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GTCO releases Q1 2022 unaudited results, declares N54.3bn profit before tax

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GTCO releases Q1 2022 unaudited results, declares N54.3bn profit before tax

Mr Segun Agbaje, the Group Chief Executive Officer, GTCO Plc

Guaranty Trust Holding Company Plc, (GTCO) has released its unaudited financial results for the first quarter of 2022 to the Nigerian Exchange Ltd., (NGX) and London Stock Exchanges, declaring a profit before tax of N54.3 billion.

The group, in a statement on Wednesday in Lagos, said the figure represents an increase of 1.1 per cent over ₦53.7 billion recorded in the corresponding period of March 2021.

It said that foreign exchange translation of the FCY loan book led to a drop in the group’s net loans by 4.7 per cent from N1.80 trillion recorded as of Dec. 2021 to N1.72 trillion in March 2022.

Its deposit liabilities, however, grew by 0.7 per cent from N4.13 trillion in Dec. 2021 to N4.16 trillion in March 2022.

The company’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing 2022, at N5.50 trillion and N908.8 billion, respectively.

Capital Ratios and Asset Quality was sustained as CAR, NPL ratio and Cost of Risk (COR) closed at 22.9 per cent, 5.9 per cent and 0.1 per cent in March 2022 from 23.8 per cent, 6.0 per cent and 0.5 per cent in Dec. 2021, respectively.

Mr Segun Agbaje, the Group Chief Executive Officer, GTCO Plc said,  the company’s first-quarter results showed a decent improvement across key revenue lines as well as other financial metrics.

This Agbaje said demonstrated the group’s ability to effectively navigate the evolving business landscape anchored on our strong business fundamentals.

He said, “With this performance, we are optimistic about the rest of 2022 as we rapidly consolidate the gains of our new holding company structure to deliver superior Stakeholder value.

“Importantly, our non-banking businesses including Pension Management, Wealth Management and Payments, will serve to diversify our earnings capacity as we look to create a model financial services ecosystem for all of Africa.

“As a Group, we are fully committed to providing innovative financial solutions whilst constantly delivering best-in-class customer experiences in line with our long-term strategy.”

The group added that in terms of significant performance metrics, it had continued to post one of the best metrics in the Nigerian financial services Industry in terms of key financial ratios.

These ratios include Post-Tax Return on Equity (ROAE) of 19.3 per cent, Post-Tax Return on Assets (ROAA) of 3.2 per cent, Full Impact Capital Adequacy Ratio (CAR) of 22.9 per cent and Cost to Income ratio of 47.0 per cent.”

 

Banking & Finance

Nigeria’s debt sustainable, says DMO, as Stock Debts Soars

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Nigeria’s debt sustainable, says DMO, as Stock Debts Soars

Against the backdrop of verbal attacks on the soaring Government stock-debts profile, the Debt Management Office (DMO) has declared that Nigeria’s debt remains sustainable.

The Director-General of DMO, Patience Oniha, said this on Monday in Abuja, noting that Nigeria’s total debt stock as of June was N103 billion.

Oniha, however, insisted that there was an urgent need to boost the country’s revenue to further ameliorate the debt burden.

She suggested an efficient tax administration that would ensure greater compliance with remittances, and be devoid of all forms of evasions in the system.

According to her, most countries place more emphasis on taxation as a principal source of funding for the government.

She advised that new borrowings should be tied to projects that would generate commensurate revenues to service loans used to finance them.

She also said that physical assets such as idle or under-utilised properties could be redeveloped for commercialisation to generate revenue.

According to Oniha, the current revenue problem is compounded by leakages like oil theft and petrol subsidy.

“These have significantly reduced the revenue from crude oil sales that used to account for the bulk of government revenue,” she said.

She said that the outlooks of both the local and international markets were becoming tighter with rising interest rates.

She called for moderation in new borrowings and accelerated revenue growth to shore up non-oil revenue.

She, however, said that the country’s total public debt-to-Gross Domestic Product (GDP) ratio was still within reasonable limits.

“At 23.06 percent, the debt-to-GDP ratio is still within Nigeria’s self-imposed limit of 40 percent.

“It is also within the World Bank/International Monetary Fund (IMF) recommended limit of 55 percent for countries within Nigeria’s peer group and 70 percent for ECOWAS countries,” she said.

She said that debt service-to-revenue was high, adding that urgent steps needed to be taken to boost revenue and further enhance public debt sustainability.

“Nigeria’s public debt stock has grown consistently over the past decades and even faster in recent years, and debt service has continued to grow.

“The country’s low revenue base compounded by dependence on crude oil receipts resulted in budget deficits over the past decades.

“Efforts at increasing non-oil revenue are, however, yielding positive results,” she said.

According to her, with a low debt-to-GDP ratio, the debt service-to-revenue ratio would have been low if revenue were strong.

She said that Nigeria was deploying debt management tools of the World Bank and IMF to ensure debt sustainability.

