GTCO Plc’s second-quarter audited financial filings showed a pre-tax profit of N494.5 billion, virtually doubling the earnings reported a year ago.
This is the strongest second-quarter performance any financial holding company or bank in Nigeria has released so far. The first quarter of the year saw a staggering N509.3 billion in earnings.
The bank has already disclosed a staggering N1 trillion for the first half of 2024 overall.
Key Highlights – Q2 2024
- Interest Income: N336.2 billion, up by 176%
- Net Interest Income: N264.2 billion, up by 177%
- Loan Impairments: N33.9 billion, down by 79%
- Net Commission and Fees: N48.8 billion, up by 126%
- Other Income: N305.2 billion, down by 15%
- Total Operating Expenses: N102.7 billion, up by 48%
- Pre-tax Profit: N494.4 billion, up by 95%
- Loans & Advances: N3.1 trillion, up by 34%
- Total Deposits: N10.2 trillion, up by 62%
- Net Assets: N2.3 trillion, up by 96%
- Earnings per Share (EPS): N16
Analysis: GTCO’s second-quarter performance is only second to the bank’s first-quarter results, and they continue to be the highest of any commercial bank this year.
The success was mostly driven by a 177% increase in net interest income, which came to N264.2 billion.
This quarter’s net interest income is the most the bank has ever reported, highlighting the performance of its riskier assets during the time under review.
To put this in perspective, GTCO stated that its net interest income for the entire year 2022 was N259.3 billion.
The bank’s net interest income for the first half of the year was mostly generated by customer loans, totaling approximately N491.5 billion (2023 FY: N436.6 billion).
An additional analysis reveals that it made N255.9 billion from outside Nigeria and N361.9 billion from its operations within the country.
Nonetheless, Nigeria made up N843.1 billion of the pre-tax earnings.
The “Unrealised fair value gain on the financial instrument” of N493 billion and the “Unrealised Gain on Forward Transactions” of N130.2 billion, both related to FX revaluation, is included in the bank’s N630.2 billion six-month income.
This implies that more than N520 billion of its N1 trillion in pre-tax profits are unrealized gains.
The bank also disclosed gross commission and fees of N113.9 billion, driven by N16.3 billion in commission on foreign exchange transactions and N32.5 billion in e-business income.
An additional N15.6 billion was generated by the bank from account maintenance charges.
GTCO’s Corporate Banking Group remains its bread and butter, contributing N521 billion in pre-tax profits, with its retail division coming next with N298.6 billion (2023 H1: N63.2 billion).
Additionally, GTCO announced to its shareholders an interim dividend per share of N1, which is double the 50 kobo per share given during the same period in 2023.
The closing price of the bank’s shares was N45.45, a decrease of 0.11%.
