GTCO to pay shareholders total dividend of N94 billion for FY 2023

GTCO to pay shareholders total dividend of N94 billion for FY 2023

Shareholders of Guaranty Trust Holding Company (GTCO) Plc will receive a total dividend of N94.180 billion for the financial year ending December 2023, representing a reward of N3.20 for each share held.

It was the board of directors of GTCO, pursuant to the powers vested in it by the provisions of Section 426 of the Companies and Allied Matters Act (CAMA 2020) of Nigeria, who made these recommendations.

During the 2023 financial year, directors declared and paid an interim dividend of 50 Kobo per ordinary share on the share capital of 29,431,179,224 ordinary shares of 50 Kobo each, for the half-year period ended June 30, 2023.

The directors also recommended the payment of a final dividend of N2.70k per ordinary share of 50 Kobo (bringing the total dividend for the financial year ended December 31, 2023, to N3.20k).

This was contained in the company’s corporate action announced at the Nigerian Exchange Limited (NGX) on Monday and obtained by Nairametrics.

Still subject to shareholders’ approval
According to the company, the final dividend is subject to the appropriate withholding tax and will be paid to shareholders whose names appear in the register of members at the close of business on 26th April 2024.

This will be presented at the next Annual General Meeting for shareholders’ ratification and approval

The statement signed by the company noted that on 9th May 2024, dividends will be paid electronically to shareholders whose names appear on the register of members as of 26th April 2024 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

Advice to shareholders
Shareholders who are yet to complete the e-dividend registration are advised to download the registrar’s E-Dividend Mandate Activation Form, which is also available on the website of the registrars.

Shareholders with dividend warrants and share certificates that have remained unclaimed or are yet to be presented for payment or returned for validation are advised to complete the e-dividend registration or contact the registrar.

What you should know
Nairametrics reported that GTCO recorded gross earnings of N1.187 trillion, representing a 120.03% increase from the N539.235 billion reported the year prior.

A cursory review of the financial statements delineates the sources of the gross earnings. Interest income stands out as a substantial contributor, comprising 46.42% of the gross earnings.
The Group also reported a profit before tax of N609.308 billion for the year ended 31 December 2023 and proposed a final dividend of N2.70.
Additionally, foreign exchange (FX) revaluation gains of N449.347 billion played a pivotal role, contributing 37.24% to the gross earnings.
This represents a notable shift from the preceding year, where interest income accounted for 60.34% and FX revaluation gains contributed a modest 10.74%.
The group is also intending to seek shareholder approval next month to raise up to $750 million in capital.
This initiative aligns with the efforts of other banks to bolster capital reserves in order to meet new regulatory targets.
The Central Bank of Nigeria last month announced minimum capital requirements for banks to strengthen the country’s financial system and enable lenders to play a bigger role in boosting economic growth.