GTCO Reports Impressive 2023 Half-Year Audited Results With ₦327.4b Profits Before Tax
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Guaranty Trust Holding Company Plc, commonly known as GTCO, has made waves in the financial world with its recent release of the 2023 Half-Year Audited Financial Results. The report showcases remarkable growth and stability in the midst of challenging economic conditions.
GTCO, a prominent financial services group with a vast presence in Nigeria, West Africa, East Africa, and the United Kingdom, presented its Audited Consolidated and Separate Financial Statements for the period ending June 30, 2023, to both the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE).
The highlight of the report was the impressive profit before tax figure, which stood at an astounding ₦327.4 billion. This represents a remarkable increase of 217.1% compared to the ₦103.2 billion recorded during the same period in 2022. This substantial growth speaks to the resilience and strength of the GTCO brand.
The financial statements also revealed significant growth in the Group’s loan book, which increased by 22.8%, reaching ₦2.32 trillion in June 2023 from ₦1.89 trillion at the end of December 2022. Deposit liabilities also experienced substantial growth, surging by 37.0% from ₦4.61 trillion in December 2022 to ₦6.32 trillion in June 2023.
GTCO’s balance sheet maintained its robust structure, with total assets closing at ₦8.5 trillion and shareholders’ funds at ₦1.2 trillion. The Full Impact Capital Adequacy Ratio (CAR) remained impressive at 24.7%, demonstrating the group’s financial stability. Additionally, the report showed an improvement in asset quality as IFRS 9 Stage 3 Loans decreased to 4.6% in June 2023 from 5.2% in December 2022. However, the Cost of Risk (COR) closed at 3.7% in June 2023, reflecting challenges in the macroeconomic environment.
Mr. Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, expressed his satisfaction with the results, stating, “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.”
Agbaje also acknowledged the challenges posed by inflationary pressures and exchange rate fluctuations but emphasized the gains from the transition to a Holding Company structure. He noted that improved profitability and performance across key metrics justified their investments in technology, product development, and personnel.
Furthermore, Agbaje highlighted the group’s commitment to supporting customers and optimizing stakeholder value, despite prevailing economic and market conditions.
In conclusion, GTCO has maintained its position as a leader in the Nigerian Financial Services industry, boasting impressive key financial ratios such as 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 a Cost to Income ratio of 27.7%.
The remarkable performance of GTCO has earned it numerous prestigious awards in recent times, including “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 has also been featured in the Top 1000 Banks in the World and Top 100 Banks in Africa rankings by The Banker, solidifying its reputation as a financial powerhouse.
