By Aduragbemi Omiyale
In the third quarter of 2023, Guaranty Trust Holding Company (GTCO) Plc reported a profit before tax of N433.2 billion compared with the N169.7 billion recorded in the same period of 2023, representing a 155.2 per cent rise.
This information was disclosed in the unaudited consolidated and separate financial statements of the company released to the Nigerian Exchange (NGX) Limited and the London Stock Exchange (LSE).
Analysis of the results showed that the financial institution performed well in the period under review, and the chief executive, Mr Segun Agbaje, in his reaction, said, “Our 3rd quarter performance underpins our strategic positioning as a leading Financial Holding Company and reaffirms our strong capabilities to successfully navigate the challenges in our operating environment. Going into the final quarter of the year, we will continue to leverage the strengths within our growing financial services ecosystem to improve our products and service offerings, enhance customer experience, and maximise shareholder value.”
“We are proud of our work towards Promoting Enterprise across the African continent over the years and remain committed to helping indigenous small businesses thrive through our consumer-focused fairs.
“The 6th Edition of the GTCO Fashion Weekend is scheduled to hold in Lagos, Nigeria, on November 11 and 12, 2023, and will give entrepreneurs in the Nigerian fashion retail space a free-business platform to showcase their diverse talents and creativity to a global audience,” he added.
The results showed that the net loan book of GTCO grew by 17.7 per cent from N1.89 trillion as of December 2022 to N2.22 trillion in September 2023, while deposit liabilities increased by 37.9 per cent from N4.61trillion in December 2022 to N6.36 trillion in September 2023.
Its balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N8.6 trillion and N1.3 trillion, respectively.
Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 25.1 per cent, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 3.8 per cent in September 2023 from 5.2 per cent in December 2022.
However, Cost of Risk (COR) closed at 4.1 per cent from 0.6 per cent in December 2022, owing to management’s conservative stance on provisioning as macros worsened y-o-y, weighing negatively on the ECL variables.
Overall, GTCO continues to post one of the best metrics in the Nigerian financial services industry in terms of key financial ratios: Pre-Tax Return on Equity (ROAE) of 52.4 per cent, Pre-Tax Return on Assets (ROAA) of 7.7 per cent, Full Impact Capital Adequacy Ratio (CAR) of 25.1 per cent and Cost to Income ratio of 29.7 per cent.
GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, and the United Kingdom alongside new businesses in Payment, Funds Management and Pension Fund Administration. Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years.
Recently, Guaranty Trust Bank was recognized as Nigeria’s Best Bank and Best Bank in CSR at the 2023 Euromoney Awards for Excellence, Best Banking Group in Nigeria by World Finance, and Best Bank in Nigeria by Global Finance. GTCO’s Guaranty Trust Bank is featured in the Top 1000 Banks in the World and Top 100 Banks in Africa rankings by The Banker.
