H1 2024: GTCO emerges first Nigerian financial institution to cross N1trn profit mark
…Becomes first Nigerian financial institution to cross the N1trn mark in profit
By Seun Ibiyemi
Guaranty Trust Holding Company Plc (“GTCO” or the “Group”) has released its Audited Consolidated and Separate Financial Statements for the period ended June 30, 2024, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).
The Group reported profit before tax of N1.004trilion, becoming the first Nigerian financial institution to cross the N1trillion mark in profit.
This milestone figure represents an increase of 206.6percent over N327.4trillion recorded in the corresponding period ended June 2023.
The Group’s loan book (net) Increased by 25.5percent from N2.48trillion recorded as at December 2023 to N3.11trillion in June 2024, while deposit liabilities grew by 39.8percent from N7.55trillion in December 2023 to N10.55trillion in June 2024.
The Group recorded growth across all its asset lines and continues to maintain a well-structured, healthy, and diversified balance sheet across all jurisdictions wherein it operates a Banking franchise as well as across its Payments, Pension and Funds Management business verticals with total assets and shareholders’ funds closing at N14.5trillion and N2.4trillion, respectively.
Capital Adequacy Ratio (CAR) remained very robust and strong, closing at 21.0percent, while asset quality was sustained as evidenced by IFRS 9 Stage 3 Loans which closed at 4.3percent in June 2024 from 4.2percent in December 2023 and improvement in Cost of Risk (COR) to 1.6percent from 4.5percent in December 2023.
Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr. Segun Agbaje, said: “We are immensely proud of the progress we have made as a leading financial holding company.
“Despite the uncertainties in the operating environment, our performance in the first half of the year, where we recorded our highest profit to date, is a testament to the resilience and adaptability of our business model.
“We remain optimistic about the future and are committed to leveraging our unique strengths as a thriving financial services ecosystem to create sustainable value for all our stakeholders as we continue to position all our business verticals–Banking, Funds Management, Pension, and Payments–for rapid growth across key markets.”
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 103.6percent, Pre-Tax Return on Assets (ROAA) of 16.6percent, Full Impact Capital Adequacy Ratio (CAR) of 21.0percent and Cost to Income ratio of 16.7percent.
GTCO Guaranty Trust Holding Company Plc is the ultimate holding company of the GTCO Plc Group, one of the largest financial services institutions in Africa.
Guaranty Trust Bank is a Twelve-time winner of Euromoney’s Best Bank in Nigeria award and was recently named Nigeria’s Strongest Brand and Best Banking Brand in Nigeria by Brand Finance and Global Brands Magazine, respectively.
