
- Share capital & share premium: N138.187 billion
- Retained earnings: N580.024 billion +169.96% YoY
Commentary
- Interest income continues to be a major driver of gross earnings, primarily fueled by growth in loans and advances.
- However, the bank clarified that only 27% of its total maximum exposure stems from loans and advances, down from 31% in 2022, while 27% represents exposure to investment in debt securities, higher than 24% in 2022.
- By reducing reliance on loans and advances while increasing exposure to debt securities, the bank appears to be diversifying its risk profile.
- This strategy could help mitigate concentration risk associated with a heavy reliance on lending activities, thereby enhancing the overall stability of the bank’s balance sheet.
- This likely moderated its loan provision to N103 billion; GT Bank is known for operating a conservative lending policy
Additionally, the bank has recommended a final dividend of N2.70 per share, resulting in a total dividend payout for the year of N3.20 per share.
- This figure includes an interim dividend of N0.50 per share, which was previously declared and paid.
- This dividend announcement signifies a 3.23% increase in payout compared to the dividends distributed in the previous year.
