GTCO Financial Results
Margin Metrics
Sustained Competitive Margins
⚫ NIM under pressure at 6.74% in FY 2021 as against 9.26% as of FY-2020 due to declining Asset Yields.
Sound Treasury Management weighed positively and limited Asset yields compression by 302 bps
to 8.05% in FY 2021 from 11.06% in FY 2020.
⚫ The Group continues to implement its well-articulated retail strategy, diversified its funding base
and played to the strength of its brand to gain enough market share in the retail space and
maintain its strong low-cost mix position.
• Cost of Funds (COF) improved by 31bps (from 1.19% in FY 2020 to 0.88% in FY 2021) following an
improvement in low-cost deposit mix to 86%. This was however not adequate to offset the 302 bps
decrease in Asset Yields.
.
The low-cost deposit mix enabled the Group to navigate the low Interest rate environment and
compete effectively on asset pricing and helped moderate the pick-up in cost of funds as the
Group strives to sustain its liquidity position amidst intense competition from Fintechs and Tier 2
banks.
⚫ The Group will continue to seek alternative yield optimization opportunities by taking advantage of
its transition to a fully-fledged Financial Services Company.
Net Interest Margin
10.42%
9.23%
9.28%
9.26%
6.74%
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Cost of Funds
Yields on Interest Earning Assets
14.26%
12.33%
11.92%
11.06%
8.05%
3.19%
3.00%
2.30%
1.19%
0.88%
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
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