GTCO posts N609.3bn pre-tax profit

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By Rukayat Adeyemi

Guaranty Trust Holding Company Plc (GTCO) has reported a Profit Before Tax of N609.3 billion for the financial year ended Dec.31, 2023.

This represents an increase of 184.5 per cent over N214.2billion recorded in the corresponding year.

The group announced this in its audited financial statements for the year ended Dec. 31, 2023, sent to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) in Lagos.

GTCO’s loan book (net) increased by 31.5 per cent from N1.89 trillion recorded as at December 2022 to N2.48 trillion in December 2023.

The group’s deposit liabilities grew by 63.7 per cent, from N4.61 trillion posted in the year ended 2022 to N7.55 trillion at the close of year 2023 business.

The holdings balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N9.7 trillion and N1.5 trillion, respectively.

Also, the Full Impact Capital Adequacy Ratio (CAR) closed at 21.9 per cent, while asset quality was sustained.

The International Financial Reporting Standard (IFRS) nine stage three loans improved to 4.2 per cent in December 2023 from 5.2 per cent recorded in December 2022.

However, Cost of Risk (COR) closed at 4.5 per cent  from 0.6 per cent in Dec. 2022, as a result of worsening macros, which caused significant increase in Expected Credit Loss ( ECL) variables.

Commenting on the results, the Group Chief Executive Officer of GTCO, Mr Segun Agbaje, said the challenging operating environment of 2023 truly tested the business model put in place for the holding company, for both its banking and non-banking business verticals.

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Agbaje stated that harnessing the group’s synergies yielded a strong performance and allowed the company to strengthen its foothold in banking.

He explained that GTCO also built 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.

“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,” he said. (NAN)

Edited by Olawunmi Ashafa

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