GTCO Financial Results
Efficient Cost Management
OPEX grew by 10.1% from N147.4bn in FY 2020 to N162.3bn in FY 2021 due to the impact of rising
headline inflation and exchange rate movement at the official market which precipitated an
increase in general prices of goods and services.
• OPEX growth of 10.1% was below headline inflation which closed at 15.63% in December 2021.
• Operating cost was largely impacted by increased Regulatory Costs - 27.3% growth in AMCON
expenses and 21.5% increase in Depreciation Expenses.
• 1.7% savings on Interest Expense was primarily driven by changes to interest rate paid on savings
account deposit which is indexed to Monetary Policy Rate (MPR). CBN reduced MPR from 12.5% to
11.5% and interest rate paid on savings deposit from 30% to 10% of MPR in September 2020. The
Group benefitted from the full impact of this change in FY 2021.
Continued utilization of the Group's dollar liquidity enabled seamless repayment of maturing FCY
borrowings thereby reducing pressure from exchange rate movement which would have led to
increased interest expense from translation impact of depreciation of the Naira against USD as at
December 2021. Repayment of FCY borrowings therefore contributed to the sustenance of Cost of
Funds (COF) at 0.88% in FY 2021.
• Overall, Cost to Income Ratio (CIR) closed at 42.3% in FY 2021 from 38.2% in FY 2020 which is above
our 35% guidance owing to pressure on revenue which outweighed the gains from cost
efficiency.
The Group remains committed to effectively managing its cost despite inflationary and revenue
pressures in order to remain within the FY 2022 guidance.
Overview of Expenses (N'Bn)
Cost to Income (CIR)
38.89%
37.09%
36.11%
38.24%
42.28%
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Operating Expenses (OPEX) (\'Bn)
15.38
17.63
22.69
29.05
35.30
2.19
80.67
125.82
12.17
1.90
127.13
162.27
147.44
128.86
84.53
64.84
4.91
2.98
47.07
46.28
19.57
4.91
6.24
8.47
8.53
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
■Fee & Commission expense
Interest expense
Operating expense
Loan Impairment
1.60
70.56
76.00
68.88
78.68
93.54
32.83
2.09
36.86
2.11
37.28
2.11
0.00
37.61
33.43
Dec-17
Dec-18
Dec-19
Other Operating Expense
Depreciation and Amortization
Dec-20
Dec-21
Operating Lease Expense/Right-of-Use Assets Amortization
Personnel Expense
20
20View entire presentation