By Dipo Olowookere
Guaranty Trust Holding Company (GTCO) Plc recorded an impressive performance in the 2023 fiscal year with 184.5 per cent growth in its pre-tax profit to N609.3 billion from the N214.2 billion achieved in the 2022 financial year.
An analysis by Business Post of the audited financial statements of the company released to the Nigerian Exchange (NGX) Limited and the London Stock Exchange (LSE) on Monday showed that the net profit went up by 218.9 per cent to N539.6 billion from N169.2 billion.
The board then proposed a final dividend of N2.70 for the accounting year, bringing the total dividend for the year to N3.20 as a result of an interim dividend of 50 Kobo paid in the first half of the year.
The top end of the results showed that GTCO witnessed a surge in gross earnings, which ended at N1.2 trillion in the period under review compared with the N539.2 billion posted in the preceding year, with the net interest income growing to N436.7 billion from N259.3 billion.
As for the net loan book, it increased by 31.5 per cent to N2.48 trillion from N1.89 trillion recorded as of December 2022, while deposit liabilities grew by 63.7 per cent to N7.55 trillion from ₦4.61 trillion.
The financial institution’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 December 2023 from 5.2 per cent December 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.
“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,” the chief executive of GTCO, Mr Segun Agbaje, stated.
He added that, “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, GTCO 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 50.6 per cent, Pre-Tax Return on Assets (ROAA) of 7.6 per cent, Full Impact Capital Adequacy Ratio (CAR) of 21.9 per cent and Cost to Income ratio of 29.1 per cent.
GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, and the United Kingdom alongside non-banking verticals in HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers. 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.