GTCO rakes in N327.4bn profit in 6 months

Guaranty Trust Holding Company Plc has reported profit before tax of N327.4 billion for the half year, ended June 30, 2023.

The profit representing an increase of 217.1% over N103.2 billion recorded in the corresponding period ended June 2022.

GTCO or the Group disclosed this in its Audited Consolidated and Separate Financial Statements for the period released to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).

The Group’s loan book (net) increased by 22.8% from N1.89 trillion recorded as at December 2022 to N2.32 trillion in June 2023, while deposit liabilities grew by 37.0% from N4.61 trillion in December 2022 to N6.32 trillion in June 2023.

The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N8.5 trillion and N1.2 trillion, respectively.

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Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 24.7%, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 4.6% in June 2023 from 5.2% December 2022, however, Cost of Risk (COR) closed at 3.7% from 0.6% in December 2022 owing to worsening macros which caused significant increase in ECL variables.

Commenting on the results, the Group Chief Executive Officer of GTCO, Mr. Segun Agbaje, said; “Our half year audited results reflect the strong business fundamentals underpinning the GTCO franchise, the quality of our past decisions in future proofing our balance sheet for challenging times, and the sound practices that guide our day-to-day operations.

“Despite the challenges in the business environment, notably inflationary pressures and exchange rate fluctuations, we are starting to see the gains in the transformation of our businesses following our transition to a Holding Company structure. Improved profitability and a solid performance across key metrics reflect efficiencies and justify the investments we continue to make in technology, product development, and our people.”

He added: “We recognise the impact prevailing economic and market conditions have on people and livelihoods and we remain committed to seeking better outcomes for our customers by ensuring that our products and service offerings support our customers and their businesses through their evolving realities, whilst also taking every opportunity to optimise stakeholder value.”

Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 61.4%, Pre-Tax Return on Assets (ROAA) of 8.8%, Full Impact Capital Adequacy Ratio (CAR) of 24.7% and Cost to Income ratio of 27.7%.

GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, United Kingdom alongside new businesses in Payment, Funds Management and Pension Fund Administration. Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years.

The Star