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Shareholders approve GTCO’s N91.24bn total dividend payout for 2022

GTCO boosts profit with N334.35 bn from foreign exchange gain

Shareholders of Guaranty Trust Holding Company (GTCO) Plc have endorsed the payment of a total dividend of N91.236 billion, representing N3.10 per share for the financial year ending December 31, 2022.

This endorsement was made at the holding company’s second annual general meeting held virtually on Thursday.

The Group proposed a final dividend of N2.80 per unit of ordinary share held by shareholders in addition to the interim dividend of 30 kobo interim dividend paid in June, bringing the total dividend for the 2022 financial year to N3.10 per unit of ordinary share.

Shareholders commended the board for the financial performance achieved during the period under review despite the operating environment.

Speaking on behalf of shareholders, Timothy Adesiyan, immediate past president of Nigeria Shareholders Solidarity Association commended the management of GTCO for the impressive 2022 financial performance achieved and the consistent dividend policy of the Group.

He also noted that the Group has contributed to the growth of the economy in its lending to Agriculture, SMEs, Real Sector, among others as seen in the Award obtained by the Group in the year.

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Speaking to shareholders, Hezekiah Oyinlola, chairman of GTCO said “as I reflect on 2022, I recall the challenges we faced at every turn and the prospects that became significant milestones in our journey towards creating a robust yet agile institution.

“As we look across our burgeoning GTCO Universe, we take pride in the concrete outcomes of our diligent efforts and unyielding dedication towards expanding our influence and strengthening our position as a leading provider of financial services in Africa.”

He said “in 2022, our ambition was crystal clear, and we set out to achieve it with unwavering focus. We completed the setup of our holding company and acquired full ownership of Investment One Pension Managers and Investment One Fund Managers, now named Guaranty Trust Pension Managers and Guaranty Trust Fund Managers, respectively. Our payment subsidiary, HabariPay Limited, also launched in 2022 and almost immediately introduced its flagship product Squad to the market with outstanding reviews.

“The highlight for me is that these newly created businesses – in payments, fund managers, and pensions ran successfully and were profit before tax positive by the end of the year.”

On outlook, Oyinlola stated that, “the momentum we have built-up in recent years means that we are now in a position to leverage every opportunity to grow and sustain our superior financial performance.

“Our diversified business model and agile systems will enable us to adapt quickly to changing market conditions and turn economic tides in our favour. Our customer, centricity and focus on innovation and long-term value-creation, and will continue to be key drivers of our success in the years ahead.”

Segun Agbaje, Group Chief Executive Officer, GTCO said in spite of the varying challenges and headwinds that weighed on growth in 2022, the Group delivered a decent performance posting a pre-tax profit of N214.2 billion representing a dip of 3percent from N221.5 billion posted in full year, 2022. PBT contribution from West Africa decreased from 21.0 per cent in December 2021 to 12.3 percent in December 2022 due to the significant impairment sum of N35.6 billion recognised on the Ghanaian sovereign securities.

He also noted that during the same period, the size of the Nigerian Banking Subsidiary increased to 84.3 per cent from 79.5 percent, while East Africa’s contribution to the Group grew marginally to 3.4 percent from 3percent.

“The Group also benefited from a 0.9 percent contribution from the Non-Banking Subsidiaries which compensated for the negative 0.8 percent contribution from the United Kingdom in FY-2022.

“Gross earnings increased by 20.4 percent to N539.2 billion in full year, 2022 from N447.8 billion in 2021.”

Agbaje explained, “2022 was a year that tested our resilience and our determination. As we face the future, we do so with the confidence that we will maximize all opportunities and deal with challenges as they come.

“I strongly believe that the new holding structure of our organisation will prove to be a propeller in our journey towards sustained growth and success.”

According to GTCO CEO, what we have as Guaranty Trust Holding Company is not a conglomerate but a structure of complementary businesses which helps us remain agile, innovative, and adaptable to changing market dynamics, whilst ensuring that we continue to deliver superior returns to our shareholders.

“We will also continue to dominate the financial services sector, not just because we will continue to pursue technological advancements and digital capabilities that keep us ahead of the curve, but because we will always stay true to the values of hard work, transparency, integrity and putting our customers at the heart of everything that we do.”

Since commencing operations in February 1991, Guaranty Trust has maintained an unbroken streak of year-on-year growth and a consistent lead in driving the digitization of financial services in Nigeria thanks to its strong service culture, efficient management, world-class corporate governance standards and bias for innovation.

In April 2021, the reorganisation of Guaranty Trust Bank Plc to a financial holding company, Guaranty Trust Group Holding Company was completed as part of the company’s strategy to position for future growth and deliver benefits beyond banking to the people, communities and businesses who depend on the value we create to thrive.