GTCO’s after-tax profit surges 223% on income segments

Guaranty Trust Holding Company Plc (GTCO), a multinational financial services group, has recorded 223 percent growth in after-tax profit driven by income segments growth in the first half of 2024, BusinessDay analysis shows.

The holding company’s after-tax profit rose to N905.6 billion in the first half of 2024 from N280.5 billion in the same period of 2023.

A further analysis reveals that GTCO’s income growth was obtained from net interest income, which recorded a 176.9 percent growth. Net fee and commission income recorded 96.3 percent growth.

Net interest income increased to N491.5 billion from N177.5 billion, while net fee and commission income grew to N101.1 billion from N51.5 billion.

Read also: H1 2024: 62% of GTCO Holding’s N1trn profit is unrealised

The firm saw its loan impairment charges drop to N47.4 billion from N82.9 billion during the period reviewed.

Similarly, there was a decline in net impairment charges on other financial assets, which dropped to N357.55 million in first half 2024 from N81.31 billion in first half 2023.

“We are immensely proud of the progress we have made as a leading financial holding company. Despite the uncertainties in the operating environment, our performance in the first half of the year, where we recorded our highest profit to date, is a testament to the resilience and adaptability of our business model,” Segun Agbaje, group chief executive officer of Guaranty Trust Holding Company Plc, said while commenting on the results.

“We remain optimistic about the future and are committed to leveraging our unique strengths as a thriving financial services ecosystem to create sustainable value for all our stakeholders as we continue to position all our business verticals–Banking, Funds Management, Pension, and Payments–for rapid growth across key markets,” he said.

GTCO reported profit before tax of N1.004 trillion, becoming the first Nigerian financial institution to cross the N1trillion mark in profit.

This figure represents an increase of 206.6 percent over N327.4 billion recorded in the corresponding period ended June 2023.

Read also: GTCO to pay interim dividend of N1 per share

GTCO Holdings’ unrealised gains hit about N619.3 billion, representing 62 percent of the group’s N1 trillion pre-tax profit posted, according to BusinessDay analysis.

This further reveals that the other income item featured an unrealised gain of N493 billion on financial instruments and a N130.2 billion unrealised gain on forward transactions. The group, however, posted a N3.9 billion unrealised loss on the FX revaluation.

Despite posting a net interest and non-interest income of N545 billion during the half-year, the bulk of the group’s reported income came from the unrealised fair value gain on financial instruments.

The group’s net loan book increased by 25.5 percent year-to-date to N3.11 trillion in June 2024 from N2.48 trillion recorded as at December 2023, with deposit liabilities growing by 39.8 percent year-to-date to N10.55 trillion in June 2024 from recorded N7.55 trillion in December 2023.