GTCO reports N367bn profit after tax
Guaranty Trust Holding Company Plc (GTCO) has announced a profit after tax of N367.42billion for the period ended September.
This represents a 181.87 percent rise in its profit compared to N130.35billion as of September 2022.
The company which is listed on the Nigerian Exchange Limited made this known in the Unaudited Consolidated and Separate Financial Statements submitted on Tuesday.
The rise was driven by net interest income which rose by 56.85 percent in the period under review to N297.54 bililon. Net fees and commission income rose by 17.71 percent to N82.48 billion.
The lender’s foreign exchange revaluation gains also appreciated significantly as it moved from a loss position of N7.39billion as of September 2022 to a gain of N334.35billion.
Recall that in September, the Central Bank of Nigeria directed Deposit Money Banks to stop using gains from their foreign exchange revaluation for dividends and operational expenditures in a bid to shore up the Naira.
In a circular, the central bank said changes to the currency regime have impacted banks to varying degrees and that “banks are required to set aside the FCY revaluation gains as a counter-cyclical buffer to cushion any future adverse movements in the FX rate.”
Meanwhile, the nine-month report stated that GTBank Nigeria had restricted balances of N1.297trillion with the CBN as of 30 September 2023 (December 2022: N1.014trillion), which is the CBN cash reserve requirement. The cash reserve ratio represents mandatory total Naira deposits which should be held with the Central Bank of Nigeria as a regulatory requirement.
In its half-year report, GTCO reported profit before tax of N327.4brilllion, representing an increase of 217.1 percent over N103.2billion recorded in the corresponding period ended June 2022.
The Group’s loan book (net) increased by 22.8 percent from N1.89trillion recorded as of December 2022 to N2.32trillion in June 2023, while deposit liabilities grew by 37.0 percent from N4.61trillion in December 2022 to N6.32trillion in June 2023.
GTCO operates in Nigeria, West Africa, East Africa, and the United Kingdom in activities involving Payment, Funds Management, and Pension Fund Administration.
