Guaranty Trust Holding Company Plc (GTCO) on Tuesday announced its unaudited nine months ended September 30, 2023 result and accounts with N433.20 billion profit before tax (PBT), representing an increase of 155.24 percent from N169.72 billion reported in nine months of 2022.
Profit after tax closed nine months of 2023 at N367.42 billion, representing an increase of 181.87 percent from N130.35 billion reported in nine months of 2022.
The Holdings on the Nigerian Exchange Limited (NGX) PBT’s growth was influenced by Non-interest income (NII) that grew by 231.1 percent to N407.83 billion, spurred primarily by foreign exchange revaluation gains of about N306.96 billion recorded in nine months of 2023 as against N334.35 billion reported in nine months of 2022.
The Group had reported PBT N327.4 billion in the half year (H1) ended June 30, 2023, representing an increase of 217.1 percent over N103.2 billion recorded in the corresponding period ended June 2022.
While commenting on the H1 2023 results, the Group Chief Executive Officer of GTCO, Segun Agbaje, in a statement said “Despite the challenges in the business environment, notably inflationary pressures and exchange rate fluctuations, we are starting to see gains in the transformation of our businesses following our transition to a Holding Company structure. Improved profitability and 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.”
Aside from revaluation gains, the rise in income generated from fees and commission (+41.5 percent to N82.48 billion) was sufficient to outweigh losses in investment securities trading (-N55.62 billion).
This expansion in NII, alongside the growth in net interest income, led to a 99.2 percent increase in operating income to N615.90 billion.
In the nine months of 2023, GTCO reported a 61.1 percent growth in interest income to N374.56 billion, driven by impressive income from key contributory lines.
In nominal terms, the group generated higher revenue from loans and advances to customers (+32.8 percent to N212.30 billion), investment securities (+78.8 percent to N112.51 billion), and placements with other banks (+414.1 percent to N49.74 billion).
Elsewhere, interest expense surged by 79.9 per cent to N77.02 billion, triggered majorly by the elevated interest rate environment which passed through to increased funding costs.
Comments are closed.