Guaranty Trust Holding Company Plc (GTCO) on Monday announced N609.3billion profit before tax in 2023 , an increase of 184.5 per cent over N214.2billion recorded in the corresponding year ended December 2022.
In its audited result and accounts for full year ended December 31, 2023, the Group’s loan book (net) increased to N2.48 trillion in 2023, about 31.5 per cent increase from N1.89 trillion recorded in 2022, while deposit liabilities grew by 63.7 per cent from N4.61 trillion in 2022 to N7.55 trillion in 2023.
The Group’s balance sheet remained well structured, diversified, and resilient with total assets and shareholders’ funds closing at N9.7 trillion and N1.5 trillion, respectively.
Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 21.9 per cent, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 4.2 per cent in 2023 from 5.2 per cent 2022.
However, Cost of Risk (COR) closed at 4.5 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 of Guaranty Trust Holding Company, Segun Agbaje said “The challenging operating environment of 2023 truly tested the business model we put in place for the Holding Company, for both our banking and non-banking business verticals. Harnessing the Group’s synergies yielded a strong performance, allowing us to strengthen our foothold in banking whilst also building viable and resilient businesses of HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers. Also important to our success is our relentless obsession with innovation and offering great customer experiences as demonstrated by the successful redesign and upgrade of our mobile banking application, GTWorld.”
Agbaje added, “In a landscape characterised by evolving regulatory reforms, global uncertainties, and heightened competition, we have continued to leverage our inherent strengths and capabilities to unlock significant value, creating more opportunities for the businesses and individuals we serve. As we navigate the challenges and opportunities that lie ahead, we are confident that our robust underpinnings and focus on flawless execution will continue to drive sustainable growth across all our operations and deliver long-term value for our stakeholders.”
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 50.6per cent, Pre-Tax Return on Assets (ROAA) of 7.6per cent, Full Impact Capital Adequacy Ratio (CAR) of 21.9per cent and Cost to Income ratio of 29.1per cent.
