By Aduragbemi Omiyale
In the first quarter of 2023, a financial institution, Guaranty Trust Holding Company (GTCO) Plc, reported a 36.5 per cent improvement in profit before tax of N74.1 billion compared with the N54.3 billion achieved in the same period of last year.
In the Unaudited Consolidated and Separate Financial Statements for the period ended March 31, 2023, filed to the Nigerian Exchange (NGX) Limited and the London Stock Exchange (LSE) on Tuesday, the firm said its balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N6.7 trillion and N975.6 billion, respectively.
Also, the full impact capital adequacy ratio (CAR) remained very strong, closing at 23.2 per cent, while asset quality was sustained as IFRS 9 Stage 3 Loans ratio and Cost of Risk (COR) closed at 5.4 per cent and 0.2 per cent in March 2023 from 5.2 per cent and 0.6 per cent in December 2022, respectively.
However, the net loan book dipped by 1.5 per cent from N1.88 trillion recorded as of December 2022 to N1.86 trillion in March 2023, while deposit liabilities increased by 9.9 per cent from N4.61 trillion in December 2022 to N5.07 trillion in March 2023.
Overall, the GTCO sustained its positive key financial ratios, with the Pre-Tax Return on Equity (ROAE) at 31.1 per cent, Pre-Tax Return on Assets (ROAA) at 4.5 per cent, Full Impact Capital Adequacy Ratio (CAR) at 23.2 per cent and the Cost to Income ratio at 43.1 per cent.
“Our first quarter results reflect the strength of the GTCO franchise, the quality of our decision-making, and the unfolding success of our efforts towards becoming a leading financial services company in Africa.
“Despite severe headwinds, we delivered a decent performance, recording growth across key revenue lines. We are also not relenting in our resolve to better outcomes for people and businesses within our financial ecosystem,” the chief executive of GTCO, Mr Segun Agbaje, said.
He further added, “2023 is shaping up to be another interesting year. Some of the challenges from the past few years are still lingering, and uncertainties ahead would test the resilience of most economies and businesses.
“We are confident in our positioning as a thriving financial services company underpinned by strong business fundamentals and will continue to benefit from a well-diversified earnings base.”
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, the bank was recognized as Africa’s Best Bank and the Best Bank in Nigeria at the 2021 Euromoney Awards for Excellence. It also retained its position as Africa’s Most Admired Financial Services Brand in the 2022 ranking of The Brand Africa 100: Africa’s Best Brands.
