Guaranty Trust Holding Company Plc (GTCO) has presented its unaudited financials for the nine months ended September 30, 2022, showing that the 10.7% growth in gross earnings could not be replicated in the net profit, due to the faster growth across the various expense heads during the period. Growth in net profit for the period was flat improving by just 0.7%, after income tax expense jumped 74.9% up, while interest expense rose 33.4%, among others. It was, however, not just the expenses, as other operating income fell by 35% from N25.66bn to N16.68bn.
Gross earnings for the period stood at N380.98bn from N344.16bn; boosted by interest income of N232.49bn, which rose 19.2% from N195.04bn; while interest expense leaped from N32.09bn to N42.8bn; resulting in a net interest income of N123.18bn, just 3.8% better than the previous N118.7bn. Credit impairment charges dropped by 38.3% from N5.994bn to N3.699bn; following which net interest income after loan impairment charges stood at N185.988bn, company to the previous N156.948bn.
Fee and commission income stood at N66.9411bn from N56.602bn, buoyed by the N15.881bn earned as account maintenance charges, up from N13.026bn; followed by electronic business income which dropped from N15.671bn to N15.182bn; while credit related fees and commissions rose to N7.102bn from N6.159bn; just as corporate finance fees rose from N2.519bn to N5.716bn. Commission on foreign exchange deals rose to N6.482bn from N5.227bn; commission on touch points dropped to N502.807m from N1.391bn; just s transfers related charges grew from N3.71bn to N4.323bn. Fee and commission expense jumped to N8.634bn, from N4.771bn, being the N5.833bn bank charges, which soared from N2.594bn; and loan recovery expenses that rose marginally from N2.177bn to N2.801bn. Net fee and commission income rose 12.5% from N51.831bn to N58.306bn; net gain on investment securities was up 36.6% from N3.6bn to N4.91bn; net foreign exchange trading gain stood at N31.71bn, 43.2% better than the N22.14bn reported in the previous nine months. Foreign exchange revaluation gain dropped by 25.2% from N15.48bn to N11.57bn.
Other operating income declined by 35% to N16.68bn from N25.66bn; while operating income stood at N309.17bn from N275.65b. Operating expenses rose 12.7% from N123.74bn to N139.44bn; personnel expenses increased to N30.54bn from N28.19bn; AMCON levy was up 6.4% at N23.29bn from N21.89bn; among others. Other operating expenses increased by 26% from N37.92bn to N47.79bn.
Profit before tax amounted to N169.72bn, 11.7% better than the N151.91bn reported in the previous nine months, while income tax at N39.38bn from N22.51bn, resulted in a net profit of N130.348bn from N129.4bn. This translated to earnings per share of N4.55, slightly better than the previous N4.54 each.
A breakdown of the profit and loss account by operating subsidiaries shows that the group’s Nigerian arm remains its honey pot, contributing N226.861bn to operating income from the previous N217.372bn, while accounting for N115.115bn PBT, a drop from last year’s N119.985bn; N25.969bn tax expense, down from N13.784bn; and N89.145bn in net profit, against the previous N106.2bn. GTBank Ghana followed with N40.671bn, down from N34.002bn; N10.879bn, up from N8.932bn and N20.232bn, compared to the previous N16.589bn in operating income, tax and net profit respectively. GT Cote D’Ivoire followed with N5.829bn and N4.594bn, from N3.871bn and N1.848bn; GT Kenya reported N12.783bn and N4.673bn respectively, from N11.986bn and N3.373bn; GT Sierra Leone recorded N7.512bn and N3.051bn in operating income and net profit respectively, from N5.95bn and N1.625bn; followed by Liberia with N6.622bn and N2.766bn; while N4.735bn and N2.334bn was contributed to both line items from the Gambia. GT Bank UK reported N5.572bn operating income, from which Pat stood at N836.104m; Habari Pay, its fintech subsidiary recorded a net of N590.006m from its total earnings of N907.074m; while GT Bank Tanzania suffered a N41.15m loss from itws operating income of N807.515m.
On the balance sheet, total assets was up 6.9% from N5.436tr at the end of full-year ended December 31, 2022, to N5.808tr in the nine-month period under review; boosted by customer loans and advances of N1.842tr, which rose 2.2% from N1.802tr. Total liabilities stood at N4.935tr, up by 8.4% from N4.552tr, of which customer deposits contributed the lion’s share of N4.257tr, up by 6.1% from N4.012tr at the end of last financial year.