Guaranty Trust Holding Company (GTCO) Plc grew pre-tax profit by 217 per cent to N327.4 billion in the first half of this year.
Key extracts of the audited report and accounts of GTCO for the six-month ended June 30, 2023 released at the Nigerian Exchange (NGX) showed that group profit before tax rose to N327.4 billion in first half 2023 as against N103.2 billion recorded in the corresponding period of 2022.
The balance sheet showed considerable improvements across key metrics. Group’s net loan and advances increased by 22.8 per cent from N1.89 trillion recorded at the end of December 2022 to N2.32 trillion in June 2023. Deposit liabilities grew by 37 per cent from N4.61 trillion in December 2022 to N6.32 trillion in June 2023. Total assets and shareholders’ funds closed June 2023 at N8.5 trillion and N1.2 trillion respectively.
Further analysis showed that full impact capital adequacy ratio (CAR) remained strong at 24.7 per cent. Asset quality was sustained as IFRS 9 Stage 3 Loans improved to 4.6 per cent in June 2023 as against 5.2 per cent in December 2022.
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However, the group reported that Cost of Risk (COR) closed June 2023 at 3.7 per cent from 0.6 per cent in December 2022 owing to worsening macros which caused significant increase in ECL variables.
Group Chief Executive Officer, Guaranty Trust Holding Company (GTCO) Plc, Mr. Segun Agbaje, said the half year audited results reflected the strong business fundamentals underpinning the group franchise and the quality of past decisions in future proofing the group’s balance sheet for challenging times.
He noted that the results underlined the sound practices that guide the group’s day-to-day operations, despite the challenges in the business environment, including inflationary pressures and exchange rate fluctuations.
He assured that the group has started reaping the gains in the transformation of its businesses following 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.
“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,” Agbaje said.
He pointed out that the group has continued to post one of the best metrics in the Nigerian financial services industry in terms of key financial ratios with pre-tax return on equity (ROAE) of 61.4 per cent, pre-tax return on assets (ROAA) of 8.8 per cent, full impact capital adequacy ratio (CAR) of 24.7 per cent and cost to income ratio of 27.7 per cent.