HabariPay, the fintech subsidiary of Guaranty Trust Holding Company (GTCO), reported N3.8 billion after-tax profit in 2024 as more Nigerians continue to go cashless.
BusinessDay analysis of the recent financial report of the tier-one bank shows that HabariPay grew its profit by 75.1 percent from N2.17 billion reported in 2022.
The subsidiary’s earnings reflect the increasing adoption of digital financial services, driven by its flagship platform, Squad, which integrates payment processing and marketplace services tailored for small businesses.
The statement said HabariPay’s rise in profit was derived from fintech revenue streams ranging from its net commission recognised on merchant service charges to transaction value processed to sales margin recognised on bill payments, i.e., airtime vending, and bulk SMS.
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While Eduofon Japhet, chief executive officer of HabariPay, acknowledged the company’s growth, she noted that it must scale to solidify its position within GTCO’s portfolio. The company has acquired multiple payment and switching licences to focus on expanding POS terminal services for merchants and ensuring that mobile transfers are as seamless as card payments.
A further breakdown of the report revealed that the fintech company’s operating income last year increased by 23.4 percent to N5.8 billion from N4.7 billion in 2023. Its operating expenses fell to N1.59 billion from N2.4 billion despite macroeconomic challenges that have impacted the economy.
GTCO’s broader e-business, which includes digital channels and platforms, also contributed notably, with revenue up by 38.4 percent to N56.5 billion in 2024.
HabariPay’s total assets rose to N10.9 billion from N6.7 billion; total liabilities increased to N982 million, with shareholders’ equity amounting to N9.9 billion. According to the financial statement, HabariPay’s growth showed promising adoption of the bank’s digital payments business as it looks to bolster its hold on the fintech sector.
GTCO launched the fintech firm in 2018 as a super-app that provides everything from streaming content to an e-commerce marketplace. In June 2021, HabariPay was officially launched as the first mobile platform in Nigeria to be floated by a financial institution.