By Elizabeth Chukwuma
The Blue chip Banks in Nigeria, appear to have known how to manage the Asian country of China emerged coronavirus, COVID 19, to improve on their banking business. The Audited report and separate Financial Statements of the Gurantee Trust Holding Company, GTCO, presented to the Nigerian Stock Exchange, NSE and London Stock Exchange, LSE, last December is very revealing
Adekunle Olushola, Media Manager, JSP Communications, an Advertising agency to the GTCO, had said that the Group , made a Profit After Tax, PBT, of N221 billion, which is very encouraging, meaning more money for the shareholders in the 2021, fiscal year. Although, the amount approved by the Board for the shareholders remained a closely guided secret but an insider described as ‘’a mouth watery reward’’ which would reflect in their banks accounts.
The JSP Communications Media Manager had told those hat that cares to listen that the GTCO, could achieve that mmuch in 2021, because ‘’its Balance Sheet remained well structured and resilient with total Assets and Shareholders funds closing for 2021, at N5.44 trillion and N883 billion respectively.
He neoted that ‘’the Group Capital Adequacy ratio’’,CAR, had remained very strong closing at 23.8% while the Asst quality was sustained with the NPL ratio of 6.0% based on the IFRS 6.92%, that was said to have been based on the Gowin Emefiele, led Central Bank of Nigeia, CBN, representing a marginal improvement over IFRS 6.4% and a slight increase of over 2020, , 6.86% CBN Prudential gideline NPL ratio. There are indications that the GTCO, cost of Risk also increased from 1.2% during the period.
Giving an insider information, Olushola, that notwithstanding the N221 billion PBT, recorder the Group , in its Audited Financial reports of 2021, it was a seven percent drop from the M338 billion recorded in 2020. In spite of the drop in the PBT, in 2021, fiscal rear, that was said to have been recorded by the Group, its Loan book, net, also increased by 8.4% from N1.66 trillion while the deposit Liabilities grew by14.4% from N3.61 trillion to N4.13 trillion.
Segun Agbaje, the GTCO Managing Director and Chief Executive Officer, CEO, had attributed its impressive performance in the last one year that other Competitors had cried out due to the COVID 19, in their business, ‘to their strength and franchise which had underscored their ability to deliver on long term value for stakeholders in spite of the challenges in the business environment and shifting economic conditions.
He noted that as a Group that they have continued ‘’to explore newer ways to connect with their Customers and better their Communities by offering greater and more rewarding experiences’’. He further stated that the year 2021, presented a ‘’crucial opportunity to the Group as they took strategic steps ‘’to reorganise their business and advance their position as one of the Leading Money Deposit Banks, MDB, in the country.
He had pointed out that with the recent addition of Pension Fund Wealth Business to the Group, they are ‘’well on the Way to rapidly scale their Operations and further strengthen their foothold in the key Banking industry segments. ‘’Our goal is to consolidate our at the top of the African Continent Financial Services value chain by leveraging on our technology to provide end-to-end financial solutions to more people and businesses across Africa’’.
Going by the Bank performance metrics, the Group was said to have maintained a decent showing with post -tax-return on equity ., ROAE, of 20.6%, post tax return on assets, ROAA, of 23.8% and Cost Income Ratio, CIR, of 42.3%.
It is instructive to note that GTCO, is a fully-fledged financial services Group with banking operations across West and East African sub -regions including the United Kingdom, UK. The Bank, according to an insider also maintains a non-banking services in several key industry segments including payment, Funds management and Pension Funds Management’’.
An Appreciative Agbaje, the Bank’s CEO, had said that that with over 25 million Customers both within and outside country and more than 10,000 employees ‘’the Group remains one of most profitable and best managed Banks in Nigeria and Africa in general. Many believe that as one of the leading six banks in the country empowering people and communities, may have earned it several prestigious awards over the years like the Kingsley Uzoka led, United Bank For Africa, UBA plc,Pan African Bank. It was said to have won the African Best Bank of the year Award and the Best Bank in Nigeria at the 2021, Euromoney Awards of Excellence, which Uzoka led Pan African Bank had won several times.
GTCO, was said to have also retained its enviable position in the African Continent as the most Admired Financial services Brand in 2021 raking of the Brand 100: Africa best Brands.