Business
GTCO Announces N94 Billion Dividend Payout for FY 2023: A Detailed Analysis
GTCO Announces N94 Billion Dividend Payout for FY 2023: A Detailed Analysis
Guaranty Trust Holding Company (GTCO) Plc has recently declared a total dividend payout of N94.180 billion for the financial year ending December 2023. This significant reward, amounting to N3.20 for each share held by shareholders, reflects the company’s commitment to value creation and wealth distribution.
The decision to pay out this dividend was made by the board of directors of GTCO, in accordance with the provisions of Section 426 of the Companies and Allied Matters Act (CAMA 2020) of Nigeria. This move underscores the company’s adherence to regulatory guidelines and commitment to transparent corporate governance practices.
In the course of the 2023 financial year, directors of GTCO had previously declared and paid an interim dividend of 50 Kobo per ordinary share. This interim dividend was distributed on the share capital of 29,431,179,224 ordinary shares of 50 Kobo each, for the half-year period ending on June 30, 2023.
Furthermore, the directors have 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 decision reflects the company’s strong financial performance and commitment to rewarding its shareholders.
The announcement of the dividend payout was made public through the company’s corporate action disclosure on the Nigerian Exchange Limited (NGX) platform. The final dividend payout is subject to the appropriate withholding tax and will be disbursed to shareholders whose names appear in the register of members as of the close of business on 26th April 2024.
Shareholders are advised that the final dividend payout will be presented for ratification and approval at the upcoming Annual General Meeting. The dividends are scheduled to be paid electronically on 9th May 2024 to shareholders who have completed the e-dividend registration and authorized the Registrar to deposit the dividends directly into their bank accounts.
For shareholders who are yet to complete the e-dividend registration process, it is recommended to download the registrar’s E-Dividend Mandate Activation Form from the registrar’s website. Additionally, shareholders with outstanding dividend warrants or unclaimed share certificates are encouraged to complete the e-dividend registration process or contact the registrar for further assistance.
In terms of financial performance, GTCO reported gross earnings of N1.187 trillion for the year, marking a substantial 120.03% increase from the previous year. Noteworthy contributors to the gross earnings include interest income, accounting for 46.42% of the total, and foreign exchange (FX) revaluation gains, which contributed 37.24% to the earnings.
The company also reported a profit before tax of N609.308 billion for the year ended 31 December 2023, underlining its strong financial position and profitability. With plans to seek shareholder approval to raise up to $750 million in capital, GTCO is aligning its strategies with regulatory requirements and industry trends to enhance its capital reserves and support future growth initiatives.
The decision to bolster capital reserves aligns with the broader regulatory framework set by the Central Bank of Nigeria, aimed at strengthening the financial system and empowering banks to drive economic growth. As the banking sector evolves and adapts to new regulatory standards, GTCO’s proactive approach to capital management and dividend distribution sets a positive precedent for sustainable growth and value creation.
In conclusion, GTCO’s announcement of a significant dividend payout for FY 2023 underscores its commitment to shareholder value and financial transparency. As the company continues to deliver strong financial results and align its strategies with regulatory requirements, shareholders can look forward to sustainable returns and long-term value creation.
Stay tuned for further updates on GTCO’s financial performance and strategic initiatives as it navigates the dynamic landscape of the banking industry.
