GTCO Financial Results
.
Revenue Generation
Revenue continued to be challenged as Gross earnings which comprises Funded and Non-Funded Income dipped
by 1.6% from N455.2bn in FY 2020 to N447.8bn in FY 2021.
Yield compression on Earning assets impacted the Funded Income component causing a 11.3% reduction in
earnings from this income line to #266.9bn in FY 2021 from N300.7bn in FY 2020. Consequently, its contribution to
Gross earnings dropped to 59.6% in FY 2021 from 66.1% in FY 2020.
Non-Funded Income (NFI) however grew by 17.1% to 180.9bn in FY 2021 from N154.5bn in FY 2020. NFI performance
was boosted by Increased transactional volumes in the Digital and Non-Digital space stemming from the re-
opening of the economy post Covid-19 induced lockdowns across all our jurisdictions. This was positive as e-
Business income and Account maintenance charges improved by N9.3bn and N4.2bn respectively.
Credit Related Fees, Income from Financial guarantees (i.e. LC commissions, BC commissions and commissions on
Accepted guarantees) and commissions on other Account Services Fees also grew during the same period.
Reduced spread on FIS trades resulted in 8.6% dip in Net gain on Trading of Financial Instruments during the period
(N22.4bn in FY 2021 vs N24.5bn in FY 2020).
Other Income benefited from the growth in Loan Recoveries (N9.6bn in FY 2021 vs #4.1bn in FY 2020) and non-
recurrence of the modification loss of N3.0bn booked in FY 2020 in compliance with the requirement of the IFRS
Standards. It was further enhanced by growth in Discounts and Recoverable earnings to N23.1bn in FY 2021 from
¥13.6bn in FY 2020 owing to improved income from non-vatable digital transactions and offshore rebates from
correspondent banks.
The growth in Other Income was however curtailed by reduced FX revaluation & Derivative gains (#45.0bn in FY 2021
vs N56.6bn in FY 2020) largely as a result of the impact of the relative changes to Naira/USD exchange rate i.e.
N435/$1 in 2021, N410.25/$1 in 2020 and N364.51/$1 in 2019) used in revaluing the Bank's US$1.2bn long position and
the forward rate applied to value the US$613mm Swap positions.
Interest Income (\'Bn)
203.23
190.80
195.02
181.62
185.53
Revenue Mix (N'Bn)
91.89
327.33
Dec-17
306.96
296.20
300.74
266.89
180.92
154.49
139.10
127.74
Dec-18
Dec-19
Dec-20
Dec-21
Non Interest Income
Interest Income
Non-Interest Income (\'Bn)
62.42
55.79
50.78
52.37
42.92
37.63
84.40
76.83
74.12
53.18
10.29
24.58
24.49
20.89
22.39
11.34
113.82
104.53
103.69
110.44
67.70
Dec-17
Dec-18
11.63
10.89
4.76
4.17
Other income
Dec-17
■Placements
Dec-18
Dec-19
■Investment Securities
Dec-20
Dec-21
Loans and Advances
Dec-19
Dec-20
Dec-21
■Net gains/(losses) on financial instruments classified as held for trading
■Fee and Commission Income
18View entire presentation