GTCO Q1 2024 PROFIT-BEFORE-TAX SURGES BY 587.5%

Guaranty Trust Holding Company Plc (GTCO) announced impressive financial performance for the first quarter (Q1) ended March 31, 2024. Their unaudited consolidated and separate financial statements revealed a staggering 587.5% increase in profit before tax compared to the same period in 2023.

Key Highlights:

• Profit Surge: GTCO’s profit before tax skyrocketed to ₦509.3 billion, a significant increase from the ₦74.1 billion reported in Q1 2023.
• Loan and Deposit Growth: The group’s loan book (net) witnessed a healthy 21.9% growth, reaching ₦3.02 trillion from ₦2.48 trillion in December 2023. Deposit liabilities also saw a substantial rise of 26.0%, climbing from ₦7.55 trillion to ₦9.51 trillion during the same period.
• Strong Balance Sheet: GTCO maintains a well-structured and diversified balance sheet. Their total assets reached ₦13.0 trillion, while shareholders’ funds closed at ₦2.0 trillion, demonstrating financial resilience.
• Improved Asset Quality: The group’s commitment to asset quality is evident. The Full Impact Capital Adequacy Ratio (CAR) remained robust at 24.9%. Additionally, IFRS 9 stage 3 loans improved to 3.1% in March 2024 compared to 4.2% in December 2023. The cost of risk (COR) also showed significant improvement, dropping to 0.4% from 4.5% in the previous quarter.

Executive Commentary:

Mr. Segun Agbaje, Group Chief Executive Officer of Guaranty Trust Holding Company Plc, expressed his satisfaction with the results. He highlighted the positive impact of the holding company structure on various business verticals, encompassing banking, payments, funds management, and pensions. This structure allows GTCO to compete effectively and cater to all customer needs within a unified financial ecosystem.

Despite the challenging economic climate, GTCO delivered a solid performance with significant growth across financial and non-financial metrics. They remain confident in achieving their full-year guidance.

Looking forward, Mr. Agbaje emphasized their commitment to strengthening customer relationships and supporting individuals, businesses, and communities. They will continue to develop innovative products and services while leveraging their well-established free business platforms.

GTCO remains confident in its position as a leader in Africa’s future financial services landscape. They are dedicated to maintaining excellence and delivering long-term value to all stakeholders.

Overall Performance:

GTCO’s Q1 2024 results solidify their position as a top performer in the Nigerian financial services industry. Key financial ratios, including pre-tax return on equity (ROAE) of 117.0%, pre-tax return on assets (ROAA) of 18.0%, full impact capital adequacy ratio (CAR) of 24.9%, and cost-to-income ratio (CIR) of 16.3%, all demonstrate exceptional financial health.