Guaranty Trust Holding Company Plc, the parent company of Guaranty Trust Bank, has emerged as the most profitable company in Nigeria for 2022.

GTCO recorded the feat ahead of heavyweight contenders like Dangote Cement and MTN Nigeria, despite earning less revenue.

According to data posted by Staitisense, a data-driven company, Guaranty Trust Bank (GTCO) recorded N490.13 billion, but its profit margin is 34.53 percent.

What is profit margin

Profit margin is a financial ratio that measures the percentage of profit a company earns in relation to its revenue.

The profit Margin is calculated by (profit / Revenue) x 100. For example, if a company's net income is N50,000 and its revenue is N200,000, the profit margin would be: Profit Margin = (N50,000 / N200,000) x 100 = 0.25 x 100 = 25%. Therefore, the profit margin in this example is 25%.

How other companies performed

Stanbic IBTC comes second as the most profitable company despite its revenue being the 10th best among the companies surveyed. Stanbic recorded a profit margin of 28.10 percent to beat BUA cement which had a profit margin of 27.98 percent.

Companies revenue

MTN Nigeria Communications (MTNN) Plc: N2.00 trillion

Dangote Cement Plc: N1.62 trillion

Access Holdings: N1.33 trillion

Zenith Bank: N921.13 billion

United Bank of Africa (UBA): N748.29 billion

Guaranty Trust Holding Company (GTCO): N490.13 billion

BUA Foods: N418.35 billion

Seplat Energy: N403.90 billion

BUA Cement: N360.99 billion

Stanbic IBTC Holdings: N287.53 billion

List of top 10 most profitable companies

GTCO (Guaranty Trust Bank): 34.52%

Stanbic IBTC: 28.10%

BUA cement: 27.98%

Zenith Bank: 24.31%

Dangote Cement: 23.60%

UBA (United Bank for Africa): 22.76%

BUA Foods: 21.83% MTN: 17.94%

ACCESS: 11.44%

Seplat 11.00%

Expert speaks on the companies profit

Reacting to the performance of the 10 companies, Prof Ndubuisi Ekekwe the Lead Faculty of Tekedia Institute, said: "It is interesting how Dangote Cement outperformed MTN (a telecom company) on profit margin. Airtel Africa did not even make the cut, implying it was below 11% on profit margin! Very interesting indeed!"

He also praised GTB for recording an impressive performance.