GTCO delivers robust PBT of N609.3bn, up 184.5% YoY in FY 2023

Cynthia Ezekwe

Guaranty Trust Holding Company Plc (GTCO), one of Africa’s largest financial services groups, has reported a profit before tax of N609.3 billion for the year ended December 31, 2023, representing a significant increase of 184.5 percent over the N214.2 billion recorded in the corresponding period of the previous year.

GTCO’s audited consolidated and separate financial statements filed with the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE) showed strong growth across all the group’s business segments as the group’s net loan book increased by 31.5 percent from N1.89 trillion in December 2022 to N2.48 trillion in December 2023. 

The group’s balance sheet was well structured, diversified, and resilient, with total assets and shareholders’ funds closing at N9.7 trillion and N1.5 trillion, respectively. The full impact capital adequacy ratio (CAR) remained strong at 21.9 percent. In addition, asset quality was maintained as the IFRS 9 Stage 3 loans improved to 4.2 percent in December 2023 from 5.2 percent in December 2022. 

The group’s key financial ratios also maintained a positive growth rate, with pre-tax return on equity (ROAE) at 50.6 percent, pre-tax return on assets (ROAA) at 7.6 percent, full impact capital adequacy ratio (CAR) at 21.9 percent, and cost to income ratio at 29.1 percent. 

On the flipside, Cost of Risk (COR) closed at 4.5 per cent from 0.6 per cent in December 2022 owing to worsening macros which caused significant increase in Expected Credit Loss (ECL) variables.

Commenting on the performance, Segun Agbaje, the group chief executive officer of GTCO, noted that the challenging operating environment of 2023 was a major test to  the business model of  the holding company’s  banking and non-banking business verticals.

“Harnessing the group’s synergies yielded a strong performance, allowing us to strengthen our foothold in banking whilst also building viable and resilient businesses of HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers. 

“Also important to our success is our relentless obsession with innovation and offering great customer experiences as demonstrated by the successful redesign and upgrade of our mobile banking application, GTWorld,’’ Agbaje said. 

The CEO noted that the company has been able to leverage its unique strengths and capabilities to create value and opportunities for its verticals and customers, despite the challenges posed by regulatory reforms, global uncertainties, and heightened competition. 

Agbaje expressed his confidence in the group’s ability to navigate the challenges and opportunities ahead, highlighting the importance of flawless execution to drive sustainable growth across all operations and deliver long-term value for all stakeholders.