By Chinwendu Obienyi
Shareholders of Guaranty Trust Holding Company (GTCO) Plc are expected to receive a record dividend payment of N8.03 per share for the 2024 financial year.
This is coming after the Group reported profit before tax of N1.266 trillion, representing an increase of 107.8 per cent over N609.3 billion recorded in the corresponding year ended December 2023.
According to the group, this performance reflects not just strong earnings but also the quality and sustainability of its earnings, underpinned by a well-diversified revenue base, robust risk management practice, and disciplined capital management.
The Group recorded growth across all financial and non-financial metrics, and continues to maintain a well-structured, healthy, and diversified balance sheet.
The Group’s loan book (net) increased by 12.3 per cent from N2.48 trillion in December 2023 to N2.79 trillion in December 2024, while deposit liabilities grew by 37.8 per cent from N7.55 trillion to N10.40 trillion during the same period. Total assets and shareholders’ funds closed at N14.8 trillion and N2.7 trillion, respectively.
Furthermore, its Capital Adequacy Ratio (CAR) remained very robust and strong, closing at 39.3 per cent, likewise, asset quality was sustained as evidenced by IFRS 9 Stage 3 Loans which closed at 3.5 per cent at Bank Level and 5.2 per cent at Group in December 2024 (2023: Bank, 2.5 per cent; Group, 4.2 per cent) and cost of risk (COR) closed at 4.9 per cent from 4.5% in December 2023.
Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Segun Agbaje, said that the bank’s strong performance for 2024 underscores the resilience and depth of its business, driven by a well-diversified earnings base across our banking and non-banking subsidiaries, all of which are P&L positive.
“Our capacity to generate sustainable high-quality earnings, maintain strong asset quality, and drive cost efficiencies reflects the soundness of our long-term strategy and disciplined execution.
We have also prudently provided for all our forbearance loans, well ahead of the June 2025 timeline, whilst fully accruing for the windfall tax, further strengthening our balance sheet and enhancing financial resilience.
The total dividend of N8.03k for the 2024 full year is underpinned by the quality of our earnings and is in line with our long tradition of increasing dividend pay-out year-on year. Looking ahead, we remain committed to building a Financial Services Group that thrives on innovation, operational efficiency, and sustainable profitability”
Agbaje thereafter noted that the group will continue to deepen its relationships with customers, leverage technology to deliver cutting-edge financial solutions, and accelerate the growth of all our business verticals—Banking, Funds Management, Pension, and Payments—to unlock new opportunities and create more value for our shareholders.
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 60.5 per cent, Pre-Tax Return on Assets (ROAA) of 10.3 per cent, Capital Adequacy Ratio (CAR) of 39.3 per cent and Cost to Income ratio of 24.1 per cent.