GTCO Soars to N2.4trn Ahead of Dividend Payment
Ahead of dividend payment, Guaranty Trust Holdings Company (GTCO) Plc’s market value climbed by 8.3% to approximately N2.4 trillion in the equities market following the group’s strong earnings performance for financial year 2024.
Its share price inched near its all-time high of N70 as markets salivated at the orange-branded financial services company’s best-in-class earnings performance for 2024. Investors will receive dividend payment from the group mid-April, stockbrokers said.
In the stock market, GTCO share price settled at N69.40 on Friday as 20.862 million units valued at N1.451 billion exchanged hands amidst rising offshore investors’ interest.
Trading data on the financial stocks reflected mixed investor sentiment as GTCO share price fluctuated between its week low of N61.4 and N69.6 on huge volumes, suggesting the possibility of blocked transactions.
Details from GTCO audited financials revealed that pre-tax profit grew significantly, rising 107.8% year on year to N1.3 trillion, while net profit grew slower by 88.6% to N1.0 trillion in FY 2024.
GTCO’s bumper earnings were primarily driven by sizeable earnings from investment securities amidst a double-digit high interest rate environment. Investors metric, return on average equity (ROAE) for FY 2024 was 48.6%, compared to 44.8% in FY 2023.
In 2024, the total tax paid by GTCO Plc amounted to N248.8 billion, including a windfall tax of N51.2 billion. Following its capital raise, GTCO now holds the industry’s highest buffers relative to risky assets, with a capital adequacy ratio (CAR) of 39.3% after it transferred more than 910 billion into retained earnings.
The bank’s management proposed a final dividend of N7.03/s. This, in addition to the N1.00/s interim dividend, brings the total dividend paid for the year to N8.03/s—the highest dividend yield of 11%.
GTCO announced to close shareholders registered on April 16, and the group told the Nigerian Exchange that dividends will be paid to shareholders whose names appear on the register of members on April 15.
On April 24, a dividend will be paid to qualified shareholders electronically; GTCO dropped the hint in a document obtained by MarketForces Africa. #GTCO Soars to N2.4trn Ahead of Dividend Payment Money Market Rates Steady Amidst Widening Banking Deficit
