GTCO posts N103.2bn pre-tax profit in H1 2022

Guaranty Trust Holding Company Plc (GTCO) says it has posted profit before tax of N103.2 billion for the period ended June 30.

The bank stated this in its audited consolidated and separate financial statements to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) on Monday.

The gain represented an increase of 11.0 per cent over N93.1 billion recorded in the corresponding period ended June 2021.

The group’s loan book (net) increased by 1.8 per cent from N1.80 trillion recorded as at December 2021 to N1.83 trillion in June 2022, while deposit liabilities increased by 6.4 per cent from N4.13 trillion in December 2021 to N4.39 trillion in June 2022.

The group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N5.7 trillion and N845.7 billion, respectively.

Full impact Capital Adequacy Ratio (CAR) stayed strong, closing at 22.0 per cent, while asset quality was sustained as IFRS 9 Stage 3 Loans ratio and Cost of Risk (COR) closed at 6.2 per cent and 0.2 per cent in June 2022 from 6.0 per cent and 0.5 per cent in December 2021, respectively.

Commenting on the results, the Group Chief Executive Officer of the bank, Mr Segun Agbaje, said, “Our results show an increase in key revenue lines and a strong performance in other financial metrics which reinforce our growth prospects as a leading financial services company.

“Our priority at the start of the 2022 financial year was to bring the Group’s new businesses on-stream, starting strong with a focus on long-term viability.

“At present, we have successfully expanded our financial services ecosystem to include HabariPay Ltd., Guaranty Trust Fund Managers Ltd., and Guaranty Trust Pension Managers Ltd., and all of them are P&L positive.”

He further stated that, “These newly created businesses will operate alongside our flagship banking franchise to offer increased value to our growing customer base as well as other stakeholders.

“We will continue to build on our core strengths of service excellence, innovation, and flawless execution to deliver our corporate objectives for the year and further our vision of being Africa’s leading financial services institution.”

He said overall, the group continued to post one of the best metrics in the Nigerian financial services industry in terms of key financial ratios.

He listed some of them as Pre-Tax Return on Equity (ROAE) of 23.9 per cent, Pre-Tax Return on Assets (ROAA) of 3.7 per cent, Full Impact Capital Adequacy Ratio (CAR) of 22.0 per cent and Cost to Income ratio of 49.1 per cent.