Eko Hot Blog reports that Guaranty Trust Holding Company Plc (GTCO) reported a 217.1% increase in profit before tax to N327.4 billion in the first half of 2023, compared to N103.2 billion in the same period of 2022.
The company’s loan book (net) grew by 22.8% to N2.32 trillion in June 2023 from N1.89 trillion in December 2022, while deposit liabilities increased by 37.0% to N6.32 trillion from N4.61 trillion in the same period.
GTCO’s balance sheet remained well-structured and resilient, with total assets and shareholders’ funds closing at N8.5 trillion and N1.2 trillion, respectively.
The company’s capital adequacy ratio remained strong at 24.7%, while asset quality improved as IFRS 9 Stage 3 loans declined to 4.6% in June 2023 from 5.2% in December 2022. However, the cost of risk increased to 3.7% from 0.6% in December 2022, due to worsening macroeconomic conditions.
GTCO’s Group Chief Executive Officer, Segun Agbaje, said the results reflect the strong business fundamentals of the company, the quality of its past decisions in future-proofing its balance sheet, and the sound practices that guide its day-to-day operations.
He noted that despite the challenges in the business environment, GTCO is starting to see the gains in the transformation of its businesses following its transition to a holding company structure.
“Improved profitability and a solid performance across key metrics reflect efficiencies and justify the investments we continue to make in technology, product development, and our people,” Agbaje said.
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