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GTCO grows H1 pre-tax profit by 217.1% to N327.4bn

Here’s what to know ahead of GTCO public offer

Guaranty Trust Holding Company Plc (GTCO) has released its audited consolidated and separate financial statements for the half year (H1) period ended June 30, 2023.

The group’s results at both the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) showed it reported profit before tax (PBT) of N327.4billion, representing an increase of 217.1percent over N103.2billion recorded in the corresponding period ended June 2022.

The Group’s loan book (net) increased by 22.8percent from N1.89trillion recorded as at December 2022 to N2.32trillion in June 2023, while deposit liabilities grew by 37percent from N4.61trillion in December 2022 to N6.32trillion in June 2023.

The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N8.5trillion and N1.2 trillion, respectively.

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

Commenting on the results, Segun Agbaje, Group Chief Executive Officer, Guaranty Trust Holding Company Plc 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.”

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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 i.e., Pre-Tax Return on Equity (ROAE) of 61.4percent, Pre-Tax Return on Assets (ROAA) of 8.8percent, Full Impact Capital Adequacy Ratio (CAR) of 24.7percent and Cost to Income ratio of 27.7percent.