Habaripay, the fintech subsidiary of Guaranty Trust Holding Company (GTCO), has reported a N2.17 billion post-tax profit year ended December 2023.
According to reports, Habaripay profit surged by 159 percent from N836 million reported in 2022. The fintech startup increase in profit was generated from its streams of revenue ranging from its net commission recognized on merchant service charged to transaction value processed and sales margin recognized on bill payments such as Bulk SMS and airtime vending.
A further analysis of the report revealed significant growth for Habaripay last year. Operating income surged by 213 percent to N4.7 billion from N1.5 billion in 2022, while operating expenses rose to N2.4 billion from N597 million.
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Also, the core business operation’s cash flow skyrocketed by 778 percent to N6.41 million from N73 million the previous year. According to HabariPay, the core operations encompass a payment gateway handling payments processed through virtual accounts, USSD, card, and bank transfer channels.
Since the launch of HabariPay in 2021, the fintech subsidiary of GTCO plc has continued to record significant milestones in profits after it reported a profit before tax of N688.9 million in the first 9 months of 2022.
Following the fintech steady rise in profit, this highlights its growing acceptance as a preferred payment solution for several individuals and businesses.
Furthermore, HabariPay growth shows a promising adoption of GT bank payments business as it competes with established payment providers like eTranzact, Moniepoint, and Kuda, amongst others, as it looks to bolster its hold on the competitive fintech sector.
On the other hand, the fintech parent company GTCO plc, recently declared N609 billion pre-tax profit for the 2023 financial year. This represented an increase of 184.5 percent over N214.2 billion recorded in the corresponding year ended December 2023.
The Group’s balance sheet remained well structured, diversified, and resilient with total assets and shareholders’ funds closing at N9.7 trillion and N1.5 trillion, respectively.
Commenting on the results, the Group’s Chief Executive Officer, Segun Agbaje said,
“The challenging operating environment of 2023 truly tested the business model we put in place for the Holding Company, for both our banking and non-banking business verticals. Harnessing the Group’s synergies yielded a strong performance, allowing us to strengthen our foothold in banking whilst also building viable and resilient businesses of HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers.
“Also important to our success is our relentless obsession with innovation and offering great customer experiences as demonstrated by the successful redesign and upgrade of our mobile banking application, GTWorld.”
He further stated that as the company navigates the challenges and opportunities that lie ahead, it remains confident that its robust underpinnings and focus on flawless execution will continue to drive sustainable growth across all its operations and deliver long-term value for our stakeholders.