Guaranty Trust Holding Company Plc (GTCO) Releases Audited Half-Year Results for 2023

Guaranty Trust Holding Company Plc (referred to as “GTCO” or the “Group”) has recently made public its Audited Consolidated and Separate Financial Statements covering the period up to June 30, 2023. These financial statements have been officially disclosed to both the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE).

In these financial reports, the Group revealed a substantial increase in its profit before tax, reaching ₦327.4 billion. This represents an impressive surge of 217.1% compared to the ₦103.2 billion profit recorded during the corresponding period that concluded in June 2022.

Moreover, the Group’s net loan book witnessed significant growth, rising by 22.8% from ₦1.89 trillion as of December 2022 to ₦2.32 trillion as of June 2023. Additionally, the Group’s deposit liabilities experienced substantial expansion, increasing by 37.0% from ₦4.61 trillion in December 2022 to ₦6.32 trillion by June 2023.

Growth in Assets and Liabilities

The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at ₦8.5trillion and ₦1.2 trillion, respectively.

Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 24.7%, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 4.6% in June 2023 from 5.2% in December 2022.

However, Cost of Risk (COR) closed at 3.7% from 0.6% in December 2022 owing to worsening macros which caused a significant increase in ECL variables.

Financial Stability and Quality Metrics

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said;

• “Our half-year audited results reflect the strong business fundamentals underpinning the GTCO franchise, the quality of our past decisions in future-proofing our balance sheet for challenging times and the sound practices that guide our day-to-day operations.
• Despite the challenges in the business environment, notably inflationary pressures, and exchange rate fluctuations, we are starting to see the gains in the transformation of our businesses following our transition to a Holding Company structure.
• Improved profitability and solid performance across key metrics reflect efficiencies and justify the investments we continue to make in technology, product development and our people.

He further said;

• “We recognize the impact prevailing economic and market conditions have on people and livelihoods and we remain committed to seeking better outcomes for our customers, by ensuring that our products and service offerings support our customers and their businesses through their evolving realities, whilst also taking every opportunity to optimize stakeholder value.

CEO’s Perspective and Future Outlook

Overall, the group 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 61.4%, Pre-Tax Return on Assets (ROAA) of 8.8%, Full Impact Capital Adequacy Ratio (CAR) of 24.7% and Cost to Income ratio of 27.7%.

GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, 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 have 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.