Guaranty Trust Holding Company (GTCO) saw its net profit for last year dive to a level last seen in 2017 as operational expenditure took a hefty bite at earnings and interest income, its core revenue source, dwindled to its lowest in five years.
Profit before income tax fell to N221.5 billion from N238.1 billion while post-tax profit came to N174.8 billion, 13.2 per cent below what it posted a year earlier.
Turnover slid 1.6 per cent to N447.8 billion from N455.2 billion, according to the audited financial statements of the financial services group issued on Friday and seen by PREMIUM TIMES.
Fees and commission income quickened by 39.4 per cent to N53.2 billion, helping to cushion the impact of a weaker interest income on earnings.
The spur of the growth lied in a near two-fold jump in e-business income to N21 billion as commercial banks continue to deepen inclusion by enrolling more users to electronic banking services.
Earlier this year, investment bank United Capital foresaw a decreased e-banking income as a long-term evil for lenders, envisioning them to gift parts of that territory to telecom operators MTN Nigeria and Airtel Africa who last year got the green-light to start payment service banks.
Depreciation and amortisation rose by more than a fifth, while other operating expenses stood at N93.5 billion, 18.9 per cent higher than that of a year before.
The latter was driven by a steep increase in communications, technological related expense and administrative expenses as well as general welfare expenses.
GTCO completed its metamorphosis to a holding company last July, which gives it the latitude to branch out into financial services operations outside core banking.
In February, GTCO consummated a transaction that enabled its full buyout of Investment One Funds Management Limited and Investment One Pension Managers Limited – both of them units of Lagos-based Investment One Financial Services Limited.
Investment One Financial Services Limited has historical ties with Guaranty Trust Bank (GTB), GTCO’s foremost subsidiary, having being originally incorporated as GTB Asset Management in 2008 to operate as a division under GTB before the central bank abolished the universal banking model, compelling management to offload its stake in the firm.
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