In contrast to the 103.2 billion earned during the same period in 2022, Guaranty Trust Holding Company Plc (GTCO) reported a profit before tax (PBT) of 327.4 billion for its half-year (H1) operations.
According to the bank’s audited results for the six-month period ending June 30, 2023, PBT climbed by 217.1% to ₦327.4 billion from the ₦103.2 billion reported in 2022, while the Group’s loan book (net) increased by 22.8% from ₦1.89 trillion to ₦2.32 trillion.
The switch to a holding company structure, investments in technology and product development, as well as personnel changes, were cited by the bank as reasons for the increase in PBT.
Liabilities related to deposits held by the bank increased by 37%, from ₦4.61 trillion in December 2022 to ₦6.32 trillion in June 2023.
The Group’s balance sheet closed at ₦8.5 trillion in total assets and ₦1.2 trillion in shareholders’ funds, respectively, showing that it was still robustly organized and strong.
The asset quality was maintained as IFRS 9 Stage 3 loans decreased from 5.2 percent in December 2022 to 4.6 percent in June 2023, resulting in a capital adequacy ratio (CAR) of 24.7%.
It also noted that because to the macroeconomic problems the nation was experiencing, which led to a considerable increase in ECL factors, Cost of Risk (COR) closed at 3.7% in December 2022, up from 0.6% in December 2022.
Pre-tax Return on Assets (ROAA) and Capital Adequacy Ratio (CAR) ended at 8.8% and 24.7%, respectively, while the Group Return on Equity (ROAE) was 61.4 percent. The cost-to-income ratio was also 27.7% during that time.
Segun Agbaje, group chief executive officer of the bank, 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.”
He emphasized that increased profitability and strong results across key metrics reflect efficiencies and support expenditures made in technology, product development, and our workforce.
Agbaje also 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.”
