GTCO takes off nicely in 2024 with record N509.3bn PBT in Q1
Segun Agbaje, group chief executive officer, Guaranty Trust Holding Company Plc
Onome Amuge
A nicely guided take-off in the financial year 2024 has seen Guaranty Trust Holding Company (GTCO) soaring into a record-breaking 587.5 percent year-on-year surge in pre-tax profit to N509.3 billion in the first quarter, its biggest quarterly PBT in its history.
GTCO, a HoldCo housing Guaranty Trust Bank, unveiled its financial performance to the financial world in its unaudited consolidated and separate financial statements for Q1 2024 filed with the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE).
The HoldCo’s balance sheet maintained its financial strength, showing N13 trillion in total assets and N2 trillion in shareholders’ funds. The group’s enviable full impact capital adequacy ratio printed at 24.9 percent, providing a sturdy foundation for future growth.
The group’s asset quality remained resilient, with IFRS 9 Stage 3 loans dropping to a commendable 3.1 percent in March 2024 from 4.2 percent in December 2023.
Fueled by increasing demand and unwavering customer trust, GTCO’s loan book swelled 21.9 percent from N2.48 trillion at the end of 2023 to N3.02 trillion in March 2024. The growth was mirrored in the group’s deposit liabilities, which rose by an equally commendable 26 percent to reach N9.51 trillion, reflecting the enduring trust and loyalty of GTCO’s customers.
GTCO’s metrics for key financial ratios was further showcased in its return on average equity (ROAE) which rose 117 percent, return on average assets (ROAA) reached 18 percent, capital adequacy ratio (CAR) maintained a steadfast 24.9 percent and cost income ratio (CIR) landing at 16.3 percent, demonstrating the group’s remarkable financial strength and dynamism.
Segun Agbaje, group chief executive officer, commenting on the result, said: “Our first quarter results reflect the unfolding value of what we have created in all our business verticals through the Holding Company structure – from Banking and Payments to Funds Management and Pension, we are positioned to compete effectively on all fronts and fulfil all our customers’ needs under a unified, thriving financial ecosystem.
“Despite the challenging operating environment, we delivered a solid performance, recording significant growth across all financial and non-financial metrics, and we remain on track to meeting our full year guidance,” Agbaje said.
Looking ahead to the future, Agbaje committed to solidifying the bonds between GTCO and its loyal customers. This pledge, he noted, extends beyond simple business transactions as GTCO seeks to strengthen the foundations of the communities that make up the lifeblood of its operations.
Agbaje also expressed confidence in the group’s credentials to lead the future of financial services in Africa, stating that it will not relent in its commitment to excellence whilst delivering long-term value to all stakeholders.