GTCO makes ambitious forecast, targets N243bn in PBT

GT Holding Company has set its target on achieving a whooping N243billion in profit before tax for the year ended 2022.
This represents a growth of 10 per cent over the N221.5bn the holdco achieved in the corresponding period of 2021.

Speaking at a forum with senior journalists in Lagos recently, Group Chief Executive officer of the firm, Mr. Segun Agbaje said its management was leaving no stone unturned to build a stronger and more sustainable institution.

Agbaje who projected handsome growth for all the institutions measurement indicators said that its loan deposit will grow by 25%, loans will advance by 10%, coverage of risk 100%, cost to risk 1% and Non-performing loans to grow by 6%.

According to him, the holdco was expecting a Return on average assets to increase by 5%, Return on average equity to grow by 25% and loans to deposits and borrowings(Bank) to advance by 50%.

For liquidity ratio, the holdco targets a growth of 38%, capital adequacy Ratio by 23% and cost to income ratio to increase by 35%.

While Net Asset margin is expected to adjust up 8%, banking (Nigerias) contribution to PBT is targeted to grow by 70%, Banking (Ex-Nigerias) contribution to PBT is seen at 28% as non -banking contribution will ease up 2%.

Agbaje believes that GT holding Company is operating with a very strong balance sheet despite the challenging environment.
The groups Gross earnings had declined by 1.6 per cent from N455.23billion in 2020 to N447.8billion in 2021, primarily from 8.8 per cent reduction in interest income from N292.74billion in 2020 to N266.9billion recorded in 2021.

Interest expenses also dropped by 1.7 per cent to N46.28billion in 2021 from N47.07billion in 2020 to position net interest income to N220.6billion in 2021 from N2563.67billion recorded in 2020.

GTCOs loan impairment charge decreased by 56 per cent from N19.57billion in 2020 to N8.5billion in 2021, following an improved outlook for the macro-economic variables used in the ECL model in 2021 compared with the gloomy outlook fuelled by the pandemic in 2020.

GTCO, however, grew its income from commission and fees rising 40 per cent to N65.65 billion in 2021 from N46.94billion in 2020. It also raked in N22.39 billion in net trading income representing a 8.56 per cent decrease in 2021.

Equally, the groups e-business income alone raked in N21.08 billion, representing a 79 per cent spike from N11.77 billion in 2020, suggesting an improvement in the utilization of the groups e-banking channels in delivering services to its customers.

The groups total operating expense grew by 10.06 per cent to N162.3billion in 2021 from N147.44billion in 2020 due to the impact of rising headline inflation and marginal Naira/Dollar rate movement in the official market which resulted in the increase in general prices of goods and services.