[NIGERIA] Segun Agbaje-led GTCO records $367.4-million profit in 2022

 Segun Agbaje-led GTCO records $367.4-million profit in 2022

Guaranty Trust Holding Company (GTCO) led by Nigerian business executive Segun Agbaje, delivered a profit of N169.17 billion ($367.4 million) at the end of its 2022 fiscal year, despite tough financial market conditions.

The performance was significant for the Segun Agbaje-led group as it marked the first year after its corporate restructuring into a financial holding company in August 2021.

The Lagos-based financial holding company, which offers retail and investment banking, pension and asset management, and payment services through its diverse operations, saw its profit decline by 3.24 percent from N174.84 billion ($379.73 million) in 2021 to N169.17 billion ($367.41 million) at the end of its 2022 fiscal year.

The single-digit decline in its profit can be linked due to a surge in impairment charges, which rose from N760.8 million ($1.65 million) to N35.94 billion ($78.1 million), as well as an increase in operating expenses during the period under review.

According to the group’s recently published financial statement, its net interest income increased to N259.3 billion ($563.6 million), compared to N220.08 billion ($477.9 million) in the previous year, while its net fee and commission income surged to N77.46 billion ($168.23 million) from N65.65 billion ($142.6 million) in 2021.

However, the double-digit increase in interest and non-interest incomes was offset by a significant loss in its investment exposure in the Ghana investment market, which suffered due to the Domestic Debt Exchange Program.

This resulted in a surge in its impairment charge, increasing from N760.8 million ($1.65 million) to N35.94 billion ($78.1 million), and impacted earnings. Commenting on the results, Agbaje, who has a 0.14-percent stake in GTCO, emphasized the Group’s commitment to sound business strategies and strong fundamentals.

He stated: “Despite the varying challenges and headwinds that weighed on growth in 2022, we were determined to deliver a decent performance and scale effectively to strengthen our competitive edge and drive long-term growth.”