By Chinwendu Obienyi
Guaranty Trust Holding Company Plc (GTCO) has announced that its profit before tax (PBT) grew to N433.2 billion, representing an increase of 155.2 per cent over N169.7 billion recorded in the corresponding period ending September 2022.
According to the group’s unaudited consolidated and separate financial statements for the period ended September 30, 2023, which was filed to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE), its loan book (net) grew by 17.7 per cent from N1.89 trillion recorded as at December 2022 to N2.22 trillion in September 2023, while deposit liabilities increased by 37.9 per cent from N4.61 trillion in December 2022 to N6.36 trillion in September 2023.
The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N8.6 trillion and N1.3 trillion, respectively. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 25.1 per cent, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 3.8 per cent in September 2023 from 5.2 per cent December 2022, however, Cost of Risk (COR) closed at 4.1 per cent from 0.6 per cent in December 2022 owing to management’s conservative stance on provisioning as macros worsened year-on-year (y/y), weighing negatively on the ECL variables.
Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr. Segun Agbaje, said that the group’s 3rd quarter performance underpins its strategic positioning as a leading Financial Holding Company and reaffirms its strong capabilities to successfully navigate the challenges in the operating environment.
According to him, the group will continue to leverage the strengths within its growing financial services ecosystem to improve its products and service offerings, enhance customer experience, and maximise shareholder value.”
He further said; “We are proud of our work towards Promoting Enterprise across the African continent over the years and remain committed to helping indigenous small businesses thrive through our consumer-focused fairs.
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 52.4 per cent, Pre-Tax Return on Assets (ROAA) of 7.7 per cent, Full Impact Capital Adequacy Ratio (CAR) of 25.1 per cent and Cost to Income ratio of 29.7 per cent.