GTCO reports N509.3bn Q1 pre-tax profit

Guaranty Trust Holding Company Plc (GTCO) has released its unaudited consolidated and separate financial statements for the period ended March 31, 2024. The results released to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) show the group reported profit before tax of N509.3billion, representing an increase of 587.5 percent over N74.1billion recorded in the corresponding period ended March 2023. The Group’s loan book (net) increased by 21.9percent from N2.48trillion recorded as at December 2023 to N3.02trillion in March 2024, while deposit liabilities increased by 26 percent from N7.55trillion in December 2023 to N9.51trillion in March 2024.

Commenting on the results, Segun Agbaje,Group Chief Executive Officer, Guaranty Trust Holding Company Plc said: “Our first quarter results reflect the unfolding value of what we have created in all our business verticals through the Holding Company Structure – from Banking and Payments to Funds Management and Pension, we are positioned to compete effectively on all fronts and fulfil all our customers’ needs under a unified, thriving financial ecosystem. Despite the challenging operating environment, we delivered a solid performance, recording significant growth across all financial and non-financial metrics, and we remain on track to meeting our full year guidance.”

The Group’s balance sheet remained well structured, diversified, and resilient with total assets and shareholders’ funds closing at N13trillion and N2trillion, respectively. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 24.9percent, while asset quality was sustained as IFRS 9 stage 3 loans improved to 3.1percent in March 2024 from 4.2percent December 2023 and cost of risk (COR) closed at 0.4percent from 4.5percent in December 2023.

Agbaje further said: “Looking ahead, we will continue to focus on strengthening our relationships with our loyal customers, supporting not just individuals and businesses but also our communities through our well-attested free business platforms as well as innovative products and services. We are confident in our credentials to lead the future of financial services in Africa and will not relent in our commitment to excellence whilst delivering long-term value to all stakeholders.”

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 117percent, pre-tax return on assets (ROAA) of 18percent, full impact capital adequacy ratio (CAR) of 24.9percent and cost-to-income ratio (CIR) of 16.3percent.