GTCO, UBA Top Others as Most Profitable Lenders by RoE in 2023FY
On the backdrop of impressive earnings, Guaranty Trust Bank Holding Company Plc (GTCO) and United Bank for Africa Plc (UBA) outpaced other banks as the most profitable financial institutions by Return on Equity (RoE) in the 2023 financial year.
RoE is a ratio that provides investors with insight into how efficiently a company (or more specifically, its management team) is handling the money that shareholders have contributed to it.
GTCO, according to THISDAY investigations declared 44.82 per cent RoE from 18.65 per cent in 2022.
The 23.61 per cent RoE growth recorded by GTCO showed efficiency in generating income and growth from its shareholders amid a punitive regulatory environment.
“The Group’s performance remained resilient and responsive in the face of daunting challenges ranging from elevated inflation, heightened FX risks that characterised most of 2023 financial year.
“It adapted by deploying timely, appropriate, and efficient strategies to navigate the vagaries of macros across its Jurisdiction of operations, posting pre-tax Return on Average Equity of 44.80,” the bank said in a presentation to investors and analysts.
The total dividend payout by
GTCO management stood at N3.20 kobo for 2023 financial year, about three per cent increase from N3.10 kobo paid to shareholders in 2022 financial year.
UBA closely trailed GTCO as its RoE closed 2023 FY at 41.20 per cent from 19.70 per cent reported in 2022.
The Pan-African financial institution in 2023 performance reported N757.7billion profit before tax, an increase of 277 per cent from N200.9 billion in 2022, while its profit after tax stood at N607.7 billion in 2022, a growth of 257 per cent from N170.3 billion reported in 2022.