GTCO Announces N609 Billion Pretax Profit in Recent Report

GTCO Announces N609 Billion Pretax Profit in Recent Report
BBC

GTCO Announces N609 Billion Pretax Profit in Recent Report

Guaranty Trust Holding Company Plc has reported a remarkable performance in its financial results for the 2023 fiscal year. The company announced a profit before tax (PBT) of N609.3 billion, representing a significant increase of 184.5% compared to the previous year’s figure of N214.2 billion.

Key highlights of the financial statements include:

  • Post-tax profit surged by 218.99% to N539.65 billion from N169.17 billion in 2022.
  • Loans and advances improved by 31.5% to N2.48 trillion.
  • Deposits grew impressively by 63.7% to N7.55 trillion.
  • Total assets and shareholders’ funds closed at N9.7 trillion and N1.5 trillion, respectively.
  • The capital adequacy ratio remained strong at 21.9%.
  • Asset quality remained robust, with IFRS 9 Stage 3 loans improving to 4.2% in December 2023 from 5.2% in the same period of the previous year.
  • However, the cost of risk increased to 4.5% from 0.6% in December 2022 due to worsening macroeconomic factors.

GTCO’s pre-tax return on equity stood at 50.6%, pre-tax return on assets was 7.6%, and the cost-to-income ratio stood at 29.1%.

Segun Agbaje, the Group Chief Executive Officer of GTCO, attributed the strong performance to the company’s robust business model, synergies between its banking and non-banking verticals, and relentless focus on innovation and customer experience. He highlighted successful initiatives such as the redesign and upgrade of the mobile banking application, GTWorld.

Agbaje expressed confidence in the company’s ability to navigate challenges and leverage opportunities in the evolving regulatory and competitive landscape. He emphasized GTCO’s commitment to creating long-term value for its stakeholders.

As a demonstration of its commitment to shareholders, GTCO announced a final dividend of N2.70k, bringing the total dividend for 2023 to N3.20k. This payout reflects the company’s strong financial position and commitment to rewarding its shareholders for their investment.

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