GTCO says Q3 performance confirms it as leading financial holding company

…Reports N433.2bn pre-tax profit

Guaranty Trust Holding Company Plc (GTCO) recently released its unaudited consolidated and separate financial statements for the period ended September 30, 2023.

The Group in the results released to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) reported profit before tax (PBT) of N433.2billion, representing an increase of 155.2 percent over N169.7billion recorded in the corresponding period ended September 2022.

The Group’s loan book (net) grew by 17.7percent from N1.89trillion recorded as at December 2022 to N2.22trillion in September 2023, while deposit liabilities increased by 37.9percent from N4.61trillion in December 2022 to N6.36trillion in September 2023.

Read also: GTCO boosts profit with N334 bn from foreign exchange gain

Segun Agbaje, Group Chief Executive Officer of Guaranty Trust Holding Company Plc said, “Our 3rd Quarter performance underpins our strategic positioning as a leading Financial Holding Company and reaffirms our strong capabilities to successfully navigate the challenges in our operating environment. Going into the final quarter of the year, we will continue to leverage the strengths within our growing financial services ecosystem to improve our products and service offerings, enhance customer experience, and maximise shareholder value.”

The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N8.6trillion and N1.3trillion, respectively. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 25.1percent, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 3.8percent in September 2023 from 5.2percent December 2022, however, Cost of Risk (COR) closed at 4.1percent from 0.6percent in December 2022 owing to Management’s conservative stance on provisioning as macros worsened year-on-year (YoY), weighing negatively on the expected credit loss (ECL) variables.

Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios that is; Pre-Tax Return on Equity (ROAE) of 52.4percenr, Pre-Tax Return on Assets (ROAA) of 7.7percent, Full Impact Capital Adequacy Ratio (CAR) of 25.1percent and Cost to Income ratio of 29.7percent.

Agbaje further said; “We are proud of our work towards Promoting Enterprise across the African continent over the years and remain committed to helping indigenous small businesses thrive through our consumer-focused fairs. The 6th Edition of the GTCO Fashion Weekend is scheduled to hold in Lagos, Nigeria, on 11/12 November 2023, and will give entrepreneurs in the Nigerian fashion retail space a free-business platform to showcase their diverse talents and creativity to a global audience.”