- Approve N94.179bn dividend for 2023 FY
BY CHINYERE OBIORA, LAGOS – In a move meant to reposition the Guaranty Trust Holding Company (GTCO) Plc for greater competitiveness and effective service delivery, its shareholders have approved the company’s plan to establish a capital raising programme of $750 million either through public offerings, private placements, rights issues and/or other transaction modes.
Similarly, they have endorsed the management’s N94.179 billion dividend payouts for the year ended December 31, 2023, comprising N2.70 per share final dividend and 50 kobo interim dividend paid last year, making a total dividend paid for the 2023 financial year to N3.20 per share.
The shareholders’ decisions were taken at the company’s 3rd Annual General Meeting (AGM) held in Lagos on Thursday.
Addressing the meeting, Chairman of the company, Mr Hezekiah Sola Oyinlola, said; “After three years of reorganizing and fitting all the business verticals into a holding company structure, we successfully made the first wave of progress in our drive to broaden and diversify our revenue streams and solidify our standing as a leading financial services provider in Africa.”
He further said; “in 2023 the Group’s Balance sheet remained well structured and distributed with loans and advances accounting for 25.4 per cent in full year 2023, investment securities at 25.3 per cent in 2023 and placement 16.1 per cent in 2023. The Group grew its total Assets by 51.3 per cent to N9.8 trillion in 2023 due to increases posted on key asset lines including investment securities, cash & bank balances, loans and advances, and restricted deposits.”
According to him; “Beyond the bottom line, we understand that building an enduring institution is also about the underlying drive to make a sustainable impact in the communities we serve and operate in.
“Through strategic initiatives and partnerships, we strive to address pressing social and economic challenges, enriching lives and fostering better outcomes for people and businesses across Africa.”
On his part, the Group Chief Executive Officer of GTCO, Segun Agbaje said despite varying challenges in the operating environment and headwinds that weighed on growth in 2023, the Group delivered a strong performance posting a Profit Before Tax (PBT) of N609.3 billion, representing a growth of 184.5 per cent from N214.2 billion achieved in full year 2022.
Agbaje explained that the result was due to the impressive growth in gross earnings, increasing by 120 per cent to N1.186 trillion in the year under review, underpinned by the growth on funded and non-funded income lines.
“Our Nigerian Banking operation accounts for 77.5 per cent of the Group’s profitability, West Africa constitutes 17.5 per cent, East Africa contributes 2.2 per cent, UK 1.9 per cent, and Non-Banking Entities make up 0.9 per cent”, he said.
Chatting with journalists on the AGM outcome, Agbaje said the company’s Board and management were happy with the performance in 2023 financial year, assuring that things would get better in 2024 to continue with the tradition of upward trajectory already in place in the company over the years.
In his words; “I think for us, it is a good result. We looked at the volatility in the environment and we balanced profitability with some conservatism. We are happy at how we ended 2023. For us, we have a tradition of increasing dividend, every year, so I can say categorically that in 2024, dividends will be up.
Already, profit is up in the First Quarter of 2024, we have posted N509.3 billion, I think this is an indication that we will have bigger dividend in 2024. If look now, from outside Nigeria, we recorded 25 per cent to 30 per cent of the profit.
“We have also diversified geographically. We also have three new businesses which we started which are our PFA, HabariPay and our asset management company. They are already at 1 per cent of Group profit in one and a half years.
“I think our diversification, both banking and geographically, is going on well. The next thing is to work hard and hopefully with the support of Nigerians we will raise the money”.
Meanwhile, the shareholders have lauded the company’s 2023 performance with the National Coordinator of Progressive Shareholders Association (PSA), Okezie Boniface, describing it as excellent, given the growth in its earnings per share of N19.70 and the company paying N3.20 per share.
He noted that the group’s diversification plan is paying off and encouraged the Board and management to sustain the positive energy for further growth.
On the Capital raising, Okezie anticipated a successful exercise for the company due to its impressive track record of paying dividends.
In his intervention, National Coordinator of Independent Shareholders Association of Nigeria (ISAN), Moses Ibrude said the company performance in the year under review was impressive, considering the current economic situation in the country.
He said being at the forefront of good corporate governance, GTCO should continue to run the business well in order to deliver good returns to the shareholders.
On the process of recapitalization, Ibrude tasked minority shareholders on their rights to support the company’s growth trajectory going toward.
