GTCO Reports N327.4bn Pre-tax Profit In H1

Guaranty Trust Holding Company (GTCO), has declared a pre-tax profit of N327.4 billion in its audited results for the first half (H1) of 2023.

The Holding Company consolidated and separate financial statements for the period ended June 30, 2023 released on the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) showed that the Group reported profit before tax of N327.4 billion, representing an increase of 217.1 per cent over N103.2 billion recorded in the corresponding period ended June 2022.

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

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

Speaking on the results, the group chief executive officer of Guaranty Trust Holding Company, 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 further said, “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, Pre-Tax Return on Equity (ROAE) of 61.4 per cent, Pre-Tax Return on Assets (ROAA) of 8.8 per cent, Full Impact Capital Adequacy Ratio (CAR) of 24.7 per cent and Cost to Income ratio of 27.7 per cent.