GTCO (GTBank Parent Firm) Declares Profit Before Tax of N327.4bn for H1 2023

Guaranty Trust Holding Company Plc (GTCO) has published its Audited Consolidated and Separate Financial Statements for the period ending on June 30, 2023, to both the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE).

GTCO is a leading financial services conglomerate that operates within the realms of banking across Nigeria, West Africa, East Africa, and the United Kingdom. Additionally, it has ventured into new enterprises encompassing Payment, Funds Management, and Pension Fund Administration.

In the report, the company disclosed a profit before tax of N327.4 billion, marking a substantial growth of 217.1% compared to the N103.2 billion reported in the corresponding period concluding in June 2022.

The company’s net loan book experienced a notable surge of 22.8%, rising from N1.89 trillion at the end of December 2022 to N2.32 trillion by June 2023. Additionally, deposit liabilities witnessed substantial growth, increasing by 37.0% from N4.61 trillion in December 2022 to N6.32 trillion by June 2023.

The Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said the results came off challenging economic times.

“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.

Huge profits and massive dividend payouts to shareholders only, but does not reflect the economic fundamentals and realities on ground.

Small and medium-sized enterprises that are the bedrock of any economy are closing shops and joining the unemployment market while those that…

— Chukwunedum Ekwenibe (@MiriEnweIlo) September 2, 2023

“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,” he said.

The balance sheet of GTCO continued to maintain a robust and structured posture, concluding with total assets of N8.5 trillion and shareholders’ funds of N1.2 trillion.

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% in December 2022.

“Improved profitability and solid performance across key metrics reflect efficiencies and justify the investments we continue to make in technology, product development and our people,” Agbaje added.

However, Cost of Risk (COR) closed at 3.7% from 0.6% in December 2022 owing to worsening macros which caused a significant increase in ECL variables.

Respecting that Agbaje said: “We recognize 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 optimize stakeholder value.”

Since it became a Holding Company in 2021, the group has defied challenges 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%.

The company’s prominent position in the banking sector, coupled with its dedication to empowering individuals and communities, has won it numerous prestigious awards throughout its history.

Recently, Guaranty Trust Bank was recognized as Nigeria’s Best Bank and Best Bank in CSR at the 2023 Euromoney Awards for Excellence, Best Banking Group in Nigeria by World Finance, and Best Bank in Nigeria by Global Finance. GTCO’s Guaranty Trust Bank is featured in the Top 1000 Banks in the World and Top 100 Banks in Africa rankings by The Banker.