GTCO Financial Results
OPEX
In billions of Naira
Depreciation and Amortization
AMCON Expenses
Occupancy Costs and Repairs & Maintenance
Deposit Insurance Premium
General welfare Expenses
Customer Service Related Expenses
Communication, Tech. related & Admin. Expenses
Advert, Promotion and Corporate Gifts
Personnel Expense
Group
Group
FY 2021
FY 2020
Change (Y-o-Y) % Change (Y-0-Y)
35.3
29.0
6.3
21.5%
21.9
17.2
4.7
27.3%
9.6
12.9
(3.2)
(25.0%)
12.2
8.5
3.7
43.9%
6.5
0.9
5.6
603.9%
1.7
3.1
(1.4)
(44.5%)
18.5
14.3
4.1
28.9%
5.8
5.1
0.7
13.5%
33.4
37.6
(4.2)
(11.1%)
OPEX Drivers
The Group recorded a 10.1% growth in Operating Expenses from N147.4 bn in FY 2020 to 162.3 bn in FY 2021. The growth was primarily driven by the following:
a.
b.
C.
d.
Depreciation and amortization expenses which grew by 21.5% as a result of incremental charge on Capital spent on IT infrastructure in Q4 2020 as well as
capitalization of balances in Work in Progress in respect of amount spent on Furniture & Equipment, Computer Hardware and Software procured for branches
in prior year.
Increase in Regulatory Charges i.e. AMCON Levy and Deposit and Other Insurance Premium. AMCON levy increased by 27.3% due to the growth in Total Asset
and Contingents at Bank level to N4.37trn in FY 2020 from N3.44trn in FY 2019 (AMCON levy is computed as 0.5% on preceding year's Total Asset and
Contingents) while Deposit Insurance premium increased by 43.9% (N12.2bn in FY 2021 vs N8.5bn in FY 2020) due to 39% increase in Customers' Deposits to
N3.51trn in FY 2020 from N2.53trn in FY 2019 (Deposit Insurance Premium is calculated on preceding year's Customers' Deposits).
59.1% growth in Administrative expenses was due to the impact of rising inflation, increased operational cost (especially cost of moving cash) due to full
opening of all the Group's branches in 2021 compared to partial opening of branches in some months in 2020 due to Covid-19 induced lockdowns and the
translation impact of Subsidiaries OPEX balances to Naira on the weaker Naira/US$ conversion.
604% growth in General welfare expenses was due to changes in the valuation of loans granted to staff at contractual interest rates below market, increased
training expenses and growth in other staff general welfare expenses in our Ghana and Kenya Subsidiaries.
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