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GTCO posts N300 bln H1 profit, surpassing 2022 full-Year performance, declares interim dividend

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By Samuel Bankole

Guaranty Trust Bank Holding Company (GTCO) has reported a remarkable performance in its half-year financial results for 2023, setting new records in profit and total assets.

The financial group achieved a profit before tax (PBT) of N300 billion, surpassing its full-year PBT for 2022. Consequently, GTCO declared an interim dividend of N0.50 per share for its shareholders.

Comparing this performance to previous years, GTCO recorded a N214.15 billion full-year PBT in the last financial year and N221.5 billion in 2021. Further data reveals that GTCO announced N238.1 billion in PBT in 2020, with N231.711 billion and N215.6 billion in profit before tax in 2019 and 2018, respectively.

As of June 30, 2023, GTCO’s total assets crossed the impressive N8 trillion mark, driven by strong deposits, loans, and advances to customers during the reporting period.

GTCO’s remarkable growth in H1 2023 comes amid challenging global economic conditions, marked by a weak global oil price and monetary tightening in various African economies in response to persistent inflation rates.

The group also achieved a milestone in gross earnings, reporting N672.6 billion in H1 2023, representing an astounding 181.1 percent increase from N239.3 billion in H1 2022. This surge was primarily attributed to growth in core banking activities, including increased transactional volumes and enhanced other income.

Interest earnings witnessed substantial growth, soaring by 53.5 percent to N225.95 billion in H1 2023 from N147.2 billion in H1 2022. This was driven by expanded earning asset volumes and improved yields during the reporting period.

Average volumes increased by 21.3 percent, primarily due to increased funding, and earning asset yields improved to 9.93 percent in H1 2023, up from 8.01 percent in H1 2022.

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Furthermore, the growth in interest income was boosted by an impressive 385.0 percent growth in non-funded income, reaching N446.7 billion in H1 2023, compared to N92.1 billion in H1 2022.

However, GTCO’s interest expense saw an 84 percent increase, rising to N48.5 billion in H1 2023 from N26.4 billion in H1 2022. This increase was primarily driven by a 150 basis point and 70 basis point pickup in the cost of savings accounts and time deposits following an adjustment to the Monetary Policy Rate (MPR), which indexes interest paid on savings accounts at 18.75 percent in H1 2023, up from 16.5 percent in December 2022.

This resulted in GTCO’s net interest income surging to N177.5 billion in H1 2023, reflecting a substantial 47 percent increase from N120.8 billion in H1 2022.

Commenting on the outstanding performance, the Group Chief Executive Officer of GTCO, Segun Agbaje emphasized that the H1 2023 audited results underscore the strong business fundamentals that underpin GTCO.

He cited the quality of past decisions, balance sheet fortification, and sound operational practices as key factors driving the company’s success.

Agbaje further noted, “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.

“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.”

He also reaffirmed GTCO’s commitment to supporting its customers and optimizing stakeholder value in evolving economic and market conditions.

He added that “We recognise 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 optimise stakeholder value.”

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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