GTCO grows profit to N347bn, assets now N8.5tn
Guaranty Trust Holding Company Plc’s profit before tax rose to N327.4bn in the first half of 2023 financial period.
The Group disclosed this in a statement on Sunday on its audited consolidated and separate financial statements for the period ended June 30, 2023, to the Nigerian Exchange Group and London Stock Exchange.
“The Group reported profit before tax of N327.4bn, representing an increase of 217.1 per cent over N103.2bn recorded in the corresponding period ended June 2022,” the statement said.
It stated that the Group’s loan book (net), increased by 22.8 per cent from N1.89tn recorded as of December 2022 to N2.32tn in June 2023, while deposit liabilities grew by 37.0 per cent from N4.61tn in December 2022 to N6.32tn in June 2023.
The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N8.5tn and N1.2tn, respectively.
“Full impact capital adequacy ratio remained strong, closing at 24.7 per cent, while asset quality was sustained as IFRS 9 Stage 3 loans improved to 4.6 per cent in June 2023 from 5.2 per cent December 2022, however, cost of risk closed at 3.7 per cent from 0.6 per cent 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, Mr 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.
“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, while also taking every opportunity to optimise stakeholder value.”