Home » Segun Agbaje-led GTCO posts lower earnings amid higher operating expenses

Segun Agbaje-led GTCO posts lower earnings amid higher operating expenses

by Feyisayo Ajayi
Segun Agbaje

At the end of the first half of its fiscal year in 2022, Guaranty Trust Holding Company (GTCO), a financial services company headquartered in Nigeria and run by renowned banking executive Segun Agbaje, reported a drop in profitability due to rising operating costs and tax obligations.

Although the company saw a double-digit increase in its interest and non-interest income in the first half of 2022 due to a slight increase in its loan book, higher interest margins, and successful digital transformation strategies, its profit fell by 2.3 percent from N79.41 billion ($186.5 million) in the first half of 2022 to N77.56 billion ($182.1 million).

Despite an increase in gross earnings from N207.9 billion ($488.2 million) to N239.3 billion ($562 million), the group’s profit fell due to surging operational expenses and N25.7 billion ($60.4 million) in income tax expenses recorded during the period under review.

Despite the drop in earnings, the group’s total assets climbed from N5.44 trillion ($12.8 billion) at the start of the year to N5.69 trillion ($13.4 billion) as of June 30, 2022, while retained earnings decreased by N198.36 billion ($465.85 million) to N164.07 billion ($385.3 million).

The board of directors proposed paying an interim dividend of N0.30 ($0.000704) per share to shareholders listed on the share register on Sept. 30.

GTCO operates as a financial holding company based in Lagos, providing retail and investment banking, pension and asset management, and payment services through its well-diversified operations. 

Agbaje, a leading business executive with a minority 0.14-percent stake in GTCO, was instrumental in the group’s strategic expansion and, more recently, in its transformation into a holding company last July following a structural reform.

Aside from his governance roles at GTCO, Agbaje also sits on the board of PepsiCo and is a member of the Mastercard Advisory Board for Middle East and Africa.

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