“These tools include an annual Debt Sustainability Analysis (DSA) and a Medium Term Debt Management Strategy (MTDS) every four years,” she said.

Oniha listed other initiatives to ensure debt sustainability as the Presidential Infrastructure Development Fund (PIDF), Infrastructure for Tax Credit, Infrastructure Corporation of Nigeria Limited (InfraCorp) and Off-Balance Sheet Financing.

“The PIDF is managed by the Nigeria Sovereign Investment Authority (NSIA). The fund is to be invested in critical road and power projects across the country.

“The Infrastructure for Tax Credit initiative encourages companies to commit their resources to the construction of new roads or rehabilitating old ones with the assurance that such expended resources would be recouped from company tax.

“InfraCorp is a Public Private Partnership promoted by the Central Bank of Nigeria (CBN), Africa Finance Corporation (AFC) and NSIA, to catalyse and accelerate investment in Nigeria’s Infrastructure sector.

“InfraCorp has a seed funding of One trillion Naira as equity from the promoters,” she said.

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Banking & Finance

Equity Market Extends Gains by N63bn; Geregu, SCOA Lead Laggards’ Table

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Equity Market Extends Gains by N63bn; Geregu, SCOA Lead Laggards’ Table

The equity market opened the week on a positive note, gaining N63 billion, 0.24 percent, as market capitalisation closed at N26.291 trillion on Monday, compared with N26.228 trillion recorded on Friday.

Also, the All-Share Index rose by 115.58 points or 0.24 percent to close at 48,270.23 from 48,154.65 on Friday.

The market’s performance was primarily driven by gains in stocks of Nigerian Breweries and BUA Cement.

Consequently, the year-to-date (YTD) return rose to 12.96 percent.

Market breadth closed positive as 15 stocks were on the leaders’ table, with 13 on the laggards’ log.

Guinness led the gainers’ table with 10 percent to close at N69.30 per share.

Eternal oil followed with a gain of 8.75 percent to close at N6.44, while Royal Exchange grew by percent to close at 78k per share.

Linkage Assurance advanced by 7.50 percent to close a 43k per share Presco gained by 6.64 percent to close at N120.50 per share.

Conversely, Geregu led the laggards’ table, depreciating by 9.85 percent to close at N110.70 per share.

Scoa Nigeria followed with a loss of 9.43 percent to close at 96k, while Thomas Wyatt Nigeria declined by 9.09 percent to close at 40k.

Also, LASSACO depreciated by 7.41 percent to close at 25k per share. Chams fell by 4.49 percent to close at 85k.

Analysis of today’s market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 18.69 percent.

A total of 633.74 million units of shares valued at N4.10 billion were exchanged in 3,398 deals.

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Banking & Finance

NGX: Market Slides, sheds N2bn; Naira Slumps, exchanges N445.83 to Dollar 

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NGX: Market Slides, sheds N2bn; Naira Slumps, exchanges N445.83 to Dollar 

…Honeywell Flour Mill, RT Briscoe lead Losers’ Chart*** 

Key performance indicators of the Nigerian Exchange Ltd. (NGX) declined marginally on Thursday as market capitalisation which open with N25.959 trillion, lost N2 billion or 0.01 percent to close at N25.957 trillion.

Also, the All-Share Index (ASI) closed lower by 3.4 points or 0.01 percent to settle at 47,656.64 points compared with 47,660.04 recorded on Wednesday.

Consequently, the year-to-date (YTD) return stood at 11.57 percent.

Sell-offs in MTN Nigeria Stock led to a downturn in the performance of the market.

However, market sentiment, as measured by market breadth, was positive, as 11 stocks gained relative to nine losers.

UPDC Real Estate Investment Trust recorded the highest price gain of 9.09 percent to close at N3 per share.

McNichols followed with a gain of 8.93 percent to close at 61k, while Japual Gold and Ventures appreciated by 7.41 percent to close at 29k per share.

Nigerian Breweries went up by 7.14 percent to close at 45k per share.

Also, Royal Exchange Assurance rose by 4.76 percent to close at 66k per share.

On the other hand, Honeywell Flour Mill led the losers’ chart by 7.89 percent to close at N2.10, RT Briscoe followed with a decline of 7.41 percent to close at 25k and Wema Bank shed 5.45 percent to close at N3.12 per share.

FCMB Group lost 4.18 percent to close at N3.21, while Cutix Plc shed 3.46 percent to close at N2.5 per share.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 115.63 percent.

A total of 172.90 million shares valued at N2.84 billion were exchanged in 3,073 

In another development, the Naira on Thursday exchanged at 445.83 to the dollar at the Investors and Exporters window, a depreciation of 0.12 percent, compared with the 445.30 it exchanged on Wednesday.

The open indicative rate closed at N444.60 to the dollar on Thursday.

An exchange rate of N447 to the dollar was the highest rate recorded within the day’s trading before it settled at N445.83.

The Naira sold for as low as 422 to the dollar within the day’s trading.

A total of N99.50 million was traded at the official Investors and Exporters window on Thursday

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