GTCO’s resilience shines through as pre-tax profit rises 155.2% to N433.2 billion in Q3 2023

Cynthia Ezekwe

Guaranty Trust Holding Company (GTCO) Plc, the holding company for Guaranty Trust Bank, has continued to demonstrate its strategic positioning and financial strength as a leading financial holding company, as evidenced by a 155.2 per cent increase in its profit before tax (PBT) to N433.2 billion in the third quarter of 2023.

The company’s impressive performance is attributable to its strong financial position, sound management, and strategic investments, which have allowed it to weather the challenging economic environment and deliver positive results for its shareholders.

GTCO’s  nine-month financial results for the period ended September 30, 2023, published on the Nigerian Exchange Limited (NGX), show a significant increase in its pre-tax profit from N169.7 billion in the third quarter of 2022 to N433.2 billion in the third quarter of 2023.

The financials show that profit after tax (PAT) increased significantly from N130.35 billion in the third quarter of 2022 to N367.42 billion in the third quarter of 2023, an impressive increase of 183 per cent. The company’s earnings per share (EPS) also increased from N4.55 in the third quarter of 2022 to N12.98 in the third quarter of 2023, a growth of 182 per cent.

The financial statement showed a significant increase in the group’s total assets, which stood at N8.62 trillion as of September 2023, an increase of 34 per cent from N6.45 trillion as of December 31, 2022. Total equity also saw a notable increase from N931.15 billion in December 2022 to N1.27 trillion in September 2023, an increase of 36 per cent.

In addition to the group’s growth in total assets and equity, its net loan book saw a significant increase of 17.7 per cent from N1.89 trillion in December 2022 to N2.22 trillion in September 2023. The group’s deposit liabilities also saw a significant increase of 37.9 per cent from N4.61 trillion in December 2022 to N6.36 trillion in September 2023.

The group’s financial ratios remained strong in the third quarter of 2023, with pre-tax return on equity (ROAE) at 52.4 per cent, pre-tax return on assets (ROAA) at 7.7 per cent, full impact capital adequacy ratio (CAR) at 25.1 per cent, and cost to income ratio at 29.7 per cent.

In a comment on the group’s record results, Segun Agbaje, group chief executive officer of Guaranty Trust Holding Company (GTCO) Plc, noted that the group’s performance in the third quarter of 2023 is a testament to its strategic positioning as a leading financial holding company and its ability to navigate the challenges in the operating environment.

He further noted that the group’s performance is a reflection of the strength of its diversified business model, the resilience of its businesses, and the continued trust and confidence of its customers, shareholders, and other stakeholders.

Going into the final quarter of the year, Agbaje assured that GTCO 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.