For remaining well structured and resilient, Guaranty Trust Holding Company Plc (GTCO) has announced N8.51trillion total assets as of June 30, 2023, an increase of 32 per cent from N6.45trillion reported in full year ended December 31, 2022.
The increase in total assets is driven by the Group’s loan book (net) that increased by 22.8per cent from N1.89trillion recorded in 2022 to N2.32trillion in June 2023, while deposit liabilities grew by 37per cent from N4.61trillion in December 2022 to N6.32trillion in June 2023.
The result and accounts on the Nigerian Exchange Group (NGX) showed that the Group reported profit before tax of N327.4billion, representing an increase of 217.1per cent over N103.2billion recorded in the corresponding period ended June 2022.
The Group had reported profit before tax of N214.2billion in 2022 financial year, representing 3.3per cent dip from N221.5billion posted in the corresponding year ended December 2021 on the back of N35.6billion impairment recognised on Ghanaian sovereign securities.
It bounced back in first quarter of (Q1) 2023 with N74.1billion profit before tax, representing an increase of 36.5per cent over N54.3billion recorded in the corresponding period ended March 2022
The increase in profits was driven by N672.60billion gross earnings in H1 2023, an increase of 239.29 per cent from N239.29billion in H1 2022.
With the significant increase in profits, the management of GTCO declared N0.50 per share interim dividend in H1 2023 as against N0.30 per share declared in H1 2022.
Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 24.7per 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 (COR) 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.
Commenting on the results, the Group Chief Executive Officer, GTCO, Segun Agbaje, in a statement 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 per cent, Pre-Tax Return on Assets (ROAA) of 8.8per cent, Full Impact Capital Adequacy Ratio (CAR) of 24.7 per cent and Cost to Income ratio of 27.7per cent.
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