GTCO to pay 50 kobo interim dividend

An interim dividend of 50 Kobo has been proposed by the board of Guaranty Trust Holding Company (GTCO) Plc for the half-year of 2023.

This recommendation was made in the audited financial statements of the organisation for the period ending June 30, 2023.

In a notice to the Nigerian Exchange (NGX) Limited and the London Stock Exchange (LSE), the firm said the cash reward would be paid to shareholders on September 25, 2023, for those whose names appear in the register of members as of the close of business on September 14.

In the results released last week, GTCO reported a profit before tax of N327.4 billion, 217.1 percent higher than the N103.2 billion recorded in the corresponding period that ended June 2022.

“The Group reported profit before tax of N327.4bn, representing an increase of 217.1 percent over N103.2bn recorded in the corresponding period ended June 2022,” the statement said.

It stated that the Group’s loan book (net), increased by 22.8 percent from N1.89tn recorded as of December 2022 to N2.32tn in June 2023, while deposit liabilities grew by 37.0 percent from N4.61tn in December 2022 to N6.32tn in June 2023.

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The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N8.5tn and N1.2tn, respectively.

“Full impact capital adequacy ratio remained strong, closing at 24.7 percent, while asset quality was sustained as IFRS 9 Stage 3 loans improved to 4.6 percent in June 2023 from 5.2 percent December 2022, however, cost of risk closed at 3.7 percent from 0.6 percent in December 2022, owing to worsening macros which caused a significant increase in ECL variables,” the statement said.

Commenting on the results, Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc said, “Our half-year audited results reflect the strong business fundamentals underpinning the GTCO franchise, the quality of our past decisions in future-proofing our balance sheet for challenging times, and the sound practices that guide our day-to-day operations.

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“Despite the challenges in the business environment, notably inflationary pressures and exchange rate fluctuations, we are starting to see the gains in the transformation of our businesses following our transition to a holding company structure. Improved profitability and solid performance across key metrics reflect efficiencies and justify the investments we continue to make in technology, product development, and our people.

“We recognise the impact prevailing economic and market conditions have on people and livelihoods and we remain committed to seeking better outcomes for our customers by ensuring that our products and service offerings support our customers and their businesses through their evolving realities, while also taking every opportunity to optimise stakeholder value.”