GTCO: We’re starting To See The Gains, Agbaje Says; Assets Now N8.5trn

Guaranty Trust Holding Company, GTCO Plc has reported a combined assets of N8.5 trillion and profit before tax, PBT, of ₦327.4billion.

GTCO disclosed this on Sunday in its financial statement made available to the Nigerian Exchange Group, NGX, and London Stock Exchange, LSE, for the period ended June 30, 2023.

The group stated that the profit “represents an increase of 217.1 percent over ₦103.2billion recorded in the corresponding period ended June 2022.”

Instructively, GTCO stated that its loan book (net) increased by 22.8 percent from ₦1.89trillion recorded as at December 2022 to ₦2.32trillion in June 2023, while deposit liabilities grew by 37 percent from ₦4.61trillion in December 2022 to ₦6.32trillion in June 2023.

“The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at ₦8.5trillion and ₦1.2 trillion, respectively.

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

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

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