Digital Banking and Financial Performance Review
Margin Metrics
Sustained Competitive Margins
NIM is still under pressure at 6.68% in FY-2022 against 6.74% recorded in FY-2021 due to an increase
in the cost of funds which outpaced the marginal increase in assets yield.
Net Interest Margin
9.23%
9.28%
.
Total Asset Yield was at 8.53% in FY-2022, an increase of 48bps on 8.05% recorded in FY-2021.
The Group continues to implement its well-articulated retail strategy by leveraging its strategic
capabilities and playing to the strength of the GTCO brand.
Cost of Funds (COF) increased by 34bps from 0.9% in FY-2021 to 1.24% in FY-2022) due to an upward
review of the MPR rate which is the primary driver of interest paid of Savings deposits and intense
competition for funds among competing entities within the Financial Services Industry. The Group
recorded a marginal improvement in its low-cost deposit mix to 87.9% in FY-2022 from 85.7% in
FY-2021.
⚫ The Group will continue to seek alternative yield optimization opportunities by consolidating its
Holding Company Structure.
Dec-18
Yields on Interest Earning Assets
14.26%
12.33%
11.06%
8.53%
8.05%
9.26%
6.74%
6.68%
Dec-19
Dec-20
Dec-21
Dec-22
Cost of Funds
3.00%
2.30%
1.19%
1.24%
0.88%
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
2
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