Nigerian Bank Smashes Record, Becomes First to Cross N1 Trillion Profit Threshold
- GTCO has released its audited consolidated and separate financial statements for the period ended June 30, 2024
- Being the first financial institution in Nigeria to generate a profit above N1 trillion, the Group recorded profit before taxes of N1.004 trillion
- By comparison, the N327.4 trillion reported in the equivalent period ending in June 2023 decreased by 206.6% to reach this milestone amount
Legit.ng journalist Zainab Iwayemi has over 3 years of experience covering the Economy, Technology, and Capital Market.
The Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE) have received the audited consolidated and separate financial statements for the period ending June 30, 2024, from Guaranty Trust Holding Company Plc (GTCO).
Source: Getty Images
The group became the first financial institution in Nigeria to surpass the N1 trillion profit threshold when it announced profit before taxes of N1.004 trillion.
With this milestone result, the N327.4 trillion recorded in the equivalent period ending in June 2023 has increased by 206.6%.
Financial statement by the group on the NGX showed that its deposit liabilities increased by 39.8% from N7.55 trillion in December 2023 to N10.55 trillion in June 2024, while its loan book (net) increased by 25.5% from N2.48 trillion as of December 2023 to N3.11 trillion.
With total assets and shareholders' funds closing at N14.5 trillion and N2.4 trillion, respectively, the Group saw growth across all of its asset lines and continues to maintain a well-structured, healthy, and diversified balance sheet across all jurisdictions where it operates a banking franchise as well as across its Payments, Pension, and Funds Management business verticals.
The asset quality was maintained as shown by the IFRS 9 Stage 3 Loans, which closed at 4.3% in June 2024 from 4.2% in December 2023, indicating that the Capital Adequacy Ratio (CAR) remained extremely robust and strong, closing at 21%. The reduction in Cost of Risk (COR) to 1.6% from 4.5% in December 2023 is another indication of this.
Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc in a statement said,
“We are immensely proud of the progress we have made as a leading financial holding company.
“Despite the uncertainties in the operating environment, our performance in the first half of the year, where we recorded our highest profit to date, is a testament to the resilience and adaptability of our business model.
“We remain optimistic about the future and are committed to leveraging our unique strengths as a thriving financial services ecosystem to create sustainable value for all our stakeholders as we continue to position all our business verticals–Banking, Funds Management, Pension, and Payments–for rapid growth across key markets.”
In terms of important financial ratios, the Group consistently posts some of the strongest numbers in the Nigerian financial services sector. This is demonstrated by the company's 103.6% Pre-Tax Return on Equity (ROAE), 16.6% Pre-Tax Return on Assets (ROAA), 21% Full Impact Capital Adequacy Ratio (CAR), and 16.7% Cost to Income ratio.
GTbank sets new banking record
Legit.ng reported that Guaranty Trust Holding Company Plc (GTCO), the parent company of Guaranty Trust Bank (GTBank), has recorded a profit after tax of N509.3 billion in the first quarter of 2024. The amount is a 587.4% or six times increase when compared to N74 08 billion reported in the same period of 2023.
The amount is a 587.4%, or six times, increase compared to N74 08 billion reported in the same period of 2023.
The profit recorded by GTBank is also the largest ever pre-tax profits in Nigerian banking history.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
