GTCO set for diversification, sees N243bn pots-tax profit 2022

In spite of the uncertain economic environment that overshadows year 2022, the management of GTCO, umbrella body of GT Bank are certain it will take its profit before tax to a new high by the end of the 2022 financial year (FY).

Group Managing Director of the new ‘conglomerate’, Segun Abaje disclosed that the group’s post tax profit is expected to increase by 9.93 per cent from N221.5 billion recorded in 2021 to N243 billion in FY 2022.

Agbaje said, the bank has put a number of arrangement in place to begin what he called a ‘relay’ race that will continue to grow the group’s profitability over a long period of time.

For instance, he mentioned the group has an Asset company that will add value to the group over time.

He also hinted that, contribution from outside is going to continue to increase as investments yield result. For instance, banking activities outside Nigeria contributed 23.5 per cent to profit before tax in 2021. But the GTCO boss assured that by 2022, contribution from outside Nigeria will rise to at least 29 per cent.

In the same vain, non-banking activities which contributed nothing in 2021, will impact two per cent during this current year.

Based on the new drive, he assured further that deposit growth rate will increase from the 14.4 per cent it stood in 2021 to 25 per cent by the end of this financial year, while loan growth will also increase from 8.4 per cent in 2021 to 10 per cent in 2022.

The group intends to be cautious with growing its Non Performing Loans (NPLs), saying it remain at the six per cent it stood in 2021, though Agbaje said, the ratio of loan to deposit and borrowings will increase from 43.6 per cent to 50 per cent.

Liquidity ratio and cash adequacy ratio, he said will remain at almost the same healthy levels of 38 per cent and 23 per cent respectively.

Related content you may